Qantas: How to destroy customer loyalty

Qantas enjoys a higher than normal loyalty rate compared to other airlines.

Why is this?

Well, personally, I am proud to be Australian. After too many years travelling I know this is the best place to live.Qantas, through clever marketing over many years is an Aussie Icon. The Flying Kangaroo has strong brand presence, globally.

With no major accidents on record, this speaks strong and is clearly a differentiator. When hurtling through the air with 400 other people and tonnes of Jet-A1 I don't want to be thinking about maintenance standards.

I have been prepared to change schedules, deal with connections and pay a premium at times to not wonder about the maintenance schedules.

So whats been going wrong?

Well, for a number of years there has been a steady decline in the Spirit of Australia, there was a time when Qantas staff made all the difference. It was the smile. It was the pragmatism. It was going that extra mile. It was feeling like you were in Australia even before you arrived home.

That has gone.

Qantas staff are no longer proud to be Qantas.

This is clearly management's fault. Bringing efficiencies and driving out cost from a business are important. But it is easy to do that: design a spreadsheet and execute. Doing this while keeping the culture & the company spirit alive is hard.

Don't worry Qantas you are not alone. MBAs pore over case study after case study on this topic.

I don't profess to know the answers. But, I do know the symptoms. this is not about off-shoring the maintenance. Proper quality control and audits (which should be happening regardless of location) should ensure the maintenance standards. CASA's recent review has uncovered a number of shortcomings in process and control.

Another symptom is service during the flight. I think that the same number of staff are on board. They are there for our safety not just to get us meals. It used to be easy to get a drink or other items and now it is a case of having to tackle the person. They have mastered the art of seeing through your signal. Maybe that is part of our health management on the flight. My liver thanks you Qantas !

But more importantly it is the feel from the staff that is coming out. I would guess that the staff are not happy and their fears and feelings come out in body language. In every organisation some people could be unhappy, but an epidemic across staff means there has to be an influence from management.

All airlines have technical difficulties but there has been an "unlucky run for Qantas" according to CASA.

What does that mean?

400 people all incurring extra cost and aggro in changing bookings etc. Qantas is more than happy to charge penalties when we change our plans but what about the costs we incur in lost hotel bookings, re booking non Qantas flights & lost holiday days.

For me it has been two international flights in 3 months that have been cancelled. I cannot afford for it to happen again. Cathay Pacific and Singapore Airlines are next for me !

Qantas has not lost me forever but they have lost my loyalty and my word of mouth advertising.

the BizWiz
http://www.boulterassociates.com.au/
http://www.informgroup.com.au/