It is obvious that when occupied employees and weary travellers are treated with esteem, dignity and courtesy, it offers a serious difference in how the organization operates and it is perceived by customers – and potential customers – and this is how JetBlue offers succeeded in adding value through these simple yet important methods. “These leading principles had been extended to all or any levels of JetBlue’s operation, in house and outwardly, and have made unique buyer appeal” (Bodouva Bodouva, 2005, p. 317). These leading principles have also been the driving forces behind JetBlue’s attempts to gain additional market share with the help of value from both the customer and employee perspective.
The effect of these foregoing value-added techniques has been significant and they paid major dividends for JetBlue to date:
JetBlue has made significant progress in establishing a very good brand that helps to distinguish it from the competition. It seeks to be identified as a safe, trustworthy, low-fare air travel that is highly focused on customer support, provides an pleasurable flying knowledge, and is continuously evolving; as well as the company’s value added services incorporate:
An rare amount of legroom;
Free satellite TV each and every seat;
Aircraft yoga greeting cards (there cards are kept right up coming to the “barf bags” and inflight guidance on how to endure a crash, and supply JetBlue people with some beneficial stretching exercises to ease the tedium, monotony and cramped muscle groups that can result from enforced sedentary activities, but cautions the exercises could make “you look like a real weirdo to your many other passengers” (Bodouva Bodouva, 2004, p. 320);
No discount seats;
“TrueBlue” loyalty plan
All costs are sold one-way (no Saturday-night layover required);
Online reservation discounts;
Top quality service; and Safety (Bodouva Bodouva, 2005, p. 319).
It is similarly clear that Neeleman took what he learned during his period at South west seriously and has seeing that fine-tuned the fact that was best by Southwest to his individual unique businesses at JetBlue. In this regard, Ashby and Mls (2002) remember that when the Sept 2001 terrorist attacks rocked the rest of the flight industry in 2001, Southwest Airlines’ staff “quickly lined up, accepting reduced pay to avoid layoffs and maintain procedures and low fares in spite of low tons. While Usa and other flight companies reduced routes, Southwest held a full routine, winning client and employee loyalty along with industry share” (p. 108).
As opposed to JetBlue, even though, Southwest features spurned the strictly high end approach to ticketing embraced by simply JetBlue (although they stay in the vanguard of paperless travel) restoration there are humans involved in the reservation process. On this factor and in sharp contrast to JetBlue, Freebie southwest uses a great unsophisticated method to this customer satisfaction function. Even though Southwest has invested in CUSTOMER RELATIONSHIP MANAGEMENT packages to and analyze customer info, it also identified that the benefits associated with this approach failed to outweigh the associated costs. For example , South west specifically rejects multi-channel equipment that are being employed by other air carriers such as JetBlue such as email and on the net reservations program menus because “they are too impersonal and take the expense out of customer connections, but also the quality. It really is aware of the very fact that, by using this strategy, this ignores among the basic principles of CRM, we. e. that the customer should be able to reach the organization how then when he wants” (De Pelsmacker Kitchen, 2005, p. 124).
These writers also suggest that JetBlue’s investment in some features that lead to its “making flying enjoyable” initiatives will be prohibitively high-priced and these types of resources ought to be invested anywhere else. For example , Sobre Pelsmacker and Kitchen stress that buying high-tech systems does not generate good business sense if it does not sufficiently meet customer support requirements: “This technologically conventional point-of-view can be in line with the strategy of high-touch personal service; this may also become a important weakness in a competitive environment in which high end customer associates are saving money that is reinvested in extra value intended for the customer (JetBlue, another cheap airline, places a satellite television in every single passenger’s again seat)” (emphasis added) (De Pelsmacker Kitchen, 2004, g. 124).
These kinds of concerns tend not to seem to have affected you’re able to send zeal intended for using high end approaches to support add worth for their travellers, though. For example , in response to heightened concerns over aeroplanes security following terrorist episodes of Sept 11, 2001, JetBlue mounted onboard systems with two to four cameras beyond the cockpit door and in the rear galley that were designed to warn the team of possible hijack and air craze incidents (Couldry Mccarthy, 2004). In addition , “Placards placed on cockpit doors advise passengers that they may be below video security, assuaging anticipation of privacy breach (although the American Municipal Liberties Union thinks otherwise)” (Couldry Mccarthy, 2004, l. 245).
While noted above, like JetBlue, Southwest is a pioneer in paperless ticketing and online solution selling, and it is well aware to the fact that in the future it will have to support their high-tech systems with customer satisfaction features that will assist these efforts worthwhile for all concerned. Although every business is unique, naturally , it would appear that JetBlue is carrying on to use what is best from their competitors to help them achieve their particular organizational goals, and it is no surprise that many of such initiatives are reflective of Neeleman’s experience at Southwest.
Among other initiatives, Southwest continues to check out how to better serve it is customers as well as how to use the info it does collect in order to provide it is customers together with the level of services they have come to expect from this major transporter. In this regard, though employees may not be compelled to be friendly or courteous to others, it is possible to emphasise to these people what effect these kinds of value added services can have on the company’s economical performance – and therefore their very own jobs. For example , Southwest “also wants to develop CRM systems that enable sharing info between support counters and call centres. In fact, Southwest will not pitch customer satisfaction just for the sake of the customer, but also for the reason of the firm. Good assistance is certainly not meant to produce customers laugh, but to generate customers arrive back” (emphasis added) (De Pelsmacker Home, 2004, p. 124).
From this perspective, JetBlue has been engaged in what De Pelsmacker and Kitchen term, “relationship marketing”: “Relationship marketing is advertising seen as interactions, networks and interaction. It truly is aimed at establishing long-term win-win relationships with customers. In approaching a potential customer, romantic relationship marketing has the ambition to climb the loyalty corporate: from possibility over new customer, to client, advocate, advocate and partner” (De Pelsmacker Home, 2004, p. 124). This can be a extra tall order, of course , but JetBlue appears to include achieved it is stated goals through this method and they have in fact gained a dedicated following. The corporation is certainly not content, nevertheless, to simply rest on the customer service laurels: “Although JetBlue is encountering enormous success, the company is usually not complacent. It understands that it is only as good as the last appearance. That is why the corporation focuses on every aspect of the customer experience, from the first interaction of getting a reservation to the last of ensuring on-time delivery from the final item of baggage with the flight’s destination” (Bodouva Bodouva, 2004, p. 325).
The research revealed that David Neeleman learned a lot via Herb Kelleher, and he did not need to pay Herb out of pocket for the privilege. Actually it would seem fair to claim that Neeleman took what this individual considered best about South west and added some “common sense” features to his business plan to get JetBlue that have proven remarkably successful in attracting and keeping individuals. Indeed, JetBlue’s operation costs are about 50 % of those of other carriers such as U. S. Air passage (De Neufville, 2006), and it is escalating its organization by following the golden guidelines established by Neeleman early on. In fact , the case study by Bodouva and Bodouva sounds a lot more like promotional promoting copy that was sponsored by JetBlue than an objective analysis, but the research proved much of what these authors reported regarding the company. Inside the final analysis, it is additionally reasonable to suggest that the business model appreciated by JetBlue will be examined by different, similarly positioned carriers and the resulting competition will power the company to stay to identify various other low-cost nevertheless effective tactics for adding value wherever possible.
Ashby, Meters. D., A long way, S. A. (2002). Leaders talk management: Top management speak the minds of men. New York: Oxford University Press.
We can write an essay on your own custom topics!Check the Price