Tag Archives: Southwest Airlines

American Airlines’ Poor Policy Costs $75,000

A recent experience trying to get a standby seat on an American Airlines flight left me baffled.  What does it say about a company if they could treat you well, but don’t?  Does such a company value your business or take it for granted?


  • The plane had available seats.
  • I had a ticket on a later flight.
  • The gate agent said that American Airlines’ policy was that I couldn’t get a free standby seat.  (Not a friendly policy, but I can understand that they might want to charge a “change fee” to take a different flight.)
  • BUT adding insult to injury, the policy also prohibited the option of paying a change fee to take the earlier flight.  Huh?  Are they afraid they’ll run out of peanuts?

It used to be that customers could take an earlier flight, if space were available.  Now, even when space is available you can’t buy a seat?

From a customer experience perspective this policy is, well… stupid.  The policy is just as detrimental from a business perspective because customers have choices.  In this case, I walked further down the terminal to a rival airline (Southwest) and paid $250 for a ticket.  What did/will the policy cost American Airlines?

  • An unsatisfied customer who will relate the poor experience via word of mouth
  • A nominal change fee
  • Approximately $75,000 (future value of my air travel)

The pivot point is that companies should seek ways to serve customers and earn their loyalty instead of implementing policies that alienate customers.  Last I checked the airlines weren’t so healthy that they could look down their noses at customers.  But if American Airlines chooses to implement such a policy, then consumers can certainly choose to take their business elsewhere – I did and I will.

What companies have earned your scorn and lost your business?

Why Re-Invent the Wheel?

Business Week recently announced its list of customer service standouts.  These customer-focused companies provide excellent examples of how to deliver exceptional service.  So read on and add to your bag of customer service tricks.  What follows is a list of companies that made the list along with unusual or noteworthy ways these companies are improving their bottom line while they improve their customer service.  Before you check out the article, try to guess which initiatives belong to which companies.

Ace Hardware, Amazon.com, American Express, Amica Mutual Insurance, Apple, Barnes & Noble, Branch Banking & Trust, Charles Schwab, Dell, Enterprise Rent-A-Car, Fairmont Hotels & Resorts, Four Seasons Hotels and Resorts, Jaguar, L.L. Bean, Lexus, Nordstrom, Panera Bread, Publix Super Markets, Southwest Airlines, Starbucks, The Ritz-Carlton, True Value, USAA, Wegmans Food Markets, WestJet

Investing in Employees

  • Increased training budget by 13%.  Awards tuition scholarships for employees.  Answer
  • Employees granted equity in company.  Answer

Investing in Technology

  • Leveraged best of both worlds after implementing best practices from recently acquired company.  Answer
  • Implemented overflow call system to use remote representatives when local volume overloaded local resources.  Answer
  • Integrated online inventory with brick and mortar inventory to speed customer fulfillment.  Answer

Investing in Customers

  • Escalated problems if not solved within 20 minutes.  Answer
  • Developed outreach program to contact dormant customers.  Answer
  • Roving check-out clerks bring service to customers.  Answer

The pivot point is that we can learn much from those companies that blaze the way with excellent customer service.  We don’t need to re-invent the customer service wheel.  And while not every solution will be appropriate for all companies, these stalwarts set the bar high when innovating around, and executing on customer service.

Which companies are customer service trailblazers that should make the next Business Week list?