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How Southwest Airlines Built a Culture of Customer Loyalty


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Phenomenally successful Southwest Airlines is renowned for its stellar Customer service. Learn from former Southwest Executive and author of Lessons in Loyalty, Lorraine Grubbs, how Southwest built and maintains one of the most faithful Customer bases.

Southwest Airlines recognized long ago that they were in the Customer service industry, they just happened to fly airplanes. They were one of the few companies who realized the existence of dual Customers - the internal one (employees) and the external one (passengers, vendors, partners, etc). This Customer service mindset was established from the onset in the creation of their mission statement, which in two separate parts, vows to deliver care and service to both employees and Customers. Their continual dedication to achieving the highest level of Customer service led them to:

* Always capitalize the "C" in Customers to emphasize their importance
* Imbed each employee paycheck with a reminder message that their "Customers were responsible for providing this paycheck"
* Design a hiring system to attract and retain "Warrior Spirits" with innate Customer service skills
* Implement a recognition system and invite the external Customer to help recognize employees
* Utilize fun as a strategy to find the kid in everyone

In this webinar you'll learn how to create a Customer Service culture in your organization, regardless of size. The principles and practices learned in this session will, when implemented correctly, boost the level of Customer loyalty in your organization, ultimately positioning your company as a leader in your industry and giving you a tremendous competitive advantage.

