A tale of two airlines: How Singapore companies can touch customers Hearts

In a highly competitive environment, how do you win raving fans for your business? How do you turn your detractors to your supporters? if you can do this, your business has an edge. Read about it in my latest article first published on the Singapore Business Review on:

Singaporeans have always complained about service providers. Why is it so? Is it because service is really bad, or are companies doing their best, but just not being able to meet their customers’ needs? Granted, there will always be customers who are unreasonable, but what about the bulk of people out there who just want to feel valued and get value for their money? Are they unreasonable as well to ask to be cherished and to get value for their money?

The term ‘value for money’ is contentious. How do you measure this? Unfortunately, the ‘real’ value of a business proportion is often revealed when a ‘crisis’ occurs. While this article is not a scholarly piece on customer service, it is an observation of a recent case where I believe a complaint could be turned into an opportunity to build raving fans by proving that the value of their product is beyond what money can buy. That is the assurance that the vendor can truly meet the needs and fears of the client, not just the wants. However, unfortunately from this instance, we can see that the company was only interested to meet the wants, which is the product they paid for, versus the needs and fears of the customer. In other words, the company was not selling what money could not buy.

As a business coach, I like to ask my clients this question:

“What is your client buying from you that money cannot buy?”

Are you selling a budget air ticket? Or are you selling convenience and happy times for family and friends? Are you fulfilling a transaction, or are you building a relationship? While safety is important, I excluded it from this discussion because it is a must for this industry.

Recently, a couple of budget flights from a Singapore based airline were delayed more than 20 hours, and passengers complaint that little was done to make up for their inconveniences. Even senior citizens and little children were not given assistance their age required. The delay was so bad that some passengers were even told to go home. While I am not going to discuss the reasons for these incidents or company policies, I will look at how their response to complaints revealed that they did not have their core customer’s needs and fears in mind, and therefore did not know what their customers were really buying from them.

After the furore of the incident went viral on social media, which some passengers described as almost like a riot, the budget airline first explained that the reason for the flight delay was due to safety. I won’t fault them for that because safety is paramount, and I would rather be late than not arriving at all. What happened later, according to the people affected, was a public relations disaster, even though the CEO gave a public apology.

What I find strange was the CEO’s need to remind his customers that they bought a budget ticket, and therefore should not expect anything more than ‘getting from point A to B’. He even emphasized that this is the ‘understanding’ between buyer and seller when they transacted. While the whole letter and other correspondences from the CEO sounded really sincere, I wonder why he needed to remind passengers that Scoot is going beyond their promise to issue some vouchers as compensation. Do you think it makes your disgruntled customers grateful?

I find it puzzling why he needed to remind them of that – especially when they were hugely inconvenienced by his company’s poor handling of the matter. Legally he may be correct, but is playing the technicality game going to win you customers? The delay was so bad that passengers were even told to leave the airport and go home. Precious moments of having fun together with friends and families were lost. And these could not be replaced. Will people whose happiness got dashed by your poor service be convinced by your ‘legal correctness’? You can hide behind the ‘Buyers Beware’ clause, but it will not make you raving fans, which is the point of business.

In this case, the response of the company seemed to arise from the need to defend itself more than to assure the customer. In an argument with customers, especially one that was caused by your own mistakes, you almost never win because they contribute to your livelihood. And they have choices. What is worse, staff echoed the view that if you want better treatment when the airline messed up, passengers should buy a seat on a premium airline instead of a budget – and they had no qualms posting that on Facebook. This reveals condescension for those who are paying your salary. I wonder if internally, the corporate culture is one of contempt for their customers. To be honest, I was contemplating a trip to Taiwan next year on this airline with my children, three years and seven years old, but after this incident, I decided I will try other airlines. I shudder to think what they will say to me if such an incident happens and I have two young children stranded.

So I wonder why they felt a need to respond in this way.

Does it make customers feel better? Are you assuring them that you know what they are really buying from you – which is time with family and friends, convenience and happy memories? It seems that the airline just want to push a product to the customer without establishing a bond with them. When things don’t go well, too bad – fall back onto the T&Cs. This is why they will not have raving, loyal fans. If they want to keep things to just a monetary transaction then they will get the same level of loyalty from their customers. In highly competitive markets, this might not be a good idea. No amount of cute marketing will win you raving fans more than a wrong made right. Being ‘legally right’ certainly wins you no future business. Showing contempt is even worse.

