“United Breaks Guitars” case analysis

The case study is about an incident that happened at United Airlines. This incident would have caused the company to lose 10% of its stock market value.This incident shows the importance of polishing one’s reputation when one is a large company, as ignorance of customer satisfaction becomes extremely problematic in the long term. We will therefore see how the incident was handled, what the consequences were and how it would have been wise to resolve the problem.

 

In March 2008, a Canadian musician, Dave Carroll, flew from your company (United Airline) to Chicago, Nebraska. It was the beginning of a nightmare for United Airline and what happened during the trip made Carroll a famous character, a courageous man who was able to preserve his rights and interests.

 



Carroll says he heard another passenger say that baggage breakers at the Chicago airport were throwing passengers’ luggage out during stopovers. “When Carroll arrived at his destination, he discovered that the neck of his $3,500 Taylor guitar was badly damaged and had a few cracks in it.” 

 

He made a claim to the airline but unfortunately they were indifferent to the incident and told Caroll that he would not be entitled to any compensation.

 

To get revenge, in 2009, Carroll made a protest song called “United Breaks Guitars” which described his experience on United Airlines and the airline’s subsequent reaction. The song became a hit on YouTube and received feedback from his online peers when it was released. United Airline received many negative reviews in terms of consumer service and brand burning. As a result, United Airlines’ reputation with the public deteriorated significantly.

 

An aggravating factor is that united airlines presents itself as a customer-focused company offering one of the best services and experiences to its customers. This incident shows the gap between what they claim to do and reality. The risk is that if the case is not isolated, other disgruntled customers who have suffered the same injustice will join the complaint – the movement can take on considerable proportions.

 

In today’s era, social networks give immense power to customers.  A complaint can be filed against a publication and damage the company’s reputation. Or an influential person can make a bad advertisement, which could be disastrous for the company’s business activity. It is therefore important to always go in the direction of the customer in order to provide the best possible experience.

 

The ideal in this situation would have been to deal directly with the dispute by offering compensation to the client but at this stage of the incident.  The company can only try to right its wrongs. Given that the bad publicity has gone viral, it would be a matter of making the resolution of this conflict public. For example by a public apology and why not buy a guitar back from the client. This is what the CEO of this company ended up doing. Of course, the aim is to prevent this kind of incident from happening again. It will therefore be necessary to change the way baggage handlers work and also to review the system for handling disputes.

When Acquisition Spoils Retention: Direct Selling vs. Delegation Under CRM

When Acquisition Spoils Retention: Direct Selling vs. Delegation Under CRM

Yan Dong, Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20850,

Yuliang Yao, College of Business and Economics, Lehigh University, Bethlehem, Pennsylvania Tony Haitao Cui, Carlson School of Management, University of Minnesota, Minneapolis

Mots clés : customer acquisition; customer retention; customer value; customer relationship management; incentive mechanism

Développement

Cet article met en avant différences que l’on rencontre entre l’acquisition client et la fidélisation. Cet article examine l’impact d’un effet négatif de l’acquisition sur la fidélisation. Cet effet négatif d’acquisition sur la fidélisation a un impact certain sur les efforts d’acquisition et de fidélisation, ainsi que sur le profit de l’entreprise concernée. Lorsque l’acquisition et la fidélisation sont indépendant, l’article nous apprend que les profits de l’entreprise sont plus élevés sous la vente directe, que sous une délégation.

Pendant des décennies, les entreprises ont centralisé leurs stratégies marketing sur l’acquisition client. Depuis 1980, elles se rendent petit à petit compte que recruter de nouveaux clients coûtaient plus cher que de fidéliser les clients existants. Elles ont alors décider de répartir les consommateurs en identifiant les consommateurs à forte valeur ajoutée, ayant pour objectif de ne pas les perdre. Ces efforts ont été soutenu par la création de logiciels d’aide à la relation clients, les logiciels de CRM. Ces derniers ont pour objectif l’acquisition client, et la fidélisation.

Le CRM aide fortement l’entreprise en lui fournissant un maximum de données sur ses prospects, et sur ses clients. L’acquisition et la fidélisation doivent se coordonner afin d’augmenter la rentabilité et le profit de l’organisation.

