Delta did it again! Today, they asked for 11 “volumteers”! Do I smell a pattern?…

August 13th original entry:

I’m flying back to Detroit from Chicago Midway friday late afternoon. First the incoming flight is delayed by 20 minutes. Then the gate agent announces that due to weight restrictions, she needs 14 (fourteen!!!) people to volunteer to get off this flight and take their chances (good luck finding another flight to Detroit on a Friday night!) That’s 14 passengers out of a total of 50 – the number of seats on this Canadair! How can that be? Did Delta get a deal for carrying cargo that it  could not refuse? Unbelievably so, 14 people do accept to take another flight.

Now we’re on board – about 1.5 hour late already. Guess what? We still need to get rid of 1 passenger! Takes 20 minutes for someone to agree to it. Then we’re told the fire extinguisher in the cargo area is not working and all luggage needs to get off the plane (there’s basically no room for carry-ons on this small plane). So here’s my choice: Stay on the plane knowing my luggage won’t come with me, or rejoin my luggage but find a different flight! At that point, it is 7 PM in Chicago: I’m not leaving this plane!

We arrive 3.5 hours late in Detroit. I go straight to the Luggage Service desk where I wait for 40 minutes in sweltering conditions; I’m finally told my luggage is on Carousel #6 – can that be? Well, of course, it’s not there; I check all the other carousels – nothing in sight. I go back (reluctantly) to the Luggage Service desk, where the line is even longer than it was earlier. I try to signal the guy who gave me the wrong information, while everyone in line is giving me the mean eye because they think I’m trying to cut in front of them. Then I see another passenger who was on the same flight I was – she’s being told our luggage is still in Chicago! At that point (10 PM), I decide to go home, assuming Delta will send my luggage to our home on Saturday. I mean, why wouldn’t they, right?

Wrong! After three calls to Delta on Saturday, I am told I need to go to the airport and collect my luggage because I did not stop by the Luggage Service desk and get a claim ticket. No claim ticket, no delivery! I’m told I did not “fulfill my obligations by not going back (for a second time) to the Luggage Service desk”, even though I had already gone there once (I figure that takes care of MY obligation). I argue that Delta did not fulfill ITS obligations when they gave me the wrong information, but to no avail. Maybe I should have pulled a Steven Slater moment…

So guess how I spent my Saturday night? Driving to and from the airport, thanks to Delta Airlines.

Now, let me ask you  this: Do you think Delta Airlines care about its customers’ experience with the airline? If I ever needed a reason to consider other airlines when I fly from Detroit, they sure gave me one!

And who’s to blame? The World Cup? BP? Harrison Ford wedding Calista Flockhart?

The contrast was not so much about what these companies have done or failed to do, but rather in the outcome of their debacles.

The Tale Of Two Brands

Check out these two headlines:

-        “Toyota maintaining customer loyalty despite recalls” – http://tinyurl.com/2wlrmkk

-        “Why the BP oil spill surpasses the limits of loyalty” – http://tinyurl.com/27afhgd

In short, these articles (completely unrelated to one another) go on to say how Toyota has managed to maintain its leadership position in Customer Loyalty[1] in Q1/10, while BP has dropped from first to – gulp! – last, also in Customer Loyalty[2].

To be truthful, both companies shared bad news in terms of market performance, with Toyota reporting a significant decrease in market share (from 13.9% last year, to 12.8% in Q1 2010), while BP’s stock market value had reportedly plunged by a “paltry” $25 billion since the oil rig began its own descent toward the bottom…of the Gulf of Mexico.

Why The Contrast?

Each article provides valuable insights as to what is going on. For instance, Toyota has managed to maintain repeat purchases from its customers by offering incentives such as zero-percent financing and special lease deals – essentially, “buying” loyalty, something very unusual for the #1 automaker.

On the other hand, the oil spill is in a direct blow to BP’s positioning as the greenest among all oil companies. Clearly, the company had stayed away from any advertising that would protect or even pretend to restore its image (unlike Toyota, reminding its customers that it was dedicated to fixing the issues with its vehicles) – probably a good thing, given oil companies’ previous mishandling of similar catastrophes.

