Posts Tagged customer service
the part of marketing that marketing people forget
Posted by Chris Houchens in branding, marketing, strategy on July 28, 2010
Starbucks hopped on the Foursquare marketing train early and came out with a great promotion. But Starbucks’ bold move flopped.
Why did they fail? The answer is simple. They forgot (or failed) to communicate their marketing plan with a very important group in the marketing experience — their employees. (It’s the same reason I get stiffed on free syrups when I use my Starbucks card.)
You can spend gobs of money, time, and attention on marketing to get people in the door — but the promises you’ve made with your marketing have to happen when those people come through the door.
Most of your brand is NOT built through advertising, PR, or any marketing message. The brand is mostly built through mundane daily customer experiences. It’s not sexy, but it’s true.
And the customer experience is almost totally controlled by the operational side of the business. If the marketers need/want to build a brand, they need to share their vision and brand strategy with the parts of the company who actually interact with customers.
This is true all the way from the master overall marketing strategy down to individual marketing initiatives. It’s important on all levels, but it becomes even more important when you’re using new and emerging marketing platforms like Foursquare or other forms of digital media. Innovators and Early Adopters are important groups. You want to make sure that employees are delivering superior customer experiences to people who will heavily influence WOM.
For example — The other day, a local sandwich shop tweeted that I could get 10% off if I mentioned Twitter when I ordered. I went there for lunch and mentioned it to the cashier who didn’t even know what Twitter was.
It comes down to the fact if you’re delivering messages to potential markets, you need to share the content of those messages with ALL the people in your organization. They are the ones who will make it work.
united trilogy ends
Posted by Chris Houchens in branding, strategy on March 2, 2010
Last July, I wrote a post about United Breaks Guitars.
Dave Carroll had promised to write a trilogy of songs about the sub par customer experience he had with United Airlines. The first song was an internet sensation. Currently, it’s nearing over 8 million views on YouTube and it was heavily downloaded on iTunes. The second song wasn’t as much of a hit but still did well with about 900,000 views.
Carroll is releasing the third and final song tonight. I doubt if it will be as hot as the first one, but these three songs make a great point about how companies need to act in this digital age. In fact, the United Breaks Guitars case study was a last minute addition to my book Brand Zeitgeist as an example of how one unhappy customer can use the power of social media to move the image of the brand in the zeitgeist.
As Dave says…
I had hoped that creating these videos might make a big corporation rethink how they think of each and every customer but could never have imagined the potential hidden inside a music video and a few social media tools. Corporations of all kinds around the world now feel compelled, in part because of United Breaks Guitars, to build in a better model for customer care into their businesses. I’m proud to have been a part of it but the real credit goes to the millions of people around the world who took the time to laugh and tell a friend. The power behind the United Breaks Guitars Trilogy lies in the numbers of people from countries far and wide who are laughing with me.
Companies are worried about the effects of social media are having on their brands. Social media is not the danger. Businesses need to be concerned with customer service. People will tell their friends.
Update: The third song…
my God, they’re throwing guitars out there
Posted by Chris Houchens in marketing, online on July 16, 2009
So over the course of about two weeks, a Canadian folk singer has brought United Airlines to its knees with over 3 million views (and growing) of this viral video:
There’s been lots of talk online and in the MSM about how this is a great customer service lesson in the new economy. And it is. United has even said they will be using it in their internal training.
The customer service angle is the most important, but I think there are four other big lessons here:
Presentation counts.
There are thousands of consumer gripes at this very moment on twitter, facebook, youtube, individual blogs, and every other web thingy you can think of. What made this one stick and go national?
It’s because it’s well done.
The first time I watched the video, I watched the entire 4:36 (and then watched it again) and you probably did too. By comparison, see how long you can make it through another United Airlines consumer complaint video.
Unless they have no life and unlimited time, people will choose to spend their time with engaging online content instead of stuff they have to struggle to digest.
And the important part for online virility: they won’t pass it on unless it’s really good. Think about your other WOM recommendations to friends. “That restaurant is awful. You should go!”
