Sprint: Great advertising can't make up for customer service failures

Last Friday I ended a 9 year relationship with Sprint. It didn’t have to be that way, but failed customer service policy made it inevitable- and also, made it unlikely that I’ll ever say anything nice about Sprint ever again.

So, today when the CEO resigned- and they announced a major loss of customers, I wasn’t surprised. I’m sure my story is repeated every other minute- and it’s not the advertising that’s at fault, it’s bad customer service.

First, here’s what Ad Age said about the churn at the top- and then I’ll share my story and how Sprint could reverse it’s fortune:

Sprint CEO Resigns; Carrier Announces Major Loss of Customers - Advertising Age - News
SAN FRANCISCO (Adage.com) — Despite $1.78 billion in ad spending, and its hiring of one of the leading ad agencies in the nation, Sprint Nextel continued to bleed customers in the most recent quarter, leading to the resignation today of Gary Forsee as chairman and president-CEO.

In a statement regarding the resignation, Sprint also said it will announce that during the third quarter it lost some 340,000 postpaid wireless customers, that is, customers who pay a bill each month instead of those who pay in advance for a limited number of minutes. (more…)

Agency 2.0- Zeus Jones

Fallon may be winning the battle as the womb of new agencies - as I’ve stumbled upon yet another spin-off: Zeus Jones. This agency popped onto the scene March 1, 2007 (and deserves extra credit for not naming the agency after themselves).

While we’ve not been very complimentary of Brew: A creative collaborative, or Barrie D’Rozario Murphy and the way they started off online (weakly)- the crew at Zeus Jones scores a B+ for “getting it.” The front page is just a series of places you’ll find them online- starting with their presentation on Slideshare (see below). Very cool stuff.

Zeus Jones Welcomes You.
Zeus Jones approaches marketing differently.
View our credentials to see what we mean by “Marketing As A Service.”

They also have a separate blog: From the head of Zeus Jones which for some odd reason, they didn’t decide to build on their own site- but using Blogspot- which is what stopped me from giving them an A+

The idea of a blog, separate from a site, is old school. Ideally, while having all those places online as place to hang out is great- the fulcrum of your online (the de facto realization of your brand these days) in 2 places is a mistake.

What I had time to look at on ZJ’s sites looked good. They’ve decided it’s not advertising brands need- it’s more of a reason to like a brand- utility. We’ve always thought of our solutions for clients as one that makes the relationship between customers and our clients one of mutual joy, as opposed to a one-way shouting match.

There are some smart, small agencies out there- but, finding and identifying them will take a new kind of filter. With agency search firms still clueless about what makes good web strategy, and Ad Age and everyone else so fascinated by Crispin Porter & Bogusky (us included)- what has been slipping under the radar is agencies like Zeus Jones who seem to have a true Unique Selling Proposition- and the smarts to make it happen in our Web 2.0 world.

How do you view your ad agency?

Mark Silveira at Ordinary Advertising reminisces about two clients who asked for, and got, great advertising. To help you understand how to get the advertising you think you deserve- he offers a list of 7 traits in a good client- but number 4 was worthy of mention here:

A Frank Appraisal at Ordinary Advertising
Neither of these clients believed the agency should be considered a “vendor” (more than a little demeaning) or a “partner” (utterly unrealistic), but rather as an “asset” of the client’s business to be taken care of in direct proportion to the return being generated from it.

I’ve seen hundreds of agency sites that talk about being a “partner” when in fact, the agency has nothing on the line- no risk, other than losing the business.

Considering your ad agency an “asset” fits much better - along with the understanding that the part of the balance sheet that accounts for “goodwill” and “brand value” comes in part from the client/agency relationship which should include an almost symbiotic relationship, an intertwining of DNA of the two organizations. Understanding a brand isn’t something that comes overnight or with a contract, it comes from insight gained over time.

In choosing an agency, look closely at what kind of agency you are retaining:

  • How long do people stay there?
  • Who owns the agency- and what is their personal stake (holding companies can be very cold bedfellows)?
  • How long do their client/agency relationships last?
  • Is there a passion for the craft, and your product in the agency?
  • What are the rewards for both sides if the relationship blossoms?
  • Are your expectations for advertising realistic?
  • Do you trust them as experts in the field?

In buying a piece of capital equipment- what do you look for?

  • How long it will be relevant to your processes?
  • Who makes it?
  • How do they treat their current customers?
  • Is it the best it can be for the money?
  • How does it pay off?
  • Will it do the job?
  • Is it the best solution?

See, your relationship with your agency is the same as that of your new CNC machine- and just like that CNC machine, it can only produce great work if there isn’t operator error- which brings us back to what Mark was talking about- and the idea of the relationship as an asset.

