Stop Driving Me To Your Competitors

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stupid business

You’re in business for one reason – to make money. There are many reasons you can be in business, but at the end of the day the key factor across all is making money.

Otherwise, you wouldn’t be in business at all – you’d be working at a business (though the reason would still be to make money). So, if you want to make money, why are you so determined to lose it by driving me to your competitors?

Why is your service and small print built so that when something happens, the first thing I want to do after speaking with you is to leave you?

The Rogers “Experience”

My business partner Troy has an Android with Canadian service provider Rogers. It’s the Samsung Galaxy S Captivate, and a pretty damn sweet phone (I have one myself – it’s a Bonsai thing).

Today, Troy dropped his phone and cracked the screen. So he calls Rogers and explains the situation, and how does he go about replacing it. Easy, is the reply – buy a new one. But at full retail price – $549.99 + tax, which equates to $621.49.

Troy replies he’s been a Rogers customer for years, and he understands he has to pay, but full retail price? Seems a bit harsh – can’t he get the new customer offer of $49.99 + tax? The simple answer – no, he has to pay full retail price, because the handset is still within the first 12 months of a three-year contract.

So let’s get this straight – Troy accepts he’ll have to pay, but as a loyal customer he doesn’t get any leeway? Instead, Rogers (by their actions) don’t care if he leaves, and would rather lose a customer than swallow the cost of a new handset? Which they’d recuperate in about three months’ worth of Troy’s usage?

Cool – Telus, one of Rogers’ competitors, is currently offering a deal where you can upgrade your handset at any time, no questions asked. Don’t like your handset – no worries, they’ll upgrade. So guess where Troy’s going later this week? And Bonsai are getting some new handsets this week as part of a new business account – guess which provider we’ll be going to?

In the meantime, Troy’s being well looked after by an independent called Techville, who’re fixing the phone for $130 and have given Troy a BlackBerry Bold loaner until his is fixed. Something Rogers couldn’t do…

The Tim Hortons “Experience”

It’s not just Rogers who don’t seem to know how to create a great customer experience (also known as building loyalty in your brand). Our intern Dan recently won a nice $100 in the Tim Hortons Roll Up The Rim promotion.

Roll Up The Rim To Win with Tim Hortons

Tim Hortons is a Canadian coffee chain and every year they have a promotion where you roll up the rim of your coffee cup to see if you’ve won a prize. Which is where Dan’s $100 comes in. But here’s the kicker – Dan has to mail in the rim, as well as two forms AND a skill question, to the Tim Hortons head office to claim his prize.

Tim’s will then send out a Tim Card to the value of $100 to Dan. Here’s where I get stumped, and wonder who the brains are behind this wonderful way to claim a prize.

Tim Hortons has a bunch of these Tim Cards in their stores. You simply choose the one you like, add money to it at the cash register, then you can buy coffee, donuts, sandwiches, etc, and use the card until it needs topped up again.

So why can’t Dan simply take his winning rim to a store and have it rung through the till and get his card there and then? Okay, there may be a security reason where Tim Hortons don’t want their employees possibly scamming the system (though that doesn’t say a lot for their trust in the employee to start with). But couldn’t a manager be responsible for both scanning and informing head office?

Additionally, how much extra are they paying for postage per card to send out?

It just seems like a backward way to say thank you for being a customer and puts me off wanting to even play the stupid game, if I have to go through hoops for one of the lower-end prizes.

The User Experience

It’s a fact that it’s cheaper and more effective to keep an existing customer happy than it is to market to a new one. You already have a warm lead; treat them right, and your customers suddenly become your marketers.

So why do brands continuously look to piss their customers off?

Are they really so vain that they feel they can lose the odd customer here and there, because they have millions more? Do they really feel they have us locked in because that’s how everyone is doing it?

Contrary to what brands might think, customers are becoming less tolerant and more savvy when it comes to getting the best deal – because the best deal is no longer enough. Now the user experience is key – get that wrong, and you begin to lose your grip. Big time.

