The new Malaysia Airlines CEO Christoph Mueller has begun the process of rebranding MAS by stating Monday that the carrier is ‘technically bankrupt’ and that a brutal restructuring exercise is the only way forward. He went on to say that the rot had set in years before the mystery of flight MH370 and the tragic one-in-a-billion shooting down of MH17.
Christoph Mueller leading the MAS rebrand
Of course this is nothing new but by stating what we all know and confidently but empathetically, he has shown us that he is serious and perhaps most important of all, he is prepared to do what no previous CEO has been prepared (or was allowed) to do, namely to do what it takes to rebuild the damaged brand.
He has begun by announcing three high level areas – pillars that will over the next 3 years put Malaysia Airlines back where it belongs, at the top of the Asian aviation business.
Phase one requires massive job cuts to the bloated workforce, new contracts for staff, the renegotiation of supplier contracts (as well as cutting the number of suppliers by 90%), the axing of some international routes and reducing the flight frequency on others, reviewing the 777-200ER fleet and selling off 2 Airbus A380s. MAS thought the A380 could help turn the carrier around and at one stage put in an order for 60 of the mighty jets.
But the huge, fuel guzzling A380 has had mixed reviews from airlines and pilots and rumour has it there has been little interest in the 2 aircraft MAS is looking to sell. I’d be surprised though if they sell off the 777s unless they intend to replace them with more modern, fuel-efficient alternatives.
MAS wants to sell 2 A380s, reducing the fleet to 4 despite once ordering 60
Phase two will focus on transforming the carrier and apparently more than 40 areas for improvement have already been identified and the third phase will look at sustaining the new position of the airline.
So although the name hasn’t yet changed, the new Malaysia Airlines Brand is up and running.
Before you can go anywhere with a brand, you need three things. The first is a solid product offering. If you don’t have that, it doesn’t matter how much you spend on selling, marketing or advertising, the brand will not grow. We’ve seen that over the last 5 years as MAS spent more than RM1 billion trying to resuscitate the brand with advertising campaign after advertising campaign without addressing the brand’s structural issues.
Instead of trying to WOW customers with their product, former MAS CEOs cut costs, sold assets and ignored the passenger experience. The very heart and soul of what makes Malaysia unique – its people and the way they are – was ignored and instead cosmetic, shallow clichéd taglines were created and tacked together in a series of immediately forgettable tactical campaigns that did little for the brand.
The second thing you need when building a brand is a CEO who is prepared to look where others prefer not to look, who understands what needs to be done and is prepared to do what it takes and make the tough decisions, even if that means taking apart the existing brand and rebuilding it, brick by painful brick.
And the third key component is people who understand that the organization is the brand and that brand is part of a community. And this community, made up of people within and without the organisation will make or break the new brand. The new team will have to embrace and engage the community and understand that it is the community not the staff who make the MAS brand.
The new culture of MAS must be connected not aloof
This team will need to create an environment where people work toward a common, clearly defined organizational goal and not a personal one. Arrogance, ignorance or the ‘tidak apa’ culture will have no place in the new environment. Instead a humble, collaborative, connected and engaged culture based around delivering value, not on the company terms but on the customer terms will be the order of the day.
You’ll notice that I haven’t mentioned anything about the new livery, logo, brand architecture, uniforms, positioning, celebrities, the brand story and so on. That’s because they are irrelevant if the three points above are not addressed first.
Rebuilding the MAS brand was never going to be easy but the early signs are good, long may it continue.
The May 2015 edition of Going Places, Malaysia Airlines in flight magazine features an introduction from Mr Christoph Mueller, the airline’s new CEO. In the short message Mr Mueller talks about the “overwhelming hospitality” he has received since arriving in Malaysia two months earlier. He explains that he would like all Malaysia Airlines’ passengers to experience the same overwhelming hospitality on board MAS flights.
MAS is not a bad airline
He goes on to talk about the “formidable culture” of Malaysia and expresses hope that MAS will leave visitors with a “wonderful experience from the heart of Asia”. He tells us he is ‘excited’ for Malaysia Airlines despite the difficult and challenging task he and his staff face in turning the carrier around and making it profitable again.
He explains that the turnaround begins with people like ‘me’ (the reader) who he calls guests. The airline will be listening carefully to the feedback from guests. Mr Mueller goes on to say that the “the key is to design products and services to create a guest experience that you will find truly valuable.” I’m not sure what the key refers to to but I presume it is to rebuilding the airline.