You still need big media to make a big impact
The video got a response from United within a short time of being posted, but it didn’t really take off into the stratosphere until several new and old media like the Consumerist, LA Times, NY Times, CNN, and other “big guys” featured the video. It might have taken off itself, but these Digg/Oprah-type spotlights amplified the user-level passalong effect to make it go viral. It also helped that Sons of Maxwell already had a fanbase that could help spread the message.
You have to have a base to push off of — if you’re going to jump high.
Don’t back down
United has offered Dave compensation for his guitar and he refused, requesting that United give the money to charity (United is donating $3,000 to the Thelonious Monk Institute of Jazz). And he is going ahead with the other two songs of his promised United trilogy.
In the end, he is going to come out way ahead. Taylor guitars has offered him some new guitars, other airlines are offering seats, and he and his band now have tremendous publicity.
Learn from your mistakes
It seems that United has no choice except to assume the Duck and Cover position for now. They’ve made the donation. The other songs are coming. (I hope one of them explains the sombreros.) At the minimum, the upcoming second one will get publicity. And United has said they are going to learn from the experience…
Rob Bradford, managing director of customer solutions at United, called Carroll Wednesday to apologize for the foul-up and to ask if the carrier could use the video internally to help change its culture.
(My first suggestion: eliminate stupid titles like “managing director of customer solutions”)
I’d love to see a case study or something come out of United on how they handled this. I think they actually have an opportunity to shine here if they don’t mess it up. The best thing they could do? Offer to help Dave to make the third video a happy ending.
UPDATE (7/17/09): I have thought of a fifth point. From my perspective, Dave Carroll seems like a nice, decent genuine guy. Being a good guy counts probably more than anything.
rebranding the hut
Posted by Chris Houchens in branding, marketing, strategy on June 19, 2009
In one of the worst “re-branding” moves that I’ve ever seen, Pizza Hut is dropping pizza from its name and will now be known in some locations as just ‘The Hut‘.
What a great move. Trash over 50 years of brand equity for something that makes me think of a dark dank dwelling in the Third World. Of course, it’s been coming for awhile. They’ve brand-extended themselves to oblivion instead of doing the core product (pizza!) well.
What makes it even more sad/funny is the delusion they’ve sold themselves and are now sending out in media relations…
…characterized the name change as an attempt to transform its stores into hip hangouts…..The new “hut” stores will be more than a place to simply pick up some take-out…they will include televisions that broadcast CBS programs such as “Wheel of Fortune” and “Entertainment Tonight.”
Because we all know the kids think that nothing can be more “hip” than Wheel of Fortune. Maybe they could reach back into the CBS archives and air old episodes of ‘Murder She Wrote’ to be even more hip.
They just may have a bad case of self-loathing with their name. They’ve tried to “rebrand” the Pizza Hut name on several previous occasions like “Pizza Hut Pizza & Pasta Cafe”, “Pizza Hut Italian Bistro”, “Pizza Hut WingStreet”, and the half-joking April Fools’ prank, “Pasta Hut”. A smart guy once said “doing the same thing over and over again and expecting different results is the definition of insanity”
Hey Yum!, listen up. The problem is not the Pizza Hut name. The problem is the customer experience. Even though your spokesperson, Christopher Fuller, gave a cheesy non-answer to real issues, the facts are clear in the public’s mind: Your employees don’t care. Your stores are dirty. Your service is horrible. (In one of my local Pizza Huts, there’s a sign above the lunch buffet that says not to even bother requesting any type of pizza because they aren’t going to do it.) And as I previously said in this post, you have forgotten your core product.
In kneejerk fashion, other chains may follow the move:
- Dominos will become “Backgammon”
- Papa Johns will become “Papa Smurfs”
- McDonalds will become “Mick”
- Taco Bell will become “The Bell”
- KFC will become “Sammy Nellas”
- Burger King will become “CP+B”
marketing using fear
Posted by Chris Houchens in branding, marketing, strategy on March 11, 2009
In today’s economic climate, I see lots of companies abandoning sound marketing strategy and retreating to adopt a fear based marketing strategy. While fear can motivate, it also camouflages real underlying problems. If you want to survive these unsure times, you need to have a plan that will keep you afloat today and lets you emerge as a stronger business at the end of the tunnel.
