I was at the gate about to board a flight recently, when I unexpectedly received a free upgrade to Business Class. This was only the second time I have ever flown Business Class, and it has never been on my own money! Sorry to say it, but I hated the experience each time.

Sure, the additional personal space in Business Class is certainly welcome. But apart from that, it all feels so pretentious. Firstly, the imposter in me can’t help but conjure up backstories for my upmarket co-passengers who have paid for Business Class. Should I attempt casual chit-chat? What if I’m not at their level? What if they find out I don’t deserve to be there?

Secondly, my gut is not sophisticated enough to appreciate the miniature portions of fancy food with suave names they serve you. It’s all sadly wasted on uncultured folk like me. Finally, the flight attendants are extra nice to you in Business Class, so you must be extra nice back to them, which is psychologically exhausting

All I want is to enjoy a hearty meal, admire the view from the window, and then pass out until we land.

When designing First Class, Business Class and Economy Class products, airlines differentiate between the “Hard Product” and the “Soft Product“. The Hard Product is the aircraft and everything physically attached to it, which cannot be easily modified, or which cannot be changed from flight to flight. It includes the seats, the TV screens, the carpets, and the toilets. The “Soft Product” is everything else that is not physically attached to the aircraft, and which can be changed relatively easily.

When you board the plane on an Economy Class ticket and walk through Business Class, you’ll notice the bigger seats, extra legroom and bigger TV screens. That’s the Hard Product, and it’s pretty much in your face. But what about the Soft Product in Business Class? You won’t necessarily notice it unless you experience it.

A dedicated check-in desk. An express lane at security. Access to a lounge before departure. The flight attendant welcoming you by name when you board the aircraft.

Amenity kits with high-end cosmetics. Drinks before take-off. Printed menu cards with exotic names for dishes. A linen tablecloth, and stainless steel cutlery, of course. Rather than pushing a food trolley down the aisle, the flight attendant ferries your own personalised meal tray directly from the galley. And they’ll serve the meal leisurely over multiple courses, not all in one go.

The flight attendant may even help convert your seat into a bed. At your destination, they let you off the aircraft before the masses of unwashed Economy Class passengers storm through. All that is the Soft Product.

From a business perspective, both the Hard Product and the Soft Product contribute to motivating customers to pay a premium price for their flight ticket.

The Hard Product is a headache for the airlines because it has a high capital outlay and low profit margins. It cannot be easily changed in response to customer feedback or changing demands. An airline cannot easily differentiate itself from competitors with the Hard Product.

Conversely, the Soft Product costs relatively little to implement and is thus more profitable. It can be easily modified in response to customer feedback and expectations. It is the area where one airline can easily differentiate itself from others. Yet it’s often the Cinderella in the story because it’s much less visible than the seat pitch or whether the seats go fully flat.

Soft Product vs Customer Service

Wait, isn’t the “Soft Product” the same as “Customer Service”? Well, you’ll notice that I didn’t mention “the flight attendant smiles charmingly at you” as part of the Soft Product. It’s because that falls under Customer Service.

The Soft Product is something that a customer is explicitly willing to pay extra for. That’s why the airlines call it a Product. Customer Service is something the customer takes for granted, and plays a much smaller part in the purchasing decision.

When I buy a new washing machine (the Hard Product), the salesperson in the store may be very polite and helpful (with excellent Customer Service). But ultimately, I might even place my order online, because I am not willing to pay a premium for Customer Service.

However, if a shop gave same-day delivery & installation, or an extended warranty (the Soft Product), this would certainly factor in my decision-making. The Soft Product is a product or feature I might value enough to pay extra for.

This applies to any industry

In my line of work as a doctor, the Hard Product is easy to identify. It is things like the physical premises we work from, and the equipment we use. It is also the “science” of medicine – the prescriptions we write, the procedures we perform, and the plans of investigation or treatment we create for patients.

The Soft Product is known as the “art” of medicine, where the doctor-patient interaction is itself therapeutic, and perhaps more important than the prescription. It starts with the doctor’s appearance, body language and eye contact. The consulting room layout. Breaking down any personal barriers between doctor and patient. Being familiar with the patient’s medical and personal history. Rapidly understanding, almost instinctively, what role the patient needs the doctor to perform, and being able to deliver it. Communicating at a level appropriate for the patient. Allowing time for the patient to reflect. Being available for the patient.

Sadly, many of us confuse our Customer Service skills with the Soft Product. This is often because Customer Service is easier to deliver than the Soft Product, and usually, the patient won’t know the difference either. We think that smiling and being friendly (Customer Service) is the Soft Product the patient needs. We consciously work on the Customer Service for good ratings and feedback, but rarely on the Soft Product which actually adds much more value than the Customer Service.

As a profession and an industry, we need to be more consciously aware of the difference between the two. Everyone from the security guards at the front door, to the receptionists, to the cleaners can give good Customer Service. However, the patient attended in search of the Soft Product, which is a highly professional – and often intangible – product way beyond mere Customer Service.

What is your Soft Product, and how strong is it?

So,how about you, and your industry? Remember the Business Class customers who are willing to pay a hefty premium for the Soft Product, which is ultimately more profitable for the airlines than the Hard Product… What’s your Soft Product, and what are you doing to develop it?