Published in: Business, Technology

How Southwest Airlines Built a Culture of Customer Loyalty

  1. 1. How Southwest Airlines Built a Culture of Customer LoyaltyGary McNeil, LorraineVice President Grubbs, Presidentof Marketing, , Lessons inParature Loyalty
  2. 2. PARATURE Parature is a global leader in on- demand software (SaaS) for customer service and support Parature enables organizations to: • Reduce the cost of supporting their customers • Have a 360 view of customer issues • Retain their customers • Improve customer loyalty • Generate more revenue from their base • Deliver “great” customer service
  3. 3. 800 CUSTOMERS ACROSS INDUSTRIES & MARKET SEGMENTSTechnology Business Services Gaming and Digital MediaEducation Associations Healthcare
  4. 4. THE CUSTOMER HAS NEVER BEEN MORE IMPORTANT• In light of sales teams selling less - organizations are focused on:  Customer retention  Customer upsell and cross sell opportunities  Lifetime value of a customer  Overall revenue from the customer base
  5. 5. THE IMPLICATIONS OF GETTING IT WRONGCosting You Money Now and Later
  6. 6. SERVICE HAS BECOME A MAJOR DIFFERENTIATOR• Improving the customer experience  Multi-channel support • Providing support in the manner by which the customer wants it• Reducing customer effort  Delivering on the promise of first contact resolution • The result is reduced frustration• Increasing customer loyalty  By reducing customer effort you increase customer loyalty • Increased loyalty is a game changer
  7. 7. PARATURE: AN INTEGRATED SUPPORT SUITE Customer Touch Points Service Desk Delivering Multi-Channel Support For your CSR’s to Manage All Customer Interactions Metrics & Deploy Feedback Reports Surveys Chat Ticket Forums ?Downloads Your Customer Your CSR Mobile E-Mail Knowledge- 360º Customer Intelligent base and FAQ’s Workflow History Phone Service Desk
  9. 9. YOUR BRAND ON YOUR PORTALClient-sidecontrol of allbranding, colorschemes, andmoreIncorporation ofrich media, CSS,HTML and moremake for avibrant customercommunitySingle sign-oncapability allowsfor seamlesstransition fromany applicationor website
  10. 10. BACKED BY AN INTUITIVE, INTELLIGENT SERVICE DESK Parature lets you: • Define hierarchical ticketing queues and personalized routing rules • Program auto-responses for repetitive inquiries • Establish an integrated internal knowledge base • Manage tasks and time-based alerts to ensure adherence to SLA thresholds • Report upon CSR productivity • Incorporate customer data to ensure “One View of the Customer” • Collect and analyze customer feedback • Integrate ticketing data with customer records and chat windows • Update your customer portal with each and every mouse click
  11. 11. PARATURE FOR FACEBOOK Support for Every Facebook Fan Page• Monitor, listen and engage with yourcustomers on your Facebook FanPage.• Your Customers can get Supportright on your Facebook Fan Page.• Your Customers can share theirpositive support experiences throughtheir friend’s streams.
  12. 12. LIVE CHAT SUPPORT• A customer visits a Facebook Fan Page.• The customer came to complain about a service problem or to ask a question.• They notice an option to start a Live Chat from the Facebook Fan Page.• A CSR responds to the Facebook user from Parature.• The Facebook User gets their questions answered via live chat.• They share their positive support experience with that company on their Facebook stream.
  13. 13. LESSONS IN LOYALTY How Southwest Airlines Does ItBlueprint for Building A World Class Customer Service Organization
  14. 14. Based on the Internationally Published Book
  15. 15. 29% of U.S. employees arefully engaged at any time.54% of employees are notengaged.17% of employees areactively disengaged –meaning they intentionallyact in ways that negativelyimpact their organizations.Cost to yourcompany????Annual cost nationwide toemploy this 71%disengaged groupexceeds $300 billion.
  17. 17. Engagement Survey 10 Most Admired Shareholder Return vs. S&P 500 Return of top Return of S&P Difference 10 most 500 admired5 yr 25.5 % 10.7% 14.8%timeframe
  18. 18. Customers during 9/11/01
  19. 19. Blueprint for Building Customer Service Culture• Hire for attitude, train for skill• Teach them from the start• VP of Customers• Keys to the kingdom• We are family• Check your ego at the door• Fun, Fun, Fun• Keeping the Customer at the forefront of Employees minds
  20. 20. Hire for attitude, train for skill
  21. 21. Attract ItThinking outside the box Irreverent
  22. 22. You know it’s working
  23. 23. TTeach Them From the Start
  24. 24. Five Basic Principles Focus on the situation, issue, or behavior – not the personMaintain the self-confidence and self- esteem of others Maintain constructive relationships with Customers and Coworkers Take the initiative to make the situation better Lead by example Zenger-Miller
  25. 25. Customer Service Values Profitability Ownership Low Cost Legendary Service Family Egalitarianism Fun Simplicity Love Altruism Hard Work Common Sense & Individuality Good Judgment
  26. 26. Two most important Customers Customers External Internal
  27. 27. VP of CustomersBuilding a Culture for Winning theHeart and Soul of our CustomersCourtesy & RespectFollow the Golden RuleCulture MattersHire of Attitude, Train for SkillTeamworkHelp Each Other OutEmpowermentIndividuality, Common Sense, & Good Judgment
  28. 28. Keys to the KingdomCreate a “Do What’sRight” EnvironmentForgive mistakesMake Employees feellike owners of thecompany
  29. 29. Customers Become “Family Members”  Feature in advertising and publications  Invite to company events  Include in community projects  Acknowledge significant dates: Birthdays Anniversary of move in  Hang pictures in visible Company locations  Recognize at Corporate Events  Have meaningful, timely, proactive communication
  30. 30. Check your Ego at the Door“I don’t “I messed know!” up!” “Please help me!”
  31. 31. Fun, Fun, FunIncorporate fun ineverything you doEmpower employeesto have funcommunicating withCustomersHire people who canlaugh at themselvesand foster a funenvironment
  32. 32. Customer at the forefront of employees minds
  33. 33. Gary Kelly’s Goal Shortly after being promoted to CEO, Mr.. Kelly sat next to lawyer on a Southwest flight. When the passenger found out who he was he gave him this advice…“You have a damn good airline here, just don’t “#@#&” it up”That says Mr.. Kelly “is kind of my goal”
  34. 34. Contact 281-813-0305
  35. 35. QUESTIONS? Follow Parature on: