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Customer complaint handling in british airways

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Customer complaint handling in british airways

  1. 1. Venkatesh Ganapathy / Services Marketing / Case Study / Customer Complaint Handling : October 2012 Customer Complaint Handling in British Airways (BA) Sir Colin Marshall brought in a major change in BA’s perspective regarding customer complaints. He discovered new ways of listening to customers and new approaches to dealing with customer complaints. He said that customer complaints are precious opportunities to hold onto customers who otherwise might take their business elsewhere. Research by BA indicated that 50% dissatisfied customers who did not tell BA about their problems left the airline for a competitor. However, out of those who told the company about their problems, 87% remained loyal to BA. Encouraging complaints from customers to promote loyalty was a good strategy. BA model – “ Making Customers into Champions” · Use customer feedback effectively to improve quality · Prevent future service problems through teamwork · Compensate customers on their terms and not the company’s terms · Practice customer retention · Prevent Customer Defections Strategies to Handle Customer Complaints 1. Apologize and own the customer’s problem 2. Respond quickly 3. Assure customer that problem is being resolved 4. Handle complaints by phone by speaking to the customer personally BA implemented a computer system called CARESS that eliminated all paper by scanning & mutually entering all customer relevant information in a customer complaint database. Number of steps for dealing with a complaint was reduced from 13 to 3. Customer service representatives were empowered. They were trained on listening skills and dealing with anger and also negotiating win-win situations. Customers were encouraged to complain. BA found that all its efforts towards complaint management paid off. For every 1 pound spent in customer retention efforts, BA got a return of 2 pounds.