Executive Summary
The report analyzes the international clientele of KLM Airlines and its approach to customer experience (CX). The paper also gives some context for KLM Airline and an evaluation of the airline’s CX efforts in light of the appropriate CX models and theories. We then develop a consumer persona detailing an ideal foreign clientele’s demographics, digital habits, perspective, and potential obstacles. To round off our analysis of the customer experience, we consider the role that digital touches played by KLM Airline played at each stage of the customer’s journey.
This analysis draws two SMART CX goals supported by CX frameworks and models to improve the CX. After merging the goals mentioned above and digital CX factors, we create a customer journey map to provide thorough recommendations for all stages of the customer experience. Finally, the report will offer KPIs and data that the airline may use to assess and improve its customer experience. This paper then draws on a wide range of related literature, including studies on conversational artificial intelligence, real-time co-creation, and chatbot interaction with humans. Theory frameworks such as the domino effect, leave-taking experience, and business process re-engineering also affect our report. Finally, the research provides valuable recommendations that KLM Airline can implement to improve its CX strategy and further its commitment to providing world-class customer service.
Section 1: Assessing KLM Airline’s Customer Experience (CX) Strategy and Net Promoter Score (NPS)
Introduction
The Netherlands’ official national airline is KLM Royal Dutch Airlines (Koninklijke Luchtvaart Maatschappij NV). KLM, founded in 1919, is the most extended, continuously operational airline. With more than a hundred planes and access to over a hundred and seventy different locations across the globe, this Sky Team carrier is a significant player in the airline industry. KLM’s dedication to its customers is well-known, and the airline’s Net Promoter Score (NPS) is a vital indicator of customer loyalty and happiness.
KLM Airline’s Net Promoter Score
Fred Reichheld created the Net Promoter Score (NPS) as a customer loyalty metric to assess the likelihood that existing consumers will promote a company’s products or services to others. The NPS scale goes from -50 to +50, with the latter representing exceptional quality. KLM Airline received a positive Net Promoter Score of +48 in 2019. This shows that most consumers had a positive experience with the company in 2019.
Critical Evaluation of KLM’s CX Activities
KLM Airlines has been putting much effort into offering a unique experience for each passenger by utilizing a wide range of CX models and theories. The following sections will analyze KLM Airline’s CX initiatives using established CX models and ideas and provide critical feedback.
Emotional Engagement
Customers emotionally invested in a brand are more likely to continue purchasing from that company, making emotional engagement a crucial part of the customer experience. KLM Airlines has been actively engaging its consumers on social media by swiftly responding to their questions and concerns. For KLM, this has meant an increase in repeat business. Batra (2017) argues that the key to eliciting an emotional response from customers is to treat them as individuals and show them compassion. During a service disruption, KLM Airlines employs individualized service recovery to keep their customers happy (Bouwman, 2019). Reducing negative emotions and increasing happiness can be achieved by personalized service rehabilitation by attending to the unique requirements of each passenger.
Customer Journey Mapping
Mapping the client experience from beginning to end is helpful for any business. Customer journey mapping has been used by KLM Airline to narrow in on customer frustrations and devise solutions. From purchasing tickets to checking in for a flight, passengers of KLM Airline can expect nothing but the best service from the airline’s website and mobile app. Customers’ points of dissatisfaction can be pinpointed with customer journey mapping, as Batra (2019) suggested. Customer journey mapping has helped KLM Airline locate areas of dissatisfaction and implement changes to boost satisfaction.
Personalization
Customers place a high value on individualized service, making personalization a critical component of CX. KLM Airlines has started adopting personalization to meet each passenger’s demands. When a consumer visits the website or uses the mobile app of KLM Airlines, for instance, they are given tailored suggestions for flights and accommodations. Batra (2019) argues that businesses can use personalization to increase sales by connecting with customers on an emotional level. With the help of customization, KLM Airline has given each passenger an adventure they will never forget.
In summary, KLM Airlines has been working hard to provide a unique experience for its passengers by utilizing emotional involvement, customer journey mapping, and customization. With an NPS of +48, KLM Airline has nearly all its passengers’ support. Customer path mapping, personalized service recovery, and other forms of personalization have all contributed to KLM Airline’s success in attracting and retaining customers.
