Unlocking Success: Insights into Delta's Sales Strategy and Customer Experience

Delta Air Lines is the largest and most profitable airline in the world. Chuck Imhof , Delta's Vice President of Sales, joined my lecture at NYU School of Professional Studies . He responded to 13 questions from the audience, on topics from the keys to sales success to the role of AI and the future of air travel. Below is a summary of each response, and a link to his complete answer.

Adapting to Change: A Reflection on the Evolution of the Airline Industry

Reflecting on my tenure in the airline industry, I’ve seen significant changes. I wasn’t around during the deregulation in the late 70s, but I worked with those who were. They often reminisced about the times when the government controlled everything, from where you could fly to the prices you could charge. The focus was on service differentiation and client entertainment, which they enjoyed. The transition to a competitive market was a rude awakening for many. However, deregulation brought about positive changes. It led to the creation of loyalty programs and the hub-and-spoke system, enabling airlines to grow and serve areas that previously lacked service. Importantly, it made air travel more affordable. When you factor in inflation, the overall price of air travel is significantly less today. On the flip side, competition has led to the demise of many airlines since deregulation. It’s a constant challenge to stay competitive and relevant in this ever-changing environment. But I believe that from a service perspective, we’ve managed to uphold our standards while adapting to the new landscape.1 Watch full response here.

Delta's Journey Through 100 Years of Success

First off, I want to acknowledge that Delta is gearing up to celebrate its 100th anniversary next year, which is a significant milestone for us. We've been successful in adapting and pivoting based on internal forces, which is something we take pride in. Our strong culture and investment in our people play a crucial role in this success. Over the years, external conditions like 9/11, the banking crisis, and more recently, COVID-19, have driven us to innovate and adapt. When COVID-19 hit, we observed a shift in travel patterns, with many opting for leisure destinations. However, we chose to maintain our network and focus on key business markets like Los Angeles and Boston. This strategic approach ensures our long-term dominance in these crucial areas.2 Watch full response here.

Elevating Sales Strategy and Customer Experience at Delta

I would emphasize how we differentiate ourselves by prioritizing our people and investing heavily in technology. We're recognized for taking care of our employees, evidenced by our substantial profit-sharing payout. Our focus on corporate customers is evident through our tailored sales approach and the provision of tools and data to manage their business travel effectively. I highlighted our evolution as an airline, especially in competitive markets like New York, where we've risen to the top. Overall, our sales strategy revolves around listening to customer feedback, adapting, and providing unmatched experiences.3 Watch full response here.

Building a Customer-Centric Sales Team at Delta

In Delta's sales team, we value service and leadership. We seek individuals who thrive on serving others and can handle challenging situations with a smile. Analytical skills are crucial as we gather extensive data on corporate customers to tailor our approach effectively. From small accounts to major corporations, our sellers adapt to various levels of clientele, specializing in specific markets like sports or banking. Training is key; we offer online and in-person classes to ensure our team understands the value we bring beyond just pricing.? Watch full response here.

Delta's Evolving Strategy: Meeting Diverse Travel Needs

I'd say we aim to cater to diverse needs, offering options from budget to premium. Recently, we've invested in Wheels Up, bridging commercial and private travel for corporate clients. Our strategy involves expanding into new markets through partnerships, like our ventures with Virgin Atlantic and LATAM. We've observed a shift towards experiential spending, prompting us to enhance premium offerings. By evolving our route structure and alliances, we ensure our footprint grows while meeting evolving customer preferences. Ultimately, it's about adapting to customer needs and delivering unique experiences that resonate.? Watch full response here.

Delta's People-First Approach: Fostering Loyalty for Lasting Success

Investing in our people and loyalty programs has been crucial for our success at Delta. Our company culture revolves around servant leadership, emphasizing performance and winning. We strongly believe that by prioritizing employee satisfaction, we can deliver exceptional service that fosters customer loyalty. Our SkyMiles program, with around 24 million active customers, plays a significant role in enhancing the overall customer experience. Offering incentives like free Wi-Fi helps us attract new customers while retaining existing ones. This focus on customer loyalty not only contributes to our financial health but also distinguishes us as a leader in the airline industry.? Watch full response here.

