The concept of ‘A Moment of Truth’ remains as true today as it did when Jan Carlzon first implemented at Scandinavian Airlines (SAS Group)
The concept of ‘A Moment of Truth’ refers to any time a customer comes into contact with a business, however remote, they have an opportunity to form an impression.
It is the Moment of Truth principle that, if you managed every interaction to create a positive outcome, the business can be successful. That theory proved right for Jan Carlzon’s airline, SAS Group which eventually became one of the most admired in the industry
Jan Carlzon was a Swedish businessman. He is most noted for being CEO of SAS Group from 1981–1994
At the time when Jan Carlzon took over the at the helm of SAS, the company was facing large financial difficulties, losing $17 million per annum and had an international reputation for always being late. A 1981 survey showed that SAS was ranked no. 14 of 17 airlines in Europe when it came to punctuality. Furthermore, the company had a reputation for being a very centralized organization, where decisions were hard to come by to the detriment of the customers, the shareholders and the staff. He revolutionized the airline industry through an unrelenting focus on customer service quality.
Within one year of taking over, SAS had become the most punctual airline in Europe and had started an ongoing training program called Putting People First .The program was focused on delegating responsibility away from management and allowing customer-facing staff to make decisions to resolve any issues on the spot. Jan Carlzon said at the time: “Problems are solved on the spot, as soon as they arise. No front-line employee has to wait for a supervisor’s permission.” These changes soon impacted the bottom-line as well and the company made a profit of $54 million in 1982.
The changes at SAS led to Air Transport World naming SAS Airline of the Year for 1983 in early 1984.
In today’s competitive world, our first challenge is finding new customers, the second is retaining their custom. The ‘A Moment of Truth’ philosophy helps us focus on the customer, which in turn should help us deliver positive outcomes, enhancing customer retention.
Find out how a CRM system can help your organise retain its customers. Contact us today on 028 9099 6388 or via email at firstname.lastname@example.org.