Section 2: KLM’s Chosen International Customer Segment
KLM, which has been around for over a century, is a global airline connecting people worldwide. KLM has narrowed its marketing efforts to a specific type of foreign passenger for the best possible results.
Characteristics
KLM has identified those who frequently fly in the corporate sector as its target market. Men between 25 and 55 make up most of these travelers. They have more disposable income and travel more frequently for business objectives than recreational tourists. They place a premium on being able to work and stay connected throughout their trips and on the ease, versatility, and effectiveness of their travel arrangements.
Digital Behavior
This demographic is most interested in using digital tools that help them organize their trips and maintain contact with friends and family back home. Eighty-six percent of business travelers use smartphones, and 65 percent bring laptops or tablets. Because of this, KLM needs to ensure that it is a website and mobile app are compatible with these gadgets. LinkedIn and Twitter, widely used for professional networking, should also be high on KLM’s list of priorities, given that business travelers frequently utilize them.
Attitudes and Motivation Towards International Travel
Attending professional events like conventions, seminars, and conferences is what drives business travelers. They view trips abroad as a chance to learn new things and meet new people who can help them in their careers. Global Business Travel Association found that 92 percent of business travelers agree that in-person meetings are critical to the success of any company. Therefore, KLM’s marketing to this demographic should emphasize the value of personal contacts.
Possible Barriers to International Travel
Business travelers may be discouraged from taking trips due to several factors, despite their desire. Travel costs, visa requirements, and security worries are the major deterrents. 63% of business travelers worry about their safety when traveling, and 48% worry about visa complications, according to a survey by CWT. KLM can ease passengers’ minds by publishing safety tips and visa information on its website and social media pages. In addition to providing affordable fares, KLM should also provide convenient booking choices.
Customer Persona can be formulated based on the characteristics, digital behavior, attitude, and motivation toward international travel.
Name: Simon
Age:38
Occupation: Chief Executive Officer
Nationality: American
Preferred Digital Tools: Laptop, Smartphone
Preferred Social Media: Twitter, LinkedIn
Attitude and Motivation towards International Travel: Simon takes at least two international business trips annually to attend conferences and meet with clients. He places a premium on being able to work and stay connected while away from home, and he gives equal weight to convenience and flexibility.
Possible Barriers to International Travel: Simon is worried about the price of travel and the possibility of danger while away from home. Visa procedures frustrate him because of the time and effort they demand.
Section 3: Evaluation of KLM’s Airlines’ Digital Customer Journey
The digital touchpoints that KLM Airlines, the Dutch flag carrier airline, has developed to serve its clients at every point of their journey have helped the company establish a strong brand identity. KLM has put in much work to improve the digital customer service it provides through its website, mobile app, social media, and chatbot. One of the most critical variables in determining customer satisfaction in the airline sector is the quality of the service provided, as stated by Kamkiew (2021). As a result, KLM Airlines has made its digital touchpoints simple to use to provide a memorable experience for its passengers.
KLM Airlines’ website and mobile app allow users to do preliminary research into flights, including searching for flights, checking flight availability, and making reservations. The desktop version and the mobile app simplify booking flights based on specific criteria. The airline also provides customized suggestions depending on the customer’s previous searches, which is nice. According to Heimonen (2021), one way to boost consumer pleasure and loyalty is to offer tailored recommendations.
KLM Airlines accommodates its customers’ varying preferences during purchasing by accepting a wide range of payment methods. The safety and security of customers’ information are also guaranteed by the airline’s provision of a secure payment channel.KLM Airlines’ website and mobile app allow consumers to manage their flights, check in online, and get boarding cards after the purchase. The airline also allows passengers to monitor their flights in real time and make any necessary reservation changes. The airline’s chatbot is also accessible to answer passengers’ questions about their reservations. Thompson (2018) maintains that chatbots help increase consumer involvement and satisfaction.
