- In today’s CEO Daily: Diane Brady on building customer loyalty.
- The big story: U.S.-China trade truce.
- The markets: Trending down.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Customer loyalty is a tricky thing: hard to get, relatively easy to maintain, and hard to win back once it’s lost. Inertia is a powerful force, which is why consumers keep the same bank account for an
average of 17 years.
So it was fascinating to hear
Delta Air Lines CEO Ed Bastian and
Riyadh Air CEO Tony Douglas talk to
Fortune’s Alyson Shontell about building loyalty in this climate during the recent Fortune Global Forum. Both carriers have an opportunity to recruit new loyalty members—Delta in becoming the first U.S. carrier with direct flights to Saudi Arabia, between Atlanta and Riyadh, and newcomer Riyadh Air getting 400,000 signups for its loyalty program in its first 10 days. Some advice:
Prioritize Your Own People – “In our business, everyone focuses on the airline, the aircraft, the technology, the airports, the amazing destinations we get, but it’s the staff that bring it to life,” said Bastian, who agrees with founder C.E. Woolman’s mission to take good care of your people so they can take care of customers. “I obsess on my 100,000 own so they can then go do the amazing work that our customers deserve. If your people don’t feel that love and respect and care, they’re never going to be able to give you the service that you expect.” (Bastian echoed
a similar sentiment to me earlier this year during a webinar marking Delta’s rising rank on
Fortune’s list of
Best Companies to Work For.)
Digitize – As a new carrier, Riyadh Air had the opportunity to be what Douglas calls “a true digital native.” That means “building a technology stack that will bring an altogether different experience for our guests.” For example, you can book different days for different people in your family and put them together in one order, like you can already do when buying goods on, say,
Amazon. Added Douglas: “Because we didn’t have a legacy, this was a golden opportunity.”
Personalize – Bastian often uses the word ‘concierge’ while Douglas is using agentic AI to create a differentiated experience for each customer. Part of that comes through creating a broad network: Delta flies to more than 300 destinations—which rises to more than 1,000 when you include code-share partners—and Riyadh Air has a mandate to reach more than 100 cities around the world over the next five years. Part comes by giving people more flexibility over how they accrue, swap and deploy loyalty points. For Douglas, that means reinventing airline loyalty programs into a “lifestyle proposition.”
Deliver – Ultimately, there is no substitute for reliable and excellent service. “We would never win on a low-cost strategy,” said Bastian, who decided to distinguish Delta as the most reliable airline. It worked. “Once you develop the reliability standard, your staff starts to believe that this is different,” as do customers who then become more willing to pay for that premium service.
Watch the full interview here.More news below.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