‘Truly valuable products and services’
Mr Mueller is certainly right that the turnaround of MAS begins with the airline’s guests and in particular the frequent flyers who have supported the airline over the last 20 years. No doubt retention of guests will be at the heart of the rebranding brief sent out a few weeks ago and the RFPs for which are due at the end of this week. But he needs to steer away from a ‘one-size-fits-all’ approach to his guests because they all have very different needs and requirements for value.
As for ‘designing products and services’ that guests will find ‘truly valuable’, Mr Mueller is making the right noises although I would have liked to have seen a more specific set of ideas delivered confidently and dynamically in his first public communication to the country and those many supporters of Malaysia Airlines. For instance, an overview of what he has in mind would have given people something to start talking about and sharing on social media, generating a wave of interest, enthusiasm, anticipation and positivity. And what exactly does ‘truly valuable’ mean?
MAS is not a bad product and it’s certainly not broken. Far from it, the product and services are OK. But the trouble is, to be competitive in today’s aviation business, or for that matter any other business being OK simply isn’t enough. To be successful in the aviation business, you need to be exceptional.
On a business trip to London earlier this month, I met up with a group of Malaysians who were all long-term MAS passengers, all with Silver or Gold Enrich (The MAS frequent flyer programme) cards. But this time they had flown in on Emirates and were raving about the quality of the business class experience, the outstanding service from the crew of 13 different nationalities and their professionalism, the efficiency of the airline, the seamless integration between the business class lounge in Dubai and the A380.
But what surprised me most of all was how they waxed lyrical about the communication between the crew and the passengers. Each crew member seemed to know each passenger’s name and used it in every communication, no matter how trivial. And the crew seemed genuinely interested in each passenger. Not in an irritating, intrusive way but in a professional client/customer way.
Emirates, the benchmark for MAS
The meal service was akin to something normally reserved for a 5 star restaurant and was designed around the individual passengers needs on that flight. Meals were served individually, by hand and not from a trolley. Two of the travellers sat next to each other. Both were asked if they would like to sleep first and have their meal later or eat first and then sleep. They felt the crew were doing everything possible to make their trip truly memorable.
The service wasn’t rushed and they all thought the announcements over the PA were delivered in a confident, calming and professional way. And when the Captain (not the chief steward) announced clearly and confidently that seat belts needed to be put on while the aircraft experienced some ‘choppy’ weather, they all felt instantly at ease. MAS does many of the things Emirates does (I believe having flown Emirates, MAS and Etihad business class to the UK in the last 5 months that Emirates is the benchmark) and many of the things it doesn’t do can be done.
The question is, will MAS be able to do them exceptionally? Will Mr Mueller be able to find enough good middle managers with the skills and commitment to motivate MAS staff to deliver an outstanding experience time and time again? Will branding investments focus on getting the organisation ‘on brand’ before launching very expensive and imminently forgettable advertising campaigns that over promise and force the airline to under deliver?
Making experiences outstanding will be key to winning back lost customers and attracting new business and not glossy advertising campaigns, a new logo or new uniforms. We all want Mr Mueller to turn the airline around and with the support of the government giving him the authority to let go of 6,000 staff and low oil prices driving down the price of aviation fuel his chances are good. But judging by where MAS is at the moment and the ability of competitors to keep raising the bar, Mr Mueller is really up against it.
Today marks the beginning of a new (and possibly the last) chapter in the life of the national airline of Malaysia. A new CEO Christoph Mueller officially starts work today, 1st May 2015. Many in the aviation business revere Mueller, primarily because he is credited with turning around the Irish carrier Aer Lingus in a stagnant, competitive European market.
MAS is selling it’s A380s & rebranding
But his achievements at Aer Lingus will pale into insignificance when he starts peeling back the complicated cultural corporate layers at Malaysia Airlines (MAS).
What was once one of the most respected, envied and profitable carriers in the world has become a mere shadow of its former self. MAS is under fire from domestic and regional LCCs and if it stops flying to Amsterdam, Frankfurt and Paris will only be left with a couple of potentially lucrative long haul destinations servicing the kangaroo route from Heathrow to Australia. And these will come under further pressure with the return of British Airways flights to Kuala Lumpur from Heathrow at the end of May 2015.
