How to Protect Your FEC’s Brand

As someone who spends practically every waking hour thinking about either brand messaging engagement or travel of all kinds, I have been following the Southwest Airlines brand repositioning with rapt attention, and you should be, too. As you’re probably already aware, Southwest has been known as the leader in overall guest and employee satisfaction for decades, often with record profitability as well. Right now, the airline under massive scrutiny for its recent brand repositioning, go-to-market approach, and the overall voice they’re using in the market – something that, up to now, has been virtually beyond reproach (including after the December 2022 technology failure). Here’s what I know. If it can happen to Southwest, it can happen to any of our businesses. Read on to take a deep dive into their current plans, pitfalls, and how to avoid them in your own business.

If you haven’t heard, for the past 60 years, Southwest has gone to market with the strategy of being decidedly pro-guest and pro-team member, proudly proclaiming that checked bags fly free. Snappy messaging took fun jabs at the competition, claiming “bag fees don’t fly with us,” and the like. A couple of years ago, they implemented non-expiring flight credits, much to the delight of their customers. Those, coupled with their proven track record of on-time departures made most of us forgive the lack of assigned seats and peculiar boarding process. But all of that’s about to change. Last year Elliott Investment Management acquired an 11% stake in Southwest, and the firm began pushing for management and operational challenges, leading to public uncertainty. Promises were made, especially to elite loyalty members, but still many fans were concerned that Southwest would lose its heart.  Have they?

Change is in the Air

Last month, Southwest announced the changes. In summary, non-elite passengers will pay for all checked bags, elite passengers will pay for the second checked bag, flight credits will now expire, new restrictive fares will be introduced with reduced miles accumulation, and assigned seating, naturally with fees, are on the way. Recipients of the notice did not take the news lying down and took to every social media outlet to express their opinions and criticisms. In fact, they received so much criticism that the airline sent an email to some passengers two weeks after the announcement to gauge their reaction to the news and ask if these changes would impede their choosing Southwest in the future. If you are proposing an identity-altering change, it might make sense to conduct several focus groups in advance to learn more about why they choose you and what they believe your unique selling propositions are and would be post-change.

Know Your Competitive Advantage

But hey, charging for bags isn’t new, right? After all, bag fees account for millions of dollars in revenue for airlines like Delta, American, and United. Sure, there was displeasure when those changes were announced, but the chatter ultimately subsided. Well, yes, however many seasoned flyers will tell you that they factor in bag and seat fees when buying airfare. In the past, Southwest’s baggage and seat policies had often offered better value, creating a loyal fan base. Now they’re often pricing as high or higher than major airlines, but without the benefits of assigned seating, a large enough international presence, comparable aircrafts, and premium cabin benefits, it would be hard to stay competitive against the likes of Delta, United and American in the US market. One lesson here is that if you strip away what makes your brand special, and you don’t offer something even as good as that of the competition, you may not be able to continue charging a premium.

Check Your Mission and Values

That’s not to say you should always steer clear of policies or changes that might be unpopular with your guests, or even that you should run all your ideas by them first. It’s just that you need to be sure that any changes you make are in line with the values and brand identity you want to be known for. What makes this so jarring is that it’s so out of character for what Southwest has always stood for that the market is having difficult time embracing it. Are you allowed to change your values and identity? Absolutely. But you’ll probably need a much bigger brand repositioning strategy than you would when just announcing a change.

Craft the Right Tone

So what did Southwest do when faced with so much public backlash in those early weeks? Well, it didn’t seem like they prepared onboard staff with tools to address comments from guests who had heard the news. I flew the following week and witnessed the two flight crews I encountered to be short and frazzled. It could have been that there had been multiple flight delays causing stress or perhaps, they had gotten frustrated fielding a lot of complaints. Who knows, but there was a definite difference in how they interacted with passengers the weeks following the announcement.

Online, the airline’s social media accounts attempted humor, saying “what? it’s not like we traded Luka.” When you’re facing the jury in the court of public opinion, it might be a good idea to start with a little empathy. Critics rebuked the airline, calling the posts “tone deaf” and inconsiderate, definitely not the fun or playful they were going for.

In the End

In the end, it will be interesting to see how the airline weathers this particular storm. But more than that, this should serve as a cautionary tale as you consider new programs and offerings. Do your homework. Consider your proposed changes from all angles, including your guests’ perception and your bottom line. Craft the correct messaging and responses so that you and your team can effectively address both positive and constructive criticisms that may arise.