So how should they have responded? A good case study would be Air Asia’s response to complaints that their flights are not safe for disabled passengers because disabled passengers had to be physically carried up by people to the plane. This caused the criticism that it is not safe, because the passenger could easily fall if the personnel carrying him lose his balance. Air Asia recognised that their customers’ need is not just for an air ticket – which anyone else can supply, but comfort, assurance and the timely access to loved ones and time with them. No one likes to have a potential holiday or a visit to family spoiled by an accident.  So instead of ‘defending ‘their lack of infrastructure to support disabled customers simply because they are a budget airline, Tony Fernandes, CEO of Air Asia, said,

“It is great to finally see that our disabled friends are able to fly with us more comfortably today with the assistance of the ambulifts and aisle wheelchairs. After understanding the needs of our disabled friends, we have also enhanced our booking system to enable everyone including our disabled friends to now enjoy low fares when they log into our website. As a low cost carrier, we acknowledge that there are certain limitations on our end with the services that we can offer but we will enhance our services and accessibility where possible and we hope to set the example for other LCCs to work towards an improved environment for our disabled guests in terms of enhanced amenities for greater mobility and comfort.”

He did not defend his business’s failings. Best of all, he did not claim that as a budget airline, he could not afford to purchase the equipment that made it possible for disabled people to enjoy what Air Asia was truly selling – convenience, time with and access to loved ones. His reply showed customers that Air Asia understands what really matters to the customer and is on their side despite their limitations.

Why did he do that? After all, disabled passengers only take up four seats per plane. Is it worth the cost of buying the special equipment for them? Some things are not about money. As Peter Drucker said, the sole purpose of business is to serve its customers. This is what it means to put customers ahead of money. And perhaps this is why Air Asia is an award-winning business despite being a budget airline.

What is your business selling that money cannot buy? Find that, emphasize it, inculcate that into your culture and you will make raving fans. When you face a complaint, see it as an opportunity to go beyond the T&Cs, and people will love you for it. When you have raving fans, business will not stop flowing.

Customer Service that Touches the Heart!

Yesterday, I took Philippines Airlines for the first time for a business trip to Manila from Singapore. What I saw touched my heart, and made me realize what customer service really is.

A baby was crying almost for an hour, and i could see the mother trying her best to calm the child down, to no avail. She looked frustrated and stressed, embarrassed. After serving the meals, an air stewardess  approached the mother and asked to hold the child. She soothed the child, patting him on his back and calmed him down. It took quite a long time, and the baby fell asleep, and she returned him to a grateful and relieved mother.

I was observing the entire episode because I had requested for a drink from the same air stewardess. When I asked her again, she apologized and quickly got it. But I did not blame her; instead, I was impressed with the service from the heart. The care she gave to a fussing child and the relief to the mother was heartfelt and genuine. I gladly waited for her to ease the child before asking for my drink again.

I have taken airlines that won multiple awards for service, but I have seen none like that – service from the heart. You can win awards for excellent service by training your staff, establishing service protocols etc etc and have excellent service from robotic airline staff. The danger of ‘over-proceduring’ service can get the job done efficiently but it does not touch the heart.

As I stepped off the plane, I could not help but wonder, how do we reproduce customer service like that?

Some key questions to ponder in the quest to find the answer:

1. Does your company have a great culture?

2. Does your company have the right values?

3. Does your company have the right people – not just the competent ones, not just those who care about what they do, but those who care for others?

4. Does your organisation know, or care, or even realizes that your customers are human beings with needs, fears and wants?

Philippines Airlines, kudos to you!

I will take this airline again.

Promises are Meant to be Kept – And Here is how Businesses can Do It!

Singtel_new_logo

Source: Mothership.sg

This week Singapore Telco Singtel announces the launch of a new logo. The new logo is part of a re-branding exercise, which includes a new Brand Promise:

Let’s make everyday better

According to their CEO, the re-branding exercise was launched to counter unhappy customers, with some even calling the telco ‘Stinktel’ to highlight their unhappiness over poor customer service. The new Brand Promise promises better service and more caring attention to the little things that conveys to the customer that Singtel cares.

Readers can read the details of the change in this article: https://sg.news.yahoo.com/singtel-just-unveiled-logo-looks-023544688.html

What however intrigues me is the use of the term ‘Brand Promise’ instead of ‘Branding’. And if Singtel is truly intent on fulfilling a Brand Promise rather than just build brand equity or create brand awareness, I applaud them. From the view of a business coach, Brand Promises are one of the most important ways to build raving fans and loyal customers. It is one of the first few things I help my clients build to gain a strategic advantage over their competitors.