So, Rogers and Tim Hortons, and others like you. Continue with your crappy service, and customer experience, and crazy hoops. It might keep you going in the short term. Heck, it might even keep you going in the medium term. But every business is a marathon, and you might just find that the stamina of your customers is beginning to fade.

Want to stay in the race? Start thinking like customers – surely that’s not too difficult to do. Is it?

image: Stacie Bee

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About Danny

Danny Brown is Chief Technologist at ArCompany, helping clients turn social media intelligence into business results. He’s the co-author of Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing, described as "the book that will change the way we do business today." He’s an award-winning marketer whose delivered results for organizations like Microsoft Canada, BlackBerry, FedEx, Ford Canada and LG Electronics, and his blog is recognized as the #1 marketing blog in the world by HubSpot.

249 comments
Small Business Planning
Small Business Planning

I agree with you Danny!Why don't the Business owners understands that its far too easier to serve your existing customer with the best services than to acquire new market segment.

Small Business Planning
Small Business Planning

I agree with you Danny!Why don't the Business owners understands that its far too easier to serve your existing customer with the best services than to acquire new market segment.

Tracey
Tracey

I had a similar experience with Shaw a few years back. My PVR died. It was about 6 months past its warranty. So I had to buy a new one. We asked if they had suggestions from the manufacturer to repair the current one? No. Did they have an equivalent new model available for purchase? No. I would have to upgrade to the new $700 model (original was around $350). I had been a high value customer about 10 years. So you can't help me repair the PVR or provide even a small credit towards a new one? No. What did they offer? 3 free pay-per-view movies. We are now with Telus TV. Actually ALL our services are now with Telus. (except for our wireless where we are currently stuck in contracts with Rogers... for now)

Oh and the broken PVR. We found a place to repair it, and then sold it on craigslist.

Tracey
Tracey

I had a similar experience with Shaw a few years back. My PVR died. It was about 6 months past its warranty. So I had to buy a new one. We asked if they had suggestions from the manufacturer to repair the current one? No. Did they have an equivalent new model available for purchase? No. I would have to upgrade to the new $700 model (original was around $350). I had been a high value customer about 10 years. So you can't help me repair the PVR or provide even a small credit towards a new one? No. What did they offer? 3 free pay-per-view movies. We are now with Telus TV. Actually ALL our services are now with Telus. (except for our wireless where we are currently stuck in contracts with Rogers... for now)

Oh and the broken PVR. We found a place to repair it, and then sold it on craigslist.

Danny
Danny

That's crazy, Tracey - 10 years of loyal customer spend, and they're willing to lose you for a fairly measly sum (to them).

I don't know - I really have to shake my head when I hear stories like this. Hope Telus is being nicer to you. ;-)

Tracey
Tracey

I'm generally a lazy customer. If it is easier to stay I will. But this one got my backside off the couch... fast. I know I'm a high value TV Addict customer. And they've spent at least the cost of a PVR in Direct Mail trying to lure me back.

Tracey
Tracey

I'm generally a lazy customer. If it is easier to stay I will. But this one got my backside off the couch... fast. I know I'm a high value TV Addict customer. And they've spent at least the cost of a PVR in Direct Mail trying to lure me back.

Tracey
Tracey

I had a similar experience with Shaw a few years back. My PVR died. It was about 6 months past its warranty. So I had to buy a new one. We asked if they had suggestions from the manufacturer to repair the current one? No. Did they have an equivalent new model available for purchase? No. I would have to upgrade to the new $700 model (original was around $350). I had been a high value customer about 10 years. So you can't help me repair the PVR or provide even a small credit towards a new one? No. What did they offer? 3 free pay-per-view movies. We are now with Telus TV. Actually ALL our services are now with Telus. (except for our wireless where we are currently stuck in contracts with Rogers... for now) Oh and the broken PVR. We found a place to repair it, and then sold it on craigslist.

