When I try to think of a company that has really taken the customer experience to a whole new level, I almost immediately think of Southwest Airlines.
Southwest Airlines, a millennial travel staple with a brightly colored fleet of 737s, is surprisingly the consistent leader in customer service and flier satisfaction.
Not only has the airline been one of the best-performing stocks over the last few years, it is by far one of the most consistently innovative airlines for travelers. Its "raving fans" business model can easily translate over to the RIA world in numerous ways.
Fee transparency. While writing this article, I am looking down at my Southwest napkin as I prepare to drink my ginger ale (which I oddly only drink on Southwest flights). The napkin under my drink reads, "Now for something really refreshing: No hidden fees.”
The RIA industry's fee structure has evolved considerably over the last decade. Asset-based and retainer fees have replaced commissions for most RIAs. Think of a surprise baggage check-in fee as the hidden fee you never want a client to encounter. Are your clients able to check their bags in for free? Or are they getting a surprise charge on their statement for a service they thought was included?
Sticking to what you're good at. Southwest doesn't venture into the international space (besides a select few Caribbean and Mexico flights). Instead, they stick to what they're good at — and strategically avoid what they're not. They even stick to one type of airplane (the Boeing 737) so pilots and staff can learn and master just one system and process. Passengers know exactly what they're getting when it comes to leg room, overhead bin space and in-flight service.
Are you trying to do too much for too many clients? What if you were to narrow down your process and only focus on what you do best? As veteran adviser Ron Carson outlines in his new book “The Sustainable Edge,” advisers should "hone your firm's main thing."
Flexibility. Everyone who flies Southwest knows that when travel plans change, it's easy to switch your flight without a fee. On other airlines, not so much. In fact, I often avoid other airlines altogether because of this hassle.
When I think of flexibility in the RIA world, I think of the options in the way clients receive information and use our services. Is it through video conference, instead of driving an hour in traffic, that they attend your annual review meeting? Are clients able to go paperless and receive statements online or through an app? Is a monthly/yearly retainer option available for those who don't meet the AUM minimum?
Consistency. When you fly Southwest, you know exactly what you're getting. You pick your own seat; you have polite (and sometimes hilarious) flight attendants and there is a predictable and consistent experience from wheels-up to wheels-down (barring volatile weather or turbulence).
Investment returns are anything but predictable. Your staff's communication and approach, however, should certainly be consistent.
Service and people. I have rarely encountered a Southwest employee who wasn't able to help me, and put on a smile while doing so. I took a deeper dive into the airline's recruiting habits to see what makes its employees so engaged, content and memorable. Below are five takeaways of what Southwest looks for in employees:
• a positive attitude
• respect for others
• the ability to work hard without taking oneself too seriously
• creativity
• innovation
This quote from Southwest leadership sums up their employer and customer mantra:
"We believe that if we treat our employees right, they will treat our customers right, and in turn that results in increased business and profits that make everyone happy."
So simple, yet so effective. Every RIA should have a mantra when it comes to service and the people they hire to build and lead their firms.
Branding. With Southwest, branding is simple — from the "LUV" stock ticker symbol to the branded pretzels and honey-roasted peanuts. Simplicity certainly trumps complexity in this strategy. In a sea of cookie-cutter competitors, Southwest's colorful fleet of jets stand out.
What makes your RIA firm's branding standout? Is it your image, your community involvement, maybe your unique client deliverable?
Innovation. Southwest has perfected a customer experience that is beyond simple: You book your flight using the Southwest Airlines app or website. Your flight info is emailed or texted to you — or, even better, loaded right onto your app. You scan your phone as you board your flight instead of waiting in line to print out your ticket. If there are changes to your flight, you are notified quickly via text, phone or email. How innovative and simple is that?
What is your firm doing that makes life simpler and improves the experience of your clients? There are probably many things we can all make much easier.
So what do you think about your RIA? Are you the Southwest Airlines of RIAs, in other words, built for the future? Or are you that other airline still trying to take off?
Grant Webster is senior wealth manager at AKT Wealth Advisors in San Diego, Calif.
