Customer Service

The title of this post, to me, says it all. Companies who are great simply have great customer service. It is a rarity that a company has a great product and poor customer service or has a product good enough that you can ignore their customer service. Usually, they go hand in hand. And most of the time, companies who operate under this structure of great = great have the rare ability to sell their products at a premium. Take Apple for example (which will probably be talked about on this site a lot). They have a great product that is maybe just 5 – 10% better than competitors, yet it sales and about 100% more than the competition’s product. Why? Because customers are willing to pay that much more for great service and a little better product. An example on the other side is Wal-Mart. Yes they have a different business model and do well, but just look at their service- very poor. Low quality products with low knowledge staff. But still they find a way to do it well.

Southwest Messed Up???

When I think of great companies, or companies I’d like to work for one day (if any), Southwest pops up in my mind. The way they run their business and their philosophy on both employees and customers is just amazing in a time where business is view as always being professional, and nothing else. Well not to Southwest. Yes they take what they do serious, but they also know how to have fun. I mean come on- you’re allowed to wear shorts and a polo to work! Not to mention they have some of the best customer service employees out there.

Well last week something happened that could have all but ruined customer confidence in Southwest. Actor and director Kevin Smith was asked to leave an at capacity flight because he was “too fat.” No joke. The flight attendant literally asked him to leave the flight. Mr. Smith was flying stand by on the already full flight, and Southwest admitted they probably shouldn’t have let him on this particular flight to begin with, however they did. Later, Southwest management found out about this and didn’t seem to do much right away.

Making Amends

Well, Southwest eventually found out how mad Kevin Smith was, and although it took them 48 hours, they seem to have done enough to clear their name. On Southwest’s blog, the story of the apology was recorded. Southwest representative Linda Rutherford personally called and apologized to the angered Kevin Smith. He wasn’t mad they kicked him off, just the fact that they called him fat (on his blog, he wrote that he personally knows he wasn’t removed because he was too fat, and that he wanted the truth revealed). Southwest issued an apology admitting they were wrong, and refunded Smith’s ticket. To my knowledge, they never admitted that he wasn’t “too fat”, but they did apologize.

So What?

Why is it so important that Southwest apologize and satisfy Kevin Smith’s desires? Because of the value of a repeat customer. Time after time, in almost every business class, we’re reminded that a current customer is exponentially more valuable than attempting to get a new customer. A new customer has costs associated with him or her that a current one simply does not. Also, many companies fall within the rule that 80% of its business comes from 20% of its customers. That’s huge! They say you can’t always please everyone, but you better believe that I would do everything in my power to please those 20%. That’s what doesn’t make since to me about the Southwest situation. I don’t care if they do have a 25 year old comfort policy (which they do) which prevented Mr. Smith from riding the plane. I would admit and admit and admit over and over that I was wrong, even if I wasn’t. It doesn’t actually matter if he was part of the 20%. If people hear a story like this, what security do they have that they won’t be treated the same way?

So in my mind, Southwest started to do what was right. But what has made them great in the past is going the extra mile to be that much better than the other airlines. What do you think? Did they do enough or should they have done more?

Austin