MAS is hugely inefficient. It’s annual revenue per employee is down to about RM850 compared with RM1,675 at Cathay Pacific and RM2,250 at Singapore Airlines. MAS has 183 employees per aircraft compared with 138 at Singapore Airlines, 125 at Cathay pacific and 31 at Ryanair. Little wonder then that it has racked up debts in the region of US$2 billion since 2010.
Mr Mueller will no doubt focus on improving that revenue per employee and reducing the number of employees per aircraft. At least 6,000 staff are being offered redundancy and the airline has already announced it is selling all 6 of its Airbus A380s and four Boeing 777-200ER super ranger jets. The good news is that he has the support of the government and fuel prices have plummeted but that’s not enough.
He’ll also need to focus on rescuing the MAS brand and its reputation. And that won’t be easy because despite cutting costs and offering attractive incentives to agents in key markets such as Australia, the carrier is struggling to get bums on seats. And after the tragedies of 2014, years of poor management, low staff morale, and little focus on anything other than advertising, the MAS brand is in free fall.
Carpet bombing consumers with weak advertising will not rebrand MAS
Which is why the airline issued a rebranding request for proposals (RFP) a couple of weeks ago. Unfortunately the signs aren’t good that the people responsible for the brand understand what constitutes a brand and what is required to rescue the brand and its reputation.
We weren’t invited to submit a bid so I can’t comment on the contents of the RFP but I understand those invited were only given about two weeks to submit a bid as the deadline for submissions is 8th May 2015 with the rebranding supposed to be launched in July 2015.
Those are insane deadlines which is why cynics in the industry are suggesting the advertising agency tasked with carrying out the rebranding has already been chosen but there is no hard data to back up this claim. Rest assured though that the industry is watching developments carefully and if a certain agency gets the bulk of the work, there will be plenty more accusations ‘flying’ around.
Rumours aside, my worry is that those tasked with managing the rebrand will focus on a new name, new livery, new uniforms, new logos, new signboards and mass advertising creative campaigns but place very little attention on the key areas that need to be addressed, such as the ability to deliver economic, experiential and emotional value to all segments, at every touchpoint, at all times and on customer terms.
The first stage in the rebranding of MAS will require a cultural change that may have to come not just from the airline but the country itself. To rescue the brand MAS must move away from a centralized, top heavy organization staffed by employees trained to do as management says and not challenge questionable decisions.
The firm must move away from an ingrained belief that business is a one off transactional, price driven initiative and that every customer is purely a source of money, irrespective of their relationship with the brand, their influence and their loyalty.
In a social media world, where consumers not companies or advertising agencies define brands, changing the name, logo and livery of the airline and announcing the ‘rebrand’ with a global, one size fits all corporate driven communications campaign will actually have a negative impact on the brand and possibly do more damage than the twin tragedies of 2014, the years of mismanagement and the sweetheart supplier deals have done to date.
Instead the first stage of the rebranding must focus on creating a collaborative, personalised, relationship based, retention driven organization that understands customers and their needs.
Failure to focus on the internal branding first and getting it right will make any other investments an expensive exercise in naive futility. Which will see the end, sadly of a once iconic brand.
I’ve written a lot on this blog about the Malaysia Airlines (MAS) brand and much of what I have written has been negative and I’ve come in for a fair amount of criticism as a result of those posts.
But my intentions are honourable and I do know that a lot of people in MAS read my blog and take my comments in the way that they are written, as feedback not criticism.
They don’t seem to take any notice of the feedback but at least they are reading my comments. I’m publishing this post to see if I can get an explanation for the email I received from the airline recently.
There’s no need for a recap on the MAS situation except to say that earlier this week a story broke in Australia suggesting the Malaysian government lied about MH370 and later today there will be a high level meeting between Malaysia, Australia and China the three countries leading the search for MH370. Speculation is rife that the search will be called off. If this is the case, the media will be full of stories about MH370 and the downing of MH17. Probably not the ideal time for Malaysia Airlines to be trying to sell insurance.
Does MAS send the right message by selling insurance?
Yet earlier this week I received an email from MAS encouraging me to buy insurance for my upcoming flight to Tokyo. My reaction was one of surprise. My initial thoughts were that it didn’t make sense for the carrier to be trying to sell insurance so soon after the tragic events of last year and just before a major announcement that could see acres of negative newsprint around the world. It also made me even more nervous about flying MAS.
Professionally, I couldn’t help but think that this was an ad hoc tactical effort that wasn’t part of a well thought out and planned out strategy. If I’m right it would suggest the marketing and communications departments at MAS continue to churn out poorly conceived tactical initiatives and are yet to develop a sustainable brand strategy.
