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Get Your Head out of the Clouds
Who in their right mind would want to be an airline right now? That's my initial thought when I read about some of the new players entering the airspace race. But while some see the situation as terrible, others see opportunity.
In today's issue of 1to1 Weekly, we talk about the challenges and opportunities new airlines like Virgin America have in today's travel environment. When a need isn't being met, that's where smart companies can make a real impact. Commerce Bank changed the banking world by simplifying the process -- stay open late, only offer a few types of products, provide free coin redemption. Apple saw the need for easily portable music and a simple interface, so it created the iPod. So why can't a new airline thrive, especially if it focuses on the customer experience, and not get consumed the mire of costs. Time will tell, but as more players emerge, it has to get better for us travelers. At least I hope so.
Do you think new airlines' strategies will set them apart from the incumbents?
Last month, I've travelled quite a bit, and I simply couldn't miss it out. And you know what, I have a feeling that we get flat customer service here in North America. It's kind of a neutral pragmatic-style service - not superior, not bad. An average, bland one.
I agree with the Forrester view, most airlines are still focused on getting people from A to B. Trouble is that the skies aren't that manageable naturally - you cannot control weather, let alone other events. It makes the whole industry vulnerable to inevitable operational bumps and delays from time to time.
The majority of incumbents mainly float mainstream responding in a product-centric manner producing a plain 30% of brand loyalty across business travellers as to Forrester's research. To elevate customer experiences in the industry, CRM in every actionable form may be in a big help here.
It seems, some foreign players like Virgin got the point right. They attempt to treat an average traveller like a real earthy customer at last! It's hard to argue that the skies are a special kind of environment. Though, it's yet a customer service environment where a flight operator is expected not only to move people but relate to them providing them with quite a few services alongside.
In its current state, the whole industry is truly an untapped market. 200 loose people on a plane are potentially 200 customers willing to pay money, but almost nobody in the industry wants to see them this way. Now, if Virgin has 3,000 songs to offer these 200 loose people, bingo! I call it 2-in-1: customer service and cross-sell. The travellers on that plane would slide into feel of an everyday, well-treated customer. Now, do you think Virgin and the likes have a chance vs. bland-service incumbents? The skies will get friendlier once travellers become customers.
Yes, for the following reasons:
1. Economics-
maximizing their total number of flying hours for their air fleet,
coupled with maximizing their total number of paying passangers
reducing their operational costs per paying passanger mile flown
2. Marketing, Cross-
1:1 Marketing to the individual customer
Selling, Cross-Selling their Airlines Brand Name for both internal domestic flights and potential future flights, particulalry bases on a Miles Program with affiliated airlines Domestically, Internationally
3. Branding Marketing Presteige of flying in the US Market
I think that from a
- Macro perspective it the same strategy
- Micro perspective it is the additional 1:1 service provided each individual customer, customer care, ECRM, future follow-up selling, cross-selling.
Good point. I guess there's always room for more. I see that the Wall Street Journal followed our lead and today published a story about Virgin America's new NY to LA route. It seems others are just as intrigued about how new airlines will do. Anyone taken a flight on any of the airlines we mention -- Air India, Qatar Airways, Virgin America? How was it?
That's what the nature's law is.. look at our forest (without looking at the exploitation by man) even when the forest is full grown, new buds are excited and wanting to emerge, new leaves are get their space to open up, new fruits don't think about abundence.. Even a market which may look saturated, there is always a room for a new entrant. The saturated market itself gives an opportunity for the laws of natural re-creation to happen. Hence, even in a full grown market, exisiting players need to re-discover themselves, re-invent themselves and re-phrase themselves, because if they do not ... somebody else will as the nature's law of abundence is INFINITE. (IF you like my comments, pl. tell me at ashish.sharma@axisbank.com)