Some of the best advice I’ve ever received came from my friend Al Fahden several years ago, as I was bemoaning the fact a (smarmy) discounter had relocated to a store across the street from mine. He reminded me that retailers make a choice to be one-—at most, two-—of three things: a price leader, a product leader, or a service leader. You can’t be all three at once. Just isn’t possible.
He was right. I opted for product and service, then kicked butt against the price princess less than 250 feet away. Sweet.
I’m reminded of that often, as retailers struggle with how to approach the flagging economy. Al’s advice stands true today-—pick one or two and go for it. Apparently, Virgin Atlantic’s CEO, Steve Ridgeway, is of the same ilk, believing that if you offer quality product and great service, customers will come.
Well folks, the proof is in the pudding…or the profit, as is the case here. VA’s annual revenue is up a whopping 38% among airline competitors that appear to be racing to the bottom of the pile as fast as they can, slashing everything but the toilet lids along the way (just wait…they’re next).
And to what does the wise Mr. Ridgeway attribute this growth? Instead of trying to make money by cutting out everything but the bare necessities, he reminds us:
…the winners will be those airlines that focus on offering the best customer service. We have … focused on providing the best product in Upper Class, Premium Economy and Economy….
Granted, it’s not as simple as “If you build it, they will come;” you still have to market the heck out of your product, then provide seriously great service. But pull that off and you’ve got a fighting chance at making some money.
And that, my friends, is true for retailers. Great product is vital, but more than that, service, service, service is the key. Customers are frustrated by the economy. By the election. By the stuff that just pulls them down. Give them a safe haven where they can hang out, laugh a bit, and feel like they’re the most important person in the room, and you’ve got a winner.
A little hospitality never meant more.
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