Sunday, September 26, 2010

Southwest just gets it

A quick post on Southwest Airlines - I am becoming a bigger fan all
the time. Today I straggled onto my flight late with a suitcase full
of pizza. The plane was pretty full, but guess what - plenty of room
for my suitcase in the overhead.

It's because of their pricing.

Here's why I say that. They have a low-price culture, so they
wouldn't dream of charging for a bag. Which means, people check bags.
Which means, the overhead bins have free space. Which means,
boarding goes faster even if you have the occasional late-comer.
Which means, faster flight turnaround times. Therefore, fewer delays
which equals lower costs. So if they want to, they can charge lower
prices.

It's a small example of how a company being committed to a strategy
and a culture helps them exceed their customers' expectations. So
obvious but somehow so hard for many companies to achieve.

Sent from my iPad

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