I think the airline would be better off trying to rebuild it’s reputation with me and all the other people that have continuously supported the airline through the dark days of 2014 and 2015. But I could be wrong, maybe this is the right time for the airline to be selling insurance, what do you think?
It has been scientifically proven that almost everyone remembers negative events more clearly than positive ones. Apparently it is something to do with spending more time processing negative information more thoroughly than positive information.
This probably explains why most of the mass media and consumer generated content about Malaysia Airlines is negative.
Of course its disjointed and poorly thought out marketing tactics and privatization programme aren’t helping but you can read about that here.
When a firm experiences a run of bad luck, it needs to be on top of its game when it comes to engaging consumers and restoring confidence in its ability. It also needs a bit of luck and that luck can appear in many different ways.
Yesterday Malaysia Airlines flight MH2 from Kuala Lumpur was carrying the irrepressible London Mayor Boris Johnson who had been working his magic on a trade trip in the region. During the flight a passenger described by one of Mr Johnson’s staff as being ‘off his head’ got abusive and had to be restrained by the MAS staff, with a little help from Boris.
MAS crew perform admirably in difficult situation
Police met the plane in London and the passenger was taken away and later charged. When asked about the Malaysia Airlines crew, the Mayor’s staff had nothing but praise. Eileen Burbidge travelling with Mr Johnson said, “so impressed w/MH2 cabin crew (Kuala Lumpur-LHR); amazing professionalism/handling of passenger who was off his head.”
This small but significant event is a great opportunity to start the process of rebuilding the MAS reputation. It isn’t enough to salvage the airline’s reputation but it is a good place to start.
Here are six things the airline must do immediately to get the most out of this good news story:
1) Write a number of stories about the event from different angles. Include interviews with the cabin crew, other passengers and of course Mr Johnson. Share the articles across multiple platforms.
2) Meanwhile share the mainstream press stories across social media and encourage others to also share them.
3) Share the video of the event across all channels.
4) Get cabin crew involved on TV chat shows to talk about their lives with MAS, the event and other events and how they deal with them.
5) Hold informal internal coffee mornings for other staff to interact with the crew and learn from them and build morale.
6) Monitor social media discussions about the event and contribute to those discussions. Also comment on discussions and articles and follow up with responses to those comments, even if they are negative. Not from a corporate perspective but from a human one.
The rejuvenation of the MAS brand and its reputation will take more than privatization, a new name, renegotiated supplier contracts and redundancies.
The airline must restore consumer confidence in its ability to offer a professional, competent, efficient and effective service. The performance of the staff in this potentially explosive situation is the first step in that process and it must be leveraged effectively and organically to maximum effect.
Since the twin disasters of MH370 and MH17, Malaysia Airlines has slashed prices on just about all its fares, offered travel agents in Australia Rolex watches and free flights to promote the carrier and attempted to discount its way out of trouble. And it has tried to do this with a series of ill conceived and poorly executed ads and PR campaigns that I wrote about here.
At the same time, it continues to ignore those passengers who have supported the airline during this difficult period.
MAS has also sent out the same poorly thought out post flight survey to passengers that asks questions that can offer little actionable data to be used to save the iconic brand. An example of the survey is this question below:
Good to know but how useful is the data?
As an example, question A is about value for money. If a passenger has paid RM50 for a RM400 ticket then he will probably consider the flight to be good value for money. But if he has paid RM400 for the ticket and the person next to him has paid RM50, he probably won’t consider it good value for money. So how can MAS use the results?
I also wrote here that MAS should not be slashing prices because it was not going to work and once you’ve slashed prices, it is very hard to increase them.
Many people disagreed with me. Commenting on the article, Bob said, “At this time, the last thing they need is branding. They need to fill up seats for revenue so I don’t see any issues with the ads to be honest.”
I disagreed and said instead that MAS should focus on rebuilding its brand and offer more value rather than slash prices. Well if rumours from Reuters are to be believed, MAS is about to announce that the 3rd quarter 2014 was its worst quarter since it began operations 70 odd years ago. Reuters reports that despite the promotions and cheap flights, passenger numbers and yields were the loweest ever.
I’ll say it again, slashing prices does not work. This is what MAS needs to do NOW to save the brand. It’s time to stop reacting and start planning.
