Get better at better (airlines)

Burt_Drinking_36F

This is the first of a series of posts where I evaluate companies and industries who strive to serve their best customers better.

First stop, Gate 36C at O’Hare.

Are airlines doing better well? Could they be doing better better?

Very few companies execute better effectively. To truly treat their best customers better over the long term, the service has to meet three criteria:

1) Significant – The better service must be significantly better, not marginally better.

2) Consistent – The better service must be consistent. The best customers always get the better service. (NB: The ability to occasionally break policy in order to delight a customer is a power that every employee should have – it needs to be built into the company culture. Here, I’m not referring to occasional delights but how to treat long-term customers better.)

3) Transparent – The better service should be transparent. Both the best customers and the not as good customers should know what level of service they are getting and why.

All three are critical.

Let’s look at airlines. Almost every airline offers some sort of frequent flyer program with multiple tiers. Let’s evaluate:

Significant – The difference between sitting in first class versus coach is significant. The chairs are designed to comfortably hold human beings and you get free drinks. The food is significantly warmer, if not significantly better. Other perks like priority boarding and Crown Room access are also significant.

Transparent
Airlines make it obvious whether you can use certain services based on your status. From the big signs at the ticketing lines to the boarding priority announcement, to the little luggage tags denoting ‘diamond-encrusted platinum’ customers, it’s usually pretty obvious who has status and who doesn’t.

It is even most obvious (if ridiculous) when the flight attendants announce that those seated in coach may NOT use the first class cabin lavatory.

Consistent
This is where the airlines blow it. There are limited first class seats. Understood. So if you are Diamond, but so are 18 other people on that particular flight, you might end up sitting in 38F. This isn’t the end of the world, but here is where airlines screw up.

From the minute you step in the airport, Diamond is treated as Diamond. Faster ticketing lines. Better baggage policies. Crown room access.

But once you’re on the plane, if you don’t get one of the first class seats you effectively lose your status for the rest of the flight. They use the curtain, not the status, to determine how to treat you.

In coach, your Diamond status disappears. It doesn’t have to.

The airline knows your status and they know where you’re sitting. So why don’t they bring all Diamond members free noise-canceling headphones or two free drink coupons? It’s an easy (and cheap) way to say, “We know you didn’t get 1A this time, but we still value you as a premium customer.” It also tells a story to those passengers sitting nearby, “Get status, and you too will be treated better, regardless of where you sit.”

Marketing execs at any major airline will tell you this is too expensive and too complicated. They’re dead wrong.

In future posts, I’ll look at other companies and industries and how they can “get better at better.”

If you have an industry you would like me to profile, mention it in the comments or email me.

You don't control your brand

United Airlines screwed up bad.

In the spring of 2008, Dave Carrol flew United Airlines to a gig with his band, Sons of Maxwell. His expensive Taylor guitar ended up broken at the hand of United employees and the airline.

At that point, they had two options:

Option A – Seize the defect
Cost: $3000 and a nice follow up phone call or email.
Impact: Create a positive story and a customer evangelist.

Option B – Ignore it. Offer no compensation or explanation. Hope it goes away.
Cost: $0. Lots of time spent responding to repeated complaints.
Impact: 3.2 million views of a hilarious, viral video trashing United’s brand.

There are two lessons here.

1) Put the customer first, like Zappos, JetBlue and Disney.
2) When you make a mistake, it’s not the end of the world. But seize the opportunity. Rectify the mistake, quickly and generously.

You don’t control your brand, but if you take care of your customers, they’ll take care of your brand.

United_Breaks_Guitars

You can't hurry love

DR__supremes

Diana Ross and the Supremes had it right back in 1966:

You can’t hurry love
No, you just have to wait
She said love don’t come easy
Its a game of give and take

Customer engagement is the new marketing. Repeat customers and viral recommendations are based on love.

People love companies like Zappos and JetBlue because they keep the love going, dripping it even after the honeymoon of the initial ‘wow’ customer experience has worn off.

Customers return the love in the form of word of mouth recommendations and over time, everyone wins.

What's your weakness?

Chain Link

When is the last time you held a meeting to discuss your biggest weakness?

If a competing firm wanted to steal (or even market to) your customers, where would they focus?

Could they treat your customers better?

Ship faster?

Provide better technical support?

How easy would it be for them to make your customers feel better than you do?

