Just ask Michael O’Leary, CEO of Ryan Air, who has just announced significant changes to way the airline treats its long suffering customers. Ryan Air was founded in 1985 and operates 303 aircraft. It grew from zero to Europe’s largest and most profitable airline on the simple proposition of ‘lowest cost travel’ and reinforced its low cost proposition by treating customers with contempt and abuse, typically shouting at them to line up at the gate even though incoming aircraft had yet to arrive, or charging them £75 to print out a boarding pass if they arrived at the airport without one. EasyJet on the other hand recognised that low cost does not have to mean low service, and efficiency does not have to mean being rude. EasyJet evolved and blended low cost with a service delivery level that was very different from both British Airways and Ryan Air. It is organised, contemporary and appealing in no nonsense sort of way. Result: EasyJet is respected, liked and appreciated by its customers, which translates into shareholder value. The change by Michael O’Leary is purely motivated by share value which has been on a slide for the past year and the changes announced last week had a dramatic and instant impact on the share value.
What can the average dental practice learn from this? We know that price is important but typically it ranks only third after fear and accessibility in the patient’s mind. Aggressive pricing for its own sake is not enough; skilled gentle clinicians along with service delivery in its widest sense is more important – which simply translates into to ease of access (opening hours and parking) and empathy.
If you would like to know more about setting the right pricing model and improving your service delivery then please contact me on:
t: 0845 299 7209