It Shouldn't Be This Hard Keeping Elite Customers Loyal

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Technology is one of the ways by which airlines, challenged by difficult operating environments, can differentiate what they do and keep their most loyal customers happy. The technological tools exist that mean that airlines can have a far deeper relationship with their customers and be more proactive when there is an issue. In a world where hyper-personalization is becoming the norm, airlines have some real catching up to do here. Here's an example of why it is so desperately important. Recently it was reported about Air New Zealand's new CEO and his stated intention to:

…become a truly great and world-class [airline]. For us that means a really great and world-class company can do three things at the same time: they deliver superior commercial results and they enhance the customer experience and they build the culture and leadership of their own organisations

It is worth reflecting on this intention and comparing it to the experience that customers receive. Clearly Air New Zealand is investing heavily in the hardware involved in being a customer-first airline. The development of its innovative SpaceSeats and the fact it was the first airline in the world to receive a Boeing 787-9 is testimony to that.


But the customer experience with an airline goes well beyond the aircraft and flight experience and relates to the entire experience - on the ground and in the air.

Recently I had a customer service experience which, I believe, raises some questions about the airline's commitment to delivering on its CEO's aspiration. By extension, my experience raises some challenges and questions for airlines more generally. I had an issue with a booking, to summarize, operational requirements meant that the aircraft type was substituted and my ticketed seating option (SpaceSeats on the 777-300) changed (to the less exciting regular PE seats on a 777-200). I entirely understand operational requirements sometimes change things, but I was annoyed that I not notified several months ago when the aircraft change was made.

I contacted the Air New Zealand call center in order to see what options existed. The call taker had a couple of suggestions (refund the ticket and travel on another airline or change travel dates) but then told me that "the call center is really only for reservations and any customer complaints or feedback have to happen through another department". I was then told that the customer service department wasn't contactable by phone and could only be emailed. As a Gold Elite member who travels some quarter of a million miles or so on the airline each year and who has a well-developed sense of elf-entitlement, this was a red rag to a bull. (Yes, the "elf-entitlement" typo was on purpose. New Zealand is, after all, the home of Peter Jackson and the Hobbit and Lord of the Rings trilogies!)

I replied to the emailed response saying that I wasn't happy and that, in my view, customers (and especially high-value customers) should be able to get answers to all their questions from the call center. As I wrote to the airline:

Having the call taker tell me that "oh actually, we're just a call center for reservations" is completely unacceptable. As an HVC who spends a considerable sum on travel every year, it is distressing to hear that my primary point of contact can do little more than take more revenue from me. Your call takers should be empowered to do what it takes to put things right.

Beyond the entitlement factor (and, as I have already pointed out, I accept that operational requirements sometimes mean that things change) this raises a real issue for airlines. High-value customers are just that - the people who spend significant amounts of money with your organization. These days the tools exist to understand better what drives those customers. Modern customer relationship management (CRM) tools can help airlines get a handle on who they're talking to, the value that person brings to the organization and any adverse impacts that low levels of customer satisfaction can bring.

Arm your frontline staff with a broad CRM and empower them to make decisions on the fly. Don't make your customers bounce from department to department in order to voice their dissatisfaction. Seizing the customer relations process will actually have a positive impact that you'd not think of - getting a quick answer, even if it is a quick answer that doesn't completely meet a customer's desires, is well-proven to create less friction then the same answer generated by a long and fraught process. By not giving your primary call-takers the ability to resolve issues, you pretty much guarantee that those issues will escalate - not a smart move if your CEO's aspirations are to come to fruition.

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