How to get positive buzz for your company

There are people out there who specialize in “Buzz Marketing” who will charge you a lot of money for what I’m about to share with you.

Doing the right thing will get you more customers than a new ad campaign.

Recently I’ve had a few very good customer experiences that went above and beyond what I expected from a manufacturer- so good, I’m going to share them with the world, and in the day of Web 2.0 when everyone can have a say, it’s a very good investment.

Lowel Lighting logo- The leader in location lightingI’ve had two Lowel Pro-lights for a few years. I am not the original owner, I bought them on Ebay for a song- since the cords had been jury rigged by the previous owner. I had tried to contact Lowel soon after I bought them to get parts to rewire them but hadn’t heard back. I was frustrated, but the lights still worked. We had a lull in our shooting schedule and a new office manager who loves to “Get things done”- so I had her tackle the problem again.

Picture of Lowel prolight from their siteLowel said- send them in. Two weeks later- the lights come back with new cords- 2 piece this time, with cord wraps included. No charge! When the decision comes to buy lights again- there is no question about what brand will be at the top of my list.

Here is what they say about their warranty on the site:

About Lowel Light
In the event of a defect reported by the consumer within the applicable time period, if any, Lowel will, at its option, replace or repair the defective merchandise at no charge to the consumer for either parts or labor.

Note: the warranty on lights is only 2 years, and I’ve had these for over 4.

HansGrohe logoAnother case of going above and beyond was Hans Grohe the German highend plumbing fixture company. The holders for my hand showers had cracked, and the heads had taken a few tumbles.

I was looking for just the replacements for the holders- but, instead was shipped 2 brand new shower heads complete. Hans Grohe has a lifetime warranty- and apparently stands by it. I will grant that the new heads aren’t quite as cool as the old ones, but, I’m just as clean.

Zwilling JA Henckels logoThe jury is still out on Zwilling JA Henckels, who promise a lifetime warranty on their fine cutlery, but seem to be confused about what lifetime means- when a handle delaminates. The knife is over 40 years old, and still is a great chef’s knife- however, the handle is coming apart. When presented with something as simple as putting 2 new composite sides back on the blade, they seemed to want to stall and pass the buck. Is it really worth it?

Detroit has turned to extended warranties as a way to compete with higher perceived quality of off-shore manufacturers. Millions are spent on touting 10 year, or lifetime powertrain warranties- yet, if the money was instead spent on making sure every owner felt that getting warranty service wouldn’t be a major battle- and that customer satisfaction really was the brand’s first priority- they’d probably be selling more cars.

Customer satisfaction may be the most overlooked buzz marketing strategy available. As these three experiences showcase how one customer can help propel your brand into the blogosophere for better or worse.

When getting sued can be a good thing.

Collectively, very few people had heard of the little Duck Duck Goose Boutique in Troy Ohio. They sell stylish baby clothing and accessories- you want to be like Bradjolina, you head to Duck Duck Goose Boutique. We know about them because we host their website- and because Steve came and took our Websitetology seminar.
Then Lionsgate Films sues them for selling something that says “Nobody puts Baby in a corner” and it makes national news - note, the product’s manufacturer, Urban Smalls isn’t even mentioned in the news release:

Studio sues over “Dirty Dancing” line - Yahoo! News
Nobody puts Lionsgate in a corner. That’s the message of a trademark infringement lawsuit the studio behind “Dirty Dancing” has filed against several companies selling merchandise featuring the phrase “Nobody puts Baby in a corner” from the hit film.
The suit, filed August 15 in Los Angeles District Court, claims 15 companies including Uncommongoods.com in New York, Lucky Lou Boutique in Fishers, Ind., and Duck Duck Goose in Troy, Ohio, have used Lionsgate’s registered trademark without permission.

The quote, said by Patrick Swayze at the climax of the 1987 film starring Swayze and Jennifer Grey, has achieved a cult-like status, marketed and often repeated in films and TV shows for 20 years.

“The American Film Institute voted ‘Nobody puts Baby in a corner’ as one of the top 100 most popular quotes from a motion picture,” (it’s number 98) the lawsuit states. “Plaintiff markets and sells merchandise with the movie trademarks through approved licensees as part of the ‘Dirty Dancing’ line of approved merchandise.”

The defendants, many of which market baby clothing and merchandise, are not authorized to use the mark and have created a likelihood of confusion with merchandise authorized for sale by Lionsgate, the lawsuit alleges.

Lionsgate, a unit of Lions Gate Entertainment Corp., seeks to prevent the businesses from selling merchandise containing the phrase. It also seeks a court order requiring the defendants to pay restitution as well unspecified statutory and actual damages, treble damages and punitive damages.

The defendants could not be reached for comment.

