Delta's Bob Somers on the Operational Guarantee & What's Next for Delta's Corporate Service

• The Operational Guarantee has brought in clients
• Next focus: corporate contract simplification
• Two new apps for TMCs

It's been nine months since Delta Air Lines launched its Operational Performance Commitment, in which the carrier pledges to its corporate contracted clients that it will keeps its performance levels above at least one of its two major competitors. Over that time, not only has United Airlines announced a similar guarantee but Delta's corporate customers also have begun using the data the carrier provides from the U.S. Department of Transportation as a new resource for their own reporting, and Delta itself has seen customer growth directly related to that product, senior vice president of global sales Bob Somers told BTN transportation editor Michael B. Baker.

BTN: What's happened in the nine months since you introduced the Operational Performance Commitment?

Somers: We were thrilled with the response we got, both from our customer base and the industry. We played the rest of the year making sure customers understood what we were offering and began the process that every month they knew how we were performing. It certainly sent the right message to our customers and has an effect on purchase behavior. The data we give them every month, which is [U.S. Department of Transportation] data and how we stack up against our competition, is used in varying degrees by companies depending on how impactful it is to them and how they want to report up. We have some companies that go straight to the CEO. Some publicize it to their travelers. It's something that's introduced not only [into] an RFP process and a [quarterly business review] process but the constant monitoring of the value of relationships.

That was our intent: to get the performance in the hands of the customers and make sure they understand how important it is. We listen to the customers and make sure what they want to see us do next. We'll be rolling out many new initiatives in the coming months to take the next-gen of our platform. This was a baseline, and the things that will be coming in 2016 were all driven by feedback from our customers in making sure we constantly are delivering additional value to the messaging. I can say unequivocally that business was given to us because of it.

BTN: In what way?

Somers: It's in terms of us winning business and getting a bigger share of the pie and customers realizing they trust Delta and see value in our performance. It's varying degrees, all the way from very impactful on a decision why Delta was given the share all the way to making sure it's part of their regular dialogue in terms of the value of the contract. It's an important piece of the purchase behavior and also caused the industry to step up. Ultimately, that's good for the customers.

BTN: What role does Delta's sales team have in product enhancements and initiatives?

Somers: Anything we do to improve our competitive advantage is a benefit to a seller. We have to make sure we're involved in the process. We have to do that through customer feedback. This company is amazing at asking questions about what our customers would like to see and making sure they're part of the process as we develop or enhance products. In the sales world, "beyond contract value" is our mantra, where we sell more than a contract or a discount. All the investment we make on board, whether it's technology or facilities or product—that's table stakes for what we sell. From our part, think back to 2014 when we launched Delta Edge, which was and still is industry leading. That was huge, and every time we turn around, we're adding value to that suite of reporting. We've taken that to the next level of how do we recognize them not only for their metal credentials but also by their relation to us as a corporation. We introduced Corporate Priority, when we can recognize a customer first in the kiosk to thank them for their business and mention their company's name because it sends the right message, and we spun a lot off that. Last year, [we added] priority boarding, with which corporate customers [who are SkyMiles members] board in Zone 1, which is a tremendous benefit. There are other things we will roll out focusing on the travel managers and on the corporations.

BTN: How has Edge evolved since its launch?

Somers: Edge started with companies asking: "We think we're paying a ton of money in bag fees, but we don't have the answer." As we've developed technology and used funding to determine the questions the customers are asking us, it became much larger than that. We have the performance information, which remains the baseline of everything we do, but what other information can we provide to understand how wide and deep our relationship is? Companies seek value and quality information. I've seen it in presentations to CFOs and CEOs as it relates to not just a cost-effectiveness rate or savings as associated with a discount but the pieces that provide value, whether it be the number of frequent-flyers and bag savings, whether it be waivers and favors given or performance information.

BTN: What about the travel management company side?

Somers: We've launched recently two new on-demand apps, one that provides travel exceptions and another that provides preferred seats, and so we're working with the agencies to deliver to them through the Delta Professional travel agency website. Those applications continue to provide 24/7 support of the travel management companies booking their own business and business on behalf of our corporations and allow us to use technology and the investments we've made in technology to advance the self-service opportunities for our agency partners.

BTN: What other priorities do you have now?

Somers: We're focusing now on contract simplification, which is the No. 1 request of corporations around the world. We are spending a lot of time on that now, both organically within Delta and with our partners outside of the United States.

BTN: What are you doing to help corporate customers with global air travel needs?

Somers: Globalization has been part of my role for some time, and we've made great strides in making sure our footprint has been able to sell to customers. We take advantage of organic growth and partnership growth. With Steve [Sear's] new role as president of international, my counterparts in Latin America, Asia and Europe will report to the same leader, so there will be natural synergies there. We had matrix relationships before, and now we have more hardline relations. We talk every day on how we can take these relationships global.

We've got global leadership as it relates to Delta, the joint ventures and how we sell to customers. I just came from London, where in 24 hours I met with Air France-KLM and I met with Virgin Atlantic, and all three of us met with one of the largest customers in the world on the value statement of what we individually and collectively bring to them. After the core of Air France-KLM, Alitalia and Virgin Atlantic, we're now into Latin America with a relationship with Gol and Aeroméxico.