WELCOME TO CLUB 2000: PROVIDING CUSTOMER SUPPORT THE AIR FRANCE-KLM WAYPROBLEM:Dr. Jaeger is not just any Air France traveler: he is a privileged member of the airline's most exclusive loyalty program: Club 2000. By virtue of this membership, he can expect the highest standards of service quality from Air France. But after a horrible airline experience that left him literally "out in the rain," he's not only enraged by his trips gone wrong, but even more so by the poor service encounters he faces afterward. After several months of frustrating and futile attempts to obtain compensation for his lost luggage, and after being ignored and ridiculed by many Air France service employees, Dr. Jaeger is obviously no longer an Air France customer. However the question remains: who is responsible and what should be done? ISSUES/ANALYSIS: Based on the Inséad case study, below are some of the problem areas that are tainting Air France-KLM customers' vision of "best service". and that need to be addressed: 1) Leadership: A company's philosophy is undoubtedly shaped by its leaders. Sincere leaders who lead with integrity truly inspire employees to do the same. Therefore, for a leader to appear genuine or “authentic,” they must lead their organization with purpose, meaning, and personal values that are not just communicated verbally, but also through their actions. The authentic leader must “walk the talk.” This values-oriented leadership is also accompanied by the ability to build lasting relationships with people, firstly with its employees and, secondly, with its customers. Unfortunately, the behavior of Jean-Cyril Spinetta (CEO of Air France) in the case study is not an exemplary model of leadership. If Spinetta doesn't respect and respond to its best customers, then why should its employees? 2) Corporate Culture: It is no secret that when it comes to Air France's marketing efforts, service-related issues have historically been underestimated, especially those related to service qualities. In this area, Air France's efforts have significantly lagged behind those of other comparable traditional airlines. What Air France was slow to understand is that, due to the deregulation of the airline industry in Europe, its battle for competitive advantage can no longer be fought either on price (because price movements are too easily copied) or on “ loyalty” based on corporate legacy, since these levers will no longer be sufficient to bring customers back.
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