Southwest Airlines Social Media Using

Southwest Airlines Social Media

Using Social Media to Optimize Marketing Efforts for Southwest Airlines

Competition in the airline industry is tough as companies scramble to attract and retain their customer base. The rise of social networking as an important tool in customer relationship managing cannot be ignored. Social networking has integrated into nearly every corner of every sector of the business world. The airline industry is no exception and social networking is now an important element in the marketing mix.

Costs in the airline industry are fixed. Profitability depends on the ability to use resources efficiently, as well as obtaining favorable fuel and labor costs. Often, small airlines survive by serving only local or regional routes, leaving the larger market and bigger routes to the larger airlines. The airline industry is heavily dependent upon the health of the economy. When the economy is good, people tend to travel more. However, when the economy is in a slump, people tend to forego travel as much as possible, opting to stay at home or use other means of travel. The bottom line in the airline industry is that empty seats cost money. The ability to ride out a slump in the economy and to increase profits in good times is to attract customers. Filling seats is the key to profitability, aside from operational efficiency. A strong marketing campaign is essential to the airline's ability to remain profitable.

Southwest Airlines is in the low-cost airline market. Currently, it is one of the largest airlines in the world, boasting of operational efficiency that allows it to keep its fairs low. It also Southwest's quick turnaround and ability to serve a vast number of domestic and international flights is another key to its success. In a push to retain its position on a global scale, Southwest Airlines has retained the services of Shelby and Associates to explore the effectiveness and potential of using this new media to help Southwest to continue to expand its market base. The following will explore the use of social networking at Southwest Airlines and suggestions for helping them to get the most of their social networking resources.

How Competitors use Social Networking

Southwest's top competitors are AMR Corporation, Continental Airlines, and JetBlue Airways. AMR Corporation is a holding company for a number of smaller subsidiaries. It is the holder of American Airlines, American Eagle, and American Connection. Continental serves a similar market to Southwest and operates in most of the same hubs. it's key marketing strategy is based on the number of hubs and ease of connections. JetBlue is another low fair carrier. It offers one-class service, leather seats, satellite TV, satellite radio and movies for the passengers. In flight entertainment is a key selling point for JetBlue airlines, a completely different approach from that taken by Southwest.

American Airlines has a Twitter page that allows anyone to tweet on their page. Although many of the tweets are positive, there are a number of neutral, or even negative tweets on the recent list. For instance, several posters complained about delays. In addition, employees posting how many days there are to their next day off, does not paint the airlines in a good light. It gives the impression that employees do not like their job. This is an example of social networking that can have a negative affect on the company and the company image.

When one looks at the posts on the Twitter page for Continental Airlines, it appears that they have found a way to use the banter to their advantage. One can find frequent posts with links to useful information for customers, such as their baggage claim policy, last minute flight deals, and vacation packages. This was a much more effective use of Twitter to support other marketing efforts. However, as one begins to read the posts, some very negative comments from customers can be found. They are not frequent, but they are there. One must remember that people are much more likely to air complaints than they are to post raves and compliments. It is just human nature. Therefore, Twitter can be a place for customers to air the airline's dirty laundry. One cannot assume that customer's will always post positive comments. It would be more likely that one will hear negative comments than positive ones on Twitter. It might also be noted that comments about Continental Airlines were interdispersed with comments that contained the word "continental" in any context, such as continental market and continental breakfast.

When one looks at JetBlue's Twitter page, customers seem to have the reins here too. However, one finds many more positive comments than on the other airline Twitter pages. Many of them were positive comments about JetBlue's comforts and amenities. However, one can still find very negative comments interdispersed in the positive ones. American Eagle Airlines appears to have hired marketers to post frequent tweets that offer positive news about the company. While this would help to control the possibility of negative publicity about the company, it also may not be as effective as raw emotion. Consumers may see it as just another marketing ploy to attract their dollars, it is not known if this type of usage of social networking is any more affective than other forms of advertising media.

