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On
Eliminating In-Flight Pretzels
(and consumer focus)
The
21 June 2005 edition of the Zeitgeist e-Zine
OK...right
up front. This is gonna be a rant.
A few months ago, I was having lunch with the incredible Marsha Lindsay
of the brand development firm Lindsay,
Stone & Briggs when she asked me a very provocative
question: If you could consult any company, what would it be?
Without missing a beat, I said Midwest
Airlines. I went on to explain that Midwest (which we featured
on an earlier
post) was completely missing the boat in the post 9/11
world...and I had the solution.
For those that haven’t experienced Midwest, this is an airline
that entered the world as the business traveler’s airline. Their
slogan was “the best care in the air.” Every seat leather.
Four seats per row (2x2). Wine and Champagne served throughout the plane.
Gourmet meals. Warm and Gooey Chocolate Chip Cookies. Fabulous flight
attendants and service.
In a nutshell, it was an airline in which every seat was first
class. And, for business travelers in the ‘90s, it was well worth
the $80-$100 more per round-trip that it cost to fly Midwest. But, when
the economy soured and business travelers were forced to cut back, Midwest
panicked. They cut the drinks and the food. They should have cut the
price.
Now, I’m not one to advocate discounting. I think it’s one
of the worst strategies that a business can adopt. However, when business
travelers are forced, by external forces, to retreat to suffering in
steerage on the other airlines...I would have met the competition’s
price and offered first class service for the same fee.
There’s not an airline on the planet that could have competed
with that strategy on the routes that Midwest runs...especially given
the cattle-car mentality that most airlines run today. The campaign
would have been simple and to the point: “First Class for Coach
Prices.” And Midwest would have had full flights at $350 rather
than half full flights at $450 (you do the math).
I saw Marsha again earlier this month at Brandworks
University...and I thought of that conversation we had.
And, today, I think I would answer her differently. Today, I would probably
say that I would rather be the CEO of an airline...because,
with the exception of Virgin
Atlantic, Southwest
and JetBlue,
I know I could run a better operation than what we all have
been forced to accept.
You see, deficits make companies stupid. And, yes, most of the legacy
airlines are in deficit situations. But that doesn’t mean that
you forget the customer. Last month, I was on a United flight from Denver
to Madison
that was diverted to Milwaukee
to unload 20 passengers that were stranded in Denver because of a cancellation
of their flight (probably because there were only 20 of them and they
could cram them on our plane). The Madison passengers were incensed
that their 11pm arrival would now be after midnight because United was
going to drop the Milwaukee passengers first.
As one passenger angrily opined, “you’d think a Chapter
11 company would try to use less gas by stopping in Madison first”
(as Milwaukee is further east than Madison). But, as I sat and stewed
at the inequity of this bizarre routing decision, I realized the method
to United’s madness. It wasn’t about us. They needed
the plane to end up in Madison for a flight the next morning.
And that’s why I’m offering my services as CEO to any airline
that is visionary enough to accept. Northwest Airlines just announced
that they are discontinuing pretzels on their flights in order to save
$500,000 a quarter. The resulting public discussion about their financial
condition will cost them more.
You see, most of the deathwatch attention had been focusing on United,
US Air and Delta. And, I know I'm not alone in thinking twice about
booking seats on an airline that might not be in the air next month.
By announcing the $500,000 a quarter elimination of pretzels (of all
things), Northwest is drawing attention to the fact that it lost $440
million last quarter. People are starting to talk.
You know, rather than cut pretzels, I’d look for a way to separate
myself from the pack. As all the other airlines start charging for their
stale trail mix, I’d look for a Midwest Airlines style advantage...like
Chocolate Chip Cookies. I’d try a page from Southwest’s
customer service playbook. I’d copy all the cool ideas I could
find (if I couldn’t come up with any of my own).
Besides, emulating the competition ain’t so bad. All but a handful
of airlines have copied each others’ inane in-flight announcements,
deplorable treatment of travel agents, sensationally bad snacks and
ham-handed handling of baggage. Why would it be so wrong to copy something
that the customer actually enjoys, for once?
That’s what I’d do in my first 100 days at the airline...because
it’s not about what makes it easier for the company. It’s
about what makes it more enjoyable for the customer.
Even without me at the helm of one of these corporations...I have a
suspicion that they’ll learn that in the months ahead. Unfortunately
for some, they may learn the lesson a quarter too late.
Bill
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