COMPANY Case JetBlue: Delighting Customers From the beginning, JetBlue set out to provide features that would delight customers. For example, most air travelers expect Through Happy Jetting to be squashed when flying coach. But JetBlue has configured its seats with three more inches of legroom than the average air- In 2007, JetBlue was a thriving young airline with a strong reputa- line seat. That may not sound like much. But those three inches tion for outstanding service. In fact, the low-fare airline referred to allow six-foot three-inch Arianne Cohen, author of The Tall itself as a customer service company that just happened to fly Book: A Celebration of Life from on High, to stretch out and planes. But on Valentine's Day 2007, JetBlue was hit by the per- even cross her legs. If that's not enough, for as little as $10 per fect storm-literally-of events that led to an operational melt- flight, travelers can reserve one of JetBlue's "Even More down. One of the most severe storms of the decade covered Legroom" seats, which offer even more space and a flatter re- JetBlue's main hub at New York's John F. Kennedy International cline position. Add the fact that every JetBlue seat is well padded Airport with a thick layer of snow and ice. Small JetBlue did not and covered in leather, and you already have an air travel exper have the infrastructure to deal with such a crisis. The severity of rience that rivals first-class accommodations (something JetBlue the storm, coupled with a series of poor management decisions, doesn't offer). left JetBlue passengers stranded in planes on the runway for up to Food and beverage is another perk that JetBlue customers en- 11 hours. Worse still, the ripple effect of the storm created major joy. The airline doesn't serve meals, but it offers the best selection JetBlue flight disruptions for six more days. of free beverages and snacks to be found at 30,000 feet. In addi- Understandably, customers were livid. JetBlue's efforts to clean tion to the standard soft drinks, juices, and salty snacks, JetBlue up the mess following the six-day Valentine's Day nightmare cost flyers enjoy Terra Blues chips, Immaculate Baking's Chocobillys over $30 million dollars in overtime, flight refunds, vouchers for cookies, and Dunkin' Donuts coffee. But it isn't just the selection; future travel, and other expenses. But the blow to the company's it's the fact that customers don't feel like they have to beg for a previously stellar customer-service reputation stung far more than nibble. One customer describes snacking on JetBlue as an " open the financial fallout. JetBlue became the butt of jokes by late night bar for snacks. They are constantly walking around offering it. I talk show hosts. Some industry observers even predicted that this never feel thirsty. I never feel hungry. It's not 'Here, have a little would be the end of the seven-year-old airline. sip," and 'Good-bye, that's all you get."" But just three years later, the company is not only still flying, it is Airlines often can't control flight delays, especially at busy air- growing, profitable, and hotter than ever. During the recent economic ports like JFK. So JetBlue wants to be sure that customers will be downturn, even as most competing airlines were cutting routes, retir- entertained even in the event of a delay. That's why every seat has ing aircraft, laying off employees, and losing money, JetBlue was its own LCD entertainment system. Customers can watch any of adding planes, expanding into new cities, hiring thousands of new 36 channels on DirectTV or listen to 100+ channels on Sirius XM employees, and turning profits. Even more, JetBlue's customers adore Radio, free of charge. If that isn't enough, six bucks will buy a the airline. For the fifth consecutive year (even including 2007), JetBlue movie or your favorite television show. JetBlue rounds out the has had the highest J.D. Power and Associates customer satisfaction amenities with free Wi-fi in terminals and free sending and receiv- score for the entire airline industry. Not only did JetBlue recover quickly ing of e-mails and instant messages in the air. from the Valentine's Day hiccup, it's now stronger than ever. Even JetBlue's main terminal, the new state-of-the-art T-5 terminal at JFK, is not the usual airline experience. With more security lanes TRULY CUSTOMER FOCUSED than any terminal in the country, travelers scurry right through. High What's the secret to JetBlue's success? Quite simply, it's an obses- end dining (tapas, lobster tempura, and Kobe sliders, just to name a sion with making sure that every customer experience lives up to few options) can be found among the terminal's 22 restaurants. And the company slogan, "Happy Jetting." Lots of companies say they its 25 retail stores are characteristic of the latest mall offerings. A chil- focus on customers. But at JetBlue, customer well-being is in- dren's play zone, comfortable lounge areas, work spaces, and piped grained in the culture. in music from Sirius XM Radio make travelers hesitant to leave.MORE THAN AMENITIES keep in touch with the brand even when they aren't flying. JetBlue Although the tangible amenities that JetBlue offers are likely to de- has 1.1 million followers on Twitter, more than any other company light most travelers, CEO David Barger recognizes that these things except Whole Foods Market and Zappos.com, two other customer are not nearly enough to provide a sustainable competitive advan- service legends. Twitter even features JetBlue as a case study on smart tage. "The hard product-airplanes, leather seats, satellite TV's, corporate twittering. More broadly, by the metric of social currency (a bricks and mortar-as long as you have a checkbook, they can be fancy term for networks of customers spreading by word of mouth), replicated," Barger tells a group of new hires in training. "It's the JetBlue is the strongest U.S. brand, outperforming