An examination of the Twitter pages of Southwest Airline's top competitors reveals many different types of usage of Twitter. Some companies allows unlimited Tweets from customers. This brought out the point that this form of marketing can be positive or negative. Customers tend to complain more than they are willing to post positive comments. This goes back to the old adage that the squeaky wheel gets the oil. If customers are satisfied, they do not have as much motivation to post as those who have complaints to resolve. The other end of the spectrum is American Eagle Airlines that uses only posts by what appear to be hired marketers. It is not known if this is an effective use of social media, or if customers do not differentiate this type of advertising from other forms.

Now, let us examine the Facebook pages of Southwest's competition. Pan American World Airways uses its Facebook page to provide general information about the company. It does not allow posts and only allows people to "like" general posts by the company. It does not appear that many people respond in this manner. Continental Airlines uses a similar home page on their page, which contains general info on the company. However, they appear to have more active posters than Pan Am. Like the twitter page, many comments were positive. However, some posts contained negative advertising, such as an article posted about a dog who died in the cargo hold (Itchmo: News for Dogs & Cats, 2007). Even though the information was old, it still appeared as a repost recently. If one takes the time to read the article, they will find that its credibility is questionable, but if they only see the headline, it will appear as negative press.

Jetblue's Facebook page differs significantly from those of the other two airlines. The Facebook page of Jetblue contains general information, but it is more personalized. For example. Jetblue posts their products and advantages over the other airlines. Their info page advertises Award Winning Service, 36 Channels of Direct TV, More legroom in the coach session and other key components of their advertising campaign. One can see that JetBlue gets an overwhelmingly better customer response than Pan Am or Continental. JetBlue received 216,996 responses, as compared to only 50 or 60 responses worldwide on the Facebook pages of Pan Am and Continental. Jetblue has a wall on facebook. Neither Pan Am, nor Continental had Walls on their Facebook Pages. The wall page is used by Jetblue to post news and travel tips. Consumers get to comment and "like" these posts. When one examines the comments posted to corporate wallposts, they are largely positive. Some contain information that could be used to help JetBlue expand their services. Overall, the Facebook page of Jet Blue allows them to establish better one-on-one relationships with their customers. It appears to be an effective marketing tool.

A look at the Twitter pages and Facebook pages of Southwest's competitors reveals some of the caveats of social marketing, Social marketing, such as Twitter could serve as a forum for airlines to build real relationships with their customers, rather than the one sided marketing that they are used to where they do not get the chance to respond. However, this requires active participation and a staff that is dedicated to offering this type of live response. Social marketing could work to establish a deeper bond with customers, but only if certain controls are established to make certain that it is not overwhelmed with negative comments and complaints.

Southwest Marketing Overall Marketing Plan

One of the key features of Southwest's marketing plan in that it does not use common online booking venues such as Orbits or Travelocity. Only a small percentage of flights are booked using travel agents. The primary means for customers to purchase tickets is directly from the airline over the phone or online at the company's website http://www.southwest.com/. Using this method, customers have access to offers that are only available on the web.

Southwest's marketing campaign is based on setting itself apart through branding. For instance, Southwest uses a "cattle call" method of seating. Customers are not assigned seats, but board in three groups according to arrival time. This allows the airlines to board passengers more quickly. In addition to this key difference, Southwest allows passenger to change reservations without incurring any additional costs, as with other airlines. However, Southwest does not offer same-day standby on a different flight. This service is usually free on other airlines without upgrading.

Southwest is the bare bones carrier. They offer Snack Packs of prepacked goods instead of the full service meals served by other airlines. On shorter flights, they only offer snacks and a soft drink. Southwest offers free in-flight drinks, excluding alcohol. Southwest has no in-flight entertainment. However, Southwest employees often offer colorful entertainment themselves, spontaneously breaking out in song. They are known for more creative boarding announcements. These attributes are often received well by customers, but have been called offensive by a small contingency.

One of the most successful promotional programs by Southwest is their Rapid Rewards Program where passenger can receive credits for each flight. Southwest's program goes beyond frequent flyer miles. They also earn credits for using one of Southwest's partner services including car rental, hotels, and restaurants. Customers can earn even more points by using a Rapid Reward branded visa to purchase services. This program allows customers to build up reward points faster than competitor airlines. This program has no blackout dates for redeeming rewards points. This program has been a great success for Southwest and has become integrated into the Southwest brand.