So What is a Brand Promise?

It is a promise – A promise meant to be kept. Every time a transaction takes place, it is an exchange of money for the promise of something. That ‘something’ is expected. In today’s world. where transactions go beyond the simple barter trade, what we implicitly promise in the transaction involves the tangible product you sell, and the experience that comes from dealing with you, as well as the experience of using your product after the transaction. It does not end when the service concludes or when the product is consumed. People blog and write about their experience long after they finish their deal with you.

While Branding gives association and awareness, a Brand Promise is a bond that is established firmly between you and the customer. It is a bond that you must honor. It is a commitment that your brand, representing your company and all who are associated with it, will deliver what was paid for in both tangible and intangible ways.

For example, one of the premier airlines I take for business trips and the rare holiday messed up its luggage loading badly during a family vacation. More than fifty people did not get their luggage. While the flight was great e.g. flying comfort, food, cabin crew service, the way they handled the troubled customers was horrendous! They simply did not care. Emails took as long as a month to get a reply. Compensation was paltry for the inconvenience caused. And the worst experience I had was to deal with the automated, templated email replies to queries. By the end of the experience, I could memorize their standard reply word for word. It was as though this award winning airline is run by robots!

They wanted very much to tell me they DID NOT CARE! Remember, a contract with the customer is no longer restricted to the moment the product is consumed or the service is used. The whole experience, including post-service, is equally important!

While this airline has great branding involving winning several awards and international rankings, it broke its Brand Promise. Period.  I’m not impressed with its ranking when I’ve discovered they don’t care at all when they made a mistake that affected me. I’m not expecting perfect service; things happen especially when transporting a few hundred people. But a broken promise, even if its an intangible one, is something never forgotten. In fact, it is the intangible promises that are more critical than the tangible ones.  A Brand Promise, whether official or not, is equally real to the customer. And it left a sour taste in me for a long time as a customer.

Every Company Needs to Formulate and Track its Brand Promise

Your Brand Promise, whether you have strategically worked out one or not, is taken seriously by your customers. Even if you do not have one, your customers expects it. If you don’t have one, they will create one for you. When you have a Brand Promise that works, it will give you tremendous advantage because it essentially becomes an emotional bond tying your customer to you every time the Brand Promise is kept. And when you have one, you can strategically manage it and use it to your advantage.

Creating a Brand Promise

From the customer’s perspective, they demand it whether you have it or not. A Brand Promise can therefore be a strategic, calculated move to win you loyal customers.

How do we create a Brand Promise? Firstly, do you know your WHO? You need to define your Core Customer, and the clearer you can articulate your Core Customer, the better.

Who is your Core Customer? Is your business, and your Brand Promise targeting a want, a need or a fear? What is your customer really buying from you? For the case of Singtel’s customers, are they buying a phone and a line or are they buying convenience, lifestyle, status and connection with friends and family?

Next will be to break down the Brand Promise into supporting metrics and KPIs. This step is extremely important, because it tells you whether your company is delivering on its Brand Promise or not. In developing metrics, keep it to a few critical ones. As a rule of thumb, your metrics for Brand Promises should focus on a few areas ONLY:

Productivity, frequency and customer satisfaction are common ways to set the Brand Promise KPIs on.

Too many and you lose track of what is important. In my course of work, I notice some companies love to have complex metrics – too complicated to tell them what is really happening!

When setting Brand Promise KPIs – KISS (Keep it short and sweet)

And the presence of KPIs and measurables will differentiate your Brand Promise from a slogan. Slogans are meaningless, but Brand Promises are powerful. They are powerful because they are promises, and a promise kept is a bond made between the buyer and the seller. You want to establish more of such bonds and strengthen them, because it is always easier to sell to your fan than to a stranger.

I am excited to see businesses move from using Branding to win customers to using a Brand Promise. As a customer, I am most definitely thrilled when a promise is fulfilled.

I applaud Singtel in their move from branding towards Brand Promises. I look forward to the day when more companies build great brand promises.

And if you want to know how to build a great Brand Promise to take your business further, help is just an email away!

You should Have Charged Us More!

This was what a client said to us at a recent workshop conducted in Vietnam, Ho Chi Minh City.

And frankly, we love such feedback. Don’t you too? This is the favorite feedback for every business in the world.

