In the early 1980s, American Airlines had hit financial trouble and started looking for quick ways to raise capital. The company created an “AAirpass” that offered a lifetime pass of unlimited first-class air travel for a flat rate of $250,000. No restrictions. No catch. No fine print.
If you’re a frequent flyer that might sound pretty appealing, right?
Except it didn’t turn out so well for American Airlines. Unlike today where airlines put in place a large number of restrictions to protect themselves from financial losses, the AAirpass was truly limitless and its membership was life-long.
The result? American Airlines started losing millions of dollars due to the high volume of flights taken by AAirpass holders. It started an investigation to see whether there was any way they could revoke the membership of the frequent flyers, but people were outraged and lawsuits started flying.
In a nutshell, American Airlines’ embarked on a sound strategy to raise capital but it didn’t think through the execution properly. This campaign could have been exceptional for the airline but instead resulted in huge financial losses and outraged customers.
Marketing Fails Are In The Details
Every business wants to stand out, but unless you take your time and fully think through your ideas and plans, you run the risk of going viral for the wrong reasons.
Whether you’re a global brand or a local store, the biggest takeaway here is the same:
Pay attention to the details. Be careful how you present your message. Be careful how you launch your campaign. Don’t assume that just because you and your staff love an advertising campaign, that your customers will too. The strategy underpinning your marketing campaign is critical. Always start with marketing strategy first.
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