Defining ‘high-value’ services

A number of years ago, I was working on a major project in Australia and travelled back and forth from Canada every month. I insisted that since this was an 18-month project I had to travel by business class. Every month I would get on business class with a number of other road warriors and travel halfway around the world.  What was interesting about these flights was the other business class people on the flight who obviously had travelled extensively. They were high-spending passengers (some due to their lifestyle and others due to their jobs) who had very specific needs. Some wanted to sleep and not be serviced during the flight, while others wanted no meal, but wanted a blanket and extra pillows provided to them immediately after they got a drink. What made the trip special and of high value was different for each person.

So what was common with all these high value/high spenders? In their own way they were all treated uniquely, recognized in a way that was special to them. Interestingly, they had plenty of options but it was clear that most of them were regular travellers of the airline we were on. So what was keeping them on the airline?

After conducting research, I discovered that there were three main elements that kept these high-value customers coming back:

The first element was the customer’s perception of the Value; the overall price/value equation.  The second element was the Brand and the customer’s affinity towards it (how connected they felt). The third element was the ability of the brand to hold the interest of the customer (i.e., its Retention ability). While the value and brand elements were important, it is the element of retention where high-value brands distinguish themselves on a daily basis.

Within retention, there are four components that commonly offer customers a memorable experience and made them feel special so that they re-engage with the brand; Exclusivity, Personalization/Customization, Convenience and Fulfillment.

1. Exclusivity -- through product design, availability, and channel access. For example, the Holt Renfrew personal shopping apartment is by invitation only and provides a truly exclusive shopping experience. While one may not use the service, high-value customers like the idea that it is available.
2. Personalization -- giving service to the customer’s taste and preferences. Harley-Davidson’s customization service allows customers to consult with design specialists to customize their motorcycles to their personal tastes.
3. Convenience -- beyond the norm. Not only can the entire train travel experience be booked through Rocky Mountaineer, but they also manage all your needs on the trip. For example, Rocky Mountaineer’s staff transfers you and deliver your luggage to the hotel for a seamless, and convenient experience. (see video below)
4. Fulfillment -- attending to a customer when required and fulfilling their needs. American Express concierge services fulfilling special customer requests like replacing a lost souvenir that the customer purchased in Greece.

It is an organization’s ability to retain customers on an ongoing basis that defines an organization’s high-value offering. And it is the identification of the need that is unique to a customer, addressing it, and reinforcing it that keeps them coming back.  While technology is often used by organizations to identify those needs, it does not take away the need to understand directly one’s customer groups and key drivers of performance.