I was shocked to see this ad appear on my Facebook page this morning.
Poorly conceived ads like this are terribly insensitive
Is anyone in control of marketing at Malaysia Airlines at the moment or has the transition to the new company already started? At the same time as the world’s media is showing terribly sad but dignified video and images of the crew of MH17 returning to Malaysia in flag draped coffins, the airline’s marketing department launches an advertising campaign with a grammatically incorrect tagline telling us flying with Malaysia Airlines is fun.
Are they mad? Does the marketing team really think they can convince us that the experience of flying MAS is going to be fun? Should they be trying to do that? Do they think they can change global perceptions of MAS with a grammatically incorrect tagline? Actually they are not trying to change perceptions, they are trying to change reality, with ads! Not only is it offensive, it is ignorant and they really should know better.
This is the second poorly conceived tactical ad MAS has released online in the last month and it smacks of desperation. There is enormous pressure on the management at MAS but they need to get their act together and start rebuilding the brand and not simply throw out poorly thought out tactical ads or what I can only assume are seen as quick fix solutions. The rebuilding of the brand will start by rebuilding trust and faith in the brand but not with this rubbish.
Hardly a compelling tagline or call to action
Last year, when JWT India created an offensive ad featuring Silvio Berlusconi in a Ford Figo with girls bound, gagged and crying in the boot of his car JWT fired the executives responsible and Ford apologized.
Tasteless Ford ad forces agency to sack executive
MAS doesn’t need to apologise but the management must reevaluate their marketing team and their ad agency needs to fire the clowns who created this nonsense.
Then the managment needs to understand that rebuilding the reputation of the brand is a strategic initiative and not a tacticial one. And the CEO needs to have his finger on the brand pulse otherwise this sort of incompetence will continue and there will be a further erosion in the brand’s reputation.
The recent announcement by the Malaysian government that it will invest RM6 billion of public funds to revive Malaysia Airlines (MAS) is a good idea and one that should be welcome by every Malaysian.
MAS a national icon worth saving
The national carrier is a source of immense pride for Malaysians and so it should be. In the broader perspective, MAS has an exemplary safety record, provides direct and indirect employment for thousands of Malaysians and was profitable for many years.
Furthermore, when managed effectively and innovatively and when the importance of morale was understood, the national airline played a major role in defining the Malaysia Nation Brand as it was the first touch point for many of the more than 10 million passengers carried annually.
Moreover, through MAS, Malaysia got the opportunity to reach out to consumers with a physical product, develop a relationship with them and build a profitable business at the same time. Many of the millions of Europeans who flew the ‘kangaroo route’ from Europe to Australia and New Zealand became brand ambassadors for the carrier.
Much of that goodwill has been eroded but the brand is still intact but there is a lot of work to be done to rebuild global trust in the brand. The recovery plan that will require sweetheart deals to be renegotiated, staff numbers to be reduced and other major restructuring initiatives are just the beginning. Rebuilding internal branding and developing a strong, innovative, customer focused external brand strategy will be just as important.
While the airline restructures, it needs to continue to operate. In June 2014, when MAS CEO Ahmad Jauhari Yahya told shareholders that the MH370 incident had “sadly now added an entirely unexpected dimension, damaging our brand and our business reputation, and accelerating the urgency for radical change”, I was expecting, well radical change.
Externally, it looks like that radical change consists of nothing more than slashing prices!
Slashing prices won’t build confidence in the MAS brand
MAS is reported to be offering cut price ticket prices from the UK, Australia and New Zealand to Kuala Lumpur in an attempt to do what regional senior vice president Lee Poh Kait termed as, “inspire and encourage customers to dream, plan and book their next holiday, and help rebuild trust in Malaysia Airlines.”
Mr Lee also told Australian news site news.com.au that, “With unbelievable savings, these deals are a very competitive offering as we build a stronger Malaysia Airlines.”
He also went on to say, “We are committed to regaining the confidence of our customers and sending them on memorable holiday experiences as a trusted five-star carrier.”
In addition to slashing prices, MAS also launched ‘My Ultimate Bucket List’ competition with 12 return flights to Kuala Lumpur and 4 iPads as prizes.
Its not uncommon for bricks and mortar retailers to slash prices in the face of poor sales and it’s a familiar tactic of low cost carriers looking to sell excess seats. The idea is you attract new customers who might not have bought from you and you get a spike in sales that will get you through the lean times. But we’re not selling soap powder, software or biscuits.
