Measuring Loyalty
Aug 30, 2002 | 9:48 am
#1
Original Poster
Join Date: Aug 2002
Location: Nashville, TN USA
Posts: 3
Measuring Loyalty
August 30, 2002
Mr. Ben Baldanza
Senior VP, Marketing and Planning
USAirways
Sent Via Facsimile Transmission
Dear Mr. Baldanza:
Allow me to begin by stating that over the past three years, it is with pride that I have turned to USAirways as my preferred airline when making my weekly travel arrangements. During that time, I cannot begin to count the number of times your employees have gone above and beyond to accommodate me. As a result, I have achieved Chairman's Preferred status for the past two years. During this time, I have continued to fly your airline while the number of flights it operates have been substantially reduced (often resulting in additional inconvenience) and while ongoing bankruptcy proceedings have cast a dismal cloud over the future of the airline. In addition, your practice of not compensating travel agents for bookings they generate has forced me to assume the additional responsibility of becoming my own travel agent and turning to the internet to book my own flights (like USAir, my company is also attempting to reduce costs wherever possible and will not absorb the ticketing costs charged by local travel agents). Despite these conditions, I have remained a faithful USAir customer.
In return for my "loyalty", I read in the August 29th edition of USA Today that you do not feel that loyalty is a function of travel frequency, rather a function of the price paid for travel. As a business professional with an MBA, this is bewildering to me. I have always been under the impression that businesses rely on the standard practice of volume discounts whereby increased volume automatically leads to lower cost. This is a way of rewarding repeat customers. Customers who are LOYAL.
But your quote in USA Today makes it clear that USAir measures loyalty by the dollar amount paid for services provided. Using this philosophy, perhaps you need to reflect on the adverse affect seeking wage concessions from your workers will have on employee loyalty. Using your philosophy, seeking wage concessions from your pilots and employees will result in less money being paid to them....thereby making them less loyal employees than employees who are paid a higher wage. Absurd and impractical? Then perhaps it's the philosophy that's flawed.
[This message has been edited by RoadWarrior1313 (edited 08-30-2002).]
Mr. Ben Baldanza
Senior VP, Marketing and Planning
USAirways
Sent Via Facsimile Transmission
Dear Mr. Baldanza:
Allow me to begin by stating that over the past three years, it is with pride that I have turned to USAirways as my preferred airline when making my weekly travel arrangements. During that time, I cannot begin to count the number of times your employees have gone above and beyond to accommodate me. As a result, I have achieved Chairman's Preferred status for the past two years. During this time, I have continued to fly your airline while the number of flights it operates have been substantially reduced (often resulting in additional inconvenience) and while ongoing bankruptcy proceedings have cast a dismal cloud over the future of the airline. In addition, your practice of not compensating travel agents for bookings they generate has forced me to assume the additional responsibility of becoming my own travel agent and turning to the internet to book my own flights (like USAir, my company is also attempting to reduce costs wherever possible and will not absorb the ticketing costs charged by local travel agents). Despite these conditions, I have remained a faithful USAir customer.
In return for my "loyalty", I read in the August 29th edition of USA Today that you do not feel that loyalty is a function of travel frequency, rather a function of the price paid for travel. As a business professional with an MBA, this is bewildering to me. I have always been under the impression that businesses rely on the standard practice of volume discounts whereby increased volume automatically leads to lower cost. This is a way of rewarding repeat customers. Customers who are LOYAL.
But your quote in USA Today makes it clear that USAir measures loyalty by the dollar amount paid for services provided. Using this philosophy, perhaps you need to reflect on the adverse affect seeking wage concessions from your workers will have on employee loyalty. Using your philosophy, seeking wage concessions from your pilots and employees will result in less money being paid to them....thereby making them less loyal employees than employees who are paid a higher wage. Absurd and impractical? Then perhaps it's the philosophy that's flawed.
[This message has been edited by RoadWarrior1313 (edited 08-30-2002).]