Not The Same “Loyalty”

As is often the case, headlines fail to tell the full story. Certainly they can grab readers’ attention – after all, that’s what they’re made for. But these simplistic summaries can also leave the reader confused and, in this case, wondering how two similar disasters can lead to such different outcomes.

In this instance, the explanation lies mostly in that the word “Loyalty” represents two “outcomes” of the customer experience that are very distinct. In the case of Toyota, “loyalty” is defined as the percent of vehicle buyers who traded in a Toyota to purchase another Toyota. In other words, this is an objective and factual measure of customers’ actual behavior, which itself is the outcome of emotional and rational elements (experiences) – including never-seen-before attractive rebates. 

For BP, the “Loyalty Index” is a combination of measures (survey questions) focusing on the brand – a mixture of emotions and beliefs about the brand’s various attributes. In my mind, the term “loyalty” is misused in this instance; something like “Brand Perception” or “Brand Value” would be more accurate.

Customer Loyalty, Brand Loyalty, Customer Satisfaction, Customer Engagement Loyalty Index, Word Of Mouth… Which One Is Right For You?

Semantics aside, it is clear that one cannot gauge the impact of the public relations nightmare encountered by BP and Toyota on their sales and overall financial performance, including stock price, by simply reading the headlines of these two articles.

What those articles clearly demonstrate is the need for organizations to properly identify and track the metrics that are relevant to their objectives and market conditions. When you think about it, how “engaged” are you when it comes to filling up your car? Certainly, in such a commoditized market, adopting a clear and distinct positioning (in part through a strong and unique brand) is one way to get it done. But does the key to success for BP, Shell, Amoco, Marathon, and others really lie in the concept of Customer Engagement?

The Difference Between What Sounds Good And What Makes (Business) Sense

In my dealing with clients, I have found too many times that senior management tended to focus on what “sounded good” (usually because it was easy to understand, cheap to implement, and simple to report) rather than on what was relevant – the latter typically requiring additional resources and brain power. But who said that success comes easily?

So the next time you analyze the customer metrics you track for your organization, particularly if they don’t align with other performance measures, ask yourself: Why did we choose this metric, and how long ago? How do I know it’s the “right” metric? Does it measure something different than what we’re calling it? You might be surprised.

[2] As measured by Brand Keys’ Customer Engagement Loyalty Index

The (Friendly?) Skies Are Failing

Sounds familiar? If you don’t know what I mean, look no further than last week’s major disruption in air travel caused by the eruption of Iceland’s Eyjafjjoell volcano: Not only did it create a logistical and financial nightmare for the airlines, it also put considerable pressure on agents within their contact centers as well as those responsible for website contents. Mostly, it presented the airlines with the formidable challenge to quickly develop and adopt a communications strategy where they needed to show the upmost empathy and understanding, while being kept totally powerless by a combination of outside forces comprising airport authorities, air space administrations, governmental transportation agencies, a multitude of oh-so-ever-excited volcanologists, and… the untamed (and untamable) volcano gods who had decided to unleash their fury in the otherwise blue skies of Western and Northern Europe.

When Instant Communications Are Not All That Useful

In today’s era of instantaneous updates and immediate access to information, which typically deliver a definite sense of certainty and relief, the level of powerlessness and helplessness was astounding – and a formidable reminder of how vulnerable we (the humankind) remain when Mother Nature decides to take things in her own hands.

To a great extent, the situation was made worse by the constant inflow of contradicting news; depending on the time of day and the source of the information, hopeful passengers would hear encouraging or disheartening news – sometimes both, within minutes. Indeed, most of the parties involved had very different agendas, even while all claiming that passenger safety was their number one priority. But airlines wanted to fly their planes and stop the (financial) bleeding; government were trying to avoid being held accountable for potential human disasters; volcanologists were having the time of their life and didn’t want it to stop; and some airports were facing huge crowds growing tired and weary, which is never a good thing.

Who Can I Turn To?

So when so many parties involved, and you’re the customer, where do you get your information? And if you’re the ultimate provider (the one with which the customer has a contractual relationship) but have no control over the situation, what do you say?

