#managingbrands

Source: http://www.dynamicbusiness.com.au/small-business-resources/growing/how-to-create-a-customer-centric-culture-29022012.html

Customer service should be a focus for many (if not all) companies. However, not all of them are good at this and just a few are able to use customer service as a real competitive advantage. Singapore Airlines (SIA) is a great case of leveraging and delivering an extraordinary customer service. In an industry where there is extreme competition and where most carriers compete on price, SIA was able to transform the industry through a customer-centric approach. They became the first airline to have customer service as a priority and to become a real service provider in this challenging industry. 

Since its inception in 1972, SIA’s strategy was to provide superior customer service. They focused on customer needs by providing an exceptional in-flight service. Every action the company took was oriented towards this goal and by 2001 they operated under three main pillars:

1)      Maintain the youngest and most modern fleet to take advantage of new technologies, to have more fuel efficient planes and lower maintenance costs, and to be more appealing for SIA’s customers.

2)      Provide superior in-flight service.

3)      Transform customer service through internal activities for the entire organization. Avoid becoming complacent.

The company created a unique culture where customer service was the priority. To reinforce this they invested heavily in training programs, in recruiting people not only with the functional skills but also with the soft skills necessary to provide a world-class service and they created a corporate culture where pro-activeness and having initiative was expected at all levels; during on-ground and in-flight services.

Employees were empowered to have the drive to improve constantly the service provided. Managers at the local level practiced a “two-level-up” decision-making approach to settle customer unhappiness. This meant that they were empowered to make decisions based on what their boss and their boss’s boss could do without having to ask for authorization. Employees were expected to initiate things, seek service opportunities and to solve issues avoiding the bureaucracy and were rewarded based on customer feedback as a very important component. In other words, employees were expected to take ownership and responsibility.

In addition, SIA had a solid and successful financial performance that allowed it to invest in fleet and in many different in-flight comforts. The company was able to create a strong brand known the cutting-edge quality of its service. They became in some way the flagship of excellence in the airline industry. This reputation at the same created additional challenges as people expected even more from the company. There was no room for error and the bar kept going up. SIA was very innovative in getting information from their customers and learning constantly about their needs, their feedback on the company’s performance and on the opportunity areas customers thought existed.

Although the focus was on capturing the loyalty of passengers in the highly profitable premium class segment. SIA also understood the potential of having a superior service through all class segments. They became the first airline to offer economy class passengers amenities free of charge such as headsets, drinks and meals.

SIA’s training programs, their communications, their advertising campaigns and all their business decisions supported their corporate culture and identity. They were not just a transportation company, they provided a unique travel experience and passengers became the best judges and witnesses of this. The consistency within their business model, their culture and their people let SIA became one of the most important and profitable airlines.

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Having the example and results of SIA, could healthcare providers, insurance and telecommunication companies differentiate themselves by getting to know each of their customers and by exploiting big data and online profiles? What is the value of identifying top-tier customers and offering them tailored services and products with some individual pampering? What are the challenges of doing so?

Some people say that wine improves with age and others say that age improves with wine. There are definitely very good arguments on both sides and I believe that it can certainly go in both directions. I am a big lover of wine and for me it is one of the most exquisite pleasures on earth. I am not a big connoisseur of wines but I like to keep experimenting with different brands. Before business school I was part of a wine club and every 2 months I received different bottles, with all the brochures and explanations about the grapes, regions, etc.

The Global Wine Industry had suffered significant transformations in recent years. Wine has become more accessible to people and now the industry is greatly fragmented with a significant number of competitors. Traditionally wine production was geographically concentrated in France, Italy and Spain (referred to as the Old World) and now there are more and more relevant players in places such as Chile, United States, Australia, New Zealand, Argentina and Africa (referred to as the New World).

There has been also a shift in the structure of the industry. Before, wines used to be classified by their region of origin (Bordeaux, Rhine, Rioja, etc.) and with the “New World” players now they are classified based on the type of grape (Merlot, Cabernet, Shiraz, etc.). As it can be seen in the Concha y Toro’s case, perceptions are extremely important in this industry. People’s assumptions on product quality are based on the country of origin of the wine, on word of mouth and on other expectations. Wine has become a global marketing and consumer-oriented business and the influence of New World producers has had a tremendous impact in this industry.

Many different challenges have aroused for wine producers including a very fragmented market, an intense price competition, very little, almost nonexistent brand loyalty, consolidation in producers and distributors, among others. Moreover, with a product like this it is hard to achieve a product consistency in large-scale production. This is an issue that other traditional distilled beverages like Mezcal (handcrafted, agave based spirit) have and that poses additional complexity in the supply chain and strategy of these products.

Concha y Toro is a successful case of a company that has been able to overcome some of these challenges and become one of Latin America’s largest wine exporters and one of the world’s top ten wineries. With a clear strategy to capture share in global markets they were able to capture part of the mass segment with a low price and good quality product (“value for money”). This is how they built and positioned their brands, sustained their brand equity and attracted many consumers.

Wine is an extraordinary beverage, it is not only good in terms of health but it also brings joy and happiness when you have a good glass of wine with your family and friends. The best thing is that wine is for every occasion, you can never go wrong with it.

Enjoy life and have a good wine!

Cheers,

Two of the most exclusive and expensive wines:

1) Petrus

2) Vega Sicilia

Wine and Food Pairing Chart:

Source: http://winefolly.com/tutorial/basic-wine-and-food-pairing-chart/