Monday, June 6, 2011

Operations Marketing and American Airlines [2 of 6]

E-commerce is also a wealth of information gathering. Here process, experience (ease of use) and results rule the day, for the consumer. Meanwhile, every nuance of a profile has already been digitized and is updated with each use; an extraordinary resource of data.


Other methods of data capture include e-mail databases, postal databases, databases based on frequent flyer membership, platinum and gold card membership, executive lounge membership and associations with blogs, forums, other social media and mobile apps.

Classically, a small variety of senior vice presidents (operations, marketing, etc.) have their departments generating reports and charts constantly, based upon the information generated. What is been spoken of as far as that which produces the new information, the new variable. However, historical patterns for the industry itself, for this carrier in particular and for other relative constants such as food and fuel costs fluctuations, these are all well established. Although no software can be absolute, one imagines a constant striving for algorithms that will arbitrage all of these variables against each other. Whether or not such software is in the process of existing, it remains the task of these upper managers to best leverage the knowledge outcomes of all these syntheses.



Customer Centricity as it is

Once upon a time American was the first institution to establish a frequent flyer program. Although unprecedented, let us really contextualize this larger consideration.

Imagine the air travel elegance of the 1950s and 60s, most all men in suit jackets, women in beautiful period dresses. Please also notice the dozen or more ticketing agents jostling behind the counter, and all the beautiful flight attendants on every plane. Of course, a half-century later, this image has shifted. While many would argue for the worse, (nostalgia tends to filter for that which we wish to hold on to), let us pause for a moment and consider the pluses that have evolved over the years.

Consumer dress has downshifted to a more casual look, however this has utility of purpose, and comfort goes a long way on a many hours long flight. Simultaneously, the behavior shift of these individuals has likely been for the better. Consistent with an increase in need is the imagining that passengers these days are significantly more orderly. Contributing factors would include, at a minimum, the war on terrorism, the absence of cigarette smoke and a decrease in alcohol consumption.

A half-century ago ticket counters were significantly manual, and as mentioned “fully” staffed. One can easily see the enormous potential for error with all this physical paperwork. Moreover, in such narrow confines, the jostling of baggage and bumping into each other likely had been more frequent.

Gone is the sexist “Coffee, Tea or Me” days (with their “mile high club” implications), as we find not only both genders yet also a wider age spectrum attending to our needs as well.

There is less leeway for anything short of professionalism on the front lines, and carriers such as American Airlines are fully aware of this. There may only be a small handful of agents behind the ticketing counter, but chances are every one of them is willing to jump through hoops to make sure that your needs are fulfilled with a smile (not a double meaning smile, a professional smile). Chances are they are not bumping into each other either, and that their areas are immaculate. Now this company puts its employees through constant trainings (agents every six weeks!).

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