As a customer, I was in that situation last week; my wife had gone to England to visit her family, and she was scheduled to return to the US from Heathrow on Wednesday. On Saturday, we started joking that she might need to stay in the UK a little longer than expected. But as the weekend went on and news on Monday was not particularly encouraging, our joking turned into worrying, and we started gathering any information we could put our hands (and ears) on. We began calling – calls to Delta in the US, to Delta in the UK, and to Heathrow airport; we also visited any website that might contain reliable and up-to-date information, and started monitoring news channels, which were all over THE big story.

How Too Much Information Can Turn Into No Information

Yes, information was abundant – but at the same time, completely useless! In a nutshell, no one knew anything – or if they did provide what seemed to be a relevant piece of news, it was quickly contradicted by the next source of information. For instance, on Monday the British Minister of Transportation announced all signs were that the airports would soon be reopening, while pretty much at the same time, volcanologists were predicting that Eyjafjjoell was about to release a second and potentially more potent ash cloud. What was I to make with these two pieces of information?

Who Said “We Know What We Know And We Know What We Don’t Know, But We Also Don’t Know What We Don’t Know”?

The most “helpful” piece of information I received was also the most “basic” – as in “let’s stop pretending we know anything and admit that we don’t know what’s going on”. It happened when I called the Delta Airlines customer service number on Monday night and the Delta agent told me “I honestly don’t know what’s going on and you probably know as much as I do. I’m sorry, but I’d be misleading you if I said otherwise”. Now, I’m not sure if this was a corporate line or the result of an individual’s initiative, but at least, it felt “refreshing”. No, this wasn’t going to help much, but at least, I wasn’t given information for the sake of giving me information that would later prove to be erroneous.

Customers To Providers: “Just Tell It To Me Like It Is”

The recent Toyota debacle provides the best example of what happens when you don’t give it straight to your customers. Ignore the problem or pretend it doesn’t exist, and it will come back with a vengeance. Tell them you’re on top of it and it’s all been fixed when, really, you still don’t know what the problem is, and the world will quickly find out how much you can be trusted. At least, with the most recent recall of the Lexus GX 460, Toyota showed it had learned its lesson by halting the sale of that vehicle pretty much the minute the Consumer Reports “don’t buy” notice came out.

“Houston, We’ve Had A Problem”

The last thing Jim Lovell and Jack Swigert wanted to do was tell Houston “we’ve had a problem” and thereby cancel the mission that otherwise would have taken them to the moon. They did not know what nor how serious the problem was at that time but chose to tell it straight and stick to what they knew – nothing more, nothing less. It happened 40 years ago this month – an anniversary that should serve as a reminder that, in some instances, telling it like it is to your customers (even if it means that – gulp! – you can’t help them in the short term) usually provides the best outcome in the long-term.

Not Your Middle Of The Road All-Inclusive

“What? No hot tub? No all-you-can-eat buffet 24/7? What’s that 26” box hanging from the ceiling in the very far corner of the room? And now you’re asking me to be part of the show?” When I told the kids we were going to an all-inclusive resort, they were thinking “Cancun all-over-again” – or a typical all-inclusive destination, where farniente, food (including drinks), and late-night socializing are the main activities. And while Club Med was the first company to introduce the all-inclusive concept in the early 1960’s (bet you didn’t know that – I didn’t!), the experience it delivers to its GMs (Gentils Membres) centers around the one ingredient most other resorts often cannot deliver: genuine and authentic fun.

Being Part of the Experience, As Opposed to Simply Living It

It was quite a surprise to our kids when they found out that they would be part of some of the evening activities – not as spectators, but as “actors”. Similarly they did not expect to be actively recruited for participating in circus activities, archery, “Olympic games” Club Med style, dodge ball game, and scavenger hunt – and would have the best time doing so. Or that we would regularly share our lunch or dinner table with one of the GOs (Gentils Organisateurs – meaning, the staff), as well as shake hands and talk with the CDV (Chef De Village – the resort’s manager). In the end, we all felt like we were part of “one big family” and that we too had a role to play in making this a positive experience – as opposed to passively be on the receiving end of it. And that made it all the more fun!

