Virgin's customer chief: Customer experience comes down to your people

Virgin Australia's Mark Hassell shares how the airline has transformed its business to become customer-led through a combination of leadership, culture and winning the hearts and minds of staff

Organisations wanting to pay more than just lip service to customer experience not only need executive-level vision, they must win the hearts and minds of every member of staff.

That’s the view of Virgin Australia’s chief customer officer, Mark Hassell, who took to the stage at the recent Optus Vision event in Sydney to discuss the steps the airline has taken to transform itself into a customer-led organisation.

Virgin’s transformation followed the appointment of chief executive, John Borghetti, in 2010 and his “game-changing” strategy of becoming the airline of choice in Australia, Hassell said.

“John’s vision was to be the airline of choice and customer led in all market segments we participate in,” he said. “It’s a compelling message, but we could all say that. The only way to land it is to win the hearts and minds of your people.

“Our story is not about John’s effort, although the vision had to be there… it required everyone to get on-board, and positive energy from everybody wanting to be part of it.”

Hassell admitted another challenge was Virgin’s culture, which had historically been anti-strategy. “We had a real culture of ‘flying by the seat of our pants’, and just making it happen,” he said. “As fantastic as some of those traits are, we had to transform the culture of the business to really focus on customer strategy.”

Hassell detailed five steps towards becoming customer-led based on Virgin’s experience. The first is to challenge the status quo. For Virgin, this was about offering services at a fairer price and delivering what people needed.

“Think about those impenetrable things you have been told that can’t be changed, because it’s not true,” Hassell advised. “The success of the Virgin brand is about identifying segments where there is an opportunity to radically change and shape things that are important to making people’s lives better.”

Lesson two is to ensure your proposition is compelling. “We want people to prefer us, but we can’t tell people to do that… it’s about becoming the airline of choice,” Hassell said.

To do this, Virgin overhauled the look and feel of every aspect of the business, from branding under the single Virgin Australia moniker to new cabin crew uniforms, products and services and operational capabilities. Examples include investing in a new fleet of aircraft and flatbeds for longhaul flights, innovating entertainment systems, upgrading and expanding airport lounges, and introducing an inflight food menu inspired by respected chef, Luke Mangan.

Virgin also entered the business flight market, and partnered with four airlines worldwide to extend its global reach. More recently, it acquired SkyWest to expand services into more regional areas, and retained a position in the low-cost space by purchasing a 60 per cent stake in Tigerair.

Another important component was revamping the Virgin Velocity loyalty program to provide customers with additional incentives, Hassell said. The program now has nearly 4 million members.

Third on Hassell’s customer experience list is having a clear vision. He stressed the importance of data in achieving this level of interaction with staff.

“We did research on customers previously, but didn’t use that for decision-making. Today, research is at the heart of the business narrative,” he said. “Our cabin crew today will know by the end of the week what our research and data is saying about what customers think and feel about the service attributes on the flights they were on. And if we’re down, what we need to focus on.

“Getting the data to the front-line so everyone knows what their contribution is and has been, and what we all need to do to stay on-brief, is important.

“You also have to celebrate success. Our brand ambassador program is about customers, colleagues, team members, peers and bosses nominating outstanding reflections of what the brand represents and being part of the success story.”

Hassell’s fourth lesson is to focus on engagement. To do this, he said Virgin had “served notice on mediocrity”.

His fifth customer experience lesson is to unlock the power of people. An example from Virgin is its iLab Accelerator initiative, where it pulls together up to 30 of its brightest people across the organisation into a room to solve real problems and customer issues.

“The output, reaction and energy level has been fantastic,” Hassell said. “It helps us get staff payback into the business and helps everybody to engage in building that future.”

More brands share their customer experience efforts

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in