Identify your biggest weakness and eliminate it before your competitors exploit it.

United irony

This commercial for United airlines is now 20 years old. Although the technology and tactics have changed, the message remains the same: customers want to feel taken care of.

Top execs at United would do well to watch this commercial on loop and reevaluate their own customer service.

When this commercial aired, United offered two free checked bags, free snacks and free meals on longer domestic flights. In coach.

Today, United charges $20 for the first checked bag and $30 for the second bag. Not only are there no free meals in coach, they charge for those little cheese & cracker snack boxes. Last August, United was the first domestic carrier to eliminate meals on some international flights.

Understandably, times are tough. Costs are up. I understand that. Most customers do too. It’s not about the microwaved chicken kiev and free peanuts.

It’s about feeling treated like a human.

Similar to the customer in the ad, I fired United a long time ago.

Don’t give your customers a reason to fire you.

UnitedAirlines2

What would people love?

BlueManGroup

Innovate, don’t imitate.

The problem with taking someone else’s idea and doing it a little better is that it’s just as easy for the next company to improve it a little bit more. Cheaper labor. Faster machines. The improvement becomes a linear asymptote, until making any further improvement is costlier than the benefit gained.

Instead, dream up what people would love. Then create it.

I say dream it because nobody will ask for it. Before they existed, nobody asked for:

- the iPod
- OpenTable.com
- Build a Bear workshop
- Blue Man Group
- online check-in
- Twitter
- FedEx
- The W hotels

Nobody ever said, “wow, you know I really love writing extremely short blog posts. I wish there was a website that limited mine to 140 characters or less. THAT would be great.”

Doing something just a little better can make a few dollars in the short run but if you can tighten the screws, someone else can tighten them a bit more.

Zappos didn’t sell shoes online just a little bit better. If that was the plan, they could have stopped when they offered more sizes, colors and styles than anyone else. They dreamed that customers would love the best customer service they’ve ever experienced, online or in person. They were right (and did over $1B in sales last year).

Whether you are thinking of starting a new business or improving your existing business, ask yourself, “what would people love”?

Then build it.

A sip of Rome

In the book, The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary, Joseph Michelli outlines how the Howard Schultz built an empire around delivering an experience, not just coffee.

Along the way, many small mom & pop cafes were closed. By being remarkably unique, this is one cafe that never has to worry about the Big Green Coffee Monster.

Basilio Inside

Caffe Latte
When you walk into this small cafe in Dobbs Ferry, say hi to the owner, Basilio. He’s the handsome salt & pepper-haired Italian man who is always behind the counter. He has a knowing smile and a charm about him that makes you feel like you’ve known each other for years.

His small cafe seems fairly nondescript until you notice the small details. The American magazines and Italian newspapers scattered haphazardly at the counter by the front window. The ever-present table of Basilio’s Italian friends cramped at a table just out of the way. The small vase of fresh cut flowers at each of the five small tables (and two more outside when it’s warm enough). The simple vinaigrette on the simple caprese salad. The art, posters and Italian bricabrac that adorns the walls.

Most impressive? The ballet that Basilio dances as he effortlessly handles multiple orders to multiple customers.

And then it hits you. You’re not in Dobbs Ferry. You’re in Rome. Even if just for an hour.

Basilio is a consummate Italian. He’ll make you a damn fine cappuccino, but don’t hurry him. Sit. Relax. Read a magazine. Let Basilio’s calmness be contagious. Enjoy your coffee and the perfect little chunk of biscotti that Basilio puts on the saucer.

Enjoy Basilio’s Italy.

Basilio_Outside

On this particular day, some of Basilio’s regulars brought in two bottles of wine from a recent trip to California. One for Basilio and one for them to share. Beautiful.

Stores up and down Cedar Street have come and gone but Basilio has been going steady for 15 years because he delivers an experience Starbucks never could; Italian vacations, one cup at a time.

Are you smarter than a 5th grader?

build-a-bear

1997: Maxine Clark opened the first Build-a-Bear workshop in a mall in St. Louis.
1999: Raised investor money and opened 10 new stores.
2001: The National Retail Federation names Build-A-Bear the Retail Innovator of the Year.
2002: Build-A-Bear Workshop celebrates the 100th anniversary of the teddy bear along with the opening of its 100th store.
2008: 346 stores and $470M in revenue – a huge success.