even Apple. culture that can't be replicated. It's how we treat each other. Do we JetBlue's strong word of mouth has been fueled by the com- trust each other? Can we push back on each other? The human side pany's ability to delight customers. of the equation is the most important part of what we're doing." It's that culture that gives JetBlue customer service unlike that of People love to talk about JetBlue because the experience is any other airline. Taking care of customers starts as early as a cus- so unexpected. Most airline travel has a particular pattern: tomer's first encounter with a JetBlue call center. Many callers feel small seats, bad entertainment, and little (if any) food. Jet- like they are talking to the lady next door. That's because, in all like- Blue breaks this pattern. Leather seats, your own entertain- ihood, they are. JetBlue's founder pioneered a reservation system ment system with dozens of channels, and at least some that employs part-time reps working from home. Mary Driffill is one choice of food, People can't stop talking about the experi- ence because they have to express their surprise, especially of 700 at-home reservations agents in Salt Lake City alone. She logs on to her computer and receives calls in her four-year-old daughter's given the "value" price. They are so used to airline travel be- bedroom, under the watchful eye of Raggedy Ann, Potbelly Bear, ing poor, late, or uncomfortable these days that cases and Chewy, the family Pomeranian-Chihuahua mix. "It's the best where a company seems to care and provide good service job I've ever had, " says Driffill. "Every day I talk to people who love seems noteworthy. Satisfaction itself is unexpected. the company as much as I do. That reminds me I'm part of this." In ten short years, JetBlue has proven that an airline can deliver JetBlue employees are well acquainted with the company's core low fares, excellent service, and steady profits. It has shown that values: safety, integrity, caring, passion, and fun. If that sounds like even in the airline business, a powerful brand can be built. Few an awful lot of warm fuzzies, it's intentional. But JetBlue hires the other airlines have been able to write this story. If you're thinking types of employees that fit these values. The values then provide the Southwest Airlines, you'd be on target. In fact, JetBlue's founders basis for what Robin Hayes, Jetblue's chief commercial officer, calls modeled the airline after Southwest. JetBlue has often been called, the company's 5.0.C.I.A.L, currency program, In JetBlue's words: "the Southwest of the Northeast." JetBlue's onboard crews even greet customers onboard with jokes, songs, and humorous versions Standing for something. JetBlue was formed with the idea of of the safety routine, something Southwest has been known for bringing humanity back to travel, and our engagement with our since the 1970s. But where Southwest has made customers happy customers is central to that mission, with no frills, JetBlue is arguably doing it all, including the frills. Operationalizing the brand. Whether it be in the airport, on the Until last year, Southwest and JetBlue steered dear of each other. planes, on the phones, or online, the connection with our cus- But then both airlines added a Boston-Baltimore route. Boston is a tomers is a key factor in how we do business. letBlue stronghold; Baltimore is Southwest's biggest market. But Conversing with customers, broadly To be properly in touch with with JetBlue's younger workforce and newer, more fuel-efficient the community, it requires the ability to understand and react to planes, its cost per available seat mile is 8.88 cents, whereas it's the collective conversation that occurs. 9.76 cents for Southwest. That has allowed Jet Blue to do something that no other airline has done to Southwest; undercut it on price with Involving, immersing employees. Social media involvement re- 139 tickets that are $20 cheaper than Southwest's lowest fare. It's quires understanding and involvement from all aspects and de- not clear yet how the battle of the low-fare, high-service airlines will partments of the company. play out. But it may well turn out that as JetBlue and Southwest cross Advocating the brand. For JetBlue, we understand the ability to paths on more routes, the losers will be the other airlines. market to a social community is dependent on our customers' will- ingness to hear and spread those marketing messages. Listening. Waiving the carry-on bike fee . . . shows we quickly identify and adapt new policies based on feedback we receive through social media channels. It demonstrates our ability to lis- ten and react holistically. WHEN YOU LOVE YOUR CUSTOMERS, THEY LOVE YOU BACK Customers who spread positive word-of-mouth are called many names-true friends, angels, apostles, evangelists. The religious overtones of such labels come from the idea that loyal customers are like true believers who share the good word like a missionary would. JetBlue has an unusually high ratio of such customers. Most airline customers are loyal because they have frequent flyer Sources: Stuart Elliott, "JetBlue Asks Its Fliers to Keep Spreading the Word," points. If not for those points, most couldn't care less with whom New York Times, May 10, 2010, p. B7; Marc Gunther, "Nothing Blue about JetBlue, " Fortune, September 14, 2009, p. 114; Chuck Salter, "Calling Jet- they fly. For most, flying is a generally unpleasant experience re- Blue, " Fast Company, May 1, 2004, accessed at www.fastcompany.com/ gardless of who operates the plane. magazine/82/jetblue_agents.html; Kevin Randall, "Red, Hot, and Blue; The However, JetBlue customers are so enthralled with what the air- Hottest American Brand Is Not Apple, " Fast Company, June 3, 2010, accessed line has to offer that they look forward to flying. And they want to at www.fastcompany.com/1656066/apple-jetblue-social-currency-twitter