Dr Ian Brooks NEW ZEALAND'S LEADING BUSINESS ADVISOR.
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MISSED OPPORTUNITIES

Does anyone know the name of the person who programmes the computer that allocates the seats on Air New Zealand? I’m sitting on a 747 flying to Brisbane. It is 6:30 in the morning and although the plane is only half full, I find myself jammed into a row of three with two other passengers while the row behind me has only one fellow sitting in it. The row behind that has only one person too, and the row behind that is empty. Now I understand that the weight must be evenly distributed so that the plane’s load must be balanced, and admittedly I am rather big, however it would take a lot to convince me that I would endanger all our lives if I sat one row back. Of course, as soon as the plane took off, I moved to the seat behind me but the question is, why should I have to do that? And, the answer is because no one thought of the customer when they programmed the computer. Unfortunately forgetting about the customer is a common occurrence. Most companies, although they claim to be customer focused, actually spend more time worrying about internal issues instead of customer issues.

But the story gets even more interesting because from my cramped seat in the crowded row I can see a business class section that is totally empty. Twenty-eight premium seats are lying idle. Twenty-eight opportunities to add value to premium customers are being wasted, because once the plane takes off, those seats have no value whatsoever to anyone - especially the airline. I would imagine that the plane is carrying several passengers, who like me are Silver, Gold or Platinum customers, passengers the airline could have rewarded by simply inviting them to move to an empty Business Class seat. They wouldn’t have to serve Business Class food. The room and the personal entertainment system would be enough to delight the lucky escapee from Economy Class.

But the chance to reward frequent purchasers is not the only opportunity that has gone begging here. The airline has lost an opportunity to increase its revenue. Airlines and travel agents do not appear to understand the concept of up-selling. All management would have to do is instruct counter staff to offer the vacant Business Class seats to customers, especially premium customers, for a small sum - let’s say $100. It wouldn’t be that hard to do and if all 28 seats had been filled, the airline would have picked up $2800 with no extra cost, and they would have delighted 28 customers in the process. Are you missing opportunities to increase your revenue and delight your customers? I am pleased to say that my own story has a happy ending. Shortly after take off I talked to the In-Flight Service Director about the seating situation. I wasn’t complaining, just chatting about the business opportunities that were being lost. To his credit, he immediately offered me a seat in the empty business class section. Air New Zealand should be proud of this man. He showed initiative, took ownership of the problem and, most importantly, saw the need to look after the customer. “We’re a business just like any other business,” he told me. “It is important that our customers want to keep doing business with us.” Now, that’s what every business needs, staff who think like businesspeople not employees. How would your staff handle a similar situation? Now, who did you say programmed that computer?

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Dr Ian Brooks

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