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Net Promoter Community > Richard's and Laura's Blog > 2008 > September > 03
 
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In the world of customer experience, the airlines are the gift that just keeps giving.

 

 

It's not hard to see why. First, most of us have some form of personal experience with airlines to draw on. Travel is not an experience we usually feel ambivalent about, it evokes emotions both positive and negative. No 7's and 8's in this game.

 

 

It's also an interesting industry to study, with all the elements of government regulation coupled with varied levels of competition. It's an economist's dream case study. But the real kicker is this: hardly a week goes by without new grist to the customer experience mill. Here's my favorite, emotion-filled debate from the last few weeks.

 

 

The excitement started with United airlines heavy marketing presence during the Beijing Olympics. You couldn't tune into the coverage without being impressed by their beautiful graphics and iconic "rhapsody in blue" soundtrack, signaling the launch of their new business and first class service. Clever stuff. Then the debates began.

 

 

Bob Garfield writes advertising reviews for Adage magazine, and duly made his opinions known on this advertising approach. What's interesting here is not his comments on the ad, but his comments on the strategy of advertising this kind of product at all. What Bob is basically saying is, "why bother with the ad if the product is weak?". Put another way, if people are so disillusioned with the flying experience, isn't advertising a waste of money?

 

 

Let's get this straight. The advertising industry is making a case that advertising is a waste of money if the fundamental product experience isn't good? Could it be that they are suggesting that investments in a better experience would make more sense? Wow.

 

 

The floodgates are opened. Typical comment:

 

 

"If there's one thing I've learned in my 40 years in this business, it's this: Nothing kills a bad product faster than good advertising. The spot may leave you with a positive feeling about United...but once you've flown with them, you learn the truth and will never book another United flight ever in your life."

- Don Watters, Omaha, NE

 

 

In the world of the Internet, customers getting the facts behind your service is not hard. Flyerguide.com's wiki has the data on United's new business/first class. Only 24 out of 192 long range planes actually offer the new service today as the fleet is converted. So, buy into the ad, get your first class ticket, and prepare to join the lottery to see if you will experience the advertised service. The only certainty you can have, apparently, is that if you choose to fly a route serviced by Boeing 777 aircraft you have a guaranteed zero percent chance of the new service, as no aircraft have been converted to date.

 

How effective is that advertising spend, when the facts behind the service are quickly debated amongst the public and the negative word of mouth so easily fueled by data on the web? I don't know, but my guess is - not very.

 

 

I don't have the NPS scores for airlines at my fingertips. But it's interesting that the next day after I read Garfield's article, wsj.com conducted a poll amongst it's readers about their airline experience this summer. Just shy of 60% of the respondents gave them a D or F grade. Not exactly scientific, but not encouraging for the airlines either. And it inspired another long outpouring of issues, all dirty linen washed in the public space.

 

 

My point is this. Companies who spend millions advertising products that don't generate positive word of mouth are fighting their customers at their own expense. Cheaper, I would imagine, to invest those dollars getting your product or service right and get some positive word of mouth going. In any case, swimming upstream with advertising dollars looks like hard work.



Sep 5, 2008 2:23 AM Guest Deborah Eastman  says:

Richard, this posting is reflective of the transformation business to consumer companies must embrace.  Before social media, advertising was the primary way to get your message to market.  Now, no one listens to advertising and instead uses Google and review sites such as flyertalk to evaluate the services of brands before buying.  B2C marketers are challenged with making the change from campaigns intended to create buzz to organic word of mouth which happens as a direct result of delivering a superior customer experience.

 

Sep 8, 2008 2:28 PM Guest Dale Weideman  says:

Love the comment: "Companies who spend millions advertising products that don't generate positive word of mouth are fighting their customers at their own expense."  Consider the power of applying the positive formulation: "Put your advertising behind the products and services (and by extension, attributes) that strongly generate positive word of mouth."  This is a non-obvious insight that can generate real advantage for the marketers who apply it.   It's another payoff from a consistent customer satisfaciton and loyalty feedback process -- with such a process, marketing can always know the products, services and attributes that are drivers of customer willingness to recommend, and hence can factor that into their advertising and promotion allocation process.  Further, those products and services who want more advertising support would know what they need to do -- they need to adjust their value delivery so that it wins sufficient loyalty from customers that it drives their recommendation behavior.  It all adds up to another way that an effective Net Promoter program will drive increased growth and profitability -- it will also, if used to enhance the efficiency of advertising and promotion dollars, increase the ROI of those marketing expenditures.

 

Sep 10, 2008 12:40 PM Guest James Young  says:

It's getting really challenging out there for the airlines in the face of rising fuel prices (an airline's largest operating cost) and the recent depreciation in the dollar and pound sterling versus other currencies is persuading people to travel shorter distances for their holidays in the sun this year. I was one of them.

 

People are also worried about their own fuel bills going through the roof. It's affecting us all. So what can airlines do to best secure the loyalty of their customers, or gain new loyal customers? There'll always be those that need to fly, but the size of the cake is crumbling fast and the profit and loss tables are turning rapidly.

 

Advertising which boasts of great price offers or discounts is an option I suppose, but that can amount to a bit of scrap amongst equals only yielding short-term gains. Leave that to the low end credit card market I guess.

 

Advertising which attempts to prey on our emotions with enticing images of beautiful coral reefs and other images irrelevant to flying is not going to make a jot of difference...ok, maybe a jot, but only for a while if say service quality then falls short of expectations set in the advertising. In fact, breaking a perceived promise can be very damaging.

 

If there is a value in advertising, wouldn't one of the best advertisements in the world be one which reports results of recent customer feedback and how improvements have been made as a result, and what improvements are planned for the future? Now I like a promise kept, and that would really impress me. But this then means that the investment needs to focus on making the right improvements in the first instance, and advertising then becomes merely a means of communication.

 

Leveraging modern technology, such as the world wide web, is a great opportunity to get ahead of the competition and focus customer dialogue with the customers that really matter. However, word of mouth has been with us since the age of man and there are some fundamentals which prove to work time and time again. But let's leave the Orwellian world of new modern ways for a moment and turn the clock back to 1984 when Virgin first launched their airline.

 

Some of you will know that the whole idea started out in the Carribean when Richard Branson wanted to hop from one island to another (as one does), but couldn't easily. A plane with just a few seats was quickly chartered, became popular, and Virgin Atlantic was born. It's hard to think that an international airline like Virgin Atlantic with sales of US$4 billion has grown largely out of providing a superior and unique customer experience rather than through highly aggressive advertising or through aggressive pricing strategies alone.

 

Virgin Atlantic was the first airline in the world to introduce a chauffeur service, they installed bigger screens for passengers before their competitors, their staff are cool, fun and adopt a customer-is-first attitude, at least in my experience. You can even get a free massage or prop up the bar in business class. It is the delivered experiences, not images in an advertisement, which delivers the goods, and positive word of mouth begins to take effect. And all this in the name of the Virgin brand. Now that is how to build brand equity.

 

So, surely all airlines must take a serious look at the comparatively meagre returns on marketing spend compared with investments in customer experiences which generate positive word of mouth, which afterall, is free advertising!