PPRuNe Forums - View Single Post - Ozjet Effective Customers [ABC News Online 11 Aug 05]
Old 31st Aug 2005, 11:39
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Legal_Counsel
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Now you see...

Now you see why I studied law. Let me explain.

"Effective Customer" is usually embraced in a relationship e.g. effective customer service, effective customer relationships, effective customer marketing relationships, effective customer management and so on. The terms reflect the existence (or the lack of the opposite), "ineffective". Used in the way it has been by Ozjet management would suggest the existence of "Ineffective Customers". Thus we would seem to have "Effective Customers" and "Ineffective Customers" according to Ozjet.

In fact, what the Ozjet boss was really referring to is "Cost-effective customers". That's a real marketing term.

Cost-effective customers, in the eyes of Ozjet, are those from whom it can make a profit. The co-operatives, so to speak. The co-operatives are as a result of targeted marketing to prospective customers with a particular attribute and a clearly identifiable one at that i.e. No baggage.

You can see how this falls foul of Ozjet's main objective to target the passenger prepared to pay a fully flexible fare because they will not necessarily bring to Ozjet a cost-effective customer and may actually result in proportionately more complaints. It isn't possible to differentiate them so who does it market to? - the customer with no baggage.

So, let's redefine the Effective Customer:

(a) comes in via the car park
(b) goes literally up one set of escalators
(c) turns left through a security point and
(d) straight on board the aircraft
(e) with less than 3 pieces of cabin baggage
(f) on a fully flexible fare or whatever is offered.

We, of course, appreciate that 8 flights a day means 480 car spaces will be required for the day return. For overnights, perhaps a few more. At this point we may see some Customers coming via the concourse and turning right, so perhaps these customers will be delayed a little because they thought the carpark for Ozjet was accessible - oops. Perhaps a Valet Service can fix that at a small extra cost.

In any market, only about 4-7% of customers are considered cost-effective customers. That is only as good as the market can be defined and targeted. So in a nutshell, yes Ozbusdriver, one who makes a difference!