Danny
Danny

That's crazy, Tracey - 10 years of loyal customer spend, and they're willing to lose you for a fairly measly sum (to them). I don't know - I really have to shake my head when I hear stories like this. Hope Telus is being nicer to you. ;-)

Tracey
Tracey

I'm generally a lazy customer. If it is easier to stay I will. But this one got my backside off the couch... fast. I know I'm a high value TV Addict customer. And they've spent at least the cost of a PVR in Direct Mail trying to lure me back.

MichiganDocuments
MichiganDocuments

We've tried to make customer service our number one priority. It's amazing how much companies will spend to get new customers...but do nothing to keep them once they get them. It just doesn't make sense.

MichiganDocuments
MichiganDocuments

We've tried to make customer service our number one priority. It's amazing how much companies will spend to get new customers...but do nothing to keep them once they get them. It just doesn't make sense.

Clemens Rettich
Clemens Rettich

It does if you are big enough and have the ability to lock people into contracts by attracting them through loss-tolerant incentives ("29.99 for your first 60 days!!!!!") and free hardware. You run actuarial tables for attrition and make your money by fleecing on volume alone. Ugly like a club and just as effective.

Danny
Danny

And the ironic thing is it costs far less to keep an existing customer happy than it does to buy a new one...

MichiganDocuments
MichiganDocuments

We've tried to make customer service our number one priority. It's amazing how much companies will spend to get new customers...but do nothing to keep them once they get them. It just doesn't make sense.

Clemens Rettich
Clemens Rettich

It does if you are big enough and have the ability to lock people into contracts by attracting them through loss-tolerant incentives ("29.99 for your first 60 days!!!!!") and free hardware. You run actuarial tables for attrition and make your money by fleecing on volume alone. Ugly like a club and just as effective.

Danny
Danny

And the ironic thing is it costs far less to keep an existing customer happy than it does to buy a new one...

Clemens Rettich
Clemens Rettich

Danny Brown nails it. And Rogers. And Tim Hortons. Me, I would add Shaw to the mix too. I have written before (http://www.smbfundamentals.com/customer-service/your-competitors-make-remarkable-customer-service-dead-easy) about how easy your competitors make it for you to appear to be remarkable, this must-read piece by Danny bangs that drum harder.

Danny
Danny

Hi there Clemens,

Thanks for dropping by, sir, and looks like you and Tracey below have had similar issues with Shaw. Is it a communications company thing? ;-)

Clemens Rettich
Clemens Rettich

It is a communications co thing. The muscle of large service providers (mobile/cable/telco/etc.) allows them to build a business model on pure acquisition with virtually no retention strategies at all. It generates a level of churn (only to some extent offset by 'contracts') that would kill smaller businesses. It's an ugly business model but they make it work.

Danny
Danny

I hear you.

I recall being part of the Business First team at BT in the UK around 10 years ago or so.

Our job was to reduce churn on the corporate accounts, and one of the things we highlighted was the treatment of existing customers compared to new.

Within 6 months we had turned that around and reduced churn by almost 80%. Funny how looking after your existing customer can make a difference, eh? ;-)

Clemens Rettich
Clemens Rettich

Danny Brown nails it. And Rogers. And Tim Hortons. Me, I would add Shaw to the mix too. I have written before (http://www.smbfundamentals.com/customer-service/your-competitors-make-remarkable-customer-service-dead-easy) about how easy your competitors make it for you to appear to be remarkable, this must-read piece by Danny bangs that drum harder.

Danny
Danny

Hi there Clemens, Thanks for dropping by, sir, and looks like you and Tracey below have had similar issues with Shaw. Is it a communications company thing? ;-)

Clemens Rettich
Clemens Rettich

It is a communications co thing. The muscle of large service providers (mobile/cable/telco/etc.) allows them to build a business model on pure acquisition with virtually no retention strategies at all. It generates a level of churn (only to some extent offset by 'contracts') that would kill smaller businesses. It's an ugly business model but they make it work.

