Tag Archives: Wordpress

A lesson of Southwest Airlines


It’s well known that the airline industry is a big business. From free soda, to airline services to baggage; the airline industry is an intensely competitive market. I assume that many of you have their own experiences with airlines and I totally agree if you have some bad experiences. Once I traveled to China and had a delay of more than 12 hours and guess what? No compensation. A lot of airlines are focused on euro’s and cents but fortunately some airlines do want to solve dissatisfaction by turning an ear to the voice of its customers. Southwest Airlines is an example of one of these airlines which has implemented customer experience programs to continually listen to its customers and show that they care.

Southwest Airlines is a big player in the US airline industry. This could be a result of its mission statement which is as follows: “Dedication to highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit(southwestairlinesinvestorrelations,2016). From napkins with ‘I’d happy to hold your drink’ to stocks which are named as “LUV”, everything is about the brand. But what’s in it for the customer?

Southwest airlines CEO Herb Kelleher has and still uses a couple of secrets which create an unforgettable experience for its customers. These key secrets lead to joint profitability as happy customers benefit the company. One of the key secrets and their long-term competitive advantage works as follows; an organization should be employee centric before it can be customer centric.

In this example, institutional arrangements are considered such as employees supporting each other internally so that they can take care of customers outside the company. Happy employees will try to make the right decision and are proud to work for your company. If you take care of your employees, they will take care of your customers and in turn, the customers will come back.

Another key secret is that Southwest airlines anticipates on customer needs. Let’s go back to the introduction of this blog and imagine that you have booked your ticket to China. Your flight departs early in the morning and the weather is stormy. You have checked the flight information a million times and as soon as you arrive at the airport the flight has been cancelled. In my experience, I had to wait for hours before the airline informed me about my options. Although legislation tries to protect flyers, the institutional environment had not been considered in my case… except for one free drink. Fortunately, the experience of many Southwest airline customers is much better. In the case of a cancelled flight due to stormy weather, a gate agent already booked tickets for the next flights before customers asked for it. In this case, a consideration of the legislation was not even necessary! Southwest airlines always try to anticipate on customers’ needs and be proactive in helping its customers.

The last key secret is to apologize sincerely. We are all just humans and we should accept that humans make mistakes and that we can’t control every situation. Sometimes, a sincere apology has more value than a monetary solution. This all started by Southwest airlines’ institutional arrangements as every employee knows that they should turn an ear to the voice of its customers. Southwest airlines then apologies. At this point, the institutional environment has been considered, as the company takes it responsibility so that both in the end the firm and customers are better off.

This all is almost too good to be true. I totally understand if you still don’t believe the things I’ve discussed above. Just relax, take a breath, and watch these little movies on Youtube to see and experience it yourself 😉

Used sources:
Hyken, S. (2014), Before you can be customer centric you must be employee centric [online] Available from:
https://hyken.com/internal-customers/before-you-can-be-customer-centric-you-must-be-employee-centric/ [Accessed 10 Feb. 2017]

Southwest Airlines Co. (2017) Company Overview [online] Available from:
http://www.southwestairlinesinvestorrelations.com/our-company/company-overview
[Accessed at 10 Feb. 2017]

Free WordPress makes $45mil per year, but how?


With more than 74.6 million websites build on it, WordPress is the most used content management system(CMS) in the world. Of all self-hosted websites, 18.9% is build on WordPress and 70% does not work with a CMS. The guy behind this extremely successful system is Matthew Mullenweg and Mike Little. But they did not build all 30.000+ plugins, 100.000+ templates and uncountable custom widgets by themselves. Matthew and Mike co-created: they used the crowd to make their CMS an indispensable building-block in the world of internet. In this blog I will explain how WordPress is generating revenue by the use of its crowd (developers of plugins and themes).

WordPress was released on the 27th of may, 2003.  Back in the days, the internet was still a relatively new environment. Building a website demanded advanced skills in code-languages such as HTML and PHP, in working with hosting accounts and for a fancy webdesign with Adobe Photoshop. You can imagine that relatively a few early-adopters auto-didactically obtained these skills: NERDS. Matthew and Mike wanted to change this status quo. Their initial idea of WordPress was to lower the enormous threshold for normal (non-tech) people to build their own blog. Obviously, they succeeded. But thanks to thousands of developers, WordPress supports countless website-types next to blogs: regular business websites, webshops (WP E-Commerce), social media platforms (BuddyPress) and more.

Nowadays, WordPress itself is an open-source system, does not use any obligated advertisements and is free to download. Matthew and Mike apply four interesting business models on WordPress:

  1. Offering High-End Hosting
    WordPress offers space on the internet on their own servers. In addition, WordPress provides professional service for large multinationals. Customers are among others, CNN, TED, Dowjones, UPS and Times.com. Taking a look on WordPress VIP Hosting, we see prices tarting at $15.000 dollar per month. So, one business model is based on a simple service provider.
  2. Premium Templates (Web-designs)
    If you build a website based on WordPress, it is not necessary anymore to design your entire webdesign yourself. WordPress offers many premium templates, which are easy to install yourself. One template costs approximately $50.
  3. Premium Accounts
    A wordpress blog is free, but extra space for media or a domain (.com/.nl etc) costs money.
  4. Google Advertisements (Google AdSense)
    WordPress has the right to post Google Adsense advertisements on free WordPress blog. However, this is only done under certain circumstances.
  5. And more…
    Next to these major 4 business models, WordPress provides various other paid services. Most of them are linked to a premium model (such as paid plugins).

Interestingly, WordPress positions itself as a free open source CMS system. However, for a small percentage of the users Wordpress is charging fees. Relatively, this might solely be a small part of the users, but taking the numbers mentioned at the beginning of this blog into account, you can imagine that the absolute earnings are huge. The company behind Wordpres (Automattic) made $45 million revenue in 2012 and is growing rapidly (last publicly available data). Knowing how WordPress is born and evolved, Matthew and Mike should thank the user for building their internet-empire.

Tip:
Want to build your own WordPress website? (CHECK VIDEO BY Tyler Moore).

1. Open a WordPress account at www.wordpress.com
2. Install a free theme or download a premium template from e.g. Themeforest.com.
3. Check the plugin page for additional functionalities.

Trick
Want to know whether a website is build on WordPress?
Put the following text behind the internet address: “/wp-admin/”. If you get a login-page, you know the website is build on WordPress.
E.g. www.bijlesmatch.nl/wp-admin/

References:
1) World Bank Database
http://data.worldbank.org/indicator/IC.BUS.NREG/countries/1W-EU?display=graph

2) Manage WordPress
https://managewp.com/14-surprising-statistics-about-wordpress-usage

3) Matt Mullenweg WikiPedia
http://en.wikipedia.org/wiki/Matt_Mullenweg

4) WordPress VIP Stats
https://vip.wordpress.com/stats/