While yesterday SmartCompany argued SMEs could learn a few lessons from how Qantas has conducted itself over the past few days, there's no question its actions have soured its reputation among consumers.
With Qantas' brand already tarnished by cries over chief executive Alan Joyce's pay package, and the prospect of business moving offshore, the company has a lot of work to do. Here's five ways it can improve its brand in the short term.
Don't shock customers with bad news
On SmartCompany yesterday, we pointed out that Qantas was able to perform something of a marketing miracle by keeping its decision to ground planes a secret for so long. But that doesn't necessarily mean it was the right thing to do.
Grounding the company's entire fleet with no prior warning left tens of thousands of customers stranded. With minimal compensation provided, and few details on what would actually happen next, it's no wonder Australians have a sour taste for Qantas.
The airline cannot spring surprises on its customer base again – it makes as look as though Qantas thinks of customers as a bargaining chip. Although this was a one-time deal, it serves as a good lesson to ensure it never does so again.
Create certainty
Although airlines argue that although customers buy a ticket, there are certain circumstances which can occur, such as bad weather, that stop them from flying. Most customers understand that. However, what they don't understand is having to sit an airport for hours because their flight is delayed due to industrial action.
Some customers have endured these delays week after week for some time. Qantas may want to blame unions, but overall, customers don't care. They buy a ticket, and they want to know they'll get going when they ticket says they will.
Brandology managing director Michel Hogan says it's imperative that Qantas starts "living up to its promises" and put all of its effort into making sure planes run on time.
"Your ticket is a promise. When you buy a ticket, you don't expect that your flight is going to be delayed or cancelled because of industrial action."
"Qantas needs to make sure it does what it is best at, and keep those planes running on time. That is one of the only things they can do to improve their brand."
Repair your customer relationship through discounts and offers
Qantas has already started offering price cuts across international and domestic flights and hand out promotions to customers as part of last weekend's clean up. The Australian Financial Review has also reported the airline will double the number of frequent flyer points it awards to customers.
The business can't just run advertisements apologising for last weekend's cancellations – no customer would accept them. Running discounts and promotions is a good first step to get customers back on the company's side.
Write an open letter
Hogan argues Qantas has mismanaged its whole affair with unions. Rather than announcing a stand-off, Hogan says chief executive Alan Joyce could have written an open letter to the unions in newspapers, requesting everyone return to the bargaining table.
"If he had actually written an open letter, asking if everyone could just get it all sorted out, he would have looked like a hero. It would have forced the unions to play ball, and make them look like idiots."
However, such an action isn't too late – Joyce could repair a lot of damage by issuing a letter with an apology and suggesting an end to all the disputes.
Keep a consistent message
It's easy to see why Qantas is losing the faith of the public. Although it brands itself as an Australian airline, it constantly talks about sending some jobs offshore and pushing into Asia.
Hogan says Qantas really needs to start working on its marketing, and focus on a consistent message. Keep it simple, she says, and make sure if you pick a narrative, that you stick to it.
"You can't have it both ways. You can't go and push into offshoring and then talk about how you're still an Australian airline. You can't give yourself a $2 million raise and then say you can't afford to give workers a raise as well."
"Stop sending mixed messages. Qantas needs to just pick a narrative. If they want to move into Asia, great! Then say so, and make promises based on that message."
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written by ssmith3104, November 01, 2011
As to products/branding, yes it makes sense to have a premium brand (Qantas) and a low-cost operator (Jetstar), but this fool Alan Joyce keeps cutting Qantas standards down to those of a low-cost carrier and destroying the "premium brand" of Qantas. Foolish, as is the board for permitting it to happen under their watch!
written by Richard_Keeves, November 01, 2011
The Open Letter is a good idea. Bit late for it now though as it would primarily need to be an apology - which would mean Joyce having to admit he made a mistake in his strategy - which I doubt if he would ever do.
Creating certainty is critical. Discounts, bonus FF points and other such bribes will have some effect - but re-building trust takes more than bribery.
They need to visibly and sincerely re-build the high moral ground in the whole issue.
Frankly, what they need to be building is "LOVE" for their brand. Now there is a challenge...
