Lufthansa: Listening lo Customers
Lufthansa: Listening lo Customers
When an airline has a young fleet, experienced pilots, attentive cabin crew and the pickiest ground technicians in the world, it is free to concentrate on what is really important: you.
So runs a Lufthansa Airline ad.
A DECADE AGO, T H I S GERMAN airline company could never make such claims to offering the customer its undivided attention and care. Today, it is taking great pride in its newly earned reputation not just for quality, but also for being a 'good listener'. It has learnt that superiorquality service pays off and, most importantly, that doing what the customer wants is the key to customer retention.
As one of the world's largest route network operations, Lufthansa conducted in the early 1990s one of the most comprehensive passenger surveys ever carried out. Airline researchers tend to ask only a few thousand travellers for their views and comments. The German airline surveyed some 300.000 European business travellers who fly with them or other airlines. It
644 • Chapter 15 Marketing Services
is not so much the survey results that are noteworthy, but Lufthansa's
response to what business customers want.
Top of the list of wants for a better flight for business customers was more legroom and elbowroom, followed in third and fourth places by desig nated lounges and nonsmoking aircraft. Separate checkins and passport control were the top two most important convenience factors stressed by the business customers surveyed.
Lufthansa took note and carried out tests on wider seating arrange ments for businessclass passengers on selected German domestic and European routes. Responses were very positive. It redesigned a unique response where the airline world is concerned businessclass seats to make them wider. Previously a heavy demand on business class meant an overspill into economy class. Redesign means, however, that any overspill into economy class is now met by telescoping seats on one side of the aisle and extending them on the other to make the scats wider. The new seats are
48 em wide on the left of the aisle. In economy class, the centre seat of the three can be removed by telescoping it into two. On the right of the aisle, the usual three seats can be extended into wider ones. The centre seat is 50 cm wide. The new seats are installed in Lufthansa's Boeing 737, Airbus A320 and A321 jets. Widebody Airbus A300 and A310 aircraft are also equipped with modified versions.
To ensure that Lufthansa got things right first time, the design of the new seat was carefully thought out. Airline seat manufacturer Reearo, which was commissioned to do the redesign, was brought in to work with
Lufthansa's marketing and technical staff. Other conveniences were also incorporated into the new seats. For example, they are equipped with modern communication systems, and a creditcardoperated telephone is installed in each armrest!'
Finding out what target customers require or desire is one thing. Responding to these demands and to the satisfaction of customers is another. Lufthansa ran an ad campaign to thank respondents. But as the story above shows, a customer focus can benefit service businesses. To
improve service quality, the firm must listen to what customers want and then commit resources to deliver precisely that. Marketing developed
initially for selling physical products, such as toothpaste, cars, steel and
Introduction • 645
equipment. However, marketing principles can also be applied to organiz ations that offer services, such as Lufthansa.
Parts
» Book Principles Of Marketin Pleased
» I'hrce considerations underlying the
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» Analysing the Current Easiness Portfolio
» Conflict Between Departments
» Marketing Strategies for Competitive Advantage
» Principal actors in the company's
» • Persistence of Cultural Values
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» Analysis of International Market Opportunity Deciding Whether or Not to Go Abroad
» Understanding the Global Environment
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» • Defining the Problem and Research Objectives
» CLOSEDEND QUESTIONS NAME DESCRIPTION
» Estimating Total Market Demand
» Estimating Actual Sales and Market Shares
» TimeSeries Analysis technology.
» Segmenting International Markets
» • Selecting Market, Segments
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» 2 VARIETIES OF UNCLE BEN'S FEINSCHMECKER SAUCE
» Federal Express: Losing a Packet in Europe
» Close or Distant Competitors
» • Expanding the Total Market
» • The Customer Service Department
» What Governs NewProduct Success?
» Lufthansa: Listening lo Customers
» Managing Productivity CU _ C7 ^ •
» Mattel: Getting it Right is No Child's Play
» Internal Factors Affecting Pricing Decisions
» • BreakEven Analysis and Target Profit Pricing
» 1 CAR OWNERSHIP ACROSS THE EUROPEAN UNION
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» Stena Sealink versus Le Shuttle, Eurostar and the Rest
» Preview Case British Home Stores
» • Selecting the Message Source
» Setting the Total Promotion Budget
» Factors in Setting the Promotion Mix
» Integrated Marketing Communications
» Setting the Advertising Budget
» • Selecting Advertising Media
» Standardization or Differentiation
» Media Planning, Buying and Costs
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» • Other Sales Force Strategy and Structure Issues
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» Britcraft Jetprop: Whose Sale is it Anyhow? 1
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» 1 PANEUROPEAN CONSUMER GROUPS
» Analyzing Customer Service Needs
» Defining the Channel Objectives and Constraints
» Identifying Major Alternatives
» Designing International Distribution Channels
» Evaluating and Controlling Channel Members
» • Building Channel Partnerships
» The Growth of Direct Marketing
» Customer Databases arid Direct Marketing
» DirectResponse Television Marketing
» Online Marketing and Electronic Commerce
» Germany, the UK and other countries in Europe 1997 to SI.64 billion or 7.5 per cent of global
» • Creating an Electronic Storefront
» • Participating in Forums, Newsgroups and IVcb Communities
» • The Promise and Challenges of Online Marketing
» Roberto Alvarez del Blanco and Jeff Rapaport*
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