Meddling With The GOs

Interaction between GMs (customers) and GOs (service providers) is actually at the very heart of the Club Med experience – probably the best illustration of the Service-Profit Chain in action. In fact, in the early days of Club Med, the line between social interaction and, say, promiscuity was probably more blurry than it is today – and often was a “trademark” and the topic of many jokes about the Club Med Experience (best depicted in “Les Bronzés”, a movie which turned out to be a launching pad for many of its actors). While an extreme rendering of the Service-Profit Chain concept, it makes a very strong case (if ever it was needed) that taking care of your employees will result in a more pleasant and fulfilling customer experience.

So What Motivates GOs?

Several of the GOs I spoke with told me the pay (reportedly $2 an hour, plus free food and lodging) was not why you decided to work at Club Med (where the minimal commitment is six months), nor was it what kept you motivated to do a good job. (Contrary to common belief, the fact that compensation is NOT what drives Employee Satisfaction [motivation] is actually quite consistent with the findings of many studies on the topic.)  Rather, the critical elements were, in no particular order: Getting a great experience that will significantly enhance one’s resume; Having fun; Acquiring solid people (customer service) skills; Getting along with co-workers; and the personality of the CDV. If you operate in a service-oriented industry, such as retail, how high do you think those five elements rate in the mind of your staff?

An All-Encompassing, Seamless Customer Experience

What I found most comforting from our vacation with Club Med is that from Day one (and by Day one, I mean when I spoke with an agent about our reservation), I felt that I was going through one continuous and consistent experience – one where the dots were actually connected and where the various actors understood that the interaction they had with me was part of a larger “engagement”. Contrast that with the automotive industry, where the dealer where you buy your car will be quick to point out that he/she doesn’t work for GM or Ford, and therefore couldn’t care less about your problem. Or the wireless network that emphatically promotes a phone that’s made by another company to get you as a customer, but promptly dismisses your concerns when the phone is not working properly. “Hey, we didn’t make that gizmo, we only sell it!”

Thankfully, an increasing number of companies are implementing a Customer Experience function – realizing that it’s time to provide consistency across the various touch points and to deliver a seamless experience to their customers. How, the question is: Does your company do that?

A Point In Case: The Toyota Debacle

Talk about not delivering what you promised! Imagine owning a car that has a mind of its own and decides to take off when you expect it the least – and not knowing how to stop it: Not exactly what you signed up for, is it? If you owned a Camry or Prius today, and Toyota came to you and said “We can either fix your car and tell you how much we love you, or we can give you $2,000 off your next car”, how likely would you be to take the money? Hey, if you take the money, you may not even be around when it will time to buy a new car…

Customer Satisfaction Is What Keeps Customers Around…

That example is a bit extreme, but you get the point. Once a shopper has made his/her purchase decision, he/she has expectations regarding the product or service in terms of its performance, reliability, dependability, customer service, and interaction with the provider’s staff. This is where things can go wrong – where performance can deviate from expectations. But price? Price is a known entity – you generally know up-front how much the product or service is going to cost you. For a car, it’s easy: It shows right there on the back left window – well, at least until your salesperson talks to his/her manager. But in the end, you agree on a price and the deal is done. So price is not what’s going to keep your customers happy. In the case of a car, it’s much more likely going to be about performance, reliability, and your experience at the dealership.

…While Customer Value Is What Attracted Them

Price, on the other hand, is typically quite relevant when prospective customers are weighing the quality versus price ratio – what is often referred to as “Customer Value”. It’s also referred to as the “utility function”, where the shopper assesses the benefits (rewards) he/she will get to enjoy from the product or service in relation to what it’s going to cost. “Is this car worth what I’m about to pay for it? Can I even afford it?” These indeed are questions directly related to cost, and depending on how price sensitive the buyer is (and let’s face it, 95% of shoppers are somewhat price sensitive – only the very rich are not), the cost element will play a significant role in the final decision.

