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	<title>Loyalty Truth Blog &#187; Rapid Rewards</title>
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	<description>Unbiased insights on Customer Strategy &#38; Loyalty Marketing</description>
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		<title>Southwest Airlines Cobrand Credit Card Becomes a Mailbox Bully</title>
		<link>http://blog.hanifinloyalty.com/2011/09/02/southwest-airlines-cobrand-credit-card-becomes-a-mailbox-bully.html</link>
		<comments>http://blog.hanifinloyalty.com/2011/09/02/southwest-airlines-cobrand-credit-card-becomes-a-mailbox-bully.html#comments</comments>
		<pubDate>Fri, 02 Sep 2011 13:33:17 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Communications]]></category>
		<category><![CDATA[cobrand card]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[FFP]]></category>
		<category><![CDATA[Frequent Flyer]]></category>
		<category><![CDATA[Rapid Rewards]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=5309</guid>
		<description><![CDATA[
			
				
			
		
Someone help me. I&#8217;m being bullied by Southwest Airlines.
Actually, a better set of descriptive terms would be pestered, annoyed, or amused, depending on the day.
The source of my discontent is my mailbox. Southwest has sent me a solicitation for its frequent flyer cobrand credit card at least once per month for probably the past 2 [...]]]></description>
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<p><a rel="attachment wp-att-5314" href="http://blog.hanifinloyalty.com/2011/09/02/southwest-airlines-cobrand-credit-card-becomes-a-mailbox-bully.html/southwest-rr-folder"><img class="alignleft size-medium wp-image-5314" style="margin: 20px;" title="Southwest RR folder" src="http://blog.hanifinloyalty.com/wp-content/uploads/2011/09/Southwest-RR-folder-138x300.jpg" alt="" width="138" height="300" /></a>Someone help me. I&#8217;m being bullied by <strong>Southwest Airlines</strong>.</p>
<p>Actually, a better set of descriptive terms would be pestered, annoyed, or amused, depending on the day.</p>
<p>The source of my discontent is my mailbox. Southwest has sent me a solicitation for its frequent flyer cobrand credit card at least once per month for probably the past 2 years. The mailers are varied in style, size, and color, and each are of high quality. I know the airline is spending significant money on each piece. What&#8217;s your guess as a direct marketer? $1? $3?</p>
<p>Whatever the price, it&#8217;s all being wasted on me and if they continue to send these mailings, I am going to dig out a receipt for the shredder I recently purchased and send it to them for reimbursement. Their mailers being a big contributor to shortening the lifespan of my shredder, it only seems fair.</p>
<p>In all seriousness, I spend a lot of my time sorting through customer transaction data to create Customer Strategy. When we begin to address how to translate strategy into visible campaigns, we focus on a number of tactical elements, forming a program blueprint for operations. The communications strategy is one key step in the process and I am sincere in attempting to help clients manage their finite marketing budgets to their best advantage. The first step to managing resource allocation is to decide &#8220;who&#8221; to mail and &#8220;what&#8221; we should mail to them. There are always value thresholds that trigger certain mailings as well as limits to how much we advise to invest in a specific group of clients.</p>
<p>For instance, if we see a segment of customers attractive to the business on any number of metrics, we&#8217;ll test various mailings across the group and measure results. I am pretty doggone sure that if I noticed a segment that I had mailed consistently for more than 1-2 years with no response, I would drop them from the list, at least for a while.</p>
<p>None of what I have just written will surprise an experienced direct marketer. Why then does Southwest continue to mail and mail and mail?</p>
<p>Don&#8217;t get me wrong. I&#8217;ve come to like the airline and its in-flight experience. And their <a href="http://www.southwest.com/rapidrewards/overview" target="_blank"><em>recently re-launched</em></a> <strong>Rapid Rewards</strong> program was <a href="http://www.southwest.com/html/travel-extras/promotions/rapid-rewards-all-new.html" target="_blank"><em>extremely well communicated</em></a> via email and print mail.</p>
<p>Southwest is doing some things well, but inexplicably is impacting my impression of its brand with these non-stop credit card solicitations. Maybe the answer is that their bank partner is driving the mailings, and the partner&#8217;s desire for new cards outweighs any concerns about customer experience.</p>
<p>Cobrand relationships carry inherent conflict of interest and must be carefully managed. The bank&#8217;s desire for new cards can negatively impact customer impressions of the airline itself. Most consumers will only notice the Southwest branding all over the envelope. The bank&#8217;s name is relegated to fine print inside the envelope.</p>
<p>Given this scenario, who do you think stands to gain most from mailing me to death, and who is really taking the risk from a branding perspective? Personally, I would like to be removed from their list and have Southwest award me Rapid Rewards points in exchange for all the money they will save on me.</p>
<p>As <a href="http://en.wikipedia.org/wiki/Paul_Harvey" target="_blank"><strong>Paul Harvey</strong></a> says &#8220;now you know the rest of the story&#8221;.</p>
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		<title>Perceived customer value and Southwest Airlines</title>
		<link>http://blog.hanifinloyalty.com/2008/02/08/perceived-customer-value-and-southwest-airlines.html</link>
		<comments>http://blog.hanifinloyalty.com/2008/02/08/perceived-customer-value-and-southwest-airlines.html#comments</comments>
		<pubDate>Fri, 08 Feb 2008 16:17:29 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Customer Centric]]></category>
		<category><![CDATA[customer equity model]]></category>
		<category><![CDATA[Customer Loyalty]]></category>
		<category><![CDATA[customer value]]></category>
		<category><![CDATA[Rapid Rewards]]></category>
		<category><![CDATA[Southwest Airlines]]></category>

