Going the extra mile to ensure customer satisfaction can really pay off in the airline industry.
Although not exactly a shocking development, a new study from Connecticut-based firm Watermark Consulting found that airlines that rank the highest in passenger satisfaction typically experience the most financial success in the long run.
According to the Los Angeles Times, the 2017 Customer Experience ROI Study analzyed the stock value of airlines over a six-year period from 2011 to 2016. It discovered that top-ranking airlines in the J.D. Power North America Airline Satisfaction Study performed better than their lower-ranking counterparts.
The shares of airlines that ranked highest in customer satisfaction had a cumulative total return on investment of nearly 300 percent, while those ranking lowest had a cumulative return of just 146 percent.
Watermark founder and study author Jon Picoult points out that some airlines find short-term success in marginalizing customers by overbooking and charging fees. However, he questions whether that strategy is sustainable for the long haul.
According to Picoult, Southwest Airlines is among the carriers benefiting from quality customer service. The Dallas-based airline was named the top low-cost carrier for customer satisfaction for the fifth year in 2017 and is coming off of its 44th consecutive year of profitability.
Alaska Airlines, Delta Air Lines and JetBlue are other top performers when it comes to transporting satisfied customers in 2017.
[READMORE]READ MORE: Why Are Airlines Really So Profitable?[/READMORE]
Interestingly, a survey conducted by airport transportation provider GO Group LLC found that recent high profile and negative incidents involving airlines haven't turned travelers off to flying.
Roughly two-thirds of survey respondents (67 percent) indicated that they were still planning on traveling by plane this summer, while less than one percent of respondents said they were canceling their plans.
What's more, only seven percent said recent confrontations would lead them to switch their preferred airlines.
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