Most people whose work involves travel have plenty of stories about their flying experiences, some funny and some not-so-funny. But last week, a story in the New York Times took a deeper look at the delicate relationship between commercial airlines and their passengers. As you review the article, put yourself in the place of the airline, and assume your customers will take the role of the traveling public. That way, you might discover why this industry presents us with such a great learning opportunity. Click here to read the story.
Implications: Not long ago, my wife presented me with a stunning observation which demonstrates how astute the consumer can be. She had arrived home from a trip to the supermarket, and was irritated by the amount of money she had spent.
“You know, when the price of gas was up around five dollars a gallon a couple of years ago, everyone blamed their price increases on the cost of oil. But when gas prices fell back down to reality… you sure didn’t hear about companies who were going to lower their prices because their costs had gone down.”
It wasn’t really the higher prices that frustrated her. It was that the justification for higher prices had elapsed, and nothing was presented to take its place. She wanted rationale.
I was struck by the number of passengers/customers in the NY Times story who said, in one way or another, “I think the airlines should make a fair profit.” I certainly agree with that group. But most of those customers also have expectations with regard to safe travels, good customer service, and a pleasant traveling experience… either in comparison to past experience or when compared to other travel alternatives.
Consumers harbor few illusions about whether a company should earn a profit. They will only ever question whether that profit was earned in a manner they perceive as fair. To form that opinion, they will consider the value and satisfaction they have received, in contrast to the money they have spent and in comparison to other alternatives (your competitors, or not buying at all).
Should your consumer know more about your business model? Would they be more inclined to accept a future price increase, or a potential reduction in service?
No comments:
Post a Comment