And FWIW, I think removing the flying kangaroo from their branding would be the end of Qantas. It's a dumb idea. Everyone loves kangaroos....
written by Mark Parker, November 01, 2011
Firstly, I think the weekend showed that Qantas are the masters of message management - from the CEO down to the troops who had to front the FWA hearings.
Where Qantas failed was in engagement with their community - the "message" and "mainstream media" are no longer the magic mix for big brands - if anything, the weekend proved that mainstream media and a big story like this are a toxic mix to be avoided at all costs. Particularly when trusted bloggers who live in the socialsphere are often identifying the lies and misinformation that is being published by all concerned. We the public are not stupid.
The challenge now is whether Qantas can rebuild on two fronts: (1) with their staff, many of whom are probably on the verge of emotionally disconnecting from the company. Will we see Qantas staff walking through airport terminals with their heads held high, proud of their uniform? (2) with customers. To be honest, a careful, well written "open letter" from Joyce to the customer base would alienate me more than saying nothing at all. I don't need more "message" shoved down my throat, knowing that it's been through dozens of revisions and the impassionate input of lawyers, communications/PR experts etc.
What I'd appreciate is the CEO walking into a Qantas Club late in the day when many of us are tired and facing perpetual delays - pick 20 of us and sit down in a quiet private room and talk to us like he cares - he's Irish - it's not like he lacks passion...if you are going to Jetstar-ise Qantas then at least have the balls to tell us.
Finally, to Richard Keeves's note comment that everyone loves kangaroo's - you're not from the country are you!
Mark
written by SandraPatton@excelquest.com.au, November 01, 2011
Where Qantas did go wrong was in its digital communication with people either already flying or about to. They needed to tweet, facebook, email and SMS updates and ensure that they had enough staff to handle queries by phone.
Offering discounts etc will bring customers back domestically, its problem is trying to attract Australians to fly with the carrier internationally and we're attracted by cheaper fares that Qantas can't offer because of the IR agreements in place.
It will need to provide value add perhaps including nationalism to get Australians to pay the extra to fly O/S with them.
What Qantas need to do now is to continue the conversation throughout the next 21 days and beyond. It needs to engage Governments in looking at reinvigorating tourism within Australia and ensure all stakeholders are involved.
I am cwrtainly flying Qantas over the next few months, i already have three flights booked with a couple more to do so
written by theprofitfrog, November 01, 2011
His incompetence is renown. It is only since he took the stage that QANTAS has had issues with safety (yes - perhaps the safety issues existed prior to his stepping into the position - he has done NOTHING to reassure the Australian public that the previous unblemished reputation of QANTAS is untouchable.
Sack Alan Joyce.
Engage the customers for actual feedback and evaluate the feedback for real opportunities to change the airline.
Get customers to realise they can't have it both ways - cheap flights OR quality airline with Australian jobs. (Watch Air Crash Investigations as often as I have and you start to be bloody thankful for what has been Australia's excellence in safety management.)
If the customer wants cheap flights - go to cheap flight suppliers. Want safety, reliability, trusted airline, that provides EXCELLENT customer service??? That should be QANTAS at the forefront of the customer's mind.
I, for one, will NEVER travel QANTAS while Alan Joyce is at the helm. I will not put my safety or my business health at risk by attempting to rely on the current QANTAS to get from point A to point B.
With bits falling off planes, with issues when landing, with real life dramas when flying, and then the potential for taking the jobs to other countries, all while paying Alan Joyce MILLIONS of dollars is disgusting to say the least.
I won't be a QANTAS customer till there is a sense of respect and an honest reputation without the greedy incompetent CEO ruining what was once a hugely impressive company.
written by Kristin, November 01, 2011
Whilst taking on the unions might be seen as a ballsy move - their willingness to ignore their customers' needs was just plain stupid. Leaving their paying public stranded to prove a point is just not on - not now, not ever. And for that, they deserve to lose a significant chunk of the trust that the brand's forebears built up over previous decades. As Patrick points out, this could have been handled so much better and Joyce could have been a hero (rather than an over paid - insert expletive here).
Maybe the Qantas board might consider dropping his salary to reflect not only the lost revenue, but the massive loss of brand stature.
The flying Kangaroo used to be the carrier of our collective national pride - but these days frankly I'd rather fly Virgin.
You are Australian or you are not. No Big Red Kangaroos in Asia (other than behind bars ... in a zoo) .