Now, how did we achieve that? It certainly did not happen suddenly or overnight. It was a carefully planned strategy. But at the core of the strategy is one very important and fundamental key:

The CORE CUSTOMER

What is the core customer? And how does it differ from market segmenting?

Firstly, the core customer analysis goes deeper than understanding the market segment. Market segments only tell us the demographics, but a thorough core customer analysis delves deeper than that – it looks into the wants, needs and fears of our core customers. The heart of the core customer analysis is our customer is human – and humans buy irrationally.

Consider this:

Every time I visit Ho Chi Minh City, I visit the same tailor. I had countless suits and shirts made there. Is it because he is the cheapest? Or the best? Rationally speaking, I doubt it, so why do I keep going back?

It is because I am irrational. The human buyer buys on emotions because needs and fears are emotional. For a traveller like me, my fears of going to a tailor:

1. I go home and find that the clothes do not fit.

2. The tailor can’t finish in time for me to collect before I go to the airport. (This is a real fear because it happened to my wife when she went to Bangkok. The tailor could not deliver her suit in time and we left Bangkok without the suit and with an angry wife.)

So this tailor has consistenly met these 2 fears. And that is why I don’t bother to find a cheaper/better tailor. But wait, aren’t there tailors in Ho Chi Minh City who could meet the criteria I set? Isn’t what i am doing Irrational?

You bet! Irrational, but human. Humans are strange beings.

3 things to note, if you want to have a killer strategy for 2015.

The first – Find out your core customer’s needs and fears, and align your company’s purpose to fulfilling it. There is no better way to touch a client’s heart than by giving them the feeling that the reason why your company exists is to meet those irrational fears and needs your customer has.

This requires serious thought, because a company’s purpose is not something most company’s pay attention to. It is like Mission and Vision, two concepts that are critical, but often neglected in the rush of daily life. These two vital parts of the company are left on the wall as posters, but not as a critical part of the strategy to align and meet those needs and fears that will drive your customer to you.

The second – When your value exceeds their perception of price. What does this mean? Let me illustrate with a point  I used in my workshop. Imagine you have a headache, and you went to see a doctor. One doctor charges $100 and the other $10, who will you go to? Even if the doctor who charges $100 is the best doctor in town, you will not go to him simply because the value of a headache treatment does not exceed the perception of the price!

But if you have a heart attack, when your life is endangered, you will pay $100 000 if you can afford it to get the best doctor, right? Why? Because his value to you exceeds the perception of what is a fair price.

Is headache treatment a need or a want? is heart attack treatment a need or a fear?

The greater you understand the fear and need of a customer, the better you can position your product’s value to address their perception of price.

And the last – Be different. How do you be different in a way that is significant to your client when everyone of your competitor claims to be different?

You must be different in a way that matters to your client. And that is again, your uniqueness must address the needs and fears of the customer. Joe Girard, the world’s greatest salesman once said that his customers’ greatest fear is the lost of income arising from a broken-down car. He addresses this fear by providing a personal guarantee for immediate servicing versus his colleagues who only offered a car manufacturer’s warranty.Joe Girard made himself different by offering something of high value to his core customer – peace of mind when one goes to earn a living!

Being a seminar and education business, we did all these 3 things:

1. We emphasized that our purpose is to transform lives and thereby transform the world. We reflect that in our training programs by constantly finding programs and trainers who could change the way our participants think and act for the better.

2. We bring in the latest and best content from internationally known speakers and teachers to an audience who has little access to such content and experience.

3. And last but not least, we have fun while learning through authentic experiences. There are seminars and there are seminars – some are content driven while others are experience driven. For the same price, our participants could have gone to a workshop and sit like zombies for 2 days having content downloaded into them or they could engage in life-changing experiences that make the lessons applicable and real so that they know how to use the knowledge they gained – all while having fun!

We know our core customers hate to waste time and money (especially on a weekend), so we do these three things to make them enjoy learning and to remember and apply what they learnt.

The Core Customer is really the most important piece of information your company needs. Without it, strategy is useless. With it, you can become a company where your clients come to you and declare:

You should have charged us more!

You can do a Core Customer Analysis for 2015 if you are not clear what strategy you need. Just ask! Gazelles International coaching has an entire exercise just to determine who your core customer is!

Differentiating Your Business through Words You Own (In the Mind of Your Core Customer)

Imagine how business will be like if a mental picture of your company pops up when a potential customer thinks of your industry!

