ABSTRACT
Southwest Airlines is an American airline that, contrary to most of its competitors,
has been growing and profitable for 29 consecutive years. In 2001 it carried almost
65 million passengers on almost 1 million trips. The company has a fleet of 366
aircraft and employs more than 33,000 people. One of the reasons for its profitability
is the strong loyalty of its customers. This loyalty cannot be explained by the airline’s
low prices alone. Southwest’s customers are also very satisfied. In 2002 the company
scored 74 out of 100 on the American Consumer Satisfaction Index, compared to an
industry average of 66. This customer satisfaction, in turn, has been built up by means
of a stringent focus on customer service and customer support. Southwest stays away
from traditional airline CRM techniques, such as frequent flier perks and rewards for
people who buy a lot of tickets. Every customer is equally important. Special groups
of customers, such as businessmen seeking more legroom or reserved seats, are not
particularly well accommodated. The company hires employees (both front desk and
back office) primarily on the basis of their likeability and their ability to care and
communicate.