Southwest is known for its lighthearted ad campaigns and attitudes among the employees. The idea is to make the customer's experience pleasant and to generate good feelings. Humor relieves stress, and this is the approach taken by Southwest in its ad campaigns. Customers who laugh are more likely to come away with a positive outlook on the experience than those who do not. Southwest's marketing strategy takes advantage of the positive effects of laughter. Some of their past slogans include, "Just Plane Smart, "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline." Their current commercial centers on the slogan, "[ding] You are now free to move about the country," a parody of the in-flight announcement that "you are now free to move about the cabin." This advertising approach is what has allowed Southwest Air to establish its branding to set itself apart from its competitors.

Analysis of Southwest's Social Networking Usage

These attributes are what sets Southwest apart from other airlines. Their branding is key to their marketing strategy. The success of the branding and marketing strategy is in the numbers. Customers have come to enjoy the Southwest brand, as evidenced by the airline's top position among passengers. However, they could experience even greater growth potential by using social networking for the maximum benefit. We have explored how Southwest's competitors use social networking and the attributes of their campaign,. Now let us examine the key attributes of the use of social networking by Southwest Airlines.

The Twitter page for Southwest Airlines appears to be unmoderated real-time tweets from customers. If this is the case, Southwest appears to be doing something right, because the page contains nothing but positive comments. Even negative comments, such as long lines are turned into positives, by the fact that Southwest must be doing something right. Southwest customers post often and they post positive comments. This demonstrates that concept that the customer is king and that all of the advertising in the world cannot make up for a good product and good customer service. Social marketing via Twitter is working for Southwest because they stand behind their product. This is one of the things that they are doing right.

An examination of Southwest's Facebook page reveals a different strategy from their competitors. Southwest Airlines has two different Facebook Pages. It has Southwest Airlines Organization and Southwest Airlines Company. The Southwest Airlines Company page appears with top billing in the search results, while Southwest Airlines Organization appears second. This was an excellent strategic move, as the Organization page contains dry information about the company, its history, and business strategy. It has very few respondents and appears similar to the pages of Pan Am and Continental. This information is available if people wish to find it.

The Company page is customer oriented and has a high degree of customer interaction opportunities, much more so than the pages of Southwest's competitors. The graphics are whimsical, with hearts around one of Southwest's trademark airplane paint schemes. It has a contest to win a free trip to California, a link to send friends a postcard, Twitter links, and positive news about the company. This page is the first page that comes up on the Facebook page. However, other links are located at the top of the page such as the Wall, Info, Photos, Bags Fly Free, and Play California. The site has excellent graphics that are in line with the branding that Southwest has established. The customer interaction is excellent and helps customers feel that they are part of the action. This differs from television, radio, and print advertising that talks to the customer with no way for the customer to respond. This interaction is excellent use of social networking to establish as bond with the customer.

Recommendations for Improvement

Southwest Airlines demonstrates an innovative and active approach to the use of social networking. They interact with their customers in a manner that promotes excellent customer relationship management. When compared to their competitors, Southwest Airlines makes much better use of their social networking tools. However, there is always room for improvement, particularly in the highly competitive airline business. The following recommendations would help to take the social networking practices of Southwest Airlines to the next level.

The Twitter page of Southwest Airlines is a running dialogue of customer posts. This can work to one's advantage, but only if the company chooses to focus on building a good brand and offering an excellent product. In terms of expanding their efforts, the Twitter page could an even more effective tool by having a staff member to introduce advertised special, games, contests, and the occasional humor that has become a part of the Southwest brand.

The Twitter page could also be expanded into a place where Southwest marketing employees could engage in active participation with customers in a real-time environment. If any negative comments are posted, staff members could step in to see if they could intervene to make the customer's experience more satisfying. They could use Twitter to monitor the "temperature" of their clients and to allow them a place to make their concerns known. However, this must be done with extreme caution, as negative public comments can have a devastating effect on the marketing campaign. If most of the comments are positive and there is only an occasional negative comment, this would not be expected to be devastating for the company and it is expected that the overall positive comments would over ride the negative ones. Staff members need to take a more active role in the Twitter page in order to maximize its benefits.