This will draw customers to you instead of you working hard to get to them. But how do you achieve this? How do you own ‘mental real estate’ in the minds of your customers? How do you own the words that are the solutions to the customers’ needs and fears?

Last week, I took a flight to Jakarta to accompany our business guru and founder of Gazelles Verne Harnish for his master class to business leaders. Our Indonesian partners reminded me:

ONLY TAKE BLUE BIRD TAXI!

of course! That goes without saying! Any where I travel to in Indonesia, as a foreigner, I would not even dream of taking any other taxi. In case, you have not seen a Blue Bird Taxi, this is how it looks like:

Source: wikimedia commons

So what’s their secret sauce? This is because Blue Bird taxi owns the words in any foreign travelers to Indonesia’s mind – Safety and Honesty: The two things that matter most to business or holiday travelers. At the airport taxi stand, I did not even consider heading towards any other taxi companies even though I had to wait for a Blue Bird taxi. I know I won’t have to put up with faulty meters and roundabouts to charge a higher fare. This brings to mind that whenever I travel to Vietnam for business, I only take Vinasun Taxi.

Source: Wikimedia commons

The only time I tried my luck to take a non-Vinasun taxi, the driver tried to rip me off. Fortunately, I travel to Vietnam a lot, so i called his bluff. That experience only reinforces the belief – only take Vinasun taxi in Vietnam. Again, this taxi company, like Blue Bird, owns the words Safety and Honesty in the minds of the traveler. Whenever I touch down in Vietnam’s airport, its straight to the Vinasun counter. All the other taxi counters and sales representatives are a blur to me. I make a single-minded, focused, beeline to the Vinasun counter.

Owning the words Safety and Honesty really works doesn’t it? They don’t need taxi touts to bring you to the taxi – you walk there on your own, ignoring and forsaking all others.

Wouldn’t you want a customer to make a single-minded beeline towards your office today?

Would you like to be like Volvo, who owns the words Safety in the minds of car buyers? Just ask anyone who had a near death car accident what car they would buy. Or BMW, who owns Driving Experience? All these companies know who they are selling to, and why. That’s why they developed a strategy to OWN these words in the minds of car buyers.

is this about branding? Maybe? But it goes deeper than that. It goes into knowing your WHO – the core customer whose needs and fears you can meet, and who will pay you optimally for that. It is about them buying from them even before they start the process of shopping because they already know it is you. Because they already feel assured before they even hand over the cash.

If you can capture certain words in the mind of your customer, you win the game even before it starts. Business is all about psychology and emotions. Like Sun Tzu says, you have to win the war even before it starts.

Even before the battle of the taxi touts start, Blue Bird and Vinasun has already won.

Is your business owning a few important words in the industry that make customers head straight to you with no distractions?

Would you like to know how to?

In Gazelles, we teach you how.

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Differentiate Your Business by Saying a BIG Thank You!

This is one youtube video that blew my mind! The sheer audacity of this bank’s move is sure to make them a business to remember forever.

TD Bank in Canada launched a campaign to thank its customers by giving them money, (yes, in the form of $20 handouts), favourite t-shirts, air tickets and even a college fund!

Watch the video here: 

WHY???

Are they crazy? Are they too rich?

I don’t think so. In business terms, it is a differentiating move. In Gazelles International coaching terms, it is a Winning Move. What are Winning Moves?

They are things that your competitor would never do, but your customer will love you to death for it. It is also something that deals with what your customer hates, turning it into something they did not expect but totally love. Beneath the gimicky moves of handing out money and gifts, what really happened is a bank that says, “Hey, you are not a digit for me to squeeze money from. You are more important than me and I recognize that. Your needs are important to me, and I stand with you.” i love the part where the lady gets to go see her daughter (spoiler alert).

It connects on a very human level of wanting to be appreciated and treated like a…human being. Everyone who has been to a bank, and who has been following the news over the last 6-7 years knows how banks really view their customers – like cows to be milked.

So gimicky or not, marketing ploy or not, what matters is it connects. It differentiates TD bank from its competitors by doing something their competitors hate to do. Banks take money; they don’t give money.

A nice winning move – heartwarming too. And millions of views as the video went viral.

Good strategy differentiates businesses. Do you have a Winning Move up your sleeve? Remember, it must be something your customer really wants but your competitor hates to do. Winning Moves are dangerous, but they will make your business GREAT.