Danny
Danny

I hear you. I recall being part of the Business First team at BT in the UK around 10 years ago or so. Our job was to reduce churn on the corporate accounts, and one of the things we highlighted was the treatment of existing customers compared to new. Within 6 months we had turned that around and reduced churn by almost 80%. Funny how looking after your existing customer can make a difference, eh? ;-)

Tim Jahn
Tim Jahn

Stories like this Rogers one always blow me away. Companies are so caught up in policies, rules, and standards, that they end up being just plain stupid.

Cough up a few hundred bucks to keep a customer that you'll steal that few hundred bucks from over a month or two anyway (and then quite some more). Or tell them to go screw themselves, you don't need'em anyway.

Oy. Posts like this want me to start ranting on my old timjahn.com/blog Danny. I think you're a lot better at it though, heh. Graphics, data, research. Love it. :)

Danny
Danny

Haha, I dunno mate, I miss your short bursts of common sense and business smarts.

Makes you wonder about a company's overall strategies when they're willing to lose more than they'd need to fork out...

Tim Jahn
Tim Jahn

Stories like this Rogers one always blow me away. Companies are so caught up in policies, rules, and standards, that they end up being just plain stupid. Cough up a few hundred bucks to keep a customer that you'll steal that few hundred bucks from over a month or two anyway (and then quite some more). Or tell them to go screw themselves, you don't need'em anyway. Oy. Posts like this want me to start ranting on my old timjahn.com/blog Danny. I think you're a lot better at it though, heh. Graphics, data, research. Love it. :)

Danny
Danny

Haha, I dunno mate, I miss your short bursts of common sense and business smarts. Makes you wonder about a company's overall strategies when they're willing to lose more than they'd need to fork out...

Joe Hackman
Joe Hackman

The sad thing is Danny, these experiences are so typical. The good news is it is creating opportunities for those willing to provide flexibility in their service. You can earn a tremendous amount of good will when you have the opportunity to deal with a customer in these kinds of situations.

Hope you are well, we'll have to schedule a podcast one of these days, topic of your choosing this time?

Joe

Danny
Danny

I think of how NameCheap (I think it was them) moved on the GoDaddy fiasco. Of course, GoDaddy wasn't so much a service issue as it was a moral one.

But the ideal remains the same - there will always be someone waiting with another option.

And always up for a chat, sir. Will think on ideas.

Danny
Danny

I think of how NameCheap (I think it was them) moved on the GoDaddy fiasco. Of course, GoDaddy wasn't so much a service issue as it was a moral one.

But the ideal remains the same - there will always be someone waiting with another option.

And always up for a chat, sir. Will think on ideas.

Joe Hackman
Joe Hackman

The sad thing is Danny, these experiences are so typical. The good news is it is creating opportunities for those willing to provide flexibility in their service. You can earn a tremendous amount of good will when you have the opportunity to deal with a customer in these kinds of situations. Hope you are well, we'll have to schedule a podcast one of these days, topic of your choosing this time? Joe

Danny
Danny

I think of how NameCheap (I think it was them) moved on the GoDaddy fiasco. Of course, GoDaddy wasn't so much a service issue as it was a moral one. But the ideal remains the same - there will always be someone waiting with another option. And always up for a chat, sir. Will think on ideas.

Marianne Worley
Marianne Worley

Isn't it frustrating when companies not only treat customers poorly, but then ignore the customer who makes an effort to repair the relationship? I wrote about two similar incidents recently--also in the telecommunications industry. It boggles the mind that these organizations aren't calculating customer value and making better decisions.

Danny
Danny

I'm beginning to think that the telecomms industry, one that should be at the forefront of communication by its very definition, is anything but communicative, Marianne... ;-)

Marianne Worley
Marianne Worley

Isn't it frustrating when companies not only treat customers poorly, but then ignore the customer who makes an effort to repair the relationship? I wrote about two similar incidents recently--also in the telecommunications industry. It boggles the mind that these organizations aren't calculating customer value and making better decisions.

