Customer service supreme, even on a bad day

by Tom Johansmeyer on

Whose bad day matters more? When a customer and an employee are both struggling with foul moods, endless work headaches or even distracting personal problems, the tie always goes to the person paying – not the person being paid. For most businesses, this is a common sense approach to managing customer relationships. I know that when I was frustrated or annoyed with a client, back in my corporate days, even hinting at my mood would invariably make my day far worse … as I’d wind up on the receiving end of my boss’s ire.

We routinely avoid restaurants and bars, hotels and professionals (e.g., doctors, lawyers and accountants) because of both actual and perceived slights. For this reason, especially in the professional services space, every effort is made to hide the symptoms of a bad day – and to tolerate those shown by clients. It’s the nature of the beast: making money matters more than expressing your frustration.So, I do find it strange when airline employees use this as an excuse for poor service. There have been plenty of examples of frustrated airline employees who have garnered support from their peers, from the orange juice meltdown on American Airlines to Steven Slater‘s recent slide to infamy. The level of sympathy in the industry, it seems, ranges from “bad day” to “I’ve always wanted to do that but never had the nerve.”

It’s time for the airlines to do what the rest of the business world has endured for years: deal with it. Everyone who’s worked in a customer- or client-facing position has had to soldier through a tough day when his client is unhappy. It may be painful, and we may know that we’re right … but ultimately, the business relationship comes first. Eventually, the customer emerges from his funk, and the investment made in tolerating the temporary difficulty pays off.

The first step toward being treated like a professional is acting like one. Endure customer madness with a smile, even if you’re having an awful day too, and the world will start to change.

[photo by Maks Karochkin via Flickr]

Spirit Airlines discloses real consequences of poor customer service

by Tom Johansmeyer on

If you ever want the truth about anything, the smartest thing you can do is follow the money. Cash doesn’t lie, regardless of the people who are wielding it. So, if you don’t think airlines have any real risk because of poor customer service – that everyone just expects and lives with the worst – it pays to check out the recent Spirit Airlines financial filing.

Spirit is looking to go public with the hopes of raising $300 million. To do so, of course, it had to file all kinds of paperwork with the SEC, including a Form S-1, which includes, among other things, the risks the company faces. Think of it as a warning label for potential investors.

Based on the document, covered over on Elliott.org, service is enough of a risk that Spirit feels warrants mentioning:

Negative publicity regarding our customer service could have a material adverse effect on our business.

In the past we have experienced a relatively high number of customer complaints related to, among other things, our customer service, reservations and ticketing systems and baggage handling.

This isn’t just theory, here. Spirit is disclosing what it has actually experienced. It’s a touch of North Korean-style self-criticism that’s eye-opening for potential investors. It’s also a case of brutal honesty. Spirit is saying that it has had lots of complaints across virtually the entire company.

In particular, we generally experience a higher volume of complaints when we make changes to our unbundling policies, such as charging for baggage.

Okay, no shocks here.

In addition, in 2009, we entered into a consent order with the DOT in which we were assessed a civil penalty of $375,000, of which we are required to pay only $215,000 provided there are no further similar violations for one year after the date of the consent order, for our procedures for bumping passengers from oversold flights and our handling of lost or damaged baggage.

Not only does Spirit suggest that that there is a risk to future customer revenues, the airline also indicates that there are regulatory expenses associated with poor customer service.

Our reputation and business could be materially adversely affected if we fail to meet customers’ expectations with respect to customer service or if we are perceived by our customers to provide poor customer service.

Translation for investors = our service levels could cost you your money.

Spirit is in a tough spot, because it’s looking to enter the pubic capital markets – it isn’t there already, like the major characters. And, as they say, the first time can be uncomfortable and awkward.

American Airlines to deliver free liquor to top customers

by Tom Johansmeyer on

American Airlines is stepping up to take care of some of its most loyal and committed customers. The carrier is going to start offering up free booze in its U.S. Admirals Club lounges beginning October 1, 2010. Look for the basics – “well-brand liquors, as well as beers and house wines” – the company said in an announcement. Premium alcohol and food will be available, but not free.

The company continues, in its statement, “Our customers have asked for free drinks and we are delighted to respond to their request by providing this service for our existing and new members at our clubs worldwide.”

[Image credit: AP Photo/Wilfredo Lee]


This comes on the heels of another perk offered in the Admirals Club. American put the word out on Monday that it was bringing new HP computers into the lounges “to offer members and guests the latest technology for their professional and personal needs.”

This is both nice and smart. In addition to improving the travel experience for its customers, American is focusing on those with likely the highest spending behavior, which means it’s rewarding its best passengers – a tactic that works well in just about every other business.

Five reasons passengers looking for more than just a ride

by Tom Johansmeyer on

As airlines cut routes and amenities while increasing fees, travel through the skies became a true labor. Sure, the cuts came as the result of market pressures that led to compensation reductions and other changes, but it also brought a problematic perspective. Somewhere along the way, it became acceptable for airline employees to claim that “you get what you pay for.” With low fares, essentially, you can expect substandard service.

Indeed, there is some truth to this. If you buy cheaper furniture, for example, you may be sacrificing quality to save a few bucks in the near term. We make these tradeoffs every day, and there’s no reason why a purchase from an airline should be any different. It’s clear that the standard has been set: you’ll pay less, and you’ll get a much lower level of service.

