Three Savvy Marketers
Wawa, US Airways and Piero della Francesca
Vol. 6, Issue No. 8 | April 27, 2010 By Denny Hatch
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IN THE NEWS
Wawa to celebrate billionth free ATM withdrawalWhile many companies—with airlines at the top of the list—are trying to be ever more inventive with ways to squeeze dollars out of their customers during tough economic times, Wawa Inc. is celebrating something it offers customers for free: access to their money at an ATM.
This month, someone will make the one-billionth surcharge-free automated teller machine withdrawal at a Wawa, the company said. To mark the occasion, it is staging a parade Wednesday morning from LOVE Park to the Wawa at 17th and Arch Streets in Center City.
Wawa estimated that its ATMs have saved consumers $1.3 billion since their introduction in 1996.
—Harold Brubaker
Philadelphia Inquirer, April 13, 2010
Started as a dairy in 1902 in Wawa, Pa., the company has nearly 600 stores in Pennsylvania, New Jersey, Delaware, Maryland and Virginia, with a total of 17,000 employees.
Our Wawa is open all the time, spotless, stocked with basic foodstuffs you need when you need them and manned by incredibly nice people. In addition, 157 of the stores sell gasoline.
We recently returned from 12 days in Italy, and the bankers nicked us for an international transaction fee on top of every credit card charge, even though everything is electronic and automatic. The financial services industry is basically a business of sharks eating its customers alive any way it can.
Wawa is not in the financial services business. It is a world-class retailer. If a customer uses one of its ATM machines, chances are some of the cash will be used for an in-store purchase. So in 1996 management opted to charge no fees on Automatic Teller Machine usage by customers. The result:
- 1 billion ATM transactions in 14 years
- $1.3 billion in ancillary income forfeited
- Happy Wawa customers spent $4.7 billion in 2007
MBAs would call this CRM—customer retention management
I also call it CRM—customer relationship magic.
Are you doing anything to make your customers feel real good about doing business with you?
If not, why not?
U.S. Airways
We’ve had bum luck with US Airways recently. When we flew to Paris in 2008, the plane had mechanical problems and took off late. Just before crossing the Atlantic, an announcement was made from the cockpit that the mechanical problem had resurfaced and we were heading back to Philly. A replacement plane was found and we arrived in Paris 12 hours late.
At the end of March we were scheduled to fly to Rome—same waiting room, same gate—and were 4-½ hours late taking off, also on a substitute plane.
The airlines have been catching hell lately from the media and traveling public for various perceived transgressions:
- Intolerable waits on the tarmac with no food, no water, no air conditioning and overflowing potties.
- Fees not only for the second checked bag, but also the first.
- The possibility of potty charges.
- Outrageously high cancellation and rebooking fees.
- Extra charges for desirable seats.
- Now you pay for the crappy food.
- $7 for a pillow and blanket set.
- Spirit Airlines recently announced that a carry-on in the overhead compartment would cost $45. (Mercifully US Airways and four other airlines just announced they would not charge for carry-ons.)
So it was a pleasant surprise when my wife Peggy received the following e-mail from U.S. Airways on our return from Italy:
Takeaways to Consider
- Are you doing anything to make your customers feel real good about doing business with you? If not, why not?
- More to the point, do you have any policies in place that might be so irritating that customers and prospects will jump ship at the first opportunity?
- Judith Schalit’s Five Ways to Bolster Customer Service
—Don’t assume that people are happy if they don’t complain.
—Encourage customers to talk to you—offer an 800 number [or a Web contact].
—Turn each problem into a sales opportunity.
—Properly handled, disgruntled customers can be your best customers.
—Remember, companies go out of business due to poor customer service. - You cannot buy customer loyalty; it must be earned.
—Malcolm Decker - Customer loyalty is a misnomer; loyalty is a consistent attitude by marketers toward their customers, instills consumer confidence and encourages greater consumption.
—Malcolm Decker - If you are flying over a long distance in order to make a connection—a connecting flight, cruise ship or a speech to 2,500 industry leaders at a convention—take no chances and fly out a day early. If a delay occurs, you’re covered. If you get there on time, catch some Z’s, negate the jet lag and see some sights.
Websites Related to Today's Edition
Wawa celebrates billionth free ATM withdrawalhttp://url2it.com/csom
5 Airlines say no to carry-on fees
http://url2it.com/daqo
Huxley on “The Best Picture”
http://url2it.com/csor
Museo Civico, Sansepolcro
http://www.museocivicosansepolcro.it
Piero as Mathematician
http://url2it.com/ctbb
Piero della Francesca Trail
http://url2it.com/ctbc
Leonardo da Vinci’s Last Supper
(NOTE: To focus in on the John/Mary figure on Jesus’ right,
click on the “High Resolution” thumbnail at bottom center
of your computer screen.)
http://url2it.com/cspb
Companies Mentioned:
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