Danny
Danny

I'm beginning to think that the telecomms industry, one that should be at the forefront of communication by its very definition, is anything but communicative, Marianne... ;-)

Davina K. Brewer
Davina K. Brewer

I'm with Gini and Mark, almost everyone on the FAIL, especially treating long-term customers like dirt. Loved Quinn's marketing one-night-stand, perfect analogy. The big companies know what a pain it'll be to switch numbers and emails, etc. so they know they got you.

It's not just about best price or best service anymore or the 'relationship' too. It's about value, meaning all of the above working together, offering something of value to me and being valued as a customer. If someone else can provide the same service at a comparable price but offer better value in terms of support, service, loyalty then that's who often wins my money. The Apple examples are good, because the value is there.. even if the wait at the Genius Bar gets a little long. ;-)

Mark Harai
Mark Harai

I like what you said Davina:

"It’s not just about best price or best service anymore or the ‘relationship’ too. It’s about value, meaning all of the above working together."

The social web has significantly raised the bar on the relationship aspect of this equation. Not having a social web strategy just took you out of the 'value' proposition, yes?

And I would say out of business in the not so distant future... It's not an option like so many still believe - it will soon become the standard for being in business, be it a local mom and pop or a multi-national.

Davina K. Brewer
Davina K. Brewer

IDK Mark. Bad customer service doesn't always send me to the 'social' spaces, depends on the issue. Sure my terrible experience with a dry cleaner had me panning them on Yelp, even using my blog to - like this post - show examples of what not to do. Yet I assure you it made no difference. Even being a little overpriced IMO, they are in the right location so that ease and convenience trumps all, has them doing just fine without my business. Not saying they're 'social proof' just that it may vary.

On relationships, here's a 'horse to water' thing. Yes I value relationships, I also value service, support, quality and my own money per what I perceive as a value proposition and my own tastes; I like what I like. My go-to example: I can develop a great relationship w/ a Dell blogger or Best Buy tweeter, or PC influencer and be totally led to those waters; at the end of the day, I'm still not drinking and buying a MAC, even w/ out a 'social relationship' with Apple.

I do believe in integration and it all working together, but there are always exceptions. FWIW.

Mark Harai
Mark Harai

The marketplace is competitive. Even in a local 5 mile radius, there are typically several choices for your dry cleaner, plumber, or beauty salon. Many of these don't even have a website. The social web isn't a website. It's mobile, location based with real time conversations and interactions that provides the opportunity for any business to increase exposure and engage with potential new customers. It's being able to connect before a customer ever walks through your door.

While I'm not a fan of Apple products, I may be persuaded to be one at some point. My business partner has never been a proponent of anything Apple and he just bought an iPhone and iPad. I've actually thought about switching to Apple products on more than one occasion. I just bought two lap tops, one HP and the other an ACER. However, if I was going to break down and buy a MAC, the first place I would go to get advice on where I should buy it would be from someone I have a great relationship with that can help with Apple products.

Thousands of people change their minds about MAC products everyday.

Just some more food for thought Davina - have a wonderful evening :)

Davina K. Brewer
Davina K. Brewer

I'm with Gini and Mark, almost everyone on the FAIL, especially treating long-term customers like dirt. Loved Quinn's marketing one-night-stand, perfect analogy. The big companies know what a pain it'll be to switch numbers and emails, etc. so they know they got you.

It's not just about best price or best service anymore or the 'relationship' too. It's about value, meaning all of the above working together, offering something of value to me and being valued as a customer. If someone else can provide the same service at a comparable price but offer better value in terms of support, service, loyalty then that's who often wins my money. The Apple examples are good, because the value is there.. even if the wait at the Genius Bar gets a little long. ;-)

Danny
Danny

I'm not even an Apple fan but I love what they do with the Genius Bar. From a customer experience and a brand loyalty point of view, it's... well, genius. ;-)

Mark Harai
Mark Harai

I like what you said Davina:

"It’s not just about best price or best service anymore or the ‘relationship’ too. It’s about value, meaning all of the above working together."