Take this concept to its ultimate conclusion, of course, is paying for physical movement, and you’re entitled to nothing else, despite the presence of beverage carts and headphones … not to mention employees who should provide a certain amount of customer service. I saw an interesting tweet to this effect not too long ago, claiming that transportation from Point A to Point B safely is what you’re paying those low, low fares for. But, I’m not so sure about that. There is so much more that’s explicit and implied in the air travel experience, and it’s delivered often enough that it should be expected.

So, why should we expect more than simply being taken from Point A to Point B? Well, here are five reasons why airlines are more than long-distance taxi services:

1. The airlines promise more than physical movement: Drinks are served on flights. Food is sold (or offered, depending on class and destination). There are movies and headphones and blankets and pillows, either free or for a fee. Whether you have to pay, in this regard, is irrelevant. The offering of amenities means that there is more involved in the transaction than the delivery of a seat from one place to another. So, something more than safe movement from Point A to Point B is implied.

2. Nobody wants substandard service: Basic customer service, which you can find on airlines only inconsistently, is expected in virtually every business transaction. While it doesn’t seem like much, this is an increase above the “physical movement” included in the price of a ticket.

3. A mere ride would (theoretically) cost less: Given that there are some services that could be sacrificed, a genuine low-cost, no-frills experience would cost less than existing flights. There would be no in-flight entertainment, no beverage service and no magazines tucked behind the seats. Rather than flight attendants, you’d have “safety professionals” (like lifeguards) who would only spring into action in the event of an emergency.

4. Low fares can still mean big money for passengers customers: While airline industry employees may drive home how cheap it is to travel these days, let’s not forget that unemployment is still through the roof, even if the recession did end more than a year ago. There are still plenty of mortgages at risk of delinquency and foreclosure. Simply put, the economic situation in this country is still dicey, and a little money is a lot when you don’t know how long you’ll have your job. Every dollar matters more to the consumer than it used to.

5. We’ve seen the possibilities: For everyone who has had a problem with a nasty flight attendant or a gate agent with a horrible attitude, you can find a story about one who helped someone out of a bind. I’ve had fantastic service on airlines that have reputations for anything but. And, some carriers have differentiated themselves through service (JetBlue and Southwest come to mind). We know it’s possible for airlines to do better; we’d just like to see it more.

[photo by UggBoy via Flickr]

Galley Gossip: 5 reasons flight attendants don’t serve first class predeparture beverages

by Heather Poole on

You’ve boarded a flight and you’re feeling pretty relaxed sitting in that big comfy first class seat. Sucka, you think to yourself as a couple of passengers check you out on their way to coach. Glancing at your watch, you wonder where the heck the flight attendant is because you’re dying of thirst and shouldn’t she be offering drinks right about now!

Predepartures. That’s what flight attendants call the drinks that are served before takeoff to passengers seated in business and first class. If there’s time flight attendants will walk through the aisle and take individual orders, but time is the keyword here. With so many full flights staffed with minimum crew, there’s usually not enough time to check the emergency equipment, set up the galley, hang all the coats, get passengers situated AND serve predeparture beverages. This is why flight attendants might choose to do a one shot service and offer passengers Champagne (if we have it), orange juice, and water- or nothing at all. Because it’s more important to get flights out on time than it is to serve drinks before takeoff.

What most passengers don’t realize is that it’s against FAA regulations for an agent to shut an aircraft door until all the overhead bins have been closed. If the agent can’t close the aircraft door on time, the flight will be delayed. If the flight is delayed (even by a few minutes) someone will have to take the blame. This means someone will get written up. If an airline employee is written up too many times for causing a delayed departure they might very well lose their job. On time departures are a big deal in the airline industry. So that gin and tonic the passenger in 3A is crying about is not a concern if passenger 23D refuses to sit down and passenger 14E can’t get her suitcase inside an overhead bin and the flight attendant working in the back is calling up front to let someone know there are seven bags on their way up that need to be checked.

Here are a few other reasons flight attendants might not serve you a drink before takeoff….

1. DELAYED BOARDING: Boarding is even more chaotic when a flight is delayed. If passengers are blocking the aisles waiting to get to their seats, flight attendants aren’t going to jump over them in order to serve drinks.

2. NO CATERING: Everyone is seated and the flight attendants don’t look very busy. Why aren’t they serving drinks? If the catering truck hasn’t come to swap out the carts they have nothing to serve.

3. THE GALLEY ISN’T SET UP: The catering carts do not come on board ready to go. Flight attendants have to organize them first. If we don’t do this during boarding, the service during the flight will be delayed. Besides organizing the carts, we also have to break up several bags of ice, count the meals, load the ovens, and make sure we have everything we might need for the service in flight. The one time I didn’t do this we took off without dinner plates and I had to serve first class passengers their entrees on cookie plates.

4. MINIMUM CREW: Nowadays most narrowbody aircraft (one aisle) are staffed with minimum crew. This means if we’re not greeting passengers at the door, we’re busy setting up a galley. In the past we used to have extra flight attendants on board to lend a hand to passengers who might need it during boarding and help serve food and drinks in first class. Not the case anymore.

5. DRY FLIGHTS: Some countries do not allow flight attendants to unlock the liquor carts until after takeoff. There are even a few cities in the U.S. where it’s against the law to serve an adult beverage on Sunday before noon.

Photo courtesy of Kevin H