First off, kneejerk short-term strategy is always a bad idea, both in grim times and in upbeat ones. When you’re implementing plans that reflect what’s going on today, you also need to look at what those plans mean for tomorrow. Ask yourself if the cost cutting changes you’re proposing would also make sense if it was a boom time. If they don’t, then you’re making a mistake.
Right now, lots of companies are pulling back on customer service options, cutting off communication paths to potential markets, and cutting back on the quality/quantity of the goods they sell. All bad ideas because they hurt long term relationships with the customer.
And it’s a slippery slope. Sure, eliminating one customer service rep, cutting the ad budget, or making a quarter pound hamburger with 3.5 ounces of meat saves a few bucks today. But when you think you’ve gotten away with it, you are tempted to go further and further. Eliminate an olive today and become a hated industry tomorrow.
I’ve heard some marketers say it’s a great time to make the most of the situation and use the fear that’s out there to the company’s advantage. I say becoming an advocate of today’s fears makes you look like an idiot tomorrow after the real or supposed danger has passed. Remember the companies who thought it was a really smart marketing move to capitalize on Y-2-K? They marketed their products using fear of the millennium bug in the same way that lots of companies are using fear of the recession today. Fear marketing hurts your long term brand equity.
I’m not saying that you should keep marketing as if nothing has happened. The zeitgeist has changed. People have adjusted their buying habits. The first thing you need to do is reevaluate the mindset of your customer and adjust your marketing plan accordingly. If you’re a necessity, then there may not need to be much adjustment. If you’re a luxury, then major modifications may be needed. Or maybe you need to really step back and figure out if your customers view you as a necessity or a luxury.
But as you adjust, remember this: A strategy of fear makes you look weak. It infers that you’re unsure. And just like animals, people can sense fear.
There is a huge opportunity for marketing right now. I’ve always said you should market against the grain. While everyone is cutting back on marketing, step yours up. It will be more impactful. And while everyone is running fearful and pessimistic marketing, be bold and market like you’re going to win.
i need to stop making suggestions on this blog
Posted by Chris Houchens in marketing on February 27, 2009
come fly the friendly skies
Last May, I made a outrageous suggestion in a blog post with the caveat not to laugh because it may happen.
Well, it may be happening. Sure, the CEO seems a little spacey…
“Michael makes a lot of this stuff up as he goes along and while this has been discussed internally there are no immediate plans to introduce it,” Stephen McNamara said in a statement.
But the key quote there is that it has been discussed internally. And while this airline’s PR flacks are trying to put out this fire, you know it’s been discussed at every airline.
When it does eventually happen on U.S. carriers (because we know how much they care for their passengers), I will be using my 3-1-1 bottles and clear plastic quart bags for other than intended purposes as a protest.
I wonder how much the airline industry will have to mistreat customers before there’s a pushback.
CtrlAltDel
Posted by Chris Houchens in branding on June 27, 2008
So today was Bill Gates’ last day. However, there was an incident. As he tried to leave the building for good, this popped up in the door:
He couldn’t get it to go away and none of his keys worked. Eventually, he just had to turn the power off to the building and walk away in a huff. When they open back up Monday morning, Steve Ballmer will have to run a scandisk before he can come in.
There is a widely held belief that Bill is the devil. I don’t necessarily think HE’S the devil. But his company and his products certainly can be. I think it’s because the brand and the company didn’t develop along with Bill. He would have been a good candidate to develop an accidental brand, but the growth probably overshot him.
Seattle PI’s Todd Bishop found a Bill Gates e-mail from 2003 by sifting through the documents in the antitrust suits. When you read the email, you can see Bill’s frustration because everyone of us has had the problems with Windows that he’s describing in the email. And there is plenty of anecdotal evidence that Bill was concerned about usability and making the product work. The problem with MSFT was (is?) the company culture and the individuals below Bill.
