Oct 4, 2011 | Communication, Customers, Marketing, Sales
Dave Winer, one of the earliest bloggers, prolific web publisher, and a key developer of the RSS technology so many of us use daily, has made many pithy statements worth remembering, but I was reminded of one over the weekend as the silly GASP customer complaint “thingie” went viral.
Dave opined “if you don’t want me to slag off at your product, don’t have a shit product”. A retailer sells goods, but the service is a part of the offering to customers, so irrespective of weather or not a purchase is made, it is in the retailers interests to have them leave with a smile on their face.
The dresses at Gasp may be worn by so called stars, but the failure by the self proclaimed sales superstar to recognise that individuals can now extract a substantial revenge for poor service via social media should ensure his superstardom is exercised elsewhere, perhaps serving petrol at the local Woolies where he cannot do much damage to his employers brand.
Sep 16, 2011 | Customers, Management, Sales, Small business
SME’s in the Australian food industry are up against it if they see their futures as suppliers to the major chains, who require a combination of utter commitment, globally competitive costs, and supply certainty requiring substantial scale and the attendant capital base.
Added to all that, small business has it all in front of them in any stoush with a large corporation. Metcash, the nations largest wholesaler, and effectively the third force in Australian FMCG via its supply arrangements with independent retailers seems to relish a fight.
They chose to fight Andrew Bunn, a small retailer in Canberra who went to the wall, and then accused Metcash of breaking their supply contract. The blue Metcash then picked with the ACCC over their proposed purchase of Franklins has been entertaining. Metcash informed the ACCC they would go ahead with their purchase of the Franklins chain from Pick n Pay before the ACCC delivered its decision, ballsy call, justified as the Federal Court gave them the go-ahead, but the ACCC is now appealing the decision. Who knows what will happen next, but the ACCC must assert its power in the marketplace or become irrelevant, but whilst the legal stuff drags on Franklins is bleeding cash, virtually removing them from the scene as an ongoing concern, whoever owns them.
I’m sure there is more to come, but none of it matters much to the SME manufacturer facing a small number of retail gorillas who exercise their power ruthlessly, and without any empathy with their suppliers. The ghost of Eric Bender who inhabits the memory of the few of us still around who dealt with him, would shake his head in dismay, and take another drag.
Aug 11, 2011 | Customers, Lean, Sales
Last week I spent over 2 hours on the phone to Optus trying to fix something they had stuffed up, the third try, after speaking to their techies and emailing the bloke who “signed” a form letter to, thanking me for taking on the service they stuffed up. Annoying? no, bloody irritating, being shuffled around their departments, nobody taking any responsibility for the stuff-up, but reciting how important my call was to them.
With the emphasis on speed nowadays, how quick is the connection, how rapidly fulfillment happens, how quickly the email is answered, we are used to “quick” and when it does not happen, we get angry very quickly indeed.
Clearly Optus are cutting costs, employing people in their call centres who have no authority to fix a problem, or even suggest a solution, and anything not on the printed frequent question/appropriate response list gets shuffled elsewhere. They wasted a lot of time, across several departments, and I wasted a couple of hours, and need a new head gasket. No wonder these Telco’s have a lot of customer churn, how easy it would have been for the first person to whom I spoke to be allowed just a little bit of initiative and it would all have gone away in 5 minutes.
It may cost a little bit of money to enable staff to deal effectively with customers, but how much would be saved in time, customer churn reduction, and reducing the advertising and deals necessary to attract the annoyed customers of other Telco’s to come to them to replace those leaving?
This is a challenge for every organisation, as the speed of things increases, the expectation is the effectiveness of the response will increase at the same rate, and it doesn’t, so we get pissed, and everybody wastes time, effort, resources, energy and perhaps most importantly, hard won brand loyalty.
What a waste.
Jun 26, 2011 | Branding, Customers, Innovation, Marketing, Sales, Social Media, Strategy
The future of produce marketing in Australia is fraught with difficulties that many who just buy their produce in the supermarket will never think about.
The dominance of the chain supermarkets, lack of innovation, fragile investment outlook, environmental concerns, regulatory inconsistency and political blather in place of certainty coming from any philosophic foundation, an ageing workforce, trade barriers, the list goes on.
The report below was commissioned in an effort to put some framework around the marketing of produce in Australia, and to take lessons from what was happening elsewhere, and whilst it is a relative scratch at the surface, it highlights the challenges. Download it, and let me know what you think, what have I missed, where it could be improved. Its free to download, but I would appreciate you letting me know by commenting.
Embracing Innovative Marketing & Promotional Methods
Apr 3, 2011 | Communication, Customers, Sales, Small business
I’ve seen lots of customer service initiatives that promise “delivery by ……..” and no matter how quick that may be, there is still uncertainty about when it will be delivered, and customers will be anxious.
By contrast, “we will deliver at 3pm on the 25th” is very specific, and so long as you do deliver at the nominated time, every time, even if it is a few days longer than then quickest possible, customers just love the certainty.
Feb 2, 2011 | Communication, Customers, Management, Marketing, Sales
Opportunity cost is a concept well understood, and often used in a theoretical sense, but not often is it translated into something easily understood.
In a store just before Christmas, I was tossing up between two brands of domestic coffee machine, that appeared pretty similar in all but price, the better known brand being substantially more expensive. The sales assistant sensing my indecision, and perhaps thinking I might do more ‘research” and he would lose a sale solved the dilemma by asking, “would you rather have” X” brand, or “Y” brand and 20kg of coffee beans?”
That turned the theoretical “opportunity cost” although I had not considered it in these terms at the time, into something tangible that had a value relevant to the purchase, and made all the difference…… I took the “Y” brand machine and with the saving, bought some exotic coffee beans.