Fostering Loyalty: Delta's SkyMiles Program and Strategic Partnerships

Customer loyalty is paramount, directly impacting profitability. Our SkyMiles program stands as a testament to this, boasting around 24 million active members. We've invested heavily in this program, offering incentives like free Wi-Fi to encourage sign-ups and usage. Membership correlates with increased net promoter scores, particularly when combined with our Delta SkyMiles Card and Delta app. Last year alone, offering free Wi-Fi onboard led to two million new sign-ups, showcasing the program's effectiveness. Additionally, strategic partnerships and sponsorships with prestigious entities like the New York Yankees, as well as events like the Olympics and the Masters, have bolstered brand recognition and loyalty. These investments not only enhance customer experience but also contribute significantly to Delta's profitability, which is evident in our industry-leading profit-sharing payouts to employees.? Watch full response here.

Elevating Delta: Brand Partnerships and Market Transformation in New York

Delta's transformation in New York, about 15 years back, revolved around reshaping perceptions and expanding market reach. Merging with Northwest, we aimed to position Delta as a premier carrier in key markets, especially for business clientele. Beyond facilities and network expansion, marketing played a pivotal role. By associating Delta with iconic New York brands like the Yankees, Knicks, and Rangers, we sought to enhance brand recognition and credibility. Sponsorships of major events like the Olympics and the Masters further elevated Delta's profile globally. These strategic partnerships not only increased brand visibility but also boosted brand equity, as evidenced by the surge in brand awareness during significant events like the Yankees' World Series win. Such associations continue to add immense value to our sales efforts, reinforcing Delta's position among the elite brands.? Watch full response here.

Navigating Airline Pricing: Strategies for Savvy Travelers

When it comes to pricing, demand plays a huge role, with last-minute bookings typically costing more due to limited availability. Operational costs, like fuel, also factor in significantly. If you're like me, a last-minute booker, considering a transfer or connecting flight might yield a better deal. Travel management companies are experts at finding these deals and offering comprehensive travel solutions. Airlines may adjust prices based on anticipated demand, sometimes resulting in unexpected deals. Loyalty programs, like Delta's SkyMiles Program Silver Medallion, aim to keep you within their ecosystem by offering added benefits and incentives. So, while I may not have a straightforward answer, staying informed and exploring options through a travel agency can lead to better deals and a smoother travel experience.? Watch full response here.

Delta's Approach to Technology Integration and Customer Service

We prioritize personalization, allowing customers to tailor their experience based on their preferences. Technologies like digital IDs streamline airport processes for those who opt in. #AI plays a significant role behind the scenes, aiding in operational efficiency, predictive analytics, and proactive maintenance. While we leverage AI to enhance customer service, we remain committed to preserving the human connection, especially in sales interactions. Our investments focus on empowering employees with unified platforms for personalized customer interactions and providing travel agents and corporate clients with efficient tools to manage their bookings effectively. This customer-centric approach underscores our commitment to differentiation and continuous improvement.1 Watch full response here.

Delta's Perspective on AI Integration and Partnership Values

Regarding AI, our focus remains on enhancing the overall customer experience. AI aids us in various unseen aspects, from predicting weather-related disruptions to optimizing crew scheduling and revenue management. While our sales team's personalized approach hasn't fully integrated AI, we're committed to investing in technologies that benefit our diverse customer base, spanning individual travelers to corporate accounts and travel agencies. Our continuous investment aims to leverage technology effectively while maintaining the personal touch our customers value.11 Watch full response

Diversity and Inclusion: A Global Carrier's Imperative for Success

As a global carrier, diversity is paramount to us, both in our workforce and in our partnerships. Reflecting our customers' values means embracing diversity of location and thought. Learning from top carriers worldwide enriches our strategies and expands our reach. To maintain our position as the leading global carrier, we prioritize inclusivity, ensuring every employee feels valued and empowered. Regular feedback mechanisms inform our efforts to enhance the workplace environment continually. Our commitment to diversity extends beyond hiring practices, fostering an inclusive culture where every voice is heard and respected. This approach aligns with our mission to meet customer needs effectively, reflecting their perspectives and preferences. 12 Watch full response here

Success Through People: A Culture of Service & Diversity

In reflecting on our growth, we've burgeoned to a team of 100,000 strong. Emphasizing servant leadership, our recruitment focuses on individuals dedicated to serving others, underpinned by humility. While accolades adorn our past, our focus remains resolutely on present and future endeavors. We seek those imbued with a competitive spirit, drawn to our culture of winning and performance. Our diverse team mirrors our diverse clientele, demanding adept communication across all levels. Whether in marketing, sales, or HR, our recruitment hinges on foundational traits: strong work ethic, effective communication, and a passion for collaboration. We believe in building upon these fundamentals to drive success, recognizing that our strength lies in the collective dedication of our team. 13 Watch full response here.

Students Reactions to Chuck Imhof s chat

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Why do we bring speakers to a Finance class?