Customer Value and Customer Satisfaction Are Both Needed to Gain Market Share

Proponents of the Customer Value concept have long argued that Customer Value is what drives market share, but they are wrong. Certainly, Customer Value has a lot do with adding new customers – a vital element of the market share battle. But what good is it to attract customers if you can’t keep them? Your company will only increase market share to the extent that it is able to attract and retain customers; and for the latter, you need to deliver on performance and Satisfaction.

Focusing On Acquisition As Opposed to Retention Is A Losing Proposition

It is also a well-known fact that acquiring and churning customers in droves is not a financially-viable proposition, since it is a generally-accepted fact that the cost of acquiring a new customer is five times that of retaining one. Besides, no market is limitless, and companies who lose a large percentage of customers will eventually run out of new preys. So applying the principle stated in the press release – in essence, earn rather than buy your customers’ loyalty – remains the best road to long-term success.

Just Like Tiger And John

This series of announcement reminds me of the Tiger Woods and John Edwards sagas, where both “celebs” failed to come out proactively and openly about their respective problems, and rather let speculations become rampant and more outrageous as time went on. At least the Tiger Woods story was relatively short-lived (3 months) compared to the one-and-a-half-year-John-Edwards-mistress-and-out-of-wedlock-child saga. But the resemblance between the three events is nothing short of eerie:

1. None of the parties were forthcoming and tried to hold back information as long as they could;
2. Instead, the media played a huge role in getting the news out, demanding/forcing a comment or reaction;
3. All have had to engage into reactive damage control, as opposed to proactively manage the process (let’s face it, the outcome is going to be negative no matter what you do, but wouldn’t you want to minimize the downside?)
4. All have had to endure the succession of negative news and dire announcements (Edwards months apart, Tiger Woods weeks apart, and Toyota days apart, if not hours); this means that rather than take one big blow and start climbing back up the hill in one long, arduous effort, they go down twice the distance they had gained back since the last announcement each time an “update” is provided – digging an ever deeper hole for themselves;
5. Finally, they are all left contemplating huge loses in their “customer” base – be they sponsors (Tiger), voters (John Edwards can kiss his political career goodbye), and car buyers (Toyota).

Tragic But Also Comical

It is tragic, but also somewhat comical to see companies, politicians, and celebrities of all venues time and again commit the same mistake – deny their “customers” the right to “the simple truth”.

It is tragic, because no one wins from such denials, semi-truths, and convoluted press releases. The “perpetrator” ends up in a much worse position because of the repeated and contradicting news, resulting in a total loss of credibility; and the customer, who is denied the correct information (so vital to the well-being of a market economy, based on the access to objective and unbiased data), can no longer make an informed “purchase” decision.

It is comical too, because you would think that at some point, people would learn from the mistakes made by others before them. And yet, one after the other they fall into the same trap – regardless of their intellect (which is usually pretty high, even though celebrity status does not correlate with IQ anymore than the record of the Detroit Lions correlates with their ranking in the NFL draft).

The Gist Of It? Don’t Treat Your Customers As If They’re Stupid!

Customer Satisfaction research abounds, that shows that when you are experiencing a problem and you need to inform your customers, two things must happen for your company to come out of it “unharmed”: (1) You must communicate with them quickly (and truthfully), and (2), you must fix the problem as quickly as possible (before it negatively impacts your customers). At the other end of the scale, the worst thing a company can do is take forever to inform its customers AND not fix the problem – which is exactly what Tiger, John, and Toyota have done.

Resolving the issue right away (say, within a day) is often unlikely. So what’s the next best approach? Research shows that customers are not stupid and have reasonable expectations. This means first and foremost that they are willing to forgive your lack of performance (to some extent) if you inform them regularly (say, once or twice a week) AND truthfully, rather than communicate twice a day but with the wrong or contradicting information. In other words, don’t take your customers for a ride and promise something that you cannot deliver. Rather tell it like it is: It’s that simple!

