Question

Southwest Airlines

Listening to customers is the main way a customer service professional can determine the customer’s needs. Skilled listeners listen actively and use cues to understand the message the customer is sending. This activity is important because poor listening skills can result in a loss of business. Listening breakdowns are common but can be avoided by understanding how to listen and practicing good listening skills.

The goal of this activity is to demonstrate the steps in the listening process and recognize the ways listening can be hampered.

Read the case discussing how Southwest Airlines implements good listening skills and answer the questions that follow.

Southwest Airlines had a rocky road to its startup. Incorporated in 1967, it never actually started flying until June of 1971 because of lengthy legal challenges by other major airlines. When it finally started services between Dallas and Houston, Texas, and Dallas and San Antonio, Texas, it used three Boeing 737 aircraft and offered $20 one-way fares. In October of that same year, it offered 14 every-hour flights between Dallas and Houston and seven bi-hourly flights between Dallas and San Antonio, and in November added scheduled flights between Houston and San Antonio. That same month it introduced a $10.00 “night fare.” Needless to say, the competition was a bit worried about this young upstart airline that began taking business away from them in these three markets and had the potential to expand into other areas. In 1973, Braniff Airlines began a “fare war” that resulted in $13 fares for both airlines, with Southwest upping the stakes by offering customers a choice of a $13.00 fare or a free bottle of premium liquor with every $26.00 full-fare ticket. The result was that Southwest ended the year with its first profits since starting operation and started developing a loyal customer base. By January 1974, it had carried its one-millionth passenger.

Fast forward to 1979, when Southwest got approval to fly to other states after lengthy court battles and began service to Louisiana. This was the first venture outside the state of Texas and was followed by expansion eastward into numerous other states.

As it entered its second decade of service, the airline had over 2,000 employees and over $34 million in revenue. It also launched its successful “Loving you is what we do” customer campaign. As the decade progressed, the airline continued efforts to attract flyers from competing airlines and endear itself to customers by initiating policies such as a senior fare between the hours of 9:00 a.m. and 3:00 p.m. Monday through Friday for people over the age of 65. In 1986, the airline introduced its “Fly Now, Pay Less” fare that lowered all long-distance fares across its 25-city system to a ceiling of $98 each way. By the end of its second decade of operation, Southwest was winning accolades and awards. According to its website, “For an unprecedented second time since the DOT began keeping records on the performance of the nation’s largest carriers, Southwest captured the top rating in all three categories of the DOT operating statistics report.” That same year, it reported a net income of over $71 million, with 94 aircraft and over 7,700 employees. It also was given major carrier status by the U.S. Department of Transportation, which meant that it had operating revenue exceeding $1 billion in a 12-month period.

By the 1990s, Southwest had become well established as a major passenger carrier with popular campaigns that focused on families such as the “Family Fare” from Salt Lake City, Utah, to anywhere Southwest flew. Anyone purchasing a full-fare adult ticket could take up to seven other people traveling with them for half price. It also implemented programs that offered to military families and dependents one-way fully-refundable leisure fares that did not require advance purchase. By the end of the decade, the airline had entered the Internet age with online booking and had generated over $478 million in net revenue, had 312 aircraft, and had over 27,000 employees. It was also ranked fourth on Fortune magazine’s “100 Best Companies to Work For” list.

By 2000, the company had moved up to number 2 on Forbes List and had expanded the Rapid Rewards program for customers that it had started several years earlier. Beyond that, as the decade progressed and moved into the second decade of the century, Southwest instituted other discount flight initiatives that encouraged air travel and expanded its customer reach. For its efforts, it won additional accolades, including the 2012 Top Military Friendly Employer award.

Update

In September of 2017, Southwest Airlines released its newest advertising campaign that’s designed to “remind customers that they are at the core of the carrier’s purpose: to connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.” The campaign is named “Behind Every Seat is a Story: Behind Every Story is the Reason for Transfarency.” The advertising campaign focuses on customer stories and their reasons for flying.

“At Southwest Airlines, our customers are the reason we fly,” said Ryan Green, Vice President and Chief Marketing Officer at Southwest Airlines. “This campaign is an opportunity for us to remind the world that there is a personal reason someone chose to fly Southwest Airlines with our low fares, no hidden fees, and exceptional hospitality. We're honored and pleased to tell stories inspired by the more than 115 million people who fly Southwest Airlines every year.” (Southwest Media, September 25, 2017)

Questions

1- Identify the steps to the listening process. How would you evaluate Southwest Airlines listening technique giving examples from the article.

2- Southwest Airlines newest advertising campaign is designed to “connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.” What characteristic of a good listener is Southwest Airlines employing through this campaign? Do you think it was an effective strategy? why or why not?

3- When Southwest Airlines launched the “Loving you is what we do” customer campaign, the company backed up the campaign by offering lower fares to customer groups. By matching the nonverbal message of “loving you…” with the actions of lower fares, Southwest Airlines demonstrated ________________ in its message. Identify a suitable word to complete this sentence.

4- Southwest Airlines implemented a senior fare policy that provided lower rates for people over age 65 during certain time periods. The airline may have implemented this policy after hearing that senior citizens were choosing not to fly because of high costs. When the airline began the senior fare policy, it was engaging in the ____________ phase of the listening process. Identify a suitable word to complete this sentence.

Answer 1

1. Listening process involves 5 steps- receiving, understanding, evaluating , remembering and responding. The Southwest Airlines identified the customer base and their needs and evaluated the market share based on this observation . They launched several campaigns targeted at specific customer base like families and senior citizens by introducing lower fare . By introducing online booking by the end of 1990s , it planned to capture a new market. It saw an opportunity ,  the advancement of technology would bring and seized it . Online booking has become the easiest and most popular to book flight tickets . All these campaigns prove that the Airlines had an effective  listening process in effect.

2. The characteristic most important in the listening process is UNDERSTANDING. The Airlines understood the demand of it's customers and is the reason behind this demand. It focuses on reasons why customers fly and their stories behind it. It's a very effective strategy because it connects the Airlines with the customers emotionally. It seeks to establish a relationship with it's customers so that they choose the airlines always when they fly . Customer retention is also an important aspect in business.

3. When the company launched the campaign , it backed it up with lower fares to customer groups . The Airlines demonstrated COMMITMENT in it's message.

4. When the Airlines started a senior citizen fare policy , it was engaging in RESPONDING phase of the listening process. First , it understood the problem of senior citizens not choosing to fly because of higher fares , so, it took an action to solve that by implementing a special policy for the customer group.