Tera Tech

Introduction

Classic Airlines, like many airline carries have many challenges to confront in an extremely competitive market and tough economic times. Despite the economy’s financial condition, Class Airlines must emphasize customer value that meets and exceeds customer expectations whereby Classic Airlines will generate a reasonable return on shareholder’s investments.

Top 3 Problems Facing Classic Airlines

One major problem plaguing Classic Airlines is the company’s position on customer service. Classic Airlines has “lost touch” (UOP, 2008) with its customers. Management has failed to establish “service elements, operational procedures” or innovative “marketing programs” that will retain loyal customers, attract new consumers and grow business (UOP, 2008) Last but not least, Classic Airlines membership rewards program decreased over the past year by 20%. “More than 160,000 allegedly loyal customers are flying other than Classic airlines” and Classic’s frequent flier program is not innovative and attractive enough to sustain Classic current frequent flier clientele. (UOP, 2008)

Another challenge facing Classic Airlines is the organization’s customer relationship management (CRM) system. Although, Classic Airlines CRM platform was the best in the market, the system was not set up for seamless cross departmental integration, multiple channels and to effectively impact Classic Airlines customer service and satisfaction. Classic Airline’s CRM system was implemented as a cost save for management that produced reports and reduced productivity time between customer service representatives and consumers and not a successful marketing tool.

Classic Airlines like its competitors, senior management might have take measures to protect itself and file for bankruptcy protection if it fails to reduce the “mandated