How to steal customers from your competition (or in this case, how NOT to)

If a competitor of yours screwed up and that customer came to you looking for help in fixing the mistake, what would you do?

Today I was getting a haircut and I overheard (not that it was hard - they were NOT being discreet... that's a whole other issue) the staff talking about a person that had their hair dyed at a competitor, but it turned out green by mistake. I gather that the competitor couldn't fix the problem, so the customer - let's call him/her Kermit - called the barber shop I was in looking for help.

Each staff member was quite adamant that they did NOT want to try to fix Kermit's problem, citing the potential damage to their reputation if they were unable to fix the problem.

Come again?!?!?

Let me see if I got this straight: A potential customer has come to your door, asking to give you money and be the hero that your competition couldn't be... and you turn them away?

They were worried that their reputation would be tarnished if it didn't go well, and that it would be a waste of product.

HUH?!?

Tell the customer you will do your best, but there are no guarantees in a case like this, then give it a shot! If it doesn't work, it's not your reputation that's tarnished. It's still the competitor's problem (which they couldn't fix either). Sure, you used some product and some time, but Kermit PAID FOR THAT! You're no worse off then before you started. And in fact, TURNING THEM AWAY IS THE BEST WAY TO RUIN YOUR REPUTATION! That would be admitting to this potential customer that you are just as inept as the first shop.

Imagine if it works and you fix the problem! You can't buy that kind of press!

Now think of what Kermit is saying to his/her friends right now: 1) Barber shop A screwed up. 2) Barber shop B wouldn't help me. Do you think that's doing you any favours? Nope. Now think of what Kermit would say if you were the hero!

In an economy that's so tight, you have to fight for every last customer.

TAKEAWAY FOR YOU AND YOUR BUSINESS:

1. Do a better job than your competition.
2. When a potential customer comes to you asking to give you money, say 'yes'. Even if you don't want to. The downside of turning them away is FAR greater.
3. Empower your employees to think up reasons to take on more business, not shoo it away.

Your turn: You know where I stand on the issue. How about you? Do you think the risk is greater than I do?

Getting less than you paid for, courtesy Starbucks

I have written before about the damage that can be done to your brand reputation by failing to meet customer expectations. Well, Starbucks, your turn.

The other day I bought one of their fruit and yogurt parfaits. This is what it looked like, before I took a single bite. No, this is not Photoshopped - it IS more than half EMPTY.

And I paid $3.95 plus tax for about 5 spoonfuls of yogurt and fruit.

Now, I know that they are positioning themselves as a premium brand with quality products and, subsequently, higher prices. I get that. But this is a clear example of the brand's inability to keep the promise they made to the consumer (this isn't the only lame parfait I've had). I expect a quality product. They charge more for their coffee than Tim Hortons does because it's better. This should be a better parfait than Tim Hortons', but it ISN'T.

My belief (created by their branding efforts) that they offer a premium product has been contradicted by the quality of the product itself. That's Damaging Your Brand, 101.

Think of it this way: If every BMW you bought only went as fast as a Kia, would you believe that they are the "ultimate driving machine"? Would you pay three times the price? Didn't think so.

TAKEAWAY FOR YOU AND YOUR BUSINESS:

1. If you haven't already, make a clear brand promise to your customers.
2. Deliver on that promise with all that you do.
3. Listen to your customers and respond every time a customer's expectations have not been met.

Your turn: Any examples of the product not meeting the promise it set for itself?

Editor's note: Here's another bad example, this time courtesy Nutrition House.

Hey, CEO, nothing you do matters!

C-Suite Executives, Brand Managers, Marketing Directors and Ad Agencies spend hundreds of hours and hundreds of thousands of dollars trying to be clever enough to convince their audience to be interested in their product over someone else's.

Guess what CEO, nothing you do matters.

That's right. All the best ideas you and your marketing people have are no match for the effectiveness (or ineffectiveness) of the grumpy, underpaid, unappreciated staff standing behind the cash register.

Case in point #1.

I was in Fabricland today (yes, I am that confident in my masculinity) and the woman in line ahead of me was turned away, yes turned away, by the cashier.

The conversation went something like this:

Customer: "So, I'm interested in the points program you have for regular customers."
Cashier: "That program expires at the end of August, and you'll have to pay again at that point."
Customer: "So, you're saying I shouldn't bother."
Cashier: "I wouldn't bother."

Here's another way of interpreting that conversation:

Customer: "I'd like to buy what you're selling."
Cashier: "Don't bother."

And the cashier looked a LOT like this person.

I can see them now - all the corporate executives, marketing people and agencies sitting around a table trying to design a loyalty program that is more attractive that the competition's; that will inspire customers to return; that will sell more products. They come up with a program that is so good, people come in the store asking for it.... only to be... yes... turned away.

All the brightest talent working on their best ideas, completely undone by the crotchety, hourly staffer counting the minutes until she can go home.

You've heard it before but you need to hear it again: your front-line staff are the face of your company. They create your brand. They sell your products. They cross-sell. They leave an impression.

Invest in them.

At least give them some scripting about how to address the new loyalty program with customers!

Case in point #2.

Me (at the gas station): "Why would I pay for the deluxe wash instead of the regular wash?"
Cashier: "I'm not sure."
Me: "OK, then I guess I won't bother."

Read my earlier post for the details on this one.


TAKEAWAY FOR YOU

1. Spend some time mystery shopping your own stores. You'll be amazed!
   
2. Spend the 14 minutes it takes to write up some proper training / scripting guides for the front-line staff.
3. Hire better. It's 2010 - lots of people looking for work!
   

Surely you have some examples of really crappy front-line service. Post a comment with your experiences!