The recent CrowdStrike outage crisis that impacted Delta Airlines exemplifies how customer experience failures can lead to major financial and reputational damage. In today’s interconnected world, airlines must ensure that technology and customer service seamlessly collaborate to create experiences. However, when these systems falter, the consequences can be dire.
The crucial role of CX during a crisis
The CrowdStrike outage impact on Delta highlighted the importance of customer experience during a crisis. The outage resulted in flight cancellations, leaving thousands of passengers stranded worldwide, and quickly escalated into a major crisis due to Delta’s inability to issue refunds or provide assistance promptly. Many passengers faced uncertainty about reaching their destinations, leading to frustration, anger, and eventual legal actions against the airline.
Delta’s failure to meet passenger expectations during a crisis exposed shortcomings in its customer service framework. When customers feel neglected and in distress, legal actions and financial consequences often follow suit, as Delta learned firsthand.
The impact of the outage went beyond inconveniencing passengers, as Delta also suffered financial losses directly linked to the incident. Reports indicate the airline had to bear a $500 million hit due to flight cancellations and disruptions. This substantial financial blow serves as a reminder of the expensive consequences that can arise from ineffective crisis handling. Not only does it lead to immediate operational challenges, but it also results in enduring financial repercussions from dissatisfied customers. When travelers are compelled to scrap their travel plans and the airline fails to offer solutions, the cost isn’t limited to lost ticket sales but extends to the erosion of customer loyalty.
While rival airlines swiftly recovered, Delta’s recovery efforts lagged. This prolonged period before returning to operations cast a shadow on the company’s image, inflicting lasting harm on its reputation. The repercussions weren’t confined solely to how passengers viewed Delta but also prospective investors and collaborators who observed Delta struggling to regain control over the situation. This emphasizes why having a strong customer experience strategy is crucial for everyday business activities, particularly during moments of crisis. A brand’s standing can easily crumble when crisis management falls. Rebuilding trust afterward often proves more challenging than preserving it initially.
Along with disrupting passenger services, the outage also led to nightmares for Delta. One of the challenges the airline faced was its difficulty locating and coordinating its staff members. Technical issues led to employee experience tools not functioning, leaving employees uninformed and causing delays in returning to normal flight operations. Without employee management, Delta struggled to bounce back swiftly.
The correlation between employee experience (EX) and customer experience (CX) is evident; when the employee experience suffers, it affects the customer experience well. Companies must understand that their internal systems and tools for managing employees are as vital as those facing customers during a crisis.
Delta’s public disagreements with CrowdStrike and Microsoft over who was accountable for the outage further harmed its reputation in the eyes of the public. While shifting blame may have allowed Delta to deflect some responsibility, it also exposed weaknesses in its IT processes. The ensuing legal battles drained Delta’s resources and generated more negative publicity.
When customers witness a company grappling with its operations, their trust in the brand diminishes. In today’s media environment, where every detail can be scrutinized and magnified, these public disputes further undermined customer confidence and trust in Delta.
The unstoppable growth of CXAI
In the aftermath of this crisis, it’s evident that relying on traditional crisis management methods is no longer enough. Artificial intelligence (AI) is emerging as a tool for improving customer experience, especially in times of crisis. By utilizing AI-driven solutions, businesses can more efficiently predict issues, offer assistance, and bounce back from disruptions.
AI-based chatbots and virtual assistants have the potential to revolutionize customer support during a crisis. Waiting endlessly on hold only adds to their frustration when numerous passengers are stuck and upset. AI can respond to common queries, guide customers to the appropriate resources, and even kickstart refund processes automatically.
By addressing these issues, AI allows human agents to focus on more intricate cases, leading to a more effective and responsive customer support setup. Passengers feel less abandoned when they have accurate time information, reducing their annoyance and the likelihood of repercussions.
One major criticism during the Delta outage was the lack of communication. Passengers were unaware of what was happening when a resolution could be expected or their choices. AI can change this by engaging with affected customers.
During a service disruption, AI can automatically send updates through email, text messages, or app notifications to inform travelers about the status of their flights, any alternative arrangements available, and the compensation processes. Airlines can establish trust in challenging situations by keeping passengers in the loop. Transparency plays a role in maintaining customer loyalty, and AI facilitates timely and precise communication.
AI’s impact goes beyond customer interactions to enhancing the experience of airline employees by optimizing crew management. During the Delta incident, one of the challenges was locating and managing staff effectively. AI tools can assist by tracking crew members in time, proposing alternative schedules, and coordinating with operational teams to expedite flight resumption and minimize or prevent unnecessary delays for customers. By streamlining procedures, airlines can mitigate the effects of IT failures on their operations and ensure disruptions are kept to a minimum.
A key advantage of AI is its scalability. In times of crisis, there may be a surge in customer queries that can overwhelm well-prepared customer service teams. AI systems handle these spikes by simultaneously providing consistent and accurate responses to numerous passengers.
Ensuring scalability is critical to preventing customers from waiting during busy periods. While human agents handle issues effectively, AI offers a scalable solution that eases the load, leading to quicker and more efficient crisis recovery.
The recent CrowdStrike outage taught Delta Airlines about the critical role of customer experience during crises. With the aviation industry relying on technology, the demand for robust AI-driven customer experience solutions is becoming more evident.
Companies can’t afford to underestimate CX’s significance during operational disruptions. The future of customer experience centers around AI — automated assistance, proactive communication, and improved employee experiences all contribute to smoother recovery processes and better outcomes for both companies and customers. By embracing CXAI, airlines can proactively navigate challenges, fostering trust and loyalty even in challenging situations.
