Airlines use the Data Mining Techniques to improve Customer Service

“The increase in the quantity of data and the decrease in the available analysis time have led to a growing need for an inductive method which will assist in finding useful relationships between (selected) data”. (Peelen, E. & Beltman, R., 2013, p.141)

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The vast number of different offers and availability of communication technologies provides the airline customers with the access to information about all existing competitors, products, availability and prices. Due to these factors, airline business needs to be customer centric – companies have to identify the most valuable customers and apply effective strategies in developing relationships with them. The collection and analysis of the huge amount of information about the customers would be impossible without artificial intelligence and the method that assists in finding all useful relationships between data – data mining. For instance, studying the information about the methods to attract customers can help to determine the destinations they want to visit. And reviewing the costs of airplane upkeep, equipment and staff can help in budgeting (Ishikawa, 2015).

The quality of the customer service depends on how much information the airline companies gather about their customers. It is really hard to find a specific customer service data due to the huge quantity of available information. However, some airlines have great examples of successful attempts to use the data mining techniques to improve customer service.

The Southwest Airline company, for example, is applying big data throughout different departments of the organizations to be able to deliver the highest quality of customer service. The front-line staff receives real-time KPI (Key Performance Indicator) dashboards related to operational and strategic goals. They use speech analytics to get deep and meaningful information from the live-recorded interactions between customers and staff. This helps Southwest Airlines to get more information about the customer preferences and to see what kind of experience they receive. Different metrics help the personnel to achieve the objective of delivering high-quality service (Rijmenam, 2013).

Moreover, Southwest Airlines uses data mining to analyze the real-time data from social media in order to provide their customers with individual offers. It helps to promote the right product to the right customer at the proper time and via a suitable channel. This personalized experience is leading to a higher growth and increase in customer satisfaction. Therefore, the Southwest Airlines is an innovative company that uses the latest technologies and data mining techniques to improve their organization, create better products and service, and increase customer satisfaction (Rijmenam, 2013).

If every airline implement the same techniques as Southwest Airlines, it will be a great step towards an improvement of customer service and satisfaction, which will definitely increase the companies’ profit.

 

Sources:

Ed Peelen, Rob Beltman (2013). Customer Relationship Management

Ishikawa, M. (2015). Data mining’s impact on the airline industry. Retrieved October 1, 2017 from http://www.avianaglobal.com/blog/data-minings-impact-on-the-airline-industry/

Rijmenam, M. (2013) Southwest Airlines Uses Big Data To Deliver Excellent Customer Service. Retrieved October 1, 2017 from https://datafloq.com/read/southwest-airlines-uses-big-data-deliver-excellent/371

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