How Airports Measure Customer Service Performance (2013)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

8 TERMINOLOGY A widening scope of customer service initiatives at airports has expanded the use of descriptive vocabulary, including customer experience, customer satisfaction, and customer service performance. To place these words in context, it is useful to begin with a definition of excellent customer ser- vice. According to Joanne Paternoster of Butterfly Consult- ing, “Excellent customer service is . . . the synergy created when an airport’s ability to exceed its customers’ needs and expectations consistently matches the customers’ perception that their needs and expectations are well met.” The concept of synergy puts the airport and the customer in a dynamic situation in which the airport operator strives to meet the needs of its customers and exceed their expecta- tions. Figure 2 describes this process and provides a useful framework to discuss the different elements of customer ser- vice. In the graphic, the airport operator creates an environ- ment directed at meeting customer needs and expectations (the practice). The customer’s experience while in the airport is the outcome. Through various methods of data collection, airports determine whether customers are satisfied (the mea- sure). Evaluation of customer satisfaction data (the analysis) results in continuous improvements to customer service. This synthesis focuses primarily on current customer service initiatives at airports, how airports measure customer satisfac- tion and what they do about the information that is gathered. HISTORICAL CONTEXT Since deregulation, airports have been customer-sensitive enterprises. However, the perception of the customer has changed dramatically. Not so long ago, airports considered their main customers to be the airlines, the concessionaires, rental car companies, parking operators, advertising agen- cies, and fixed base operators (FBOs). In this world view, airport sponsors were responsible for the infrastructure that supported air transportation. An airport’s business partners had direct responsibility for their own customers. The transformation of airport customer service began in the late 1990s, but accelerated after the tragic events of September 11, 2001 (9/11), when airports were called upon to provide emergency support to many stranded customers. After 9/11, changes in security protocols and substantial airline losses transformed airport operations and led airport management to take a more direct role in customer service. From the customer’s perspective, there is now a need to spend more time at the airport to allow sufficient time to pass security checkpoints. Limited food service on aircraft has increased demand for concessions and eating areas. Many passengers hand-carry baggage onto aircraft and need extra maneuvering space through the terminal, which has led to design changes. Consolidation and cost savings initiatives by airlines, rental car companies, and concessions have translated into fewer customer service agents on airport premises. In the current environment, the airport has become the first recourse. Airports are also facing revenue challenges. Airport–airline agreements are trending toward shorter duration contracts and some exclusive use agreements have become preferential or common use agreements. Airport sponsors are seeking to diversify revenue streams through other business enterprises such as commercial real estate development or, if natural resources are available, exploration and development of min- eral estates. Some airports have also taken more active man- agement control of concession programs and parking. These changes reflect an evolution of the airport from an organiza- tion whose principal mission is to provide and maintain airport infrastructure to a complex and diversified business enterprise (see Figure 3). In keeping with management of a set of diversified busi- nesses, interest in the customer experience has expanded to include gauging how the airport is performing with respect to: • Airline services • Traveler services • Retail services • Executive and general aviation • Services to non-aeronautical enterprises. Figure 4 shows the breadth of an airport’s customer groups. Whereas in the past the airport’s main customers would have been the group on the left of Figure 4, today airports are also focused directly on the air passengers, meeters and greeters, other airport visitors, and users of general aviation services. It is important to also note that the airport’s business partners and suppliers are also their internal customers. Customer service has become an integral part of most airport functions and today is an important component of chapter two OVERVIEW OF CUSTOMER SERVICE AT AIRPORTS

9 FIGURE 2 Elements and Process of Excellent Customer Service. Adapted by KRAMER aerotek from Seth B. Young, The Ohio State University (2012). Customer Service Performance "The Analysis" Strategy and Design Feedback Customer Service "The Practice" Satisfaction "The Measure" Customer Customer Experience "The Outcome" Implementation Response FIGURE 3 Shift in the airport portfolio of responsibilities. Prepared by KRAMER aerotek inc. (2012). strategic planning, communications, facility improvements, design, and interactions with the various customer groups. DATA COLLECTION ABOUT CUSTOMER SATISFACTION Given the myriad separate businesses and entities that oper- ate or have a presence at an airport, it is easy to see how air- ports find themselves on the front lines of customer service issues and resolutions. Airports are also in a unique position to monitor, respond, and improve customer experience in many functional areas of the airport, including: • Passenger processing (airport access, parking, check- in, wayfinding, passport control and customs, security, and baggage handling) • Airport facilities (lounges, waiting areas, restrooms, walk- ways, elevators, ambiance, uniqueness, sense of place) • Concessions (retail, food and beverage) • Customer services (wheelchairs, baggage carts, Inter- net access, information and help desks). Airports collect information about their customers through their employees and volunteers and through mystery shop- per programs, surveys, letters, e-mails, comment cards, and social media. What is done with this information represents the full spectrum of customer service initiatives at airports. Many airports have formalized these data collection processes and are using the information to set priorities, improve opera- tions, track improvements, and make comparisons with peer airports. Measuring airport customer satisfaction also pro- vides data to discuss customer service priorities with staff, business partners, contractors, and airport sponsors. “If you can’t measure it, you can’t manage it.” Peter Drucker, Management Consultant IMPORTANCE OF SATISFIED CUSTOMERS Airports managers interviewed described three reasons why customer satisfaction has become a priority: 1. Measuring and tracking the customer experience will lead to a better understanding of needed airport improvements from the user’s perspective. 2. Good customer service helps the passenger feel more at ease and relaxed, which translates to repeat business, higher spending rates at the concessions, and ultimately greater net revenues to the airport sponsor.

