In the BizSci Spotlight: Airline Service (part 2)

August 24, 2007 17:08 Filed in: Business 3.0

BIZSCI IN BRIEF
Southwest and JetBlue constantly work to understand the expectations of their customers, then quickly make their businesses a menu for meeting those expectations. As a result, they have been able to focus their service models, generating higher customer satisfaction with simpler, more efficient business design.


Finally, a Flight That Meets Expectations
Of course I was sad to leave Grande Lakes Orlando. It's a beautiful property and I had completely missed every opportunity to enjoy it for three days as I attempted to prepare a budget and meet with suppliers.

Just before checking out, I realized I had booked a slow connection through Raleigh when there was a better direct flight to Baltimore. I had arranged the trip late and too quickly picked the first flight after my last conference session. Now I realized my seven p.m. flight would land only minutes before a later direct flight. So, an hour before check-out, I began to consider the possibility of a warm dinner (and even a dip in the pool) and changed my flight. Fortunately I had flown Southwest and was charged only a small fare difference (max fare was just $70 more). Changing the flight and checking-in online (from my room) was fast and uneventful. I saved my boarding pass as a PDF and e-mailed it to myself. I then put on a swimsuit, grabbed my conference dinner ticket and made optimal use of my momentary time windfall.

Ninety minutes later, dry and fed, I checked out of the Ritz. I had expected to use a PC or printer near the front desk to print my boarding pass, but the system was locked. There was no access to webmail or direct access to the printer. Unfortunately, the hotel and I had been out of sync all day (a first). Earlier that day, the cleaning staff had mistakenly disposed of all my personal toiletries and then hid my wireless headset in a drawer. After discovery, I had to make two calls and wait two hours simply to get a replacement toothbrush & shaving kit from the front desk. Cutting my losses, I skipped a five minute walk to the business center and jumped in a car for the airport.

Attempting to circumvent a stand in the Southwest ticket line, I sought help from a kiosk agent with a brief attempt to explain that I had printed but did not have a boarding pass. The kiosk agent didn't understand my situation (or so I thought) and pointed me to a kiosk as if I hadn't checked in yet. Knowing that it is easier to show than to explain. I inserted my credit card expecting a quick check-in failure and a Go Directly to Counter Agent card. Instead a virtual button appeared on the screen titled "Re-Print Boarding Pass". As soon as I touched it, the boarding pass fluttered into my hands. I looked up to see the nicest, "we know our stuff" expression on the kiosk agent's face.

That brings me to today's topic.

There may be just two U.S. domestic airlines that really get domestic passenger aviation: Southwest and JetBlue.
Atlanta - Home of the Braves ... but not Southwest or JetBlue
Atlanta is one of the last major metro areas not served by either of these two airlines, and due to new suppliers and a student in college there, I must now regularly fly into ATL via "the other airlines". I had once hoped that faced with the challenges of poorly managed labor, low customer satisfaction, high fuel costs and reduced passenger miles, most U.S. airlines would note the need for change. I also expected that given the profitability of Southwest (over 35 years) many would start borrowing from their well documented playbook. Some made an attempt, but only on the bizarre assumption that Southwest only appealed to the TEDdy bear carrying, SONG singing leisure traveller. Unfortunately, it is clear that the differences between the BizSci aware companies and the rest is only growing.

Service Transaction Components

The Parts of a Successful Service
Using the six Service Transaction Components covered in a previous blog entry, here are a few examples from my recent flights of how BS aware Southwest and Jetblue compare to the rest.

1. Understanding Service Expectations
 Establish and/or understand the need for a service

1. Expectation
  • Airline will catalog the needs of customers
  • Airline will choose which of those needs it will serve
  • Airline will identify which needs must be met at each customer touch point (i.e. ticket counter, web, call center, gate, aircraft)
  • Enable each touch point with the technology and trained staff to meet all expectations
  • At a minimum, airline will offer each passenger a clean, comfortable, and safe seat

2. Transactional Failure Example
  • Customer shows up at ticket counter hoping to use frequent flyer miles to purchase a ticket, agent's console has no such capability. Ticket agent must call airline's Customer Service number for assistance (USAirways)

3. Transactional Success Example
  • Every ticket and gate agent can convert a frequent flyer flight certificate into a ticket (Southwest)
  • Clear online information about legroom, all seats selectable (JetBlue)

2. Facilitate Airline Selection as Service Provider
 Airline makes it easy for customer to select them for service, simplifies contracting with them for service (purchase)

1. Expectation
  • Reliable On-line booking
  • Easy to acquire accurate boarding materials
  • Can easily use flight credits (from frequent flyer miles, flight vouchers, refund credits, etc.)
  • Informed choice of "same class' seat options (i.e. additional legroom, exit row, MD-80 in aft seat message {just a few feet from the gently rumbling engine}) at beginning of transaction

2. Transactional Success
  • Checked-in online, but unable to print boarding pass ... inserted credit card into kiosk at airport, Airline had anticipated the potential customer who checked-in online but needs to quickly to reprint boarding pass. (Southwest)

3. Transactional Failures
  • At completion of web purchase process, get cryptic message that transaction failed (AirTran)
  • Nearly impossible to book coach fair seat with frequent flyer miles. Forced to use double mileage rate i.e. 50,000 miles (USAir, United)
  • Seat not available on airline site, but available on Priceline (AirTran)
  • Reduced leg room seats, large portion of coach seats "unavailable" for selection at base coach fare (American, Delta, United)
  • Many seats with additional legroom blocked for use of frequent flyers or commuting airline personnel (United)

3. Start of Service Transaction
 Identify (for customer) when service starts

1. Expectation
  • To board plane quickly
  • To depart on schedule

2. Transactional Failure
  • Overbooked flights w/20+ passengers with undesignated seats up to flight departure time (Delta)
  • Missing flight crew, pilot (Airtran)
  • Frequent departure delays, delays seem more common than on-time (Delta, Airtran)

3. Transactional Success
  • Unload arriving flight and board new flight in 30 minutes to keep close to schedule despite weather conditions (Southwest)
  • Anticipates likely delay scenarios and maintains solid on-time departure schedule (JetBlue)

4. Communicate Transaction Status
Notify customer when there is any change in scheduled delivery or new risk that makes service delivery failure likely

1. Expectation
  • Clear notification of changes in schedule or risks that may cause a change

2. Transactional Success
  • Clear weather messages linked to flight details on website home page (JetBlue)
  • Electronic flight status board at gate updates continuously during weather conditions at MCO (Southwest)

3. Transactional Failure
  • No communication from flight management re status of flight crew

5. Successful Transaction Completion
 Identify that the transaction has concluded. No additional comments here as all airlines adequately announce landing both via internal sound system and the "thump".

1. Expectation
  • Safe flight
  • After landing, gate will be available, customers will be able to depart plane
  • Baggage will be processed promptly without loss or damage

2. Transactional Failure
  • Dirty looking cabin and overhead baggage areas in coach (United)

6. Transaction Validation
 Company verifies that delivered service will meet / has met expectations. Depending on quality processes during transaction, all validation may be completed at time of transaction completion

1. Expectation
  • Information Infrastructure in place monitor systems to identify issues with people, aircraft, fuel, gates, booking, security, etc.
  • Skilled resources trained optimize use of available aircraft, people to meet urgent requirements
  • Infrastructure pre-programmed to handle exceptions

2. Transactional Success
  • Use of standardized aircraft facilitate maintaining equipment overage that can be used when aircraft maintenance is required. (Southwest, JetBlue)
  • Constant weather monitoring provides advanced warning that is used for proactive route changes (Southwest, JetBlue)

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