Tag Archives: Monopoly

Failing Grade for @BassettUS

Four years ago I made the mistake of purchasing a sofa from Bassett Furniture.  I didn’t know it was a mistake at the time, but I should have.  (Now, I’m kind of blue.)

Bassett Furniture makes me blue

Warning signs I should have considered:

  • No online customer feedback mechanism – Does the company offer online feedback mechanisms and transparency?  Bassett doesn’t and this omission should have spoken volumes to me.
  • Plenty of irate customers making their voices heard anyway – A simple internet search would have yielded many vocal consumers.  (1, 2, you get the idea.)
  • Remember you are buying the brand – In my case I shopped for a product.  Initially, I liked the product.  My perception of the brand is much different now.

Advice for Bassett Furniture:

  • Stop hiding behind your warranty – Instead, stand behind your products.  A company like Bazaarvoice can help provide tools to enable a feedback loop with the purpose of developing loyalty.  Companies that offer a way to communicate (good, bad, or indifferent) demonstrate their customer commitment.
  • Find SOME way to satisfy the customer – Fact: the product is poor.  I didn’t expect a full refund.  However, some financial acknowledgement would have gone a long way towards restoring a rapidly fragmenting relationship.  “Not our problem” may work in a monopoly, but it cannot survive in a competitive, transparent, and vocal marketplace.
  • Own the problem – Local store management, who knew otherwise, suggested I contact the warranty company and indicate that I’d only recently noticed the problem.  Helpful?  Dishonest?  You decide.  A company willing to treat its business partners without integrity is unlikely to treat customers otherwise.
  • Rename your “Customer Service” department – I suggest “Policy Enforcement” but only as the most expedient and honest course of action.  Guaranteed your employees would rather that you improve the products and services instead.

In the final analysis, Bassett Furniture gets failing grades in Product, Service, and Honesty.The pivot point is that Bassett would be better served by treating customer complaints as gifts.  From the looks of things, other customers have gifts for them too.

Before you go, please Tweet or post to Facebook or LinkedIn.  I made a mistake with Bassett Furniture… help ensure others don’t make the same mistake.

Customer Service Government Style – That Was Easy!

President Obama’s executive order to improve customer service across the federal government is political pabulum, but little else.  If it were that easy, it would have already been done.

Corporations across the world struggle with same issues, and have for some time.  For them, the drivers to improve service are:

  • Reduce Costs
  • Improve Revenues
  • Improve Satisfaction and Retention

But the government (acting as a monopoly) and federal employees have little incentive to change.  The government shouldn’t be improving revenues through services, though cutting costs would be welcome.

Improving customer service in the federal government will require sweeping changes across the government… changes for which political parties of all persuasions have shown little appetite.  If the government is intent on this path, here are some “must haves”:

  1. Eliminate Redundant Agencies – I wouldn’t use a politician’s view on “redundant” here.  Focus on the outcome, or intended benefit, the organization purports to deliver.
  2. Simplify Existing Processes – It is possible that such simplification may make things somewhat unfair for various special interest groups.  Err on the side of over-simplification… we can always re-create the processes if necessary.
  3. Train People – Do Steps 1 and 2 first, to help slim down the number of people to train, and the complexity of the training that must occur.
  4. Offer Meaningful Incentives – This notion will violate some unspoken rule of fairness since some will be compensated differently than others.  But find the incentive that will cause people to seek change, rather than avoid it.  The government of the world’s greatest free market economy has shown amazing resilience to operating by its maxims.

The pivot point is that change in customer service must span organizational boundaries; it can’t happen at a departmental level.

The Cost of a Negative Customer Experience

A friend of mine recently bought a new car.  In itself, this isn’t noteworthy since we all have friends who have bought new cars.  The interesting thing is the large difference in customer experience he had throughout the process.  (To protect the guilty, I’ve used generic names, but if you’re interested, write me a note directly and I’ll let you know who the offending Lexus dealer was.)

Dealer #1

  • Convenient and Nearby
  • Not Approached by Salesperson on Lot
  • Lengthy Delay (9 days) to Email Inquiry

Dealer #2

  • 3-Hour Drive to Lot
  • Immediate Email Response/Phone Call
  • Personalized Service

Lessons [yet to be] Learned by Dealer #1

  • Customers Have Choices – In this case the choice was to drive 3 hours each way for the promise of great service.  Unless your company delivers customer service in a monopoly, what your customers think and say matters!
  • Customers Value Service – Customers value different attributes of service.  Here a speedy reply using multiple avenues (phone, email) made a difference.  The tacit message the other dealer sent was “we don’t need you.”
  • Customers Vote with their Wallets – As I’ve written about previously, in the B2C arena, some customers will pay 25% more for better customer service.
  • Customers Talk – Word-of-mouth or referral sales are hugely powerful.  One study indicated that trust in a peer group increased from 20% in 2003 to 68% in 2006.  I heard the story and I guarantee others will too.

The good news for the brand is that my friend was already a loyal customer.  The bad news is that the experience at Dealer #1 was so lackluster that it could have pushed him to another brand altogether.

The pivot point is that customers really are willing to pay more for a positive experience and exemplary service.  In this case, Dealer #1 lost at least 2 sales (the one to my friend and the word-of-mouth sale that was created by the great service at Dealer #2).

How much would you be willing to invest in the customer experience to win a loyal customer?