Southwest Airlines recently announced their plans to eliminate the two-bag free policy and introduce baggage fees in order to improve financial performance. This will also help to improve customer experience. Southwest’s financial goals may be short-term, but the decision has raised questions about the reactions of loyal customers. Customers have already turned to Change.org to try and get them reconsider.
As someone who closely studies brand loyalty, I wonder what the impact will be on Southwest’s most loyal customers. Why would anyone want to be like everyone else when there is so much similarity around them?
Understanding loyalty requires that you examine three key principles:
- Brand Identification
Southwest Airlines revolutionized the air travel industry with their operational efficiencies and unique approach. They democratized air travel by introducing customer-friendly policies, such as free checked baggage. Southwest’s rebelliousness appealed to many travelers who saw it as a reflection of their own personality. Southwest customers became a part of their identity.
Southwest loyalists often share stories about explaining the benefits to newcomers – how to maximize value from the free baggage allowance, how to plan efficiently, and navigate the Southwest experience. These aren’t just travel tips; they’re a kind of ritualized knowledge. Understanding Southwest’s bag policy created an inner circle of informed customers and strengthened brand ties.
- Mastery, Autonomy and Motivation
Imagine what you can do when you know Southwest’s system inside out. It’s not only about saving money and being efficient. When you understand their unique approach, you feel like an insider – like you’ve cracked the code. You feel a real sense mastery when you have that feeling “I’ve figured this out”.
It’s empowering to make your own decisions without worrying about extra fees. You pack only what you need and don’t worry about costs. This freedom – this autonomy – connects with something deeper in us. Along with finding a purpose and connecting with other people, mastery and autonomous are what drives us to stay loyal. It becomes personal.
- Emotional loyalty
Customers who are motivated by reciprocity see their Southwest relationship in a positive light. They’ve stayed loyal because Southwest has consistently offered fair value – those two free checked bags aren’t just a policy but proof that Southwest values their business. Customers who are motivated by reciprocity are more likely to perceive unfairness.
This balanced relationship could be undermined by removing this benefit. These customers will feel this change deeply and perceive it as a possible betrayal. It’s not just about new fees – it’s about feeling the relationship has become uneven. Southwest will need to show that despite the change, it still respects the mutual respect the two have built.
How to navigate change while maintaining loyalty
Businesses must adapt to market conditions and sometimes abandon differentiators that are tied to their brand identity. Southwest may have needed to make this change in order to survive in the short-term, but have they thought about the emotional bond they have built with their customers? How might that affect their decision to fly them in the future. It is more expensive to acquire a new customer than to retain an existing one.
Removing free checked bags doesn’t just change a policy – it alters a fundamental part of the Southwest experience that devoted customers have built into their travel identity. Only time can tell if the LUV will continue under these new conditions.
