A Comprehensive Report on Customer Retention Strategies: KLM Airlines

This report delves into the customer retention strategies adopted by Royal Dutch KLM Airlines, a prominent international airline company. The report explores various strategies, including effective customer service, the creation of airline websites, promotional strategies, fulfillment of promises, customer loyalty programs, and customer satisfaction surveys. The report emphasizes the importance of customer loyalty for the airline's profitability and provides recommendations for enhancing these strategies, such as improving customer service skills and maintaining attractive websites. The analysis also highlights the significance of adapting to changing customer needs and preferences within a competitive environment. The report concludes by underscoring the importance of quality service in retaining customers and attracting new ones, emphasizing the need for continuous innovation to stay ahead of competitors and achieve business goals. The report draws on various academic sources to support its findings.

Customer Retention Strategies adopted by Royal Dutch KLM Airlines 1
Customer Retention Strategies adopted by Royal Dutch KLM Airlines
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Customer Retention Strategies adopted by Royal Dutch KLM Airlines 2
Introduction
Royal Dutch KML Airlines is among the oldest international airline company and it was
founded in 1919. It is an aviation company that provides cargo and passenger services in about
145 destinations. Customer loyalty is among the key priority that this company must put into
place to ensure its operations are running effectively and efficiently. In response to this, Royal
Dutch KML airlines has adopted the best retention strategies that will enable it to retain their
customers and attract new ones for the aim of achieving its goal of making profits out of its
activities (Flouris, and Oswald, 2016 p.49). Customer retention is a market strategy that many
companies undertake to prevent customer’s negative attitudes towards a company’s products and
services. The main objective of having customer retention strategies is to ensure that customers
does not opt for the services of other competitors in the market (De Boer, 2018 p. 9). This paper
will discuss the various retention strategies that Royal Dutch KML Airlines has put into place to
ensure that their relationship with their customers is maintained. Possible recommendations and
a conclusion will also be made based on the strategies that will be discussed.
Customer retention strategies by Royal Dutch KML Airlines
For a lifetime customer relationship, the below discussed strategies plays a significant
role. It is very cheap to retain existing faithful customers as compared to when a company is
acquiring new customers for its services Steven, Dong, and Dresner, 2012 p.743-754). The
strategies that are adopted by the company include:
Effective customer services
Employees at different points like call centers in the company establishes customers’
travel experience through their daily interactions (Scheffler, 2018p. 38). These personnel through
their personal services to the travelers can make the Royal Dutch KML Airlines to get a positive
reputation for retaining customers are not. The company has employed individuals with high
standards of ethical behaviors to provide effective and efficient services to the travelers. In terms
of evaluating the services of a particular airline, travelers mostly compare different companies by
narrating experience that they encountered when they used services of a particular company and
how they were handled by the persons employed in the company. Therefore, the airline company
has ensured putting into place strong customer care group that provide best services to its

Customer Retention Strategies adopted by Royal Dutch KLM Airlines 3
customers thus boosting the company reputation. Positive reputation will enable the airline
company to retain their customers in the life time basis and attract other new customers from
their competitors.
Creation of Airline websites
Airline websites acts as additional channel for distributing airline services (Yadav,
Kamboj, and Rahman, 2016 p.271). The company provides this channel to enable travelers to be
able to book their tickets via online when they are in any place and at any time. This strategy
ensures that customers get first services rather than having to make line while booking for tickets
in the company. According to Chong, and Law, (2019 p.60-75) the company makes these
websites more appealing and easy to use such that customers can compare travelling rates
between different companies and make informed decision concerning their journey. To ensure
that customers visit the airline website frequently, Royal Dutch KML Airlines constantly ensure
that very recent news and information concerning promotion are availed to their potential
customers. By using the online website strategy, the cost for maintaining long term customer
relationship and retention will be favorable.
Promotional strategy
Air travel is a seasonal business and thus the company must device measure to attract and
retain travelers for their services. The company can remain in business even during low season if
it incorporates promotional services to its customers. The company promotes their potential
customers through offering of discounted prices. Discounted prices will highly influence the
customers to be attracted to the company from the company’s competitors (Lohmann, and
Spasojevic, 2018 p. 139-153). Discounted prices also encourages repurchase of services from the
particular company. Once promotional services are provided, potential customers have been
encouraged to continue using the services of Royal Dutch KML Airlines thus being retained and
the discounted prices also attract other customers to the company which eventually boost the
overall performance of the airline company. Increased performance enables the airline company
to make reasonable profits than its competitors in the same industry.
Fulfillment of promises

