Bad customer service destroys brand relationships

One of the best aspects of social media is that it has motivated companies to become customer focused. To attract and retain business, companies today had better be on their A-game as far as customer service goes or be exposed for it on online. Every contact between customer and employee is a reflection of the brand and vital to the brand image. Customers will only tolerate poor service for so long before abandoning the brand.Broken promise concept.

The eighth annual Accenture Global Consumer Survey found, not surprisingly, that broken promises are a top area of frustration for consumers. According to the survey, nearly two-thirds (63 percent) of respondents indicate it’s extremely frustrating when a company delivers a different customer service experience from what it promised upfront. Seventy eight percent of consumers say they are likely to leave when they encounter such broken promises.

A woman’s clothing store has lost me as an online customer. This store has the worst service I’ve ever encountered. I ordered a gift card for my sister for Christmas one year and the store took three weeks later than the promised delivery date to get it to her. When I called to inquire about my order, the “customer service” representative could not have been more unconcerned if she tried. She offered no explanation, no apologies and, obviously, no service.

A year later, I placed an online order for two blouses and opted to have it shipped to the physical store to take advantage of free shipping. Email confirmation said the store would contact me when my order was in. Weeks went by without any further communication from the retailer. Three weeks later, I finally called about my order. I learned my order was at the store and had been since 5 days after the order was placed.  Contrary to the email confirmation I’d received, no one had called to let me know my order was in. The “customer service” representative I spoke with blamed it on store personnel and told me if I didn’t pick my order up within 3 days the store would ship it back.

That was the point at which I said good-bye to this retailer. Two consecutive screw ups is two too many. Especially when there are so many other options available. Clearly this store does not have its people, systems, functions, processes, leadership and front lines aligned. My advice is to cease all online ordering activity until you do. Otherwise, prepare for an exodus of customers.

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Is a Super Bowl or American Idol commercial worth the cost?

Photo by graur razvan ionut

You’d really have to be living under a rock to not be aware of the recent launch of the new American Idol season and the upcoming Super Bowl XLV– two of the most expensive advertising vehicles for marketers.

Whether or not advertising during the Super Bowl and American Idol is worth the high dollars that are being spent depends on the company, the product, its integration with other marketing communications and its memorability.

Both the Super Bowl and American Idol draw huge audiences and practically every demographic and psychographic group. They also have some differences, though. With American Idol, advertisers can repeat their pitches multiple times, since the show runs 2-3 times weekly. While this is not true with the Super Bowl, what the Super Bowl offers advertisers is scarcity (a one-time finale) that produces a huge amount of anticipation both for the game and the ads. People who aren’t even sports fans will watch so that they can be a part of the post-game/ads talk.

And yet, advertising during either of these shows does not guarantee success. Just ask any of the dot.com companies, like Pets.com, that went bust after their Super Bowl advertisements aired.

Studies show that the Super Bowl is a great launching pad for a new product or to create brand awareness. Examples cited include Apple’s introduction of the Mac in 1984, and more recent product launches by Chrysler, Gillette and Victoria’s Secret. And when a Super Bowl ad is combined with other marketing communication mediums, such as an online promotion, direct mail, social media and print ad campaign, it can extend its effectiveness for weeks, providing the advertiser is careful not to over-saturate the market to the point of irritating consumers and turning them off.

In my opinion, staying top-of-mind among consumers beyond the Super Bowl or an American Idol episode is the true test of whether the ad was worth the money it took to develop it and the associated media spend costs. This is supported by Lisa Haverty and Stephen Blessing who developed a metric, CogScore, that examines six cognitive principles in an attempt to predict the memorability of the brand from any given ad. CogScore is based on the belief that awareness, persuasion and likeability of an ad will have no effect if the brand being advertised is not remembered as belonging to that ad. In their study, they examined ad recall of Super Bowl ads a year after the game aired. Not only were many of the brands and products not remembered, several were wrongly matched with a competitor’s brand. These are companies that did not get their money’s worth out of their ads.

Business Insider offers a preview of this year’s commercials if you haven’t already seen them and can’t wait until Sunday.

Which commercials do you think will score high in memorability?