Maxine did a lot of things right.

She sold an experience, not a product. (The bears are free. Parents and grandparents (happily) pay for the experience of creating them with their child.)

She built a Purple Cow, a remarkable product that people would passionately tell their friends about.

She made it extremely easy for the idea to spread. The concept is perfect for groups (i.e. birthday parties). In recent years, she has expanded the empire with smart licensing deals.

But Maxine did another thing right. She built an advisory board for feedback and decision input. The board members? High paid MBAs or marketing consultants? Surely they would know the market trends and forecasts better than anyone, right?

Wrong. The Cubs are a group of 20 boys and girls 8-14 years old who review new products and suggest additional ones. It meets with Clark and her team 3-4 times per year. Clark takes the board’s opinions seriously–if the board does not approve a product idea, the company doesn’t use it.

If Maxine Clark is smart enough enough to listen to 5th graders, are you smart enough to listen to your customers?

Listen and learn

Listening to customers isn’t a new concept but (most) companies have come a long way from those comment cards in small wooden boxes.

Dell computers has Ideastorm, a website where anyone can go on and post an idea, suggestion or even (gasp) a complaint.

dell-ideastorm1

Starbucks has a similar site at MyStarbucksIdea.com.

mystarbucksidea

One customer posted his idea requesting the ability to “buy a friend a coffee” remotely. The idea has 35,450 total points and 272 comments (and counting). There is even an official response from Starbucks letting users know that this idea is now “under rest view” by management.

starbucks_buyyouadrink

Sites like Ideastorm and MyStarbucks are brilliant. They push the envelope by not just listening to customers but allowing them to participate in the entire idea generation and implementation process.

Dell and Starbucks now know:

1) What their customers like
2) What their customers don’t like
3) What their customers want that they don’t have

How are you listening to your customers? How are you capturing what might be your company’s best new idea?

Sites of this scale aren’t necessary for all companies but if you have thousands of customers in multiple locations and the only way you “listen” to them is a support email address or a Twitter account, it’s time to upgrade the wooden box.

Richard Pryor and the Verizon queue

Brewster's Millions
In the 1985 movie, Brewster’s Millions, Richard Pryor plays a struggling minor league baseball player who inherits 300 million dollars, subject to specific terms, which form the backbone of the comedic plot. His character, Monty Brewster, must spend 30 million dollars in 30 days, in order to inherit the larger sum of 300 million. Otherwise, he gets nothing.

It’s a good thing Richard Pryor didn’t try to spend his 30 million dollars at a Verizon Wireless store.

[Disclaimer: I am an iPhone user who is very happy with my device, fairly happy with AT&T's customer service and slightly less happy with the network coverage. Since switching over, I try to avoid Verizon stores at all costs but occasionally agree to assist friends & family members and find myself back in a Verizon store, the fifth ring of customer service hell.]

Every time I have been to a Verizon store, (sample size = 14 stores across Minneapolis, Boston, Philadelphia, San Diego and New York), I was queued up for help on their visible in-store digital wait list. I’m sure this was the concoction of some overpaid, misguided marketing team. “Let’s display our customers’ names, in order, on a big screen. Then they’ll know how long they have to wait! Brilliant!”

Fail.

Don’t get me wrong. I’m a huge fan of transparency. The problem isn’t the screen. It’s the pace at which customers are helped. There is zero correlation between your slot on the list and when you get the chance to speak to a Verizon employee. I have been added to the list in the second spot and still waited over 45 minutes for help.

If I have to call a customer service line and I’m placed on hold, the wait is infinitely more bearable if the phone system tells me, “your call will be answered in approximately 8 minutes.” Great. Now I can go make a sandwich.

If Verizon is only organized to deal with such a limited number of customers, they should put their stores in caves high in the mountains and dress the associates in red and black robes.

The other night, we just wanted to buy a new handset. It should have been the simplest of transactions. Instead, we were stuck waiting, digitally immortalized in the “sales” queue. Sales queue! Oh, the irony. Even if I was Richard Pryor, sitting with a briefcase full of cash, jumping up and down, screaming that I wanted to buy every outdated phone in the store at full price, Verizon didn’t care. I wasn’t going to be helped before Kristen J. and Thomas D.

We waited 35 minutes and then left.

Hey Verizon….can you hear me now?