Cependant, ils peuvent parfois être en conflit. Augmenter les capacités de l’un risque de diminuer les performances de l’autre. L’étude faite et expliquée dans cet article met en avant deux structures possibles pour l’acquisition client : centralisée au ein de l’entreprise, ou bien déléguée.

Conclusion :

Ces deux entités extrêmement importantes dans une entreprise doivent se coordonner sans avoir négatif l’un sur l’autre. Les entreprises doivent indéniablement construire une stratégie adaptée à leurs objectifs ainsi qu’à leur structure. Lorsque les efforts diminuent en acquisition, ils ne sont forcément renforcés en fidélisation.

C’est ici que nait l’intérêt de l’importance de la connaissance clients au sein de l’entreprise, afin d’améliorer la stratégie marketing. La connaissance client permettra de mieux cibler en acquisition, et de mieux satisfaire les clients existants.

 

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Benefits of CRM Differentiated on the basis of customer lifetime value

 

ISSN 1407-7337 ECONOMICS AND BUSINESS 2009-7337

 BENEFITS OF CRM DIFFERENTIATED ON THE BASIS OF CUSTOMER LIFETIME VALUE

Hana Lošťáková : Professor, Ing., Ph.D. University of Pardubice, Faculty of Chemical Technology, Department of Economy and Management of Chemical and Food Industries, Studentská 95, 532 10 Pardubice, Czech Republic

Mots clés : CRM, Differentiated Care about Customers, Customer Life-time Value, Benefits of Differentiated CRM

La crise économique du XXIe siècle a conduit à de nombreux changements au sein des entreprises et notamment au sein de la relation client. Aujourd’hui les conommateurs peuvent trouver les biens et services dont ils ont besoin n’importe où. La demande est internationale et la demande l’est également. Acquérir et garder des clients est devenu de plus en plus difficile. Quelle que soit la qualité du produits, les consommateurs se gardent le droit de changer de fournisseurs, et sont de plus en plus difficiles à fidéliser car toujours à la recherche de comparaison pour profiter du meilleur prix.

Développement : 

Désormais, l’offre n’est plus la seule façon de fidéliser ses clients. Les entreprises doivent constamment innover dans leurs offres pour satisfaire un consommateur de plus en plus exigeant. Aujourd’hui nous pouvons affirmer que la survie d’une entreprise est entièrement liée à sa satisfaction client. Cette satisfaction client ne provient pas uniquement du produit seul. A travers cet article est mis en exergue l’indéniable différence qu’il existe entre la satisfaction client et la fidélisation.

La cible est de plus en plus restreinte à mesure que l’offre (et notamment médiatique) augmente. Aujourd’hui, il est possible de personnaliser l’offre à la demande du consommateur, et de construire une relation personnel avec ce consommateur.

« The augmented product involves the provision of benefits that support the purchase or consumption experience, but are not part of actual product. ». En effet, le produit en lui seul le suffit plus, les consommateurs attendent plus qu’un simple achat, même sur un site de prix discount.

Cet article nous présente les raisons de la nécessité absolue d’une stratégie CRM différenciante :

  • Crise économique et récession
  • Globalisation et internalisation des marchés.
  • Libéralisation et dérégulation de nombreuses industries.
  • Plus de possibilité de développer une relation avec les consommateurs.
  • Expansion des ordinateurs et des technologies de communication.
  • Accroître la présence de la marque auprès du consommateur et créer un réel lien.
  • Réaliser que la satisfaction client ne mène pas à la loyauté.
  • Fragmentation des médias.
  • La recherche permanente de valeur ajoutée client et d’avantages compétitif (ce qui est très dur à avoir).
  • Augmente dramatiquement la vitesse du business.

L’entreprise doit réellement accroître sa valeur ajoutée afin de donner à ses clients l’envie de revenir.

Conclusion :

Aujourd’hui le CRM, est un outil de différenciation absolument indispensable qui permet aux entreprises de se différencier. Dans un monde où la concurrence est de plus en plus présente et la demande de plus en plus exigeante, la différenciation à travers le CRM permet d’accroître toute l’efficacité du business. Il conduit a la plus haute satisfaction client, et donc, accroît leur loyauté.

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