Don’t Be Arrogant; You Need Your Customers More Than They Need You.
Joseph Paris
I help companies around the world to become high-performance organizations. Expert in Operational Excellence, Organizational Design, Continuous Improvement, and Strategy Development and Deployment. (ENFJ-A+)
Like many consultants, I travel quite a bit and spend a fair bit of time at airports as a result.? And since I live in Germany and my clients are (mostly) in Europe and in the States, my most popular route (once a month on average) is flying United Airlines between Frankfurt (FRA) and Newark (EWR).? Once at Newark, I continue to my destination.
I can never bring myself to purchase a business-class ticket; even if my client offers or if it’s within their travel guidelines.? I just can’t justify spending the extra $5,000rt+ for the airline ticket.? For the Frankfurt-Newark flight, that’s roughly and extra $300 per flight hour.? Perhaps it’s because my business is about eliminating waste and maximizing value; maybe I am just thrifty (read: cheap). In any case, I can’t cost-justify the additional expense.
Of course, I will gladly accept a free upgrade if the airline gives it to me.
My status on United Airlines means that I get a free upgrade to “economy-plus”, which gives me preferred location on the aircraft and more legroom.? Since I am not a big person and can sleep on a pointy rock on demand, this suits me just fine.
My one indulgence is that I make sure to have a good meal at the airport (yes, it’s possible) before I get on the aircraft.? This way, I can forego the meal on the aircraft and get to reading or napping.
At Frankfurt, the Lufthansa Senator Lounge is excellent.? The breakfast they offer is quite good and the beverage options are extensive.? While at Newark, the United Lounge is nice (not nearly as nice as the Lufthansa Senator Lounge).
However, United Airlines uses Newark as one of its hubs and has invested heavily in Terminal-C; putting in countless restaurants, cafes, and shops (in addition to its lounges).? It is my favorite airport terminal.
So, my one indulgence when I am departing from (or traveling through) Newark is to stop at the best steakhouse I have ever visited; Saison.
Yes, you read that right, the best and most favorite steakhouse in the world (and I have been to many and love a good ribeye), can be found at Newark Airport’s Terminal-C.
The ribeye (char-broiled and done to perfection) along with a couple glasses of C?tes du Rh?ne or Chateauneuf du Pape will cost about $100.? But you can easily cut the ribeye with the stupid plastic butter knives they give you at Newark; with the wines being a perfect pairing.?
And since I saved on the flight, I have no issue justifying this indulgence. Besides, if I do it right, I won’t feel the need to eat on the plan and will wake-up 30min before landing.
I have been visiting Saison for years (with the exception of a few months in 2020 during the COVID pandemic when I was still traveling, but it was closed).? And since I am there at least once per month, I have become a regular; always warmly greeted like Norm from Cheers.? The service I receive is outstanding – great bunch of folks work here.
All of the hospitality services (restaurants, cafés, and shops) at Newark are managed by a company called OTG; an airport hospitality group that provides dining and retail services.? In addition to Newark, OTG provides their services at several airports that include; MSP, JFK, LGA, YYZ, IAH, DCA, PHL, MCO, and ORD.?
OTG’s Facebook page claims “OTG’s mission is to transform the airport experience for travelers” – and that they are “… known for its best-in-class approach to dining and retail in airports…” and “…recognized throughout the industry for its exceptional customer focus…”?
My experience is that this is not the case – that OTG has lost its way.? Not only is OTG disenfranchising its existing and potential customers, but they are also hurting themselves in a material way; they are losing revenue.? And they are seemingly too arrogant to admit they made a mistake and to take corrective action.
So, what’s the rub?? What stone is in my shoe?
Specifically, OTG’s new ordering system at the restaurants.
The old ordering system was pretty good.?
There were iPads at every seat.? To order, you simply called-up the menu which was organized as you would expect; appetizers, mains, deserts, beer, wine, and so on.? You selected what you wanted including sub-selections as appropriate.? The system would present you with the final order and give you the opportunity to add/change/delete.? Then you went to payment where you would slide your credit card in the reader and be done.