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Royal Dutch KML Airliner’s mission and vision is clearly indicated in the travel books,
dates extra and it’s the responsibility of the company to fulfill their promises to their potential
customers (Law, and Breznik, 2018 p. 36-44). Fulfilment of promises is an act of ensuring that
travelers’ expectations are met as required for the benefit of a better reputation with customers.
The company ensures that they adhere to their promises by minimizing disappointments that can
make them not to meet their promises to their customers. Disappointments can be in form of
better time management to ensure that there are no delays to traveler who may be having urgent
issues to attend to Saleem, Zahra, and Yaseen, 2017 p. 1136-1159). This airliner has tried their
best for the sake of keeping their customer’s loyalty to the company. In case of unavoidable
circumstances, the company has put in place efficient service recovery measure that quickly
correct the emerging problem to avoid inconveniencing customers.
Implementation of customers’ loyalty programs
These are the Royal Dutch KML Airliner commitments that they have put in place these
programs to encourage or motivate customers to repurchase its services against their competing
companies (Mandina, and Karisambudzi, 2016 p.91). Through these programs, customers are
appreciated for choosing to use their airliners by giving them rewards inform of reduced luggage
fees, sending them birthday cards since they have customers’ details among other rewards. These
kinds of appreciation enable customers to always have an interest of having the same flight
whenever they plan for journeys. These programs have given the Royal Dutch KML company a
completive advantage against their competitors in the air travel industry.
Conducting customer satisfaction surveys
Royal Dutch KML Airliner has put in place this strategy so that they can get enough
feedback from their customers concerning the services that they provide to them. Suggestion
drop forms, feedback forms are provided in every corner of the company to enable travelers to
appraise the company’s services (Mandina, and Karisambudzi, 2016). Online portals are also
keenly monitored like tweeter to check on the comments that are made concerning their services.
The main objective for wanting to have customer feedback is to enable the company to identify
their areas of strength and strengthen it further or their weak points so that they can device
measures for correcting their weakness. This strategy has enabled it to achieve its major goal of

Customer Retention Strategies adopted by Royal Dutch KLM Airlines 5
retaining their customers and attracting new customers from their competitors thus increased
profits from the services that they provide (Gnanprakash, and Kulkarni, 2016 p. 87-94).
Recommendations
Concerning the aim of retaining potential customers of Royal Dutch KML Airliner in the
life time, I will recommend that people dealing that provide customer services to customers must
have a very high competent background with adequate skills that are required while dealing with
customers. The company should consider training them to have up to date skills that will be used
to serve customers in a way that is pleasing. On the company website, it must be made in such a
way that is attractive to the eye of each new or existing customer. This will increase their market
share for their services globally. On promotion, I will recommend that the company should
moderate promotions that are given to customers such that it maintain its profits at the end of
their financial year. On fulfilment of promises, the company should only announce those services
that they are pretty sure of fulfilling to their customers to avoid disappointments to their
customers. Finally, the company should ensure that the complain/suggestion forms are always
available whenever customers require them. They must respond to the reported complains to
make adjustments and corrections regarding to the customer’s feedback.
Conclusion
Due to the changing customers’ needs and preferences, each airline company is striving
their best to meet customers’ satisfactions in the competitive environment. In response to this,
the paper has clearly demonstrated how Royal Dutch KML Airliner has devised strategies that so
competitive to take the bigger share of the market in providing quality services. These strategies
will only be applicable when the management create awareness to their employees so that they
can put into practices all the set strategies. Customers retention mostly depend on the quality of
services that are provided by airline companies. It’s the initiative of Royal Dutch KML company
to ensure that all the services that they provide are of higher quality so that they can retain their
existing customers and attract new customers for their services. Customer disappointment must
be avoided in all circumstances to enable customers to build trust in the company’s services. Due
to the changing business environment, the company should consider inventing new strategies
that will attract many customers from their competitors. Since the desire of each company to

Customer Retention Strategies adopted by Royal Dutch KLM Airlines 6
make profits and remain ahead of others in business, when this company adhere to the above
discussed strategies, their future goals will be achieved.

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References
Steven, A.B., Dong, Y. and Dresner, M., (2012). Linkages between customer service, customer
satisfaction and performance in the airline industry: Investigation of non-linearities and
moderating effects. Transportation Research Part E: Logistics and Transportation
Review, 48(4), pp.743-754.
Saleem, M.A., Zahra, S. and Yaseen, A., (2017). Impact of service quality and trust on
repurchase intentions–the case of Pakistan airline industry. Asia Pacific Journal of Marketing
and Logistics, 29(5), pp.1136-1159.
Flouris, T.G. and Oswald, S.L., (2016). Designing and executing strategy in aviation
management. Routledge. 13(5), pp.49.
Yadav, M., Kamboj, S. and Rahman, Z., (2016). Customer co-creation through social media: The
case of ‘Crash the Pepsi IPL 2015’. Journal of Direct, Data and Digital Marketing
Practice, 17(4), pp. 271.
Chong, S. and Law, R., 2019. Review of studies on airline website evaluation. Journal of Travel
& Tourism Marketing, 36(1), pp.60-75.
De Boer, E.R., (2018). Strategy in Airline Loyalty. Pp.9
Mandina, S.P. and Karisambudzi, J., (2016). Customer Retention Strategies: A Panacea to
Reducing Attrition in the Zimbabwean Airline Industry. Journal of Marketing Development and
Competitiveness, 10(2), p.91.
Scheffler, J., (2018). The Relationship of Service Quality and Customer Satisfaction in the
Airline Industry and the Moderating Effect of the Airline Type, pp. 38.
Lohmann, G. and Spasojevic, B., (2018). Airline business strategy. The routledge companion to
air transport management, pp.139-153.
Law, K.M. and Breznik, K., (2018). What do airline mission statements reveal about value and
strategy? Journal of air transport management, 70, pp.36-44.
Gnanprakash, J. and Kulkarni, P.V., (2016). Social CRM in the Airline Industry: A case study of
Indian airline companies. Journal of Marketing Management and Consumer Behavior, 1(1),
pp.87-94
Mandina, S.P. and Karisambudzi, J., (2016). Customer Retention Strategies: A Panacea to
Reducing Attrition in the Zimbabwean Airline Industry. Journal of Marketing Development and
Competitiveness, 10(2), p.91.

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