Question

In: Operations Management

Recommend suggestions to Ryanair to build customer loyalty.

Recommend suggestions to Ryanair to build customer loyalty.

Solutions

Expert Solution

Here are the recommended suggestions to Ryanair to build customer loyalty:

  • It is clear that Ryanair is focused on creating a brand experience & customer experience which is not based on service. The airlines want to be known for low fares and target customers are the ones to whom the price of airlines matter a lot.
  • Although over the time period it has successfully implemented the same it needs to look at its basics of offering the right customer service.
  • Low prices are not going to be enough and customers are becoming more demanding and less loyal.
  • For any customer ethical behaviour is most important and the customer abuse which the airlines have been involved in on a regular basis needs serious correction.

Based on research from UK Institure of customer services more than 62% of customers are looking at the balance between pay & service and hence those factors are becoming greatly crucial for airlines like Ryanair.

Suggestions:

  • The recent industrial action on Ryanair is great learning that customers have increasingly faced customer dissatisfaction. It is suggested for the airline to focus on creating a brand which values customer experience equally.
  • The customer and employee experience go hand in hand and hence it is important for them to make the right hiring, training and recruitment a focused strategy.
  • It is important to work closely with team and representative and ensure that trust & loyalty of their customers is retained otherwise the business model won't remain sustainable.
  • It needs to continue its focus on low pricing and building a prestigious brand.

People know what to expect from them, services to expect and hence they own a huge customer share. They need to hear the voice who are preferring them and ensure minimum promises are being met.

Customer experience is the future and the organisation that deliver value through prompt interaction will build a solid brand. The management of such experiences requires the right people who will understand the customer segment and focus on creating the right mix of cost, price, product & services.

Customer service and human resource management need to improve. They need to build the labour union culture, be more people-oriented and also help in the career development of their people. TQM and such techniques can help them go a long way ahead.

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