Over 50 years ago, Southwest Airlines created a unique business model that focused on delivering a nearly-identical, low-cost travel experience to everyone. This innovative model almost immediately set it apart from its competitors.
Along with their “Transfarency” approach to eliminating surprise fees, Southwest’s most famous novelty was open seating. So it was major industry news when they recently announced a transition to assigned seating while also offering paid upgrades to extra legroom seating.
Change of any kind involves risk, but one of the most significant challenges a brand can face is effectively shifting one or more components of its core strategy.
As options are considered, one of the most common – and financially hazardous – misconceptions is that making changes to attract new customers will have little to no effect on revenue from existing customers.
In these situations, we advise our clients to keep a close eye on core customer preferences as they seek to attract new customers. While these customer groups may have some overlap in needs, there are important nuances that often materially alter expected results.
To avoid joining the long list of case studies involving damaging – and sometimes catastrophic – strategic missteps, it is crucial for brands to understand their customers on a very deep level.
Does their loyalty shift depending on usage frequency or occasion? What are the differences in loyalty drivers between your top 10% of customers and the rest of your customer base?
At Quantum Leap Insights, we get answers to the questions that brands need to ask so that our clients can consider critical changes from every perspective before embarking on a strategic transition. If your brand is thinking about a shift, we would love to show you the difference that our unique approach to research can make for your company.