10 3. Airports that exceed their customers’ expectations will have a competitive edge, especially in regions where fliers can select among multiple airports. COMMON CUSTOMER ISSUES Whether an airport has a formal or informal system to process and respond to customer complaints, compliments, and ques- tions, airports identify a similar list of top issues that impact customer satisfaction: • Speed through the airport • Cleanliness • Gate experience • Concessions • Courtesy of the staff. Airports in congested areas also identify access to the air- port as a critical but difficult issue. Airports that have lost air service rank quality of air service as key to customer satisfac- tion. Airports with active community stakeholders identified communication and community support as critical. Figure 5 groups the most common airport customer issues identified by airports participating in this study. CUSTOMER LISTENING AND RESPONSE FRAMEWORK Since customer service is one of the main ways that airports are in contact with customers, it is also integral to under- standing and improving customer experience. This section describes a framework for implementing an airport-wide effort to measure, evaluate, and improve customer satisfac- tion. Most airports incorporate five elements into a listening and response process, beginning with a strategic foundation and then implementing a process to listen to customers, mea- sure performance, evaluate results, and respond to resolve, improve, or innovate. Figure 6 describes the ongoing process. Strategic Foundation Most large and many smaller airports have a strategic plan. Based on interviews for this synthesis, customer satisfac- tion has become an important component of these plans and drives initiatives and measurement of performance through- out the airport organization. Dallas/Fort Worth International Airport (DFW) offers a good example of how customer satisfaction translates into var- ious initiatives throughout the organization. Each initiative is associated with a measure of progress. Performance on initia- tives is tracked for each business unit and for individual staff. Profit reflects an enterprise’s ability to LISTEN to customer needs and wants. Growth reflects an enterprise’s ability to REACT to changing customer needs and wants. Armin Cruz, Dallas/Fort Worth International Airport FIGURE 4 Airport customers. Prepared by KRAMER aerotek inc. (2012).

FIGURE 5 Frequent customer issues at airports. Prepared by KRAMER aerotek inc. (2012).

12 According to the DFW International Airport Strategic Plan 2012, DFW’s primary business goal is to “grow the core business” by achieving results in four areas: • Keeping DFW cost-competitive • Creating customer satisfaction • Delivering operational excellence • Fostering employee engagement. In the area of customer satisfaction, the plan offers five strategic objectives: FIGURE 6 Customer listening and response framework. Prepared by KRAMER aerotek inc. (2012). • Ensure that the customer experience is consistent with DFW’s brand attributes: professional, world-class/ international, leading-edge, caring/friendly/responsive, and unique. • Retain existing customers. • Collaborate with business partners to satisfy customers. Determine satisfaction metrics and capture the required data to determine current and potential customer satisfaction. • Attract new customers. • Ensure all employees directly or indirectly support cus- tomer groups.

13 Listening/Response Process There are numerous touch-points at an airport where vol- unteers, airport employees, and business partners engage customers and listen to their feedback. Figure 7 lists many ways, formal and informal, that airports listen and commu- nicate with their customers. The listening/response process is iterative, whereby airports engage their customers, listen, examine the breadth and extent of customer experience, analyze the data, respond to the customer, and review the results. The extent of formal analysis is highly variable as is the choice of listening methods. Some airports primarily respond to phone calls, customer comment cards, and airport website comment. Other airports keep track of the types of customer feedback received and engage in formal data col- lection by means of surveys, focus groups, and other modes of direct communication. In practice, customer service activities serve various func- tions. For example, information desks provide direct help to passengers. At Minneapolis/St. Paul Airport (MSP), there are eight Traveler’s Assistance (TA) locations staffed by volun- teers. Volunteers at each location keep track of the category of complaints and compliments and the location where the feedback took place. Scanning the database provides a way to pinpoint both issues and location of problems. Table 3 shows the categories used. Ottawa International Airport launched an eight-week ideas campaign in fall 2011 that engaged travelers in an Inter- net discussion about how the airport could improve customer experience. Participants logged onto the website and made suggestions. Airport staff responded, adding their own sug- gestions. Other participants could also join the conversation. Staffers tested the idea of valet parking and received little positive response. On the other hand, they received valuable information about baggage delivery issues and discovered that they needed to move the smoking area away from out- side the terminal entrance. The collaborative idea campaign produced good feedback, generated some unexpected sug- gestions, and opened a communications channel with airport users. Ottawa is considering new idea campaigns that would target tenants in the business park and airport employees. ORGANIZATION OF CUSTOMER SERVICE AT AIRPORTS Interviews with airports revealed wide variation in how cus- tomer service is organized. Airports agreed that effective cus- tomer service starts at the top of the airport organization. For most airports, customer service is a distributed responsibility where every department has its own initiatives to improve customer experience. Customer service functions reside in operations, public relations, communications, community affairs, property management, human resources, the airport executive offices, or a combination of these. Some organiza- tions such as the Port Authority of New York and New Jersey (PANYNJ) have separate departments that are responsible for collecting and analyzing data. FIGURE 7 Listening/response process. Prepared by KRAMER aerotek inc. (2012). Re Evaluate spond O I Review Results Measure bjective & nitiatives Listen Complaints/Compliments Categories Airlines Parking Buses Phones/Wi-Fi Cleanliness Police/CSO Connections Public television Construction Rental cars Customs Restaurants & retail Electric carts /wheelchairs Security checkpoints Facilities Signage Disability issues Smarte Cartes Information Smoking Lockers Taxis Lottery Terminal environment MAC employees Travelers assistance Other issues Vending machines Paging Source: Metropolitan Airports Commission, MSP (2012). TABLE 3 TRAVELER’S ASSISTANCE COMPLAINTS/ COMPLIMENTS CATEGORIES