After a United Airlines flight, a passenger found that a $3,500 guitar he had checked in as luggage had been badly damaged. The passenger jumped through all of the proper hoops to obtain compensation from United but to no avail. After realizing United was not going to pay the replacement cost, the passenger made a YouTube video that generated more than 19 million views and propelled the man on his singing career. United soon offered to make compensation, and the passenger requested that it be donated to a music school. United says it is using his video in its training programs.
This case is a great example of “customer voice,” the power of social media, and how not to handle a customer complaint. Below are three kinds of business travelers categorized by their levels of customer satisfaction. Discuss which type of customer would have the biggest impact on the overall sales and profits of an airline.
A. Customer 1. The business traveler is a very satisfied, loyal customer who flies this airline whenever possible (eight times a year).
B. Customer 2. The business traveler is a somewhat satisfied, non-loyal customer who flies this airline occasionally (three times a year).
C. Customer 3. The business traveler is a dissatisfied customer who flies this airline only when necessary (once a year).
How does your choice relate to the profit impact of the customer? Does your choice encompass the concepts of customer lifetime value and customer loyalty? If so, how?