The Wall Street Journal calls it a “Total Recall”, the Detroit Free Press “Toyota’s Shocker”. No matter how you look at it, it is a real stunner – the first real big blow in Toyota’s quest not only to reach but to keep its #1 position in the automotive world. And yet, in the first real test of its character since taking over General Motors and Ford in market share, Toyota is showing the automotive world (and beyond) what it takes to be a leader by doing the unthinkable: Halting sales in what is expecting to be a rebounding market.

Who Will Benefit?

There’s no doubt that the next weeks or months (depending on how long Toyota needs to suspend sales) may have a deep effect on its sales volume. While it’s possible that some of the potential Camry buyers will turn to one of the more luxurious models offered under the Lexus brand, many may decide to give other brands a try – particularly Ford and GM, who have been spending many advertising dollars on reestablishing themselves as high quality and even higher value brands. Hyundai will be on the lookout as well – not to mention Honda and Nissan. In fact, at this time, any auto manufacturer known for quality and reliability, particularly in the midsize segment, is looking at a one-time opportunity to lure customers away from Toyoda.

Testing The Power Of Customer Loyalty

However, one should not underestimate the power of Customer Loyalty. It’s a well-known fact that Toyota enjoys one of the highest retention rates in the industry – if not the highest – and has built an incredible amount of goodwill among its customers. This alone should buy some time for the #1 brand, at least among its current customer base – many of which are on their third or fourth Toyota model. Plus, I would not be surprised if Toyota offered some type of deals to its existing customers (such as lease extensions to current lessees) while they sort out their issues and are again able to fill up the showrooms.  

Toyota has also generally worked hard (and successfully) at establishing itself as an important part of the communities where it has built plants and offices. If the same issue had happened 20 years ago, when Toyota was in the midst of building its brand and reputation, the auto maker would have been at much greater risk than it is today.

Will Competitors Know How To Make The Most Of This Opportunity?

Still, this represents a great opportunity for Toyota’s competitors to attract unexpected prospects into their showrooms. But will they know how to make the most of it? Some of the sales staff will probably have a hard time resisting the temptation of bashing Toyota; yet they should realize that in most cases, it will be counter-productive, as people visiting showrooms need and want to hear about the positive experience resulting from their next car purchase – rather than “what can go wrong”. So unless the shopper brings it up, salespeople will need to stay away from the safety issue affecting Toyota, and instead focus on the innovative features, design improvements, and (let’s not forget) incredible mileage of the vehicle standing in front of them.

Accepting Short-Term Losses To Ensure Long-Term Success

However “shocking” today’s announcement might appear to some, it is clear there is little else that Toyota could have done to preserve its long-term performance and success. Certainly, it takes a certain amount of guts to halt sales of your most popular and profitable products – not only losing sales in the process, but giving your competitors the opportunity to steal customers. But it is the right price to pay for a company that is focusing on long-term success rather than meeting quarterly financial goals. In fact, I wouldn’t be surprised if a few years from now, this “crisis” was taught as a case study in Business Schools – just like Johnson & Johnson’s handling of the 1982 Tylenol “murders”.

Time For Good PR Management

Tracking new car sales and market share over the next couple of months will be one of the best real-life “tests” of Customer and Brand Loyalty. Chances are that the impact for Toyota will be fairly minimal, but for that to be the case, two things needs to happen: 1) Obviously, they will need resolve the sudden acceleration problem within a reasonable time frame, and 2), the Toyota PR team will need to provide timely, accurate, and realistic updates and communications, rather than let the media (and competitors) do it for them. Hopefully, someone in the Toyota PR department has learned from the Tiger debacle…

An Ugly Trap…

So I went online – typed a pretty lengthy url, went through a series of four or five screens and provided all kind of information (address, customer number, etc.) to register – only to realize I was dealing with a third-party (not a huge surprise in itself) and that on the very last screen, I was informed that I would be charged a $5.25 “convenience fee” for the transaction. Yikes! Looks like someone has studied Ticketmaster’s practices up close and found an easy way to make money on the back of its customers!

