Customer Management of RYANIAR AIRLINE

Document Type:Thesis

Subject Area:Business

Document 1

From 1985 the company has found itself among the most massive low fare carriers in Europe (Newcomer et al. Ryanair has been accused of inadequate customer services and had a $550,000 fine imposed on the company. The penalty was imposed on the company by an anti-trust body in Italy for operating customer service lines which charged premium rates but did not have solutions to their problems (Hiebeler et al. The fines were imposed after a series of investigations launched in 2014 that led to the budget of the airlines being awarded 90 days to bring to an end the high costs and difficulties that passengers faced (Thomas, 2015, p. The complaints of the ADCM antitrust body revealed having received claims from passengers who found it challenging to have alternative flights or reimbursements when their flights were canceled.

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It is an indication of the acquired customer values and the ones who are lost, the growth of customer value and the finances spent on different customer values (Kashyap et al. , 2000, p. It is created using the information offered by an organization on its current keep, win, cost and develop performance. From the Schema Value of Ryanair, the current value of the company shows that it has 2,046,626 customers in the segment who produce a revenue of $1, 1132 per person yearly. This means that the income of the section is $2,317,141,789 from that particular segment. Which Models Can the Company Use to Improve Customer Service? Innovative service organizations have recognized the need for identifying the existence of different categories of customers whose desires, behaviors and market responsiveness vary.

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The model which can be used to improve customer value is the Customer Pyramid (Zeithaml et al. , 2001, p. The customer pyramid tool ensures that an organization uses the customer profitability differences in managing or increasing profitability. Ryanair can use this tool in strengthening its connection between profitability and service quality and in determining the optimal allocation of limited resources. Finally, the Lead Tier includes clients who cost the organization money (Zeithaml et al. , 2001, p. This model is vital for Ryanair Company because it will help in the differentiation of clients in the industry through different factors. Ryanair should use Customer Pyramid when it has limited service resources such as employee time, and this will remove the hurdle of best clients of the organization of obtaining services because of company's inefficiency.

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It is also used when clients desire different service levels and are willing to pay for them. The use of this model will help Ryanair in forming investigations on services of the airline and assessing perceptions and quality of the management of the airline. There is also the assessment of the validity of services' conviviality (Ruby 1998, p. Ryanair can also use the Kano Model in delighting its clients. This model focuses on satisfaction of clients which is connected to a product’s quality (Xu et al. 2009, p. Customers are the principal driving force behind any organization, and it then becomes essential when their needs are taken into consideration. When these models are applied, there are high chances that the company will not face lawsuits on the provision of value to its customers.

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References Armstrong, G. , Kotler, P. , Harker, M. Canhoto, A. I. , Clark, M. and Fennemore, P. Emerging segmentation practices in the age of the social customer. Ganusauskaitė, R. and Tauraitė-Kavai, E.  Improving" Ryanair" brand image in Europe (Bachelor's thesis, ISM University of Management and Economics). Hiebeler, R. , Kelly, T. A. K. and Sellamuthu, P. Influence of service quality on customer satisfaction: Application of SERVQUAL model.  International Journal of Business and Management, 5(4), p. Parolini, C.  The value net: A tool for competitive strategy. Wiley. Ruby, C. A. H. , 1996, February. The Kano model: How to delight your customers. In International Working Seminar on Production Economics (Vol. 1, No. M. and Opperud, A. An analytical Kano model for customer need analysis.  Design Studies, 30(1), pp. Zeithaml, V.

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