It’s obvious that people like being shown appreciation, but there’s more to being appreciated than meets the eye. Social scientists say we’re hard-wired to respond powerfully to appreciation. In fact, the quest for acceptance and appreciation may be one of our stronger drivers.

When we’re validated by others, we’re inclined to bond with them. I call this the Validation Principle, and it’s one of the keys to building durable customer relationships.

Regardless of the product or service we’re offering, people are more likely to stick with our brand if we demonstrate genuine appreciation for them. The keyword here is ‘genuine’.

Emotionally intelligent business people have long understood and applied this principle. Now, social networks, like Twitter, make it possible for companies to show appreciation for their customers while also growing communities of loyal followers in the process.

Virgin America, JetBlue, and Comcast are examples of companies using Twitter to recognize customers for their loyalty.  One-by-one, big brands are jumping on the social media bandwagon.

I’m most impressed with how Zappos does it.  I started taking notice of Zappos after hearing their CEO, Tony Hsieh, at a recent conference.  He recognizes Twitter’s potential as a powerful customer engagement tool.

The company set up a Twitter micro site with a Beginners Guide to Twitter and a leader board where employees are ranked by their number of followers.

Zappos brings some natural advantages. For starters, a strong customer focus is embedded in the company’s DNA. Zappos chooses employees with strong relational skills, gives them the means for interaction, and provides thoughtful guidance without inhibiting their sense of expression.

However, Zappos’ most effective tool may be Hsieh’s own relational skills. Hsieh uses Twitter to “connect with” rather than “market to” his followers.  Through his modeling and encouragement, Zappos has mobilized 440 employees to show their love for Zappos’ customers using Twitter and other social media tools.

Unlike a lot of companies whose message is “Gee, look how cool we are”.  Zappos’ message is “Wow! Look how cool our customers are”.

The result? Zappos customers like being recognized for their loyalty. Many become evangelists who serve as Zappos’ de facto marketing force.

Zappos is a paradigm for how companies can use social networking to build loyal followers.  Other models for leveraging social media to boost customer loyalty are bound to emerge.  Which companies will find the most inventive ways to validate customers?

Twitter is a great channel for showing the people we serve that we appreciate them and that our success depends on it. As companies figure out how to use Twitter to validate their customers, they should discover that they have a powerful and cost-efficient customer loyalty tool at their disposal.

What do you think?  I’d love to hear your perspective.  Is it practical for companies to use social media to show their appreciation for customers?  If so, how would you recommend they go about it?

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Want more on this subject?

Read a related post on the role of relational competencies like empathy in business.

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You never know with these things when you’re trying something new what can happen. This is all experimental. ~Richard Branson

Over the years, there have been surprisingly few breakthroughs in the airline customer experience - until recently. Sir Richard Branson’s venture into the U.S. market, Virgin America, (VX) is redefining air travel by providing passengers with a fresh, distinctive on-board experience. The carrier is less than two years old but it’s quickly becoming a template for what’s possible in the future.

The choices VX is making demonstrate a “customer experience mindset” that’s all too rare in the industry. It’s evident that the VX team devoted their attention to passenger comfort and convenience. Features “baked in” to the customer experience include seats with power-outlets and USB ports. Cabins in their new A320s have soft mood lighting.

Healthy, appetizing meals designed by star-chef Luke Mangan show that the company knows what their customers prefer.  Features like these aren’t found on any domestic airline, let alone a low-cost one.

Last week, VX announced that its fleet is 100% WiFi-equipped (Gogo). They only have 28 planes, but they can boast that they’re the world’s first airline to reach that coveted milestone.

What’s most impressive is VX’s touch-screen, interactive entertainment system. The platform, known as Red, enables passengers to watch movies and live TV, play games, chat on-line with other passengers, and sample or even download MP3s from a massive digital library. Passengers can also use Red to order and pay for food and beverages which they receive “on-demand”.  For the digitally-inclined traveler, this is the way to fly.

Given the prohibitive cost of installing systems like Red on their existing fleets, it’s doubtful that any of the major network carriers will soon match VX’s “at-seat” amenities. But, the toughest feature for VX’s rivals to co-opt is its “customer experience mindset”.  These advantages could give the carrier a strong lead in the service innovation race for years to come if it stays healthy during this slowdown.

The airline serves only a handful of markets (New York, Boston, DC and the West Coast).  But, they’re big league markets where VX is attracting a cadre of loyal, well-heeled fans.  As an industry guy, I’m tipping my hat to Sir Richard Branson and VX’s San Francisco-based team for rethinking the in-flight experience, and for executing it well.

What do you think?  Have you sampled Virgin America?  I appreciate your perspective.

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Want more on this subject?

Richard Branson (Reuters, 6-2-09): “It’s unlikely all the big U.S. airlines will survive.”

Read Red Orbit’s piece (10-16-08), “Virgin America Wins Best Domestic Airline in Conde Nast Traveler’s (’08) Readers’ Choice Awards”.

Check out SimpliFlying’s series on Richard Branson and Virgin America.

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VA’s success stems from their attitude that the customer is at the center of their universe.  They relied on service design – the art and science of devising an environment that enables the customer to enjoy a rich, satisfying experience.  Unfortunately, it’s an approach that has been largely ignored by the industry.

Design-minded managers relentlessly ask: Who is the person we’re serving, and how can we make their service experience better?  That thinking encourages listening intently to what the customer says along with what isn’t said, but is felt.

Design-mindedness is uncommon in a traditional, operations-centric industry where running an efficient operation is prized above all other endeavors.  That mindset inhibits innovativeness, and too often, the customer is left out of the equation.

As a result, commercial air travel, with some notable exceptions, is perceived as a commodity, i.e. competitors’ services are virtually indistinguishable from each other, and customers tend to buy on price or schedule-convenience alone.

Historically, the major airlines have viewed their central challenge as getting passengers from point A to B as safely and efficiently as possible.  Their organizing principles arise from a linear manufacturing model which hasn’t changed much over time.

The University of Toronto’s Roger Martin observes, “The dominant attitude in traditional firms is to see constraints as the enemy and budgets as the driver of decisions… The traditionalist belief is, “We can only do what we have the budget to do.”

By contrast, design thinkers view their central challenge as solving ”unsolvable” problems. Design-thinkers venerate the customer, and relentlessly seek novel novel ways of overcoming constraints.

VA’s corporate culture – clearly influenced by Richard Branson’s intense creativity and drive – is customer-driven, encouraging design-inspired choices.  Branson’s mission for the Virgin group is to make flying fun again.

Recognizing that they’d have to look outside the industry – to Silicon Valley – VA hired software engineers rather than airline vendors. The mix of engineers and process owners led to some interesting choices.

For one thing, they came up with the novel idea of using an open-source (Linux) platform, named Red, to power a range of nifty features, like touch-screen food and beverage ordering, on-demand media on a high-resultion monitor, and even in-seat chat. Internet connectivity will be available soon. Moreover, Red affords VA the flexibility to support future low, cost innovation.

There are bugs to be worked out. Customers have reported re-boots and other glitches. But, I think VA is well ahead of the innovation curve, and their service platform gives them a clear competitive edge.

How will the industry respond?  Carriers are taking a beating from record fuel prices and reduced demand, and in this cycle, the carriers will be treading water for some time. Under the circumstances, will the U.S. airlines open the door to design-minded, customer-centric thinking? What’s next is anybody’s guess.

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