The lesson for any organization is that fanatic attention to detail and quality assurance can’t fall on one person. It has to permeate the entire group. The one guy approach may work when the company is small. But if you grow enough to be called a monopoly, it can’t work.
eliminating the last olive
Posted by Chris Houchens in marketing on May 21, 2008
There’s been some minor buzz about the customer service atrocity of hidden fees. But as with most things in our society, it’s quickly forgotten with the next thing that snaps the masses’ head another direction.
There’s hidden fee news today that may stick. American Airlines will start charging $15 for your first checked bag. Not extra luggage. Not heavy luggage. Just your one basic container with supplies that make sure you’re clothed and clean when you get wherever you’re going.
Minor nickel and diming by the airlines has been happening for a while. I flew American a few weeks ago and rolled my eyes at the ridiculous $3 charge for a bag of nuts. I understand the age of the “freebie” is over. And I can see charging a dollar. Maybe a buck and a half. But $3 is an insult to common sense. And I chose not to “ensure” the fact I would have a seat for a standby flight for $35. Also — I held it and didn’t drink the $3 bottled water instead of paying $5 for a trip to the airplane lavatory. (Don’t laugh. It may happen.)
I had said in my post about my flight during American’s last PR disaster, that the airlines have beat their customers into accepting any level of bad service. American is trying to lower the bar again. While I understand that these are rough times for the airlines, there are other ways to cut costs and increase efficiency. When times get rough (in any business), don’t cut costs where it touches the customer. Or if you really do need the extra $15 to get my underwear there with me, just raise the price of the ticket. Don’t try to hamstring me with a fee.
Fortunately for me, 95% of my flights are one-nighters where I go the night before and fly back immediately after my speaking engagement. I’ve become a semi-master at the art of packing a suit and toiletries in my laptop bag. For 2-day stays, I have to take another bag, but it’s a small one and I check it at the gate.
And that’s one of the ripple effects that this American move will have. More people trying to do just carry-ons. That means longer delays getting on/off the plane. Less room in the overheads. And longer lines at security. (Government Propaganda Tip — 3-1-1!)
I predict there will be one of two reactions to this move by American.
- Consumers will balk and American will back down.
- All other airlines will follow their lead and baggage will be extra for everyone.
I hope it’s #1. It will probably be #2.
Clarification: In case you’re not familiar with the useless trivia behind the title of this post.
jared has lots of stamps
Posted by Chris Houchens in marketing on April 23, 2008
Read this consumer review of a Subway in Ohio.
Just as demanding as the Seinfeldian Soup Nazi, I’ve dealt with many Subway Nazi “sandwich artists”. And it’s always about the minor things like a drink refill, a few extra olives, or like the guy in the link — arguing the finer points of a free sub card.
A Subway franchisee will argue that giving a free sandwich that comes out of his pocket/profit to a customer that may have never been in his store is not good business.
I would argue that keeping core Subway customers who are willing to eat 6 (or 12) sandwiches happy and content is good business. And if all the franchisees were willing (or forced) to participate, the money would all equal out in the end.
But here’s the bigger point for everybody. If a marketing promotion makes you irritate your customers and generates negative brand images and kills goodwill — maybe you shouldn’t do the promotion.
come check my wiring harness
Posted by Chris Houchens in marketing on April 10, 2008
I’m a Southwest person. If they don’t go where I’m going, I’m a US Airways person. With US Airways alliances, sometimes they stick me on a United flight.
I haven’t flown on American in about 10 years — until a speaking client’s travel agency put me on an American flight this week.
On Wednesday, when I saw the lines, I thought there would be a bloggable customer service disaster. But BNA did well. They were handling the crisis very well (at least, they were on Wednesday morning). The only trouble I had was that I didn’t have any AA miles clout in achieving standby status. Luckily, I had plenty of time to get where I was going with relative little trouble.
The thing I kept thinking was that just a few years ago, people would have been incensed at the whole situation. All through the airport, there were just dead eyed accepting blank stares from passengers. The entire air travel industry has lowered the bar so much in the last few years that people are accepting of situations like this. I suppose if you mistreat customers enough, they eventually are satisified with subpar experiences.
Brand Zeitgeist
Speaking
