Brian - If you haven't already, I would highly recommend reading "Delivering Happiness — A Path To Profits, Passion, and Purpose" from the CEO of Zappos.com. Southwest is clearly missing the point.... it's not about transportation... it's about customer service which when done right...equals customer loyalty. The Rapid Rewards program (in its current state) is what put smiles on your customers faces, which in turn drives loyalty. The proposed program has already done incredible damage to the Southwest name. I would re-check the figures and determine if it’s worth it. Word of mouth, speaking the praises of Southwest is what has allowed your company to prosper when most others failed. If you study human behavior you realize that passionate people are just that… passionate! It can work for you (which it has for Southwest for many years) but can work against you just as easily. Do you really want all the Southwest Rapid Reward loyalist turning against the company? You’d be amazed at how quickly the tide can turn and how difficult (expensive) it can be to try and rebuild consumer trust.
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