The social web has significantly raised the bar on the relationship aspect of this equation. Not having a social web strategy just took you out of the 'value' proposition, yes?

And I would say out of business in the not so distant future... It's not an option like so many still believe - it will soon become the standard for being in business, be it a local mom and pop or a multi-national.

Davina K. Brewer
Davina K. Brewer

IDK Mark. Bad customer service doesn't always send me to the 'social' spaces, depends on the issue. Sure my terrible experience with a dry cleaner had me panning them on Yelp, even using my blog to - like this post - show examples of what not to do. Yet I assure you it made no difference. Even being a little overpriced IMO, they are in the right location so that ease and convenience trumps all, has them doing just fine without my business. Not saying they're 'social proof' just that it may vary.

On relationships, here's a 'horse to water' thing. Yes I value relationships, I also value service, support, quality and my own money per what I perceive as a value proposition and my own tastes; I like what I like. My go-to example: I can develop a great relationship w/ a Dell blogger or Best Buy tweeter, or PC influencer and be totally led to those waters; at the end of the day, I'm still not drinking and buying a MAC, even w/ out a 'social relationship' with Apple.

I do believe in integration and it all working together, but there are always exceptions. FWIW.

Mark Harai
Mark Harai

The marketplace is competitive. Even in a local 5 mile radius, there are typically several choices for your dry cleaner, plumber, or beauty salon. Many of these don't even have a website. The social web isn't a website. It's mobile, location based with real time conversations and interactions that provides the opportunity for any business to increase exposure and engage with potential new customers. It's being able to connect before a customer ever walks through your door.

While I'm not a fan of Apple products, I may be persuaded to be one at some point. My business partner has never been a proponent of anything Apple and he just bought an iPhone and iPad. I've actually thought about switching to Apple products on more than one occasion. I just bought two lap tops, one HP and the other an ACER. However, if I was going to break down and buy a MAC, the first place I would go to get advice on where I should buy it would be from someone I have a great relationship with that can help with Apple products.

Thousands of people change their minds about MAC products everyday.

Just some more food for thought Davina - have a wonderful evening :)

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  1. [...] posted here: Stop Driving Me To Your Competitors comments: Closed tags: make-money, one-reason, reason, the-day, the-end, the-key, [...]

  2. [...] Stop Driving Me To Your Competitors originally appeared on Danny Brown | Social Media Marketing Blog – The Human Side of Media and the Social Side of Marketing under a Creative Commons license.   If you enjoyed this article, please consider sharing it! [...]

  3. [...] Earlier this week, Danny Brown rhetorically asked Why do brands continuously look to piss their customers off? in his timely and spot-on post, Stop Driving Me To Your Competitors. [...]

  4. [...] Brown is right.  2 days ago he wrote a post about brands that drive  customers away. Essentially saying/asking, why give your customers, the loyal one’s, a reason to leave. I [...]

  5. [...] Stop Driving Me To Your Competitors – Danny Brown [...]

  6. [...] Stop Driving Me To Your Competitors originally appeared on Danny Brown | Social Media Marketing Blog – The Human Side of Media and the Social Side of Marketing under a Creative Commons license. [...]

  7. [...] Stop Driving Me To Your Competitors originally appeared on Danny Brown | Social Media Marketing Blog – The Human Side of Media and the Social Side of Marketing under a Creative Commons license. [...]

  8. [...] Stop Driving Me To Your Competitors originally appeared on Danny Brown | Social Media Marketing Blog – The Human Side of Media and the Social Side of Marketing under a Creative Commons license. [...]

  9. [...] Apple builds their own stores, with support and service that are all a part of that brand story and to quote Danny Brown, the genius bars are well… genius. [...]


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