In addition, KLM Airlines’ social media accounts serve as an essential point of contact for the company online, allowing it to interact with passengers and win their loyalty. Customers can get up-to-the-minute information on flight times, weather forecasts, and travel advisories from the airline via its social media pages. KLM Airlines is also very responsive to questions and concerns raised by passengers via social media. As a result, customers have a better time and have more faith in the company. Unintentional app experiences can significantly impact the consumer experience, as Dube et al. (2014) stated. To that end, KLM Airlines has invested much in making its digital touchpoints uniform and easy to use across all platforms. The airline’s website and mobile app were developed with the customer in mind to ensure a seamless experience regardless of the device being used. The airline’s mobile app provides several services to its customers, including flight tracking, luggage monitoring, and airport maps.
Section 4: Smart Objectives
Objective 1
Increase Customer satisfaction of KLM’s frequent corporate travelers by 10% within the You are following six months, as measured by the Net Promoters Score(NPS), using the Customer Experience (CX) framework developed by Forester Research.
To achieve this goal, businesses must provide excellent customer service at each point of contact. This idea is central to the CX framework created by Forrester Research. By providing customers with timely and relevant updates, alternative travel arrangements, and compensation for their inconvenience, KLM can work toward its goal of improving the personalized service recovery process in the event of service disruptions like flight delays or cancellations. KLM can do better for its clients in the digital realm by making its website, mobile app, and chatbot more accessible, informative, and adaptable. This objective meets the SMART criteria by outlining a precise aim, providing a measurable statistic, being attainable within a reasonable time frame, being relevant to KLM’s target market, and having a clear deadline for evaluation.
Objective 2
Increase customer loyalty and advocacy of KLM’s frequent travelers by 15% within the next 12 months, as measured by repeat purchases and positive online reviews, using the Customer Experience Management (CEM) model.
Bernd Schmitt’s CEM model provides the theoretical foundation for this goal by stressing the significance of establishing emotional connections with customers through experiences that engage their senses, emotions, and behaviors. KLM can make a lasting impression on its target market of frequent business travelers by prioritizing their senses in the design of its aircraft, passenger lounges, and in-flight entertainment. Providing customized and sympathetic service, acknowledging loyal customers, and actively connecting with them on social media are all ways in which KLM can work to improve the emotional experience of its regular corporate travelers. KLM may also focus on increasing the behavioral experience of its frequent corporate passengers by delivering services like travel suggestions, recommendations, and exclusive offers before, during, and after their trips. This goal meets the SMART criteria because it is well-defined; it includes a quantifiable statistic; it is reachable within a realistic time frame; it is relevant to KLM’s target market; and is time-bound.
Section 5: KLM Airline’s CX Recommendations
To increase customer happiness and loyalty among KLM’s regular corporate passengers, the company must first thoroughly understand the customer journey and then locate possibilities to create a consistent and pleasurable experience across all touchpoints. A customer’s interactions with KLM can be visualized using a Customer Journey Map (CJM), which details the customer’s journey from the point of first contact with KLM until long after the client has completed their trip. It is possible to make the following suggestions in light of the SMART above CX goals:
Pre-Travel Stage
To better serve its frequent business travelers, KLM can tailor its suggestions and deals to each individual’s tastes and preferences from their past bookings and trips. This can be done by analyzing consumer data and determining their preferred modes of transportation using data analytics and machine learning algorithms. Thanks to the airline’s real-time co-creation services, customers can tailor their flights with KLM by selecting their favorite seats, meals, and entertainment (Buhalis & Sinarta, 2019). Chatbots and voice assistants are two examples of conversational artificial intelligence technologies that KLM might employ to answer passengers’ questions and offer helpful suggestions about their trips (Boonstra, 2021).
During the Travel Stage
KLM can enhance its regular corporate passengers’ emotional and behavioral experience by focusing on the senses and offering individualized and empathetic service. KLM’s aircraft, customer lounges, and in-flight entertainment are all built with the senses in mind (Yang, 2019). KLM may show appreciation and reward its loyal customers with perks like early boarding, access to the VIP lounge, and complimentary upgrades. According to a study by Seidenberg et al.(2020), KLM’s use of social media has allowed the company to better communicate with its consumers and aid them during travel interruptions.
Post-Travel Stage
By sending individualized post-trip emails and asking for input, KLM can improve the experience of its frequent business travelers. KLM can express appreciation for their clients’ loyalty and solicit feedback on the service they received using tailored emails and chatbots. KLM may utilize this information to determine where to make changes and develop tailored service recovery procedures (Bouwman, 2019). KLM can also offer incentives like special discounts or loyalty points to clients who advocate for the company online.
