Employee Communications:The Key to Efficiency, Loyalty and Survival

Background• 1967: First papers filed to create a new airline that would

connect Houston, Dallas and San Antonio• Legal complications in creating the airline leave Southwest

with little capital• 1971: Southwest begins service to DAL, SAT and IAH with

$20 one-way fares.• Today, Southwest operates 550 aircrafts among 72 cities. • Most successful low fair, high frequency, point-to-point

carrier• Largest U.S. carrier based on domestic passengers

Recent PR Challenges• Flight 1248 crash• Budget crisis• Weight regulations

– Kevin Smith• Clothing Regulations

– Too Hot to Fly

Southwestern: Building a Brand• Strengths: Southwest was a new company with an

innovative and cost-effective business plan.• Weaknesses: Lawsuits left Southwestern with little capital,

forcing Southwest to choose between selling a plane or firing employees.

• Opportunities: Few affordable and convenient options available for flights between Houston, Dallas and San Antonio.

• Threats: Nearly saturated market, no reputation• Challenge: To develop a system that allows for 10 minute

turnarounds between flights--a feat only possible with a strong flight crew

Plan development• Research:

– What environments bolster teamwork?– What motivates employees?– What personalities thrive in fast-moving work

environments?– How can one translate strong internal communications to

exceptional customer service?– What are travelers seeking from an airline?– Primary: focus groups with employees and consumers,

surveys– Secondary: research on how new airlines have branded

themselves as successful organizations

Goals and Objectives• Goal: – To build an airline brand that leads in low prices, customer service and environmental

initiatives• Publics:

– American travelers seeking low cost flights– Southwestern employees and potential new employees

• Objectives:– Create internal initiatives that build teamwork within first year– Develop a system that allows fast turnaround (10 minutes)– Develop a ranked customer service program that will increase repeat customers by

25% within first year• Strategies:

– Choose employees whose personalities support an innovative team mentality– Hold customer service at the top of priorities, with refunds and acting upon customer

complaints and reviews

Internal PR Initiatives: “Southwest Spirit”• Casual Dress• Competitive wages, benefits and profit-sharing

programs• Internal Transparency:

– “Walk a Mile” program– Formation of the “Culture Committee”

External PR Success: Online

• First airline to establish a home page • First airline to use DING! Airfare service to notify

consumers of exclusive offers • www.nutsaboutsouthwest.com won Best Corporate

Blog for three years in a row• As of March 2011, southwest.com was the 2nd largest

travel site and largest airline site in terms of unique visitors– Links air, hotel, car– Community travel forums– Active social media networks

Results

• Southwest remained profitable as nearly all other airlines crashed in early 2000s

• Best on-time performance, fewest customer complaints, fewest mishandled bags

• Plane turnaround of approximately 20 minutes• Excellent customer service recognition• “Best Places to Work”• Highly recognized environmental efforts

Reflection• Employee satisfaction translates to customer satisfaction• Transparency with publics increases trust• Strengths:

– Strategic communications: able to build positive brand– Strong employee relationships– Strong customer loyalties– Creative crisis management skills– Leader in customer satisfaction– Efficient and user-friendly website

• Weaknesses: – Make all policies, including clothing and weight, more readily accessible– Increased freedom internally can lead to unexpected employee behavior