Start Up Blog

Brand in decline – Qantas

Posted in entrepreneurship by Steve Sammartino on March 5, 2012

I’ve been loyal to Qantas for a very long time. Initially because it was superior (certainly in the post Ansett environment) more recently because of irrational reasons and lack of choice. These days are now officially over. But rather than bore you with the number of brand fails I have had to endure, I’ll share with you the catalyst event which has now resulted in my decision.

Qantas regards itself as a full service airline. For these reasons I have been a loyal brand user – to the point where I have become a Gold Frequent Flyer. The bundle of benefits included features like high frequency of flights, safety record (although that is questionable now), lounge access at airports, on board service, on board entertainment, a global alliance flying scheme to name a few things.

When traveling on business I really like knowing I will get a meal when leaving directly from work, time is limited and it is one less thing I need to think about. It was good to know my 7pm flight two days ago included ‘Dinner‘ pre-flight as can be seen below. So there can be no disputing, what Qantas believe they are providing.

Unfortunately when dinner arrived – it didn’t quite meet my expectations.

In fact, I feel insulted by Qantas that they call this dinner. It’s plan rude. If you asked someone out for dinner – would you buy them a sandwich? If you had people over for dinner, would you give them a sandwich?

When you insult customers they eventually take their business elsewhere.

This decision to save less than $5 on a hot dinner has resulted in Qantas losing my $25,000 I spend on air tickets per year. As now I will fly Virgin Australia domestically (now full service with decent lounges) and Singapore Airlines when going overseas (who are now linked to Virgin in Frequent Flyer schemes).

Yes, by trying to save $5, Qantas have just lost $25,000 from a Gold frequent Flyer.

For me it comes down to brand promise. It isn’t that I want too much, but what I do want what the brand promises me. And when the brand attempts to deceive, or save cost against their promise – that is when I look to other providers.

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Good service? Prove it

Posted in entrepreneurship by Steve Sammartino on April 3, 2011

Yesterday I went to a well known cafe in Melbourne for breakfast. Yes, it had a amazing the decor of a restored warehouse and exotic free range egg combinations, but that wasn’t what impressed me. It was the way they served their ‘non-customers’.

By the time we where half way through our second java a line had started to build for people waiting for a table, which is pretty rare in a cafe centric city like Melbourne. Up until that time the thriving restaurant still had amazingly quick service. But the service I was most impressed with was the service they gave those who weren’t even customers. People waiting patiently outside were treated to complimentary cafe lattes and flat whites. I’m sure they were surprised and delighted at the good will gesture. The tone of the staff there also told me that they gave them coffee because they were genuinely sorry they couldn’t seat them immediately. They meant it, and it wasn’t a promotional ploy. Something we’d never see from a chains store or large corporate. They’d be more concerned with wooing ‘non-customers’ that rewarding their ‘sure bets’. I say they’ve got it back to front.

The reality of the complimentary coffee is that it sent out a good vibe, and cost very little to do. And the benefits? Well I’m already blogging about it and put it on my twitter stream which goes to many thousands. I’d also say that rewarding those you’ve already got, is a far better investment than investing in those who’ve never helped your business. Something all startups should take note of.

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Your phone number

Posted in entrepreneurship by Steve Sammartino on May 19, 2009

I have my personal mobile number published on the rentoid.com contact page. Crazy? Maybe. Yes I do get the occasional phone call from overseas at 3am – and I answer it bleary eyed, and turn on my laptop to help the rentoid member.

Here’s why I do it:

- I get instant feedback on what we need to do to improve rentoid

- I ask them how they found us

- I tell them things they not not know about rentoid to improve their experience

Importantly, I surprise them with some personal service, from an actual fully fledged web business, which is beyond expectations.

Sometime in business we need to be prepared to be ‘annoyed’ in order to ‘delight’

Startup blog says: Make yourself available.

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