Relationship Management in British Airways: A Study

This study examines the relationship management practices of British Airways, including technical and functional quality, corporate image, customer attraction, and complaint management. It discusses the airline's customer profile, sales funnel, and loyalty programs, as well as its use of social media and CRM tools. The study also highlights areas for improvement, such as complaint management and staff training.

Running head: RELATIONSHIP MANAGEMENT
Relationship management
Name of the Student
Name of the University
Author note

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Answer to questions 1
British Airways or BA is the “flag career airline” of United Kingdom and is the largest
airline of UK. It was found in 1971 and since its creation in 1974 it is popular for international
destinations and fleet size. Today the airline has biggest impact on customer satisfaction and
known for its huge investment in the customer loyalty programs. The customer profile as
changed markedly over the years. The customer profile mainly comprised of members from elite
class. The customers mainly involved were from business background. However, now it focuses
on the multi-segment marketing strategies. The customers segment in economy and premium
economy involves both urban and rural region. Customers of all ages and gender can travel
irrespective of low middle and high income. It was mainly known for business trips and luxury
convenience. Now it is known for its affordability among all social class and for regular
travelling. When compare to three decades ago BA is now successful for strategic customer
relationships due to social media presence, transforming its operations and entering into strategic
relationships with other airlines (Mills et al.).
Answer o question 2
Technical quality- BA focuses on best quality standards for improving the technological
aspects. It has made huge investment in the IT support costs. The technical quality is evident
from the renewal of BA's aircraft fleet which resulted in greater employee satisfaction. The total
quality management program has improved the technical quality. Despite the investment there is
an IT failure and recommended to invest in low quality items such as meals and refreshments.
Functional quality- It is because hassle free transportation of customers from one airport
to another due to services on board, similar types of seats, identical fleets, and stopovers in same

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airport. BA ensures that everything is smooth for its customer’s right from booking tickets,
check-in, boarding, arrival or departure, but does not ensures high quality meals.
Corporate image- The Company operates on word of mouth, advertising campaigns,
public relations, and recently on social media marketing strategies. However, the sound technical
quality and functional quality has improved the overall perception of quality by the customers is
yet low and is mainly due to poor communication, and IT failure. Corporate image is promote by
sponsorships, exhibitions, sports, advertisements (Nicolini, Giovanna, and Silvia Salini).
Answer to question 3
The product is made to avail at reduced price for consumers to hasten their decision
making. This process does not give enough time for the customers to reflect on the transaction.
At times lower prices are maintained for the clients to maintain the competiveness and demand.
BA focuses less on leads as they focus more on the booking. It focuses less on conversion rates.
The sales funnel for BA includes travel explorations by customers that are leads (destination and
dates). There may be different conversion rates depending on the social media presence and the
various sites accessed. It is followed by deals and customised offers. BA follows a multilayered
funnel that is reflecting the conversion rates at each step in the planning process of customer are
ravelling (Mills and Alber).
Answer to question 4
Regular airline customers are the one who get the full service from the airways scubas
BA. They get reliable, comfortable and professional service from staff. The staffs demonstrate
customer focused care. On the other hand the low cost customers get service at cheaper rates

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therefore, much of the care needs are compromised. It includes compromising on the
entertainment and food as well as frequent cancellations. They do not get alliance partners unlike
the BA at time of cancellations. The landing hours are also very unsociable unlike BA with
multiple and convenient time slots (Casadesus-Masanell, Ramon, and Joan E. Ricart).
Answer to question 5
Right customers are attracted by BA by offering flights to the primary airports, which is
close to the destination. The airway offers the elite memberships of executive club even to
customers buying economy tickets at discounted price. BA offers various loyalty programs to its
customers of executive class through “British Airways Executive Club.” It allows the customers
to collect points and use it for shopping, dining, flying hotel stays, and others. It improved
customer experience It helps make the strong relationships and attract the right customers
(Tesseras, Lucy et al).
Answer to question 6
BA focuses on customers by looking at customers perceptions. The organisation tacks the
customer choice by its brand metric called “desire”. It was found to increase the brand choice
with each campaign and when the price is removed, the growth was strong. Bonding is the other
key success measurement of the brand that showed 5% rise in the customer’s engagement. The
other practice for customer relation management is the social media presence. Ever since the
launch of the “To Fly. To Serve”, the airline has reconnected its role in culture and even
improved after social media strategies. The refreshed brand message stemmed from staff
engagement which was further enhanced by the social media presence. The company uses
Business Objects BI to analyse the customer profile, and uses the information to create

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promotional offer to maximize yield on each flight. Also the CRM tool used by the company is
the mobile module software that helps enhance communication with members of the executive
club. It allows the members to make reservation on mobile (Schweitzer and Lisa). In conclusion,
brand renewal, social media presence, CRM tool, campaign; promotional offers are the best
practices of BA
Answer to question 7
Based on the reviews and the existing literature, BA needs to improve its complaint
management system else the unsatisfied customers will choose the competitor’s airways and
easily convey the complaints to other customers. There is a need of better staff training that will
help meet the need of each customer. It will promote the long term relationships. There is a need
to overcome the problem of low efficient management and the poor internal communication.
Effective communication can better help understand the needs of customer, staff and
management (Grundy, Michael and Richard Moxon).

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References
Casadesus-Masanell, Ramon, and Joan E. Ricart. "How to design a winning business
model." Harvard business review89.1/2 (2011): 100-107.
Grundy, Michael, and Richard Moxon. "The effectiveness of airline crisis management on brand
protection: A case study of British Airways." Journal of Air Transport Management 28 (2013):
55-61.
Mills, Albert J. "Cockpits, Hangars, Boys, and Galleys: Corporate Masculinities and the
Development of British Airways☆." Insights and Research on the Study of Gender and
Intersectionality in International Airline Cultures. Emerald Publishing Limited, 2017. 237-263.
Mills, Albert J. "Man/Aging Subjectivity, Silencing Diversity: Organizational Imagery in the
Airline Industry. The Case of British Airways☆." Insights and Research on the Study of Gender
and Intersectionality in International Airline Cultures. Emerald Publishing Limited, 2017. 367-
392.
Nicolini, Giovanna, and Silvia Salini. "Customer satisfaction in the airline industry: the case of
British Airways." Quality and Reliability Engineering International 22.5 (2006): 581-589.
Schweitzer, Lisa. "Planning and social media: a case study of public transit and stigma on
Twitter." Journal of the American Planning Association 80.3 (2014): 218-238.
Tesseras, Lucy et al. "British Airways Confirms New Director Of Customer
Experience". Marketing Week, 2018, https://www.marketingweek.com/2017/06/30/carolina-
martinoli-british-airways/. Accessed 6 Apr 2018.

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