		<guid isPermaLink="false">http://www.customergrowthllc.com/blog/?p=10</guid>
		<description><![CDATA[
			
				
			
		
As customer centric strategies are given more attention by global brands, efforts to place a value on the customers themselves will evolve. There is recurring talk of building a customer equity model that could be factored into evaluation of a public company’s stock price. After all, customer value is the baseline from which incremental value [...]]]></description>
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<p class="MsoNormal">As customer centric strategies are given more attention by global brands, efforts to place a value on the customers themselves will evolve. There is recurring talk of building a customer equity model that could be factored into evaluation of a public company’s stock price. After all, customer value is the baseline from which incremental value can be measured and the success of the customer strategy evaluated.</p>
<p class="MsoNormal">Flying Southwest Airlines recently, I learned a lot about my perceived value to the airline.</p>
<p class="MsoNormal">Arriving in Tampa on time despite blanketing fog, I realized that I could catch an earlier connecting flight and, in doing so, cut my waiting time in half and possibly avoid a weather delay. I approached the check-in counter and inquired if I could get a seat. “Not if you’re on a restricted fare” was the bland response from the gate agent. Barely containing my sarcasm, I commented that my $500+ round trip fare was not likely to be restricted in any way. “Oh no sir, the agent replied, you have a full fare on the return but not on the way out. If you want to get on board, it will cost $258.”</p>
<p class="MsoNormal">Not giving up, I tried another approach. I suggested that the airline would not lose anything by putting me in a seat that would otherwise depart empty. The gate agent’s response cut me to the quick.</p>
<p class="MsoNormal" style="margin: 0in 1in 0.0001pt; text-align: center" align="center">“<strong>We make more money on freight and mail</strong>…<strong>we’d send the plane out empty if we had to</strong>.”</p>
<p class="MsoNormal">So, there you have it – while Southwest may go through sophisticated mathematical calculations to determine customer value, I was instantly made aware of my perceived value to Southwest – somewhere south of a piece of mail or pallet of fillet knives.</p>
<p class="MsoNormal">Customer Loyalty is the derived result of blending multiple factors. Quality, convenience, service and price are 4 commonly cited ingredients. Enduring Southwest’s open boarding process, paying a fare equivalent to a legacy carrier, and then harshly learning my value to the airline left me wondering just how good <strong>Rapid Rewards</strong> would have to be to influence my choice of air carrier in the future.</p>
<p class="MsoNormal">Remember that even a well constructed loyalty program cannot always outweigh negative aspects of 4 factors mentioned. Based on this customer experience, I am inclined to view any rewards received from this program as closer to combat pay than an aspirational reward.</p>
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