An international airline that competes in the same space as Singapore Airlines, Cathay Pacific and the increasingly aggressive Middle Eastern carriers and is reeling from two tragic events is not going to build a stronger airline or rebuild trust by slashing prices.
Slashing prices gives the impression the project is cheap, something MAS cannot afford to do. It also smacks of desperation and lowers the value of the product to that of a low cost carrier and may well cause customers to lose not rebuild confidence in the airline.
THe lastest MAS online ads are easily forgotten
Furthermore, by slashing prices, MAS is throwing away all of the pricing power it has built up over the past few years, power that will take years to win it back.
The regional senior vice president also said “We would like to thank all our travel agency partners and passengers for their relentless support during what has been a difficult period.” I understand that MAS has also doubled the travel agent commission rate to 11% till mid September.
At the same time as this seat sale and travel agent incentive is launched, the MAS frequent flyer programme (FFP) Enrich is sending emails out to 14 year olds offering them the opportunity to earn extra air miles if they book a hotel with the MAS hotel booking partner. Not many 14 year olds book hotels.
Enrich marketing is sending out up to 8 emails a month asking members to play golf at the Mines, get double miles when they fly with Firefly, take advantage of a sale at shoe shop Lewre and various other offers.
Used properly, the MAS FFP database is a potential revenue gold mine
After flights, the airline is also sending an email to travellers asking them to complete a survey that asks questions such as “At which airport did you board/leave this flight?” and “Class of travel” as well as questions that the answers might be good to know but don’t identify causes of dissatisfaction or provide any real actionable data.
Meanwhile, while MAS offers travel agents double commission on bookings, MAS loyalists who have flown more than 20 times since MH370 went missing in April 2014 haven’t received personalized communications from the airline thanking them for their support or an offer of free air miles, upgrades or other shows of appreciation.
Based on this evidence, it would appear MAS has essentially ignored its existing customers and frequent flyer members and instead gone out and offered special deals to all and sundry in the hope that enough of them will take the bait and fly the airline.
This discounting approach will do little to regain trust or repair the battered brand. Here are 6 tactical initiatives MAS should be doing to rebuild trust before slashing price:
1. Existing customers are more likely to buy than those who haven’t bought before
Right now a focus on gaining new customers or market share is a misguided approach. Yet MAS, like so many firms is attempting to do just that whilst ignoring its existing customers. The MAS FFP Enrich is rumoured to have more than 1,000,000 members. The database of Enrich members is a potential gold mine of revenue that needs to be cleaned and leveraged properly and quickly with a well planned and implemented programme.
2. All data is important
OK, MAS probably doesn’t need to know the name of every FFP member’s pet but it does need to know enough data to know what products should be sold and to whom and how to increase share of wallet.
Consumers are willing to share more information than ever before and MAS needs to start collecting data and sending the right offers to the right people. Sending invitations to book hotels to 14 year olds is sloppy and shows a lack of professionalism and that will do nothing to rebuild the brand’s reputation.
Good to know but how can the answers help rebuild the MAS brand?
3. Leverage the power of social media
Each customer’s experience is defined by the economic, experiential and emotional value of each ‘moment of truth’ when interacting with the brand so mass advertising campaigns either online or offline and slashing costs are not going to rebuild the MAS brand.
There is a great deal of sympathy out there for MAS and a bright, real, transparent, honest and consumer driven campaign on social media about real people travelling on MAS will inspire more people to develop a relationship with the airline (and relationships are the goal, not selling seats) than any seat sale with a weak call to action.
4. Branding is about experiences and relationships, not one off sales
Few consumers are going to develop a relationship with a brand based on a one off sale. And besides, legacy carriers can’t compete with LCCs and the moment MAS tries to increase prices, those customers won on price will go elsewhere. MAS must start building relationships with its customers and leverage those relationships to increase sales.
The success of those relationships will be determined at every touch point which means the website booking engine, check in staff, customer service representatives, ground and airport staff, cabin crew, in flight entertainment, comfort and service, baggage operators, communications, helplines and more must be all be ‘on brand’ and on top of their game at all times.
5. Stop being lazy and start re building the MAS brand
There is no short cut to rebuilding the MAS brand. It is going to take a lot of effort strategically and tactically. Slashing prices and flooding the Internet with forgettable, price driven ads won’t turn the company around. The MAS website has been a mess for too long. No matter what the cost, funds must be made available to fix the booking machine and fix it quickly.