…And A Bad Calculation

Needless to say, I backtracked as fast as I could, cancelled everything, and wrote a check that I will mail as late as I can (as opposed to make the payment two weeks early and be done with it). So what did the utility company gain in the end? Obviously, nothing. I’m mad at them for not revealing up front that there would be a cost associated with my online payment; and now they will have to incur the cost of having someone manually open my envelope and enter the payment. Not a huge cost, I’m sure – unless you multiply that by the number of households in my city (say, 100,000!) And my last-minute payment via the US Postal Service will also have a  negative impact on the company’s cash flow.

The Good, The Bad, And The Web!

Broad access to the web has certainly made life easier for the consumer, and opened the door for opportunities that the average Joe could hardly have thought of even just five years ago. Overall it means more choices, and more choices is good – it means that the consumer is more likely to find something that he/she likes, as opposed to go for the one option that’s available. That’s good. 

Unfortunately there’s also a lot of “bad” too: Things like retailers taking advantage of their online customers and signing them up for so-called “Loyalty” or “Preferred Customers” programs for a monthly fee that they’re typically unaware of (http://www.ripoffreport.com/credit-card-fraud/lillian-vernon-lilli/lillian-vernon-lillian-vernon-d4788.htm). Or how about coffee shops, airports, and hotels charging up to $25 a day to customers who want to surf the web while on their premises?

Thankfully it is becoming common practice for such venues to offer free web access (thank you Panera!); and if the market economy works like it should, those who don’t provide free internet access will either be forced to change their ways or lose so many customers that they’ll have to reinvent themselves. Yes, that’s how powerful the web has become!

A New Landscape

The automotive landscape in 2010 will be much different than what it was only five years ago. General Motors will soon have shed half of its brands; Chrysler has traded a German owner for an Italian; Toyota is now accepted as the #1 manufacturer worldwide; Kia/Hyundai is gaining market share as quickly at the Arizona Cardinals and Green Bay Packers were trading touchdowns in their wild card game this weekend; and well-known brands such as Saab and Pontiac are about to disappear for good. The US market is now all about higher gas mileage (although for how long?) and hybrid vehicles, smaller cars, and a trimmed-down dealer network that may require potential buyers to drive for than 10 miles to get to the nearest dealership. So with so many changes taking place, why not make the most of this opportunity and adopt 21st century customer feedback methods?

Here’s a suggestion to all automakers – domestic, Europeans, and Asians: STOP IRRITATING YOUR CUSTOMERS WITH BOGUS SURVEYS AND GET SERIOUS ABOUT CUSTOMER SATISFACTION!!!

Honestly, how willing are you to fill out another survey that will directly and irremediably affect the salesman/saleswoman’s ability to feed his/her children next week or send them to college? How many more times are you willing to be told “Let me show you how to give me the best score possible on all the questions, while we give your car a free wash” and oblige to the request? And how often have you sat at a dinner table where one of your friends was recounting that ridiculous exchange with the dealer staff?

Garbage In, Garbage Out 

Everyone knows these “surveys” are a joke – and a bad one, at that; they are a disgrace to the concept of Customer Satisfaction (let’s call them what they are!), and often end up negatively impacting the consumer’s experience. And they yield data (and therefore results) that are flawed, unreliable, and useless – providing the best illustration for the “garbage in, garbage out” adage. In other words, they provide no value whatsoever – but you can bet they cost a bundle to administer and “analyze”.

Time for Change…

The way I see it, there’s never been a better time for carmakers to do away with the old and start afresh with their Customer Satisfaction (or Ownership Experience) measurement programs. Consumers are sick and tired of the pressure put on them while at the store; dealers should be receptive to a positive change, as a more reliable and accurate measurement would truly separate good ones from bad ones; and automotive manufacturers have (finally!) come to realize that rebates, employee-pricing, and seasonal discounts are far from providing a viable long-term solution.

…EARN, Don’t Buy Customer Satisfaction and Brand Loyalty!

The alternative? Implement customer metrics programs that will deliver valid, pertinent, and objective consumer insights which, in turn, will allow manufacturers to improve the Ownership Experience, Customer Satisfaction, and Brand Loyalty. After all, can you think of a better way to get customers to come back (without the use of rebates), gain market share, and remain profitable? Unless you think another government bailout is in the works – but you’d probably be the only one to think so!