At a school with constant innovation, the best thing we can do for our students is to have them speak with real-world leaders to become inspired. It's mutually beneficial. Teaching this class is a highlight of the week for me. For my day job, I frequently use ideas about innovation, pricing and product launches I learn from my students. Read the feedback from students about this class.

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Previous speakers and recordings

Microsoft Worldwide Director. Coca-Cola NA Chief Communications Officer. Disney Parks & Recreation Chief Financial Officer. IBM's Chief Communications Officer. McDonald's Chief Global Impact Officer; Delta Air Lines Vice President. McDonald's Chief Communications Officer; McDonald's Corporate Vice President, Supply Chain. Procter & Gamble CFO, Asia-Pacific. JP Morgan's Head, Global M&A. Spotify's Global Head, Equity & Impact. Starbucks Reserve Executive Leader. Walmart's CFO Mexico & CA. Nike Global Retail Marketing Lead. Unilever's Global Vice President. Campbell Soup President, International. Estee Lauder's Chief Marketing Officer. Estee Lauder Chief Communications Officer. Douglas AG, Estee Lauder’s Board Director. IBM's Vice President, Marketing & Communications. IBM's V.P. of Communications for IBM Software. IBM's Vice President of Communications. IBM's Global Head of CSR. IBM's Chief Communications Officer. Roche Head of Strategic Finance. Access recordings here.

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Special thanks

Chuck Imhof for joining us. Pradumn Agarwal , the class Coordinator, MC and main contributor to the writing of this article. Peggy Janthanit, the film director for the Thank You video (see above). These talks are one of the lectures for the Finance for Marketing class I teach at NYU School of Professional Studies.

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Watch the questions on Youtube

The recording is available on YouTube here with subtitles/captions in English, Spanish, Chinese & other languages.

Questions asked

1.Since the deregulation of the airline industry in 1978, airline fares have been halved due to the surge in competition. This has propelled a twenty-fold increase in passenger numbers, skyrocketing from 200 million to an impressive 4 billion. Delta Air Lines, the world’s largest and most profitable airline, has been at the forefront of this evolution. One of the major revenue drivers for airlines is business travel. In Q1, Delta saw a 14% rise in corporate ticket sales. I’ve traveled on business to every country in the world and got used to looking for the “Z” discounted business fares. As Vice President of Sales, considering the changes in the industry and the evolving landscape of corporate travel, do you find your role more challenging or less so compared to what it might have been in 1978? George Benaroya

2. What key trends or shifts do you see currently impacting the airline industry, and how is Delta adapting its sales strategies to stay competitive in this evolving landscape? anyang Ju

3.Given the competitive landscape in the airline industry, how does Delta differentiate its sales approach to attract corporate clients? Amelia Bakrie

4.What tools and fundamental tactics do you look to establish in sales associates when trying to maximize sales potential of a product/service? How does Delta teach these selling tactics? Nicholas Ducheine

5. How has the profile of Delta Airl Lines target market evolved over the years, particularly to frequent business travelers and travelers in the middle to upper-middle class, and what emerging trends or shifts are shaping this market? Morgan Vinson-Watson

6. In the face of airline industry upheavals, how does Delta Air Lines hope to preserve its solid first-quarter profitability while fostering long-lasting customer relationships? How will it prioritize customer loyalty and fulfillment above regulatory compliance, fuel prices, and shifting economic conditions while leveraging superior operations and strategic investments? Ashna Siddiqui

7.In 2022, Deltas revenue passenger miles came to around 195.5 billion. From a sales perspective, how important is customer loyalty to Deltas financial health? What strategies do you employ to enhance customer loyalty? Peggy J.

8.Could you elaborate on how the company strikes a balance between sales promotions and profit generation? Additionally, could you shed some light on the factors contributing to the relatively low profit margins in the airline industry? Canxin Chen

9.Could you provide some insight into the companys pricing strategy? Specifically, could you explain the key factors that influence how prices are determined? Daisy Liu

10. Can you share insights into how Delta Air Lines leverages technology or data analytics to optimize sales performance? Chiqui Tapawan-Grageda

11.How do you believe advancements in technology like AI are reshaping sales and marketing strategies within the aviation industry, and what role do you see these technologies playing in Deltas future growth? Daniela Molano

12.Why does Delta, along with other top-rated companies, hires international students, and how does it benefit Delta? Tafannum Bintae Razzaq

13.With Deltas growth to over 100,000 employees in 2023, could you share what qualities are valued in student applicants for the marketing team? Xuezi Zhang

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