Lionsgate is obviously looking for some attention to hype some 20 years of Dirty Dancing promo, but is going about it in the wrong way. While the logo, the name of the movie, the stars, etc. can be trademarked, taglines and corporate slogans can be trademarked- language from a movie shouldn’t be allowed to be trademarked unless it is done before the release of the film. Coming back after a phrase catches on, is just bad manners. Fair use should also come into play- the only connection between that line and the movie is in the fans heads- and those of us who didn’t think the film was all that- wouldn’t have a clue that “Nobody puts baby in a corner” has any connection to Dirty Dancing.

Think about how many times you’ve heard or said “Beam me up Scotty”- it’s homage, not a lawsuit. In fact, most brands would love to have their trade slogan become a part of the lexicon- but in cases like Nike’s “Just do it” and Wendy’s “Where’s the beef” they were trademarked and created with the intent of generating income from the phrase- the same can’t be said for a line from the movie.

Did I go to see “The Terminator” because I heard Arnold Schwarzenegger said “I’ll be back”- of course not.

Little Duck Duck Goose Boutique isn’t harming Lionsgate, and wasn’t intentionally trying to steal their money. Any right thinking court of law would recognize that- but, from a PR standpoint- it’s certainly their 15 minutes of fame.

Your brand is not yours anymore.

Virgil Griffith is my new hero, and should go down in history as one of the hero’s of Open Source right up there with Linus Torvalds (Linux) and Marc Andreessen (Netscape and the Mozilla codebase). In fact, if there isn’t an award for Open Source Hero’s- there is one now- and I’m bestowing it on Virgil.

Virgil devised the Wikipedia Scanner- a software program that can reveal who changes Wikipedia entries. Some of the first findings were that major corporations, as well as politicians are out there trying to smear their competition or cover up their flaws by changing and deleting info from Wikipedia for their own benefit. His software isn’t perfect, depending on IP addresses of editors being able to be linked back to the perpetrator, but, it’s a start.

Some of the marketing brand catches:

maltaStar.com
As soon as the software was launched on the internet, chaos erupted.
Among many revelations, Wikipedia Scanner reported that:

  • Microsoft tried to cover up the XBOX 360 failure rate
  • Apple edit Microsoft entries, adding more negative comments about its rival
  • Bill Gates revenge? Microsoft edits Apple entries, adding more negative comments about its rival
  • Exxon Mobil edits spillages and eco-system destruction from oil spillages article
  • Oil company ChevronTexaco removes informative biodiesel article and deletes a paragraph regarding fines against the company
  • Dell Computers deletes negative comments on customer services and removes a passage how the company outsources work to third world countries
  • EA Games deletes whole paragraphs of criticism about employment practices and business methods
  • Fox News removes all controversial topics against the network from the Fox News page
  • Nestle removes negative comments on its business practices from its page
  • DieBold, the company that controversially supplied computerised polling stations in the US elections, removes numerous paragraphs with negative comments
  • Walmart removes criticism of outsourcing work. The retailer also changes negative paragraphs of underpaid workforce
  • Sony removes harmful paragraphs against blu-ray systems
  • Coca Cola removes negative content about its effects
  • Boeing edits from “Boeing is a leading American aircraft and aerospace manufacturer” to “Boeing is the leading American aircraft and aerospace manufacturer”
  • MSN Search is “a major competitor to Google”. That’s what MSN added to their page

Griffith created the tool to “create minor public relations disasters for companies and organizations I dislike,” he said on his web site. He admitted that it’s impossible to be sure if the edits were made by someone working at one of the organizations, although the I.P. address reveals that they were made by someone with access to their network, he says.

Griffith came up with the idea when he “heard about Congressmen being caught for white-washing their Wikipedia pages,” he said.

“If the edit occurred during working hours, then we can reasonably assume that the person is either an agent of that company or a guest that was allowed access to their network,” he wrote.He said he believes that anonymous speech is important for open projects like Wikipedia. The online encyclopedia works fine today for “noncontroversial topics,” he said, but tools like Wikipedia Scanner can help make the site more reliable for controversial topics, he said.

While the idea of negativity about your brand may send some CEO’s into a toxic meltdown mode- the reality of the new paradigm is quite different that it was back in the stone age (before Search and the Cluetrain Manifesto)

In fact, Cluetrain Theses #12 comes to mind:

There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.

Corporate brand managers are loathe to admit that the best they can do now is learn how to respond properly and with grace. Denial is no longer a PR strategy. Hoping customers won’t find out about product flaws, competitors advantages or pricing inequities is a thing of the past.

The key to good brand management in the world of Web 2.0 is the same as the motto for Google: Do no evil. The companies that realize the best marketing tool is delivering the best product, best service, best price in the humblest of ways. Anything else- and you’ll be hung out to dry.

Thank Open Source Hero #1 Virgil Griffith for insuring brands behave.