Gary Kelley, CEO
P.O. Box 36647
Dallas, Texas 75235
Fax: 214-792-4842
Re: Southwest Rapid Rewards.
Dear Gary:
I am told that you read all Southwest consumer mail.
I trust that you will read this letter and consider its content.
Over the past 13 years, I have flown weekly on Southwest for both business and personal travel. The sole reason for this was Southwest's formerly easy-to-understand, easy-to-use web site, and outstanding frequent flier program.
In early March, like so many other loyal, Southwest Airlines customers, I received an e-mail from Southwest Airlines proclaiming how my Southwest Rapid Rewards Frequent Flyer program is being "improved." A quick review of the details, makes it abundantly obvious that this is anything but the plain truth.
Southwest, an airline which once boldly proclaimed: "Southwest gives America the freedom to fly," now no longer rewards its once loyal customers for flying (the essence of a frequent flier program). Now it has done an about face and has distanced itself from the previous rewards program based on flight segments flown, and has succeeded in assembling a complicated, tier/status-based, frequent flier program which encourages and rewards greater spending, ironically for the same airline seats on the same planes. Huh? (This is reminiscent of the same and wasteful excessive spending which caused the larger national economic downturn.)
An airline which once held that such egalitarian principles: "every seat is a first-class seat," now rewards you only for this increased spending, based on a now openly admittedly tiered system (Business Select, Anytime, and Wanna Get Away fares. A-List and A-List Select tiers. ). Both the tiers and the so-called rewards are expensive to achieve and offer little in return for such large expenditures.
Now customers will have to spend substantively more to achieve rewards benefits similar to those in the old plan. The most expensive fare, offering the most Rapid Rewards benefit, Business Select, now more than ever seemingly is designed for just that, the "Business Select." I thought we were moving away from corporate and business excesses and waste?
Under the previous program, most flight segments resulted in the same 1 point reward. Paying more in the "business select plan" achieved 1.5 points per segment, along with the "perks" of earlier boarding and a drink coupon. Now you get ‘points’ based on the dollars you spend. Spend more on a ticket for the same seat to go to the same place, on the same plane - you get more points, basically. 'Sound wasteful, because it is. If you need flexibility on flights with no effective change fee, and perhaps this model "flies." Otherwise, Southwest would propose to encourage you to spend more, to earn more points?
'Don't have enough points? 'Don't worry. You can buy points from Southwest. SW states: "In addition to earning points from flights and Partners, a Member will have the ability to purchase points. Point purchases must be paid for with a credit card. Points will be offered in blocks of 1,000 with a minimum purchase of 2,000, maximum of 40,000, and priced at $.0250 per point."
They are careful not to tell you that these points will not apply to elevating tier status. Southwest won't tell you that your purchase of points is done so at a significantly diminished return, far less than if you simply used dollars, and significant restrictions on how these points can be used. In other words, if you use these purchased points, in turn to purchase an itinerary, this will cost you far more than simply purchasing the itinerary outright in dollars. 'Sounds confusing, because it is.
Throughout the years, I have patronized Southwest Airlines throughout the years enduring its infamous cattle call boarding, limited airport access, old and crowed terminals, peanuts, lack of non-stop flights on long hauls, and a tiered seat system, all with the goal of economical flying, employing both a consumer friendly web site and frequent flier program.
Until now, I have flown Southwest predominantly for both long and short trips, just for its rewards program. I once believed the airline run by Herb Kelleher was concerned about and appreciated its patrons that catapulted Southwest to national prominence in the field.
Since I can now buy on other carriers at cheaper rates and with similar levels of service, this new incentive program actually will actually cause me to start flying other carriers more often. In this, I am sure I will not be alone.
There were clues as to this downturn for Southwest customers. The implementation of the "Freedom Award" - who comes up with these oxymorons? - was a hint. It effectively halved the value of Rapid Rewards Points. In June of 2010, Southwest stopped offering Rapid Rewards points through the
American Express Membership Rewards Program. The Southwest Rapid Rewards Visa card was hugely successful as its chief perk was the accrual of Rapid Rewards points linked with usage of this card. This came with higher interest rates and a $59 annual fee. Without these advantages, the savvy consumer will replace this a card with a card offering rates and more usage advantages. In June of 2010, Southwest stopped offering Rapid Rewards points through the American Express Membership Rewards program.
Southwest had offered both a simple and great reward (emphasis on "reward") program for years. It is through this program that the airline has developed its loyal fan base of customers. The fact of the matter that this a major blow to existing Rapid Rewards member and Southwest patrons.
Southwest now insults its customers with this new program, in saying that this change benefits customers when in reality it benefits more so Southwest Airlines. I am sure the competing airlines just love the new Southwest plan. Perhaps they will incentivize Rapid Rewards members to switch over?
Southwest still has an opportunity to make this right. Southwest, admit you were wrong. Return to the older (simpler) plan. Though I doubt they will.
Shame on you Southwest. Just where has the LUV gone?
In closing, I would like to cite a well written (author unknown) Facebook posting:
"Southwest had one of the most LOYAL customer base out of any airlines. Their passengers regularly raved about the Southwest experience. The company has remained profitable while most of the industry has struggled. Still Southwest felt the need to recruit the coveted BUSINESS TRAVELER who tends to (or is willing to) spend more on a ticket. The new Rapid Rewards program may to do exactly that, but the question becomes, “at what expense?”
While Southwest may increase their income, they’ve hurt–at least in the immediate future–their reputation. They were known for being different, for treating each customer the same, for keeping things simple, and for keeping things fun and honest. Now, many of their loyal fans now say “they are just like the other guys.” Southwest, in an attempt to reach one goal, sacrificed so many of the things that kept them profoundly unique and made them special.
Not only that, but then they failed to listen and at least acknowledge the concerns of a customer base that truly felt betrayed. Instead, they simply said, “it’s better” when most of their customers could plainly see, it was not–at least for them.
I’ve seen this happen to other groups who have tried to hit the same level as another organization and lose the core of what makes them unique in the process. They fold and fail. I don’t think this will necessarily be the case for Southwest, but I have trouble believing they will be able to maintain such a loyal following.
As leaders, we do need to evolve. We do need to make changes, but we also need to ask if those changes sacrifice who we are at a core, and if they truly benefit those that we serve. Southwest had built a reputation by being an airline with affordable tickets, and yet in their press release, the CEO of the company was quoted saying that he thinks the new program will get people to pay more money for tickets? (What was that last part again?)
Have you ever done the same thing in your organization? I’ve seen some schools spend so much money on making a prom “so amazing” (because they heard what another school did) that the price of a ticket
exceeds the amount that many students can pay, ultimately hurting attendance and changing the prom experience.
I’ve seen other schools complain about student apathy at events, but fail to really listen to the feedback from their peers, dismissing any critique as someone “who just doesn’t get it.”
I’m interested to see what happens with the Southwest situation in the coming weeks. I won’t say I will never fly with them again, but I’ll be honest and say that if the new program remains unchanged, they will lose a great deal of my business as it works in my favor to fly another airline now.
As we lead, as we serve, we must remember that there is never a guarantee that anyone will work with us or attend what we plan. We must all have customer service in the forefront of our minds. We must find the ways to benefit our constituents. We won’t always make everyone happy, but we must also find the ways to be real with them when we’ve upset them. It builds a better relationship in the long run. It builds loyalty. It builds advocates. "
I hopeful that Southwest has a glimmer of the humanistic values yet that led to its success to date. The lack of those values or compromise of the same will lead to its downfall.
Goodbye Southwest. It has been a great ride while it lasted.
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