Customers are more satisfied with tax than airlines!
The University of Michigan’s American Customer Satisfaction Index this year showed customers rated the IRS (the US taxation body) as giving a more satisfying experience than airlines. There are more details in this article in USA Today.
Michelle Peluso, CEO of Travelocity asked the industry audience gathered at the PhoCusWright Conference: “Surely we can do better than the taxation authority?”
She explained that consumers are worried economically right now and as travel is viewed as discretionary, the travel industry has to be careful: “We as an industry are not doing all we could and should to meet customer satisfaction.”
How did Michelle think improving satisfaction could be addressed?
Aside from improving infrastructure, she believes this can be achieved by arming customers with better information and getting better at messaging customers at the right time.
For example, when a customer has selected travel options that may encounter problems, has allowed insufficient transfer time or when disruptions are causing a cascade effect upon their journey – she sees data, technology and appropriate customer messaging as proving an opportunity to anticipate those issues that cause dissatisfaction. “We need to get more proactive about solving problems before they occur.”
Michelle urged the industry to look at Blockbuster and the couch as the competition – not simply each other – and to work together to improve satisfaction. Because “it’s a shame if we can’t collectively inspire consumers without discounting”.
Can it really be done?
It can and it is – and by an airline. The company with one of the highest satisfaction ratings in the industry is Eos, an all premium-class airline dedicated to serving the needs of international business and leisure travellers.
With a highly personalized level of service, Eos utilises specially configured Boeing 757’s featuring only 48 seats and offers curb-side escort service through fast-track check-in.
As Eos CEO Jack Williams explained: “It wasn’t what Eos added, it’s what it took away – that was the crowd. Take away the crowd, take away the pain points.”
The “stated intent to recommend” among Eos guests has consistently scored at nearly 90%. This Net Promoter Score places Eos at the very top of a range of companies across multiple industries (ahead, for example, of even Harley Davidson). Customer survey data has also demonstrated deep appreciation for Eos staff and service levels, with flight attendants earning a 97% approval rate.
Jack defines the Eos success to the fact that it has created a lifestyle brand, rather than an airline. They do a lot of on board research and what they have identified is a mindset, not a demographic. They achieve their phenomenal customer satisfaction ratings to being authentically in tune with and seamlessly anticipating their customers’ needs.
While price competitive, it is value for money that is driving this customer satisfaction. They’re acting on those very things Michelle at Travelocity is urging the industry to consider.
On the Eos website they confidently pronounce: “Running late? We will give you a call to see what we can do to ensure you catch your flight.”
They add: “When you fly Eos, you are not a passenger – you are our Guest. We are dedicated to providing you a travel experience, from start to finish, like none other. We know that once you fly Eos, you will see that we have made travel between New York and London easier than traveling to a meeting just down the street.”
It’s a service and delight proposition, driven by customer research and understanding. They rightly use their 97% customer satisfaction rating as the unique selling point embedded in their marketing message. And with the rest of the industry so far behind, why wouldn’t they.
As Jack concluded his presentation to the industry audience: “Competition is irrelevant, because they don’t do what we do.”
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This entry was posted on Monday, November 19th, 2007 at 1:36 pm and is filed under Conference learnings, Marketing strategy, Tourism market research. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.