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Singapore Airlines Customer Service Innovation A Case Solution

Solution Id Length Case Author Case Publisher
2614 3429 Words (10 Pages) Rohit Deshpande, Hal Hogan Harvard Business School : 504025
This solution includes: A Word File A Word File

SIA is a Singapore Airline service that is leading the world with its service. The service is based on the main goal of customer satisfaction and the company has constantly introduced innovations that have created a lot of passengers for SIA. The case study is about how British Airlines has introduced an innovation that has converted a lot of SIA customers to BA. A meeting is arranged by SIA to discuss that should they introduce a new seat bed which will attract new customers. SIA has introduced a lot of innovations like Singapore Girl. They introduce a fashion of replacement of aircrafts every six years. With the main goal of satisficing the customer the company launched a lot of programs to teach the employees and made them better which helps the customer feel comfortable, but all this caused problems for the company too. These problems were solved with time and the company lead the table of Airline services.

Following questions are answered in this case study solution

  1. Why was SIA successful early on? 

  2. What are the key success factors in the 2000s? 

  3. What is the impact of SIA’s culture on its performance?

  4. What is the customer service strategy of SIA? 

  5. What is nature of the customer experience that they are delivering?

  6. Can they create a competitive advantaged – based on the customer experience?

  7. What do you think of their customer satisfaction measurement approach? 

  8. What is their challenge of the “ever rising” customer expectations? 

  9. How does the SIA culture support the customer experience?

  10. Should they go forward with (or cancel) the new flat be orders for Raffles class?

Case Analysis for Singapore Airlines Customer Service Innovation A

1. Why was SIA successful early on?

One of the major reasons for SIA's success was the reach to key destinations at the start for example Japan, Australia, Europe, and North America. Developing all the traits that were needed for becoming successful in the start also helped SIA become successful. SIA's strategy was of turning over Planes after every few weeks which help them maintain the most modern and youngest fleets present there in the industry. Customer satisfaction was also focused on by SIA as the investment was made in-flight comforts and cabin crew training which help them get customer loyalty and made SIA see success in the start. SIA also started its heavy advertising campaign called “Singapore Girl”, which shows an idealized image of the female staff who worked as attendants. The Airport was also a reason behind the success as it had training and maintaining facilities as well as it was a major crossroad hub, being the most modern airport in the world helped the SIA a lot. The involvement of the company with various Airline related businesses helped the company get a lot of profit, those businesses worked as subsidiaries in SIA's success. Singapore Airline Terminal Services was one of the major subsidiaries as it helped by carrying customers' cargo and providing Ramp and security services. Catering service was also provided by the SATS. SIA Cargo was named one of the top five global cargos in air cargo. The company was also working in real estate and Aircraft leasing. The government also sold a portion of the companies holding to the public on the stock exchange. The start was successful as an increased number of Airbus jets were also used, lastly planes with 40% greater sitting capacity helped make them the first airline to operate this big plane. Customer service was different and better than others was a way SIA became so successful.

2. What are the key success factors in the 2000s? 

The first key factor was when the company made it more than just an airline service. The introduction of airline-related businesses gave a great boost to the company as some of the businesses became a major source of profit for SIA. In 2001 when nearly 20 of the businesses were considered separate subsidiaries under the SIA. The major subsidiary was Singapore Airline Terminal Services, which was offering passenger services, cargo services, ramp, and security services for the other operators at the Airport. The service also provided the customers with flight catering services. Another factor was the SIA engineering company which was providing maintenance and repair of planes as well as an overhaul of the plane. SIA Cargo and SilkAir were also a way for SIA to become successful. Being debt-free in the 2000s was also one of the factors of SIA's success. The replacement of aircraft every six-year was one of the points that helped the company make a name. Joining the star alliance was a step in SIA's success too as it was linking 15 Airlines which were leading at that time, and the alliance helped SIA to book flights seamlessly in 120 countries. Measuring the satisfaction of customers through surveys and then resolving those issues was a way that made SIA different and better. In 2000 the company introduced a new program named Transforming Customer Service, which keep a check on the staff and improved customer service as innovative customer service was the point that help SIA grow. 17.2 training days per employee was invested by the company in 2000 for improving the staff. That improvement causes the goal of SIA to be achieved and customers satisfaction increased, and the number of complaints was very less compared to compliments, which made SIA lead in the Europe Asia survey

3. What is the impact of SIA’s culture on its performance?

SIA used its resources to develop a culture that stands for a specific reason for example Customer service, so the performance was based on that culture. This was the reason that the company wanted and selected people with good communication skills and people who can maintain a positive attitude toward the customers. SIA culture restricted the SIA staff a lot too just to maintain it for example Employees were graded on their performance and their punctuality. Quizzes were taken and their in-class performance was also focused a lot. Few standards were set by the company which was forced to follow throughout the service. Singapore girls even off duty were not allowed to act in a certain way in uniform because that can cause a problem in the culture. Restraining sessions were done by the crew member for attaining the culture, this all resulted in making SIA a high-performance Company as it was known for the most advanced quality of customer service. The company wanted a culture where no mistake with customer care was not encouraged and it impacted their performance a lot, As TCS was created to teach employees. Transforming customer service was covering the entire organization and helping them learn so they can improve customer service and maintain their culture. SIA considered their culture as their strength, As the culture makes them work better Cheong Stated that their culture has made an unspoken routine, and that routine has made the employees know what they are doing and what is supposed to be done. SIA and its employees know how important the company’s culture is and it’s the reason they work hard. SIA culture Feeds upon and reinforces itself, As the company feels the culture is their reputation and their performance is meant to keep it up. The company feels to not make mistakes and its reputation will grow a long way.

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