The biggest challenge I might have when using the system was scanning the barcode on my boarding pass to get my 20% discount for being a Chase United-Explorer cardholder.
From start to finish, I can place an order in just a short few minutes.? If I knew exactly what I wanted, it would take less than two minutes.
The customer experience;
The new ordering system is an abomination.? Rick Blatstein, the CEO of OTG might believe the system is the greatest thing since sliced bread, but I call bullshit.? Just take another look at the video to see my very real experience.
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First, you no longer order from the iPad.? The iPad is used only to provide a QR Code which identifies your seat and calls-up the restaurant menu on your smartphone.
Next, the user interface is unwieldy and unpredictable. In a word, it sucks.
If you don’t believe me, just watch this video of me ordering a couple of drinks.? It takes 20 minutes just to place the order.? Not kidding. Painful.
Once ordered, it took only 10min or less to receive the order.
My advice to you;
The business results;
I have spoken with a few of the managers of the restaurants at Newark.? Every single one of them has reported that revenue is down by double-digit percentages.
They are losing revenue because of the wait time.? People either don’t have the time to order or they don’t have the time to order more.
They are losing revenue because people who don’t have a smart phone, access to WiFi, or a mobile data plan simply can’t order.? One manager reported to me that, when he complained to OTG Corporate about the challenge, the response was; “Well, everyone should have a smartphone with a data plan – it’s the future!”.? If true, what an arrogant and out of touch SOB that person is.? I would fire them in a heartbeat.
They are losing revenue because people become frustrated, give up, and leave.? Even after this system is (hopefully) repaired or replaced, people will be hesitant to give the restaurants another chance because of the poor past experiences.? Customer acquisition / re-acquisition costs will increase significantly.
They are losing revenue because of increased demands for refunds due to delays.? I personally witnessed a person who placed an order for a Philly Cheesesteak and, after 30min, had to leave to catch their flight because of the backlog before the order was up. Since he had to pay when he placed the order, he said he was just going to demand a refund (of who? how?).
Moral of the story;
There are thousands of obstacles between a company and its sale – and a customer and their purchase.? A company that puts up additional obstacles by its own hand risks losing sales; if the obstacles are large enough, they risk losing customers.
And a company that puts up obstacles and demands that it is the responsibility and expectation of the customer to overcome them is arrogant beyond belief and just plain stupid.?
In my opinion, OTG is just plain stupid.
After all, OTG is a company, not a government agency.? And the customer has a choice.
About the author
Joseph Paris is an international expert in the field of Operational Excellence, organizational design, strategy development and deployment, and helping companies become high-performance organizations.? His?vehicles for change?include being the Founder of; the?XONITEK?Group of Companies; the?Operational Excellence Society; and the?Readiness Institute.
He is a?sought-after speaker and lecturer?and his book, “State of Readiness” has been endorsed by senior leaders at some of the most respected companies in the world.
Click here to learn more about Joseph Paris?or connect with him on?LinkedIn.
Manufacturing and Facilities Operations Leader
8 个月Another great read. Thx Joseph Paris
Attract More Customer Activity with Review Management ~ Business & Marketing Strategist
8 个月oh my .. that sounded awful, but watching it in real time was painful SMH .. they need an Opex consultant stat!
Dirigeante MHP COnseil
8 个月My ( recurring ) question would be : why changing a system that worked well ????…to put your own print in history, narcissism , ego, fake value ,…. I love your posts Joseph Paris !
Making AV solutions easy to understand, deploy and use. Technology isn't hard when your working with the right team.
8 个月I love the detail you went into here Joe. OTG should be thanking you for this and adjust its blunder accordingly. Unfortunately, it seems many in the corporate are afraid to admit they made a mistake.
Helping organisations focus on business value, not busyness value
8 个月If this was from anyone else, I would suspect they just had a grudge against the place. But I know how much you love that steakhouse! Seriously though, this shows the risk of having decision makers who do not understand their own business. "Everyone" has a smartphone with a data plan? At an international airport? If there was ever a place where you have to make adjustments to cater to a varied clientele, that's the place! Now if you'll excuse me, I'm suddenly craving a glass of Chateauneuf du Pape for some reason...