Tech trends and business ideas

All things that motivate entrepreneurs

Monday, April 30, 2007 some idea !

Some people have an unintended, truly honest way to win fans - by their innate brilliance and simplicity. Twice before - here and here I have openly admired the blog posts of Vinnie Mirchandani, the Deal Architect. Here’s yet another gem from him, a nice, ingenuous tip for airlines to lock in their customers or may be a new business model for crafty entrepreneurs (Travel portals) – to run the process without having to own airplanes, no need to issue tickets – just monthly statements.

Excerpts –

“Know of any other industry which forces long term customers (and routine ones) to make decisions at each transaction level? And spends tons of money trying to optimize at the transaction level versus holistic customer revenue - and is successful only a small part of the time? Breaks most rules of CRM and building customer loyalty.

Ten years ago I sent Delta a simple proposal. Bill me 10c a mile for 100,000 miles each year (and allow me to top off or carry forward). Send me a monthly statement based on usage. No tickets necessary. I would use the statement for client billings and internal accounting. If I choose to upgrade on certain segments charge me 20c a mile. Simplify your systems. Reduce head count in yield management and reservations. Lock me in so I don't comparison shop every time.”

Find the full post here. Do tell me what do you think of it.

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Blogger vinnie said...

thanks...but if everyone did what you and I suggested, what would we rave and rant about on our blogs -)

5:25 PM  
Blogger Krish said...

Hey Vinnie,

I won't stop at just making that post. That's a great idea worth executing and I am as vested as you are in seeing that through.

With a bit of luck, you'll soon travel at 11c a mile and no tickets :)

6:16 PM  

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