In praise of the Customer focused organization (and the best at what they do!)


When is a good business model a really good business model?

When (perhaps)
… the customers keep coming back for more (76 million per year)?[i]
… you are consistently outperforming you industry rivals (record breaking profits in Q1 2012)[ii]?
… the shareholder value is growing year on year?[iii]
… you consistently drive out costs and grow revenues?[iv… receive positive feedback from yourchosen customer base?
… when your strategy is clearly stated and easy to understand by employees, management, shareholders and customers alike[v]?
 
By all the above criteria Ryanair the Irish airline is a terrific and much envied success. And yet you may hear many criticisms of Ryanair however as Michael O’Leary, their ebullient CEO points out, they are not Ryanairs customers.
In fact he wishes they never darken his door again as the Ryan Air offering is specifically not aligned with “picky, choosy time wasters” (his words not mine).


What is the secret?
Part of the magic is a complete focus on understanding their chosen customers successful outcome, and while that may not include you or me, it is certainly the bulk of travellers in Europe whose repeat business has helped Ryan Air outperform the sector for the last decade.

So have you personally and has your business really clearly articulated who is your customer and then defined the business you are in?


[iv] BBC News 21 May 2012: Budget airline Ryanair has reported record profits as fare rises helped to offset a sharp rise in fuel costs. Net profit for the year to March was 503m euros ($643m; £406m), up 25% on a year earlier. Revenue rose by 19% to 4.3bn euros.

[v] Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled
passenger airline through continued improvements and expanded offerings of its low-fares
service. Ryanair aims to offer low fares that generate increased passenger traffic while
maintaining a continuous focus on cost-containment and operating efficiencies. (http://www.ryanair.com/doc/investor/Strategy.pdf)