Why don’t Apple users like Android phones? Why don’t Zappos customers like shopping for shoes in department stores? Why will customers pay a premium price to shop at Nordstrom instead of others who offer the exact same merchandise? And why are people willing to pay $5 for a cup of coffee at Starbucks when it’s cheaper at other coffee shops?
There was an article published in the Puget Sound Business Journal last week about this very topic relating to the recent acquisition of Virgin America by Alaska Airlines, “Virgin America founder, flyers, fans voice dismay over Alaska Airlines’ takeover.” While I am not and airline industry insider, one area I can speak about is the core reason why people are upset with this acquisition…
Their CUSTOMER EXPERIENCE.
It’s actually quite simple to understand. When a company builds a “cult-like” following of loyal customers and fans, they don’t want to see that change. Customers (and founder Richard Branson) have grown to love the EXPERIENCE they get when they interact and fly with Virgin America.
It doesn’t mean Alaska Airlines doesn’t give a great experience (they generally do in my opinion and I fly them quite a bit) it’s just that they have an awesome experience with Virgin America and don’t want to see this change…because like everyone, they fear the unknown. What if their new experience isn’t as great? What if they have to learn a bunch of new things about flying with Alaska Air they didn’t have to know when flying Virgin America? Lots of uncertainties…and the greatest of these is “what is the experience going to be like in the future, because it was awesome with Virgin America?”
As you read all the articles that are being published about this acquisition, very few talk about the actual “product or service” from Alaska Airlines. The customers of Virgin America aren’t asking questions about whether they have a good online system, or whether they have a high percentage of on-time departures, or how they handle baggage…they are talking about changing from an awesome experience to something unknown.
In today’s “Customer and Trust Economy” we live in, product and service are secondary to experience. People can find a better price anywhere…this is the commodity aspect of this new economy. They don’t THEY WILL BE TREATED and what will be THEIR EXPERIENCE with the new arrangement.
This is where the focus is today and for the right reasons. When we can find a lower price, price doesn’t become the driving force of what makes us happy and what creates enjoyment. This is easy. What people are looking for is who treats them special, shows them they matter, and gives them a truly AWESOME CUSTOMER EXPERIENCE.
Alaska Airlines will be fine…as will the customers of Virgin America. It just won’t be the same. Fortunately, Alaska Airlines does offer a “better than most other airlines” experience so once the Virgin America customers give them a chance and experience this for themselves, they will most likely be fine. It will take some time and effort by both the customers of Virgin America and the team at Alaska Airlines to make this transition work. But one thing is for certain, Virgin America customers will still be caught saying, “Alaska Air does a pretty good job, but they still don’t do it like Virgin America did…they really were awesome.”
If I was a business owner, I would be thinking about this for my own company and asking one simple question…“How can we get our company to a level like Virgin America where our customers are always going to think we are something special and will be up in arms if we ever get acquired by someone else because of the experience we give them?” Answer this question and you have created a REMARKABLE AND MEMORABLE business that will last a very long time and be worth a lot of money.