It’s also time to retrain front line staff as they currently do not have the skillsets required to deliver a premium brand that can compete with the aggressive ME carriers.
6. Think customer not customers
The customer is only interested in one thing, what’s in it for me (WIIFM). Yes many of them care about the airline but they aren’t about to risk their lives or those of their families.
Every single customer flying MAS in these difficult times has to be made to feel special (this should be part of the brand strategy but is particularly important now).
Those customers flying MAS now are the saviours of the brand and must be nurtured to become brand ambassadors and brand advocates who will be talking loudly about the fact that they are flying the airline now.
Make the experience a memorable one and they will talk loudly and for longer and do more to rebuild trust that any corporate driven advertising or PR campaign.
None of this is rocket science but these 6 top tactical tips will lay the foundations for the rebuilding of the Malaysia Airlines reputation quicker and more effectively than slashing prices.
This is the biggest weekend of the year in Malaysia as families across the country go home for the end of Ramadhan Eid holidays. As Monday and Tuesday are public holidays, many people will have a nine day break.
For me personally I’m looking forward to some quality time with my family in Sarawak, one of the best kept secrets in Asia. I’m flying business class to Kuching about an hour and forty minutes flying time from Kuala Lumpur.
When I get to the airport they tell me my flight is delayed. Now I’m a little bit annoyed by this because I’ve been a member of their FFP since it began and they have my email address and mobile number so they could have let me know the flight was delayed. But hey, that’s a minor issue and besides, if it’s a technical problem I’d prefer them to discover it on the ground and not in the air. Incidentally when I checked in, there was no apology from the girl at the desk.
MAS is carrying out renovations to its lounge at KLIA so I am directed to a temporary lounge. When I get to the lounge I show my boarding card to the person at the counter who looks at it and hands it back. There is no mention of flight announcements. The greeting isn’t rude but it’s hardly enthusiastic.
I sit down and get online. The lounge is quiet, I’m in a good mood, and considering I’m at an airport and about to get on an MAS flight I’m relaxed and excited at the prospect of spending some quality time with my family in a beautiful place.
30 minutes later I get to that point in an airport where you feel like you need reassurance that everything is alright. So I go to the counter and ask about my flight. I’m told it is delayed (like I didn’t know that) and the staff member points to a time on the boarding card and mumbles something incoherent.
I don’t know about you but when I’m at an airport there are so many distractions, so many unusual assaults on the senses that I rarely pay attention to announcements however, a little later, I suddenly look up and realize I haven’t heard an announcement about my flight or for that matter any others. I ask one of the MAS staff in the lounge what is happening with my flight. She goes to the desk and comes back and tells me my flight has left!
I’m stunned and ask someone to explain what just happened. The explanation revolves around the fact that it is a temporary lounge and they don’t make announcements and anyway, there is a sign on the desk stating that there won’t be any announcements.
Now bearing in mind getting passengers to the plane is a fairly important part of an airline’s responsibility, the sign below can hardly be described as adequate, especially with all the other messages on the desk.
The pathetic sign stating there will be no flight announcements
Understandably I’m not impressed. This is business class, there aren’t many people waiting and it wouldn’t take much effort on the part of the staff to inform the few passengers in the lounge that their flight was boarding. Furthermore, if one business class passenger is late arriving at the departure gate, how much effort does it take for the staff at the gate to call the business class lounge and ask if the passenger is there? Aren’t these the little things that help passengers justify paying more for a ticket?
For some reason I’m then sent to the flight transfer counter where I listen to a staff member explain my situation to other staff members who all look like the last thing they want to be doing right now is deal with this issue. No one tells me anything. Eventually after interrupting the conversation I learn that my luggage has been sent to lost and found and I have to go and get it and not to worry, I will be put on the next flight.
I then go back to the lounge and 10 minutes later another member of staff tells me that I have to go and get my luggage because he doesn’t have the authority put it on the next flight which is odd because someone had the authority to take it off the previous aircraft and send it to lost and found but most galling of all, he tries to nickel and dime me for RM150 penalty to change to the 5.55pm flight!
He’s not very happy with the fact that I’m not very happy but obviously is just following a procedure and not interpreting the situation as it is. I realise he doesn’t have any authority so ask him to send a supervisor to talk to me. He walks off to the desk and sits down. 30 minutes later he is still there and making no effort to update me so I have to go and find out what is happening. He tells me the supervisor will be here in 10 minutes.
