Every year, I fly approximately 70,000 miles in air travel. I also spend upwards of $300 for annual
access to the Delta Crown Room. Last year I was Platinum Medallion (the highest level) which means I really pushed into the upper echelon of profitable loyal customers. There's no question the Crown Room, which provides a nice reprieve from the madness of travel, has helped nurture my loyalty to Delta, and perhaps even softened the blow of the sometimes maddening airfares from the Cincinnati hub.
But there's a twisted paradox about the Crown Room's loyalty marketing effort's which begs
for one of those "what would you do if you were in charge" Harvard Business Review case studies. While a plethora of amenities are provided gratis in the Crown Room -- newspapers, apples, coffee, comfy couches, showers (in the LA and Atlanta offices), even Maker's Mark and other beverages of choice -- the one thing I REALLY TRULY need, and which I consider akin to one of Maslow's needs, comes at a premium and with no small amount of hassle. Yes, I'm talking about basic wireless access. Imagine that: the mother's milk of bread-and-butter business productivity in the Web 2.0 era -- sending email, accessing the web -- is an "add on" charge at a premium perk-proficient club. Any Tom, Dick and Harry can zip over to Panera Bread or just about any public park these days and get free wireless access, but the Ritz Carlton of airline clubs rings the cash register every time I want to digitally breathe.
Bad Profits, Bad Buzz: It's not that I can't afford it, but I just think such practices bode ill for customer loyalty and word of mouth. Consumers hate what they perceive to be unnecessary "extra" fees. Things like $29 credit card late charges, crazy-expensive rental car drop off fees, hotel room service extra charges on top of the tax in addition to the 15% gratuity. Fred Reichheld, Bain consultant and author of several customer loyalty books including "The Ultimate Question: Driving Good Profits for True Growth," calls these "bad profits." Bad indeed, especially when you project up the cost. I usually log on for all of 10-15 minutes at the Crown room, which costs, at minimum, $6 for first hour, or $9.95 per day through the T-Mobile partner. Needless to say, the nickel and dime charges start to look pretty obscene at the end of the month.
T-Mobile: Helping or Hurting Loyalty: Here's another key question for that case study: is T-Mobile actually helping Delta drive loyalty, or it is setting up the airline for disappointed customers at a time when free wireless is increasingly pervasive? At the end of the day, setting up a wireless hub isn't exactly a huge fixed cost. After all, thousands upon thousands of routers are set up in "Average Joe" households every day. I also suspect Delta, perhaps in partnership with T-Mobile, could easily convince one of the advertisers providing free samples in the club, or advertising on the food trays, to "sponsor" fee access. What's key, I think, is the following:
1. Stay up to speed on customer/consumer expectations. Importantly, if a business makes a "membership has benefits" pitch, make sure your understanding of "base needs" is up to date. People doing business need to stay wired, period.
2. Know the talk drivers of customer experience. You can spend a fortune on staff, food, and interior design, but don't miss the little or obvious things that drive conversation.
3. Keep Revisiting Terms of Partnership: In fairness to T-Mobile, they were early, but the landscape of ubiquitous changed, and now the fees look antiquated.
4. Always Provide Feedback: In fairness to Delta, they do make a concerted effort to listen, so it's up to us the customer to provide them with the best data to maximize customer loyalty. I, for one, mention this every time I visit the Crown Room.
Comments