P2, Explain how relationship marketing can be applied to a selected business

SouthWest Airlines

Before more than 38 years ago, Rollin King and Herb Kelleher created the new company that differentiate from all others in the world. The strong relationship Marketing is into place, which make the company survive the moments that international companies couldn’t or at least struggle to do it. Keeping lowest ticket prices, making it affordable to everyone while the customer service standards are increasing dramatically. This report will be looking at different prospective to success, how development and clever mind can take the business to the different level, an outstanding level. (The Mission of SWA) The companies has 53,000 employees that serve customer service to more than 100 million customers annually. The company carries more than 3,900 departures a day during peak travel season across a network of 98 destinations in the United States and seven additional countries. ‘’factsheet’’

SouthWest Airlines are claiming to target the outstanding Customer Service, delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Looking at the detailed customer information related on their website, can be seen that they predict different situations such as forgotten item on the board and give simple instructions how to get it back. Comparing to other cheap flights companies that information will be written on their policies but will not be customer’s friendly.

The company was based on the customer focusing since it was founded. Other companies are targeting customers’ needs in highly commercial way by providing some basic customer service practices, which are due to customers/consumers regulations. Refunds from low prised companies can be given rarely, even not fully, following certain reasons such as delayed flight. However if the customer miss the flight they will not provide alternative flight for free or create alternative way to satisfy their customer. Impressively, SWA will give the above mentioned refunds or free flight to those accidently missed their flight. This is ensuring that the customer will come back as he/she will know they are in safe hands/feel comfortable. There are companies such as WizzAir that have created premium tickets which allows the customer to cancel or reschedule their flight, but the ticket itself will cost more that the ordinary/standard. However, even they couldn’t afford to provide alternative when flight is missed. Companies do not do refunds because they will lose a lot of their money in, but SWA believe that customers must be 100% happy in order to create long term relationship. (Where does that kind of loyalty come from?)

The customer service were developed over the years by interviews that happened to be done by the employees on the plain. Every opinion for certain area of the crevice provided were looked by specialist, which worked out what customer’s value the most, what bores them and what they think can be done better by SWA. The online surveys and questionnaires were filled by their customers, actually this is the company with the most co9mpated surveys by the customers. The reason for that is because their customers know that they will be heard and what they want will be considered for action but not only for the marketing record. (HIRE foR ATTITuDE, TRAIn foR SkILL)

‘’Customers always comes first’’ and the SWA team understands that. If the customers are happy the natural flow of business repeating will come without much effort to advertise and spend a lot of money on such activities. Natural flow is what relationship marketing is about, the best thing is that each company can create a new technique that will answer their customer’s needs. There is not limitation but if the company get things right there will not be losses but the opposite effect. (VP of cuSTomERS)

Flexibility on employees self-decision is a key factor for a mentioned above (creating high standards of customer service by following the rules of special relationship marketing).

One night at Hobby Airport the last flight was missed by a man who just arrived on the gate. Out of breath the man asked the agent if there is a way he could get the flight. The flight had left few minutes ago before the arrival of the customer and there was not much to be done. ‘’ The distressed Customer began to cry and explained that his daughter was undergoing a liver transplant in the next few hours and he simply had to be with her, as he might never see her again.’’ The agent listen and said that he will try to help the customer. ‘’ He picked up the phone and chartered a private jet for this gentleman. Then he took the gentleman over to the private terminal to ensure he made the flight.’’ On the next day the boss of the agent called him and requested reasonable explanation why the company had to pay for the private get instead of the customer who missed the flight and that was his fault. – There is a statement which is referencing to that the employees are given freedom of power, which can use is as they run the company. (The Keys to the Kingdom) That ‘’mistake’’ might cause the company little loss but that went into their ethical history, which is one of the stannic examples in where customers are treated as a VIP by the SWA. The outcome is that ‘’Even the biggest mistakes can become a great good’’.

Following the mission of being a family, SWA created a greeting practice in where they personalise cards and sent it to customers for special occasions such as their birthday. This action received different and huge amount of reactions from the customers that were received one. There was a customer who contacted back the company thanking them that they were the only one who remembered customer’s birthday. Again that was published and boost their good ethical practice and created a good image of the company. (We are Family)

Building a natural love between customers and SWA, they changes the face of their airplanes and tickets according to their new face created and known by all their customers. The name of the company on the market share has changed to LUV. All customers who want to buy shares from this organisation they will have to look for LUV instead of SWA. ‘’In third quarter 2016, the Company returned $312 million to Shareholders through repurchases of $250 million of common stock and distribution of $62 million in dividends.’’ (What’s LUV) + (Factsheet)

In closing I would say that once the relationship between customers and the comp0any is created the customers will benefit from the company but also the company can benefit from the customers. On the days the catastrophic disaster happened with the twin towers many airplane companies struggled and gain great loses, in order to survive, they get billions of Governmental Grands in order to keep their business alive. The effect continued for at least 5 years, which make many passengers to cancel their flights and get refund from the company. However that didn’t happen with SWA, at that time customers who bought tickets with SWA, cancelled the flights but they did not requested refund because they wanted the company to exist. The customers did not want to think of alternative but SWA. This is how beneficial can be every investment that is customer orientated. There are things that we invest now without asking nothing but repeating the business for long but even then sooner or later in live we get graded reward for our doings.

This report investigated how one company called SWA, put their clients first by creating stunning marketing relation activities in order to keep satisfaction of its customers. By following actual examples of what SWA did to their customers in order to raise satisfaction. They brought the company rewards which must be admired.

Author Kristiyan Karadzhinov 22nd February 2017

Bibliography --------------------------------------------------------------------------

Name: The Mission of SWA Re: History Obtained on 23/02/2017 www.southwest.com/html/about-southwest/index.html?int=GFOOTER-ABOUT-ABOUT

Name: Lessons in Loyalty: How Southwest Airlines Does It Re: (Where does that kind of loyalty come from?) Re: (HIRE foR ATTITuDE, TRAIn foR SkILL) Re: (VP of cuSTomERS) Re: (The Keys to the Kingdom) Re: (We are Family) Obtained on 22/02/2017 www.parature.com

What’s LUV Obtained on 23/02/2017 www.southwest.com/html/about-southwest/index.html?int=GFOOTER-ABOUT-ABOUT

Factsheet Re: About the Company Obtained on 23/02/2017 www.swamedia.com/channels/Corporate-Fact-Sheet/pages/corporate-fact-sheet#globalHeader