"I'm always willing to look at [market research], but I never want to get bogged down in it."
As a matter of fact, right after saying what he did above, he added that "We get a lot of employee feedback on what they hear as to our customers' likes and dislikes. I'd rather we be out there doing things for the customers and gauging their responses on the front line."
Two things come to my mind when I hear Herb Kelleher saying this about how he conducted business on a daily basis: How does it apply differently to consumers and businesses? Is research different for each?
My thought is that it is. Consumers, contrary to general consensus, don't know what they want, and can be directed to say what it is you want to hear. This isn't done maliciously, but simply by the way a question is asked. People like to please, and so attempt to figure out what will please those asking them. That's why a lot of research in the consumer realm can be so distorted.
Steve Jobs from Apple (AAPL) knows this, and has said this is why he leads consumers to what he wants them to have, because they don't know what they want.
That leads us into the second area of business customers. The example of the recent strategy of entering the corporate area with the iPhone is a good way to contrast the two. In this case, Jobs and Apple had to do diligent research and go about asking potential business customers what they needed.
The iPhone was great for consumers, but had a lot of practical shortfalls for the business user.
What I conclude from this is consumers can and should be led, while with business customers we must think of it more as a partnership and probe a lot more what their practical needs are.
One other thing - as far as consumers go - when Kelleher mentions not paying too much attention to market research, he followed up by getting out there and getting direct feedback from Southwest Airlines (LUV) customers.
It was the real world experience the customers were having and direct feedback he was looking for. In his estimation, the best way to get that was to interact directly with them, and not rely solely on dubious facts, figures and data, that could be unwittingly manipulated through the questions asked.
We know it worked for Kelleher, as he was able to tap into the heartbeat of the customers Southwest Airlines served, and offer up a great experience while making his shareholders happy in an industry notorious for poor results.
Other Herb Kelleher Sources:
Herb Kelleher on the Record, Part 1
Belief Model for The Leadership of Herb Kelleher (Southwest Airlines)
Herb Kelleher, Chairman, CEO and President, Southwest Airlines
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