Business success is often measured by profitability, but in today’s market, customer satisfaction and loyalty are just as critical.
Companies that prioritize their customer master data quality are better positioned to deliver personalized service and maintain long-term relationships with their customers. There are two outstanding success stories of businesses worth mentioning that recovered from near bankruptcy as a result of changing their focus on customer master data quality.
Now everyone can fly
Malaysia is home to one of Asia’s largest and most successful low-cost carriers, AirAsia, which also has subsidiary airlines in Thailand, Indonesia, Japan, and the Philippines.
According to Advito’s, Mike Eggleton, Director, Research and Intelligence. AirAsia accounts for 94% of all domestic LCC flights. According to the AirAsia X site. AirAsia X Berhad (AirAsia X) is billed as a medium to the long-haul airline operating primarily in the Asia-Pacific region.
First established as Fly Asian Express (FAX) in 2006, it started out servicing rural areas of Sarawak and Sabah with turboprop aircraft before undergoing a comprehensive rebranding in September 2007 followed by our flights to Australia in November 2007.
At the onset of the COVID-19 pandemic, AirAsia X embarked on a period of hibernation of its scheduled flight operations and commenced its debt restructuring in October 2020.
Prior to the hibernation, AirAsia X as a Group served destinations across Greater China, Japan, South Korea, India, Australia, the Middle East, and the United States of America, and currently operates out of two hubs: Kuala Lumpur and Bangkok.
At the completion of its debt restructuring – which was formalized on 16 March 2022 by way of a lodgment of court sanction – AirAsia X now offers increased scheduled passenger flight operations to meet the strong pent-up demand brought on by the global pandemic.
As of 31 August 2022, AirAsia X serves Seoul, South Korea, and Delhi, India.
As a low-cost carrier (LCC) airline based in Malaysia AirAsia faced significant challenges in the early 2000s. The company was losing money, and its competitors were outperforming it in the market. AirAsia was on the brink of bankruptcy. Asian LCCs originally focused on leisure traffic at the lowest possible fares but that’s changed.
The company recognized the need to transform its business model and focus on customer master data quality.
AirAsia realized that it needed to provide a seamless, personalized experience that integrated online and offline customer interactions. They invested in technology to improve their customer management system and provide a 360-degree view of the customer.
In a 2019 interview with Tech Wire Asia, a representative provided insights into not only what the airline did digitally, to delight customers but also how the airline measures customer happiness and endeavors to improve.
AirAsia also implemented a new pricing strategy that included “ancillary services” such as in-flight meals, baggage fees, and seat selection. This strategy helped the company increase revenue and improve customer satisfaction.
The results of AirAsia’s transformation were impressive.
The company reported its first profit in 2002 and has continued to grow ever since with a further enhancement to cloud systems in 2014. AirAsia is now the largest low-cost airline in Asia and has won numerous awards for its customer service and innovation.
Let’s talk about what’s possible.
In the early 2010s, Best Buy, the multinational electronics retailer, was struggling to compete with online retailers such as Amazon.
Best Buy was facing fierce competition, a declining stock price, and plummeting sales. In 2012, the company reported a $1.2 billion loss and was on the verge of bankruptcy.
Best Buy recognized the need to transform its business model and focus on customer master data quality. The company realized that it needed to provide a seamless, omnichannel experience that integrated online and in-store shopping. Best Buy invested in technology to improve its customer master data management systems and drive toward a 360-degree view of the customer.
Best Buy also implemented a new pricing strategy called “price matching” that allowed customers to compare prices with other retailers.
Though hardly a new concept, price matching has been around for many years, in the modern era, price matching has become more widespread and sophisticated, with many retailers offering price match policies as a way to compete with online retailers.
Best Buy implemented its price matching policy in 2013, allowing customers to compare prices with other retailers both in-store and online. This strategy helped the company regain customer trust and loyalty.
The results of the transformation were considered remarkable.
By 2014, the company’s stock price had tripled, and it had become one of the top-performing retailers in the world. In 2018, Best Buy reported its fifth consecutive year of sales growth, and its stock price continued to rise.
Best Buy has continued to perform well since 2018.
The company has been able to maintain its momentum and consistently report strong financial results. In FY 2021, Best Buy reported revenue of $47.4 billion, up 8.6% from the previous year. The company also reported net earnings of $1.7 billion, up 23.6% from the previous year.
The business has also continued to focus on its customer-centric strategy, investing in new technologies and services that enhance the customer experience.
An expanded online ordering and curbside pickup option were added, allowing customers to shop more conveniently during the COVID-19 pandemic.
Best Buy has also invested in new services such as tech support, home installation, and repair services, which provide additional value to customers and help differentiate the company from its competitors.
The company has made significant progress in reducing its carbon footprint, and in 2020, it was named to the Dow Jones Sustainability Index for the seventh consecutive year.
These two success stories demonstrate the critical importance of customer master data quality in today’s market.
AirAsia and BestBuy both recognized the need to transform their business models and focus on delivering a seamless, personalized experience to their customers.
By investing in technology to improve their customer-centric systems and provide an improved 360-degree view of the customer, both companies were able to increase customer satisfaction, improve retention, and ultimately recover from near bankruptcy.
Companies that prioritize customer master data quality are better positioned to succeed in today’s market and maintain long-term relationships with their customers.
Further reading: How customer relationship management, perceived risk, perceived
service quality and passenger trust affect a full-service airline’s passenger satisfaction