25 minutes later I get up again and go and ask him what is going on. He says the supervisor will be there soon. As we’re talking the supervisor arrives. She manages to talk to another supervisor who agrees not to charge me the RM150 penalty. It has taken me a lot of effort to get to this stage.
But it doesn’t get better just yet. It transpires that I wasn’t put on the 5.55pm flight, I was put on the waiting list because the flight was full. No one told me this. I asked what time is the next flight, answer 6.30pm but it is also full. The next flight after that with seats is 7.30pm. By the time I board that flight I will have been at the airport for six hours.
So how is related to the problems at MAS?
Throughout this horrendous experience I felt that on the whole, with the exception of a couple of members the staff were sympathetic to my predicament and wanted to help. But the problem is they just didn’t have the knowledge or the skills to deal with the situation effectively.
Being told repeatedly that the lounge is temporary and therefore there won’t be any announcements is not good enough but it isn’t the fault of the staff. It suggests the company doesn’t understand the importance of the customer. Especially highly profitable business class passengers.
It’s great that you are renovating the lounge but it doesn’t mean you lower your standards in a temporary lounge. It might be temporary to you but to every passenger, it is still the lounge. It’s not like I’m paying less for my ticket because I am using a temporary lounge. Does it mean that when you lease an aircraft from another airline you lower your engineering or safety standards?
And besides we’re talking about the worst time in the airlines history. Shouldn’t every customer willing to spend money with the airline at this difficult stage be appreciated more?
The attitude of the lounge staff was at best adequate. I got the feeling they were doing the job but nothing more. And having flown Malaysian Airlines for over 20 years I have to say I’ve felt this way for the last 12 – 15 years.
If the MAS brand is to survive, those that make the decisions on training have got to understand that the airline is not doing passengers a favour. Numerous reports released over the last 5 years point to service as being the main factor influencing consumer brand choices.
In every report I have read recently, the averages percentage of people who switch brands because of poor service is around 70% and goes as as high as 80%. It is universally accepted that customer service is critical to the success of a brand. That service comes from effective and timely training based on the changing needs of customers.
The issue is that what may have been considered acceptable customer service yesterday is no longer acceptable today. Moreover, as more and more companies raise the bar in terms of the quality of service they deliver, consumers expect more. Training needs to be updated and reinforced.
Nowadays, for an Asian carrier to thrive let alone survive, it has to have a culture not of customer service but of exceptional customer service. The ability to deliver exceptional customer service is the only way brands can build the loyalty that will differentiate themselves from other competitor brands.
Armed with the skills and tools needed to deliver exceptional customer service, staff will have the ability, confidence and enthusiasm to go the ‘extra mile’ when dealing with their customers.
Malaysia Airlines is a service product in a very competitive space. Despite the two very tragic incidents in the last 5 months numerous customers such as my family and I have stuck by them.
Right now it is tough being loyal to MAS and it isn’t made easier when they can’t even get the basics right. I, like many loyal customers don’t want any special treatment but I do expect a decent level of service.
As I write this, there is talk in the UK newspapers of a strategic review of MAS that may include renaming and rebranding the airline. I don’t know what they define as a rebrand but it’ll take more than a change of name to save MAS.
A few airlines have started thinking out of the box when developing their brands. Over the last couple of years Virgin and Air New Zealand have gained a reputation for creating innovative safety videos that go viral and build positive brand reputation.
You can see some of the videos in this earlier blog post. Combined, these safety videos have generated over 30 million views, more than 100,000 Likes and tens of thousands of comments, most of them positive. With such consumer generated power who needs a 30 second TV commercial?
Recently Air New Zealand created a new safety video, this time using cabin crew, Cook Island residents and some rather attractive Sports Illustrated swimwear models. The models show how to put on a seat belt, use an oxygen mask, inflate a life vest and leave the plane in an emergency. All done not on a plane but on a beach or by the pool in the Cook Islands.
All very clever and innovative. Unfortunately an Australian was offended by the ad, calling it sexist, irresponsible, offensive and insensitive to religious sensibilities. She bagan a petition online and soon had over 10,000 signatures, forcing Air New Zealand to pull the video and disable the comments section on Youtube, despite getting more than 11,000 Likes and less than 1,100 Dislikes.
To date the video has generated more than six million views on Youtube and quite a few of them me!. That’s more views than all of Air New Zealand’s previous safety videos combined.
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