Collaboration with CX Department
KLM should strengthen coordination within the CX department to consistently implement consumer needs across all touchpoints (Kok, 2022). Training seminars and workshops can improve teamwork and communication and guarantee everyone is on the same page when meeting customers’ requirements and wants. KLM can also develop a centralized platform for consumer data to provide instant access and analysis for all departments.
Sustainability
To better match the sustainability principles of its frequent corporate passengers, KLM can strengthen its sustainability projects and spread the word about them (Ahonen et al., 2021). KLM may encourage environmentally responsible travel by promoting carbon offsetting, eco-friendly in-flight services, and trash reduction programs. KLM can also suggest eco-friendly itineraries and lodgings according to the customer’s preferences.
In conclusion, the suggestions above align with KLM’s SMART CX goals of boosting the satisfaction and loyalty of its frequent business travelers. KLM can provide a consistent and enjoyable experience across all customer touchpoints thanks to digital CX effects, including data analytics, conversational artificial intelligence, and individualized service recovery procedures. For the sake of providing consistent service, KLM should also make sustainability initiatives a top priority and improve internal coordination within the CX division.
Section 6: KLM Airline’s Customer Experience Key Performance Indicators(KPIs)
KLM Airlines is a well-known, global airline that serves travelers from all over the world. To stay ahead of the competition, customer-centric businesses like KLM need to regularly assess the efficacy of their approach to improving the customer experience. Analytics and key performance indicators (KPIs) are potent resources that KLM may utilize to improve its approach to the customer experience. To improve KLM Airlines’ customer experience strategy, this section suggests several key performance indicators and statistics.
KLM can use the Net Promoter Score (NPS) as a critical metric to improve its strategy for providing a positive experience for its customers. The Net Promoter Score (NPS) measures how likely a client is to suggest a company’s products or services to friends and family. According to Kubatova (2021), NPS is widely used in the airline sector to gauge passengers’ happiness and loyalty. The Net Promoter Score (NPS) provides KLM with a metric for gauging customer satisfaction and pinpointing opportunities to enhance the airline’s customer service. Monitoring the Net Promoter Score (NPS) and acting on the data it provides allows KLM to serve its clientele better. Customer satisfaction with KLM’s website, employees, and flights may be gauged via NPS.
KLM can also evaluate how well its customer service is doing by using the Customer Effort Score (CES). A company’s efficiency can be measured using the Customer Effort Score (CES). The key to enhancing the customer experience, say Ransbotham et al. (2021), is reducing the customer’s workload.KLM can use CES to evaluate the ease of their ticketing, security screening, and boarding procedures. KLM’s CES monitoring allows the airline to zero in on the root reasons for customer dissatisfaction, improving the company’s ability to decrease customer effort. At CES, KLM could test how effectively a website and mobile app work together to provide a pleasant experience for travelers.
Key performance indicators (KPIs) are useful, but analytics may reveal much more about how KLM may enhance its strategy for the customer experience. KLM can benefit greatly from the analytical capability of sentiment analysis. Sentiment analysis examines how consumers feel about a product or service offered by a particular brand. According to Barto and Badánik (2019), an airline can use sentiment analysis to understand better how its customers feel about its services. KLM can utilize sentiment analysis to keep an ear to the ground on reviews and social media platforms for customer feedback. KLM may better satisfy its customers if it takes time to analyze their online comments.
KLM can employ sentiment analysis to track what passengers say about the airline’s flight attendants, onboard movies, and food.
Predictive analytics is an additional crucial analytic technique that KLM can utilize. Predictive analytics is the practice of predicting future events by analyzing past ones using a combination of statistical algorithms and machine learning methods. According to Deng et al. (2021), predictive analytics can help airlines streamline their maintenance schedules and cut costs. KLM can apply predictive analytics to understand better what causes flight delays, cancellations, and other operational concerns. KLM can improve its operating efficiency by examining past data for patterns and trends indicating impending problems and then taking measures to remove them. KLM may use this type of analytics to pinpoint the causes of flight delays, such as bad weather, maintenance issues, or a lack of available staff.
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