Is Honesty still the Best Policy? Walking the Talk of Customer Centricity

I got an email today that irritated me, I mean it really insulted me, and prompted this post on customer centricity. I am sure it would have annoyed you too; in fact you have probably already received it or at least something similar yourself in the past.

It announced a “massive 46-page eBook” that I had been chosen to receive for free. It sounded as if I should be happy and feel privileged to receive it. I wasn’t. I don’t know about you, but I don’t call 46 pages massive. A jumbo jet is massive; War and Peace by Leo Tolstoy is massive; not a measly 46 pages – even if it was for free.

ASA Logo protecting customer centricityWhy do companies continue to think that they can treat people like idiots? In my opinion, it can only be a very short-lived business strategy. People will quickly learn the truth, especially in today’s connected world. Or should I blame the advertising agencies for coming up with these “lies”? However, it seems to me to be just a little too close for comfort to the “misleading claims” from which the Advertising St andards Authority in most countries should be protecting us.

If you are looking to be truly customer centric, here are some other examples that you are hopefully NOT doing.

Claims

The above illustration is just one example of many exaggerated claims which seem to have become prevalent these days. This is most probably because the internet makes it so easy to reach new, “naive” customers, who still trust organisations to do the right thing. Why do so many companies use overly attractive adjectives that their product or service can’t live up to? They are setting themselves up to disappoint their potential customers, especially if they don’t register what comes after that word before buying.

Massive, mouth-watering, heart-stopping, mind-blowing, huge discount, best price ever; most of the time the products are not, which is probably why they feel they have to use such words. Customer centric companies don’t use these claims unless they can substantiate them.

Packaging

One area that often suffers from exaggeration is packaging. How many packs have you opened to find the product sitting miserably in the lower half of it? What a disappointment from the promise of the packaging. Or worse still in my opinion, are companies whose packs have been discretely reduced in contents over time. Companies may print the weight of the product that is inside the pack, but customers recognise and buy the pack without checking its weight each time they buy.

What is particularly offensive in this example is that it is the company’s most loyal customers who are being cheated. The company reduces the pack’s quantity but not its price; they are getting a price increase without informing their customers. That isn’t customer centric.

Value

Customer centric companies price on value not costAnother area that often suffers from exaggerated claims is price value. I was recently offered access online to a video “worth more than US$ 997” for just US$49.99. I don’t know any videos, even those of the classics or Oscar-winning films, that are worth that amount, and certainly no such offers proposed on the internet. Continue Reading

How Great Customer Service Leads to Great Customer Loyalty (And That’s What We All Want!)

Last week I wrote about some of the issues keeping marketers up at night and offered some suggested actions for each. Do you know what they are? Are you too worried about them?

The number one challenge faced by marketers today is reaching their customers, which may come as a surprise in this multi-channel, always on, environment we live in. However, once you have reached them and convinced them to buy, you still have the, perhaps even tougher, challenge of keeping them.

With so much on offer and the desire for novelty constantly growing, customer loyalty is declining. In fact, according to Bain & Co and Kantar Worldpanel’ 2012 survey mentioned, 50% of a brand’s ‘loyal’ users today will not be with them one year from now. 

Therefore, to follow on from last week’s post, I want to review what makes good customer service, since I believe it is one of the few ways of both building and keeping loyalty, as well as getting that vital advocacy that can grow your customer base even further. And I don’t seem to be alone in this belief.

Steven Van Belleghem wrote a great post on “Why customer loyalty is declining and what companies can do about it in which he shares his views on why this is so and what companies should do about it. His three solutions were:

1.      Treating customers well

2.      Treating employees well

3.      Doing good for society

So, assuming we accept (at least) his first solution, what do you need to do to treat customers really well? Here are a few thoughts from my side, but feel free to add your own ideas below:

#1. Really value the customer

When I was younger I was very house proud, but these days I prefer surfing to dusting! That is one of the reasons why I have a Dyson vacuum cleaner; it gets the job done more easily and speedily and without too much mess or effort. You can therefore understand my frustration when the turbo brush stopped working. This was the second time in four years that this piece had ceased to function properly; the first time I was told that the newly introduced guarantee didn’t apply to me as I had bought my cleaner before its introduction! I therefore found myself paying a hefty price to replace the brush head.

Imagine my surprise therefore when I called Dyson this week and was told that as I had already bought a replacement brush before, this new one was going to be offered to me for free, in appreciation of my loyalty! Talk about being surprised AND delighted. The two-week delay for its delivery, which could have frustrated me, suddenly was no longer an issue; I’ll make do for now.

Dyson understands their customers. They turned a problem – being out-of-stock – into an opportunity to reinforce my loyalty. They clearly value my custom AND my patience and are happy to pay the (small) price in exchange for my continued loyalty. Continue Reading

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