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…)

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.

Selling out? Or just selling…

When Nike licensed the Beetles “Revolution” for a commercial - music purists thought the world was ending.

Other artists decried the practice- some swearing it off- and then later changing their minds. Reality is- having your music in a commercial, or in a video that goes viral is the best thing to happen for sales.

Take the latest iPod Nano ad from Apple:

iPod Nano commercial the Apple of singer Feist’s eye | Tech&Sci | Technology | Reuters.com
NEW YORK (Billboard) - The use of Canadian singer-songwriter Feist’s song “1, 2, 3, 4” in an iPod Nano TV spot is generating major attention — online and on the Billboard charts.

Since the ad debuted in mid-September, sales of “1, 2, 3, 4” and its parent Cherrytree/Interscope album, “The Reminder,” have skyrocketed.

Earlier this month, the track was selling about 2,000 downloads per week, while the album was shifting 6,000, according to Nielsen SoundScan. On the most recent charts, “1, 2, 3, 4” clears 73,000 downloads and reaches new peaks of No. 7 on Hot Digital Songs and No. 28 on the Billboard Hot 100. “The Reminder” jumps from No. 36 to No. 28 on the Billboard 200, with sales of 19,000.

In total, “1, 2, 3, 4” and “The Reminder” have amassed sales of 181,000 and 235,000, respectively. (Feist’s debut album, 2005’s “Let It Die,” has sold 147,000 copies.)

While the iPod Nano spot is introducing Feist to mainstream America, online chatter is paving the way to sales of the singer’s music. Feist is not identified in the campaign — created by TBWA/Media Arts Lab — and this has led many consumers to the Web in search of the voice behind the song in the commercial.

Screenshot of Apple page with iPod tv ad with buy song now button.Considering that many people will actually buy the music from the iTunes store- Apple has another revenue stream to offset the cost of advertising. Apple is actually smart enough to put a link to the song right with the online version of the ad- but, could do better by doing the following:

  • Have a unique URL for each ad- so people can link to it.
  • Have text with the words to the song for people searching the words.
  • Add a description of the ad so that blind people would know what the ad is all about. Like it or not- an iPod is something a blind person would buy (and that makes me wonder about how ADA compliant the iPod interface is?)
  • Include a way to embed the video in blogs- I had to get it from YouTube- where there is no “buy it now” button for the iPod.

These are simple tips to building a better website for companies who spend huge sums on ads- but haven’t quite mastered the art of incorporating them into their websites.

And if you really want the song, 1,2,3,4 from Feist, you can buy it from this link:

Feist - 1234 - Single - 1234

The complete lyrics are:

One Two Three Four
Tell me that you love me more
Sleepless long nights
That is what my youth was for

Old teenage hopes are alive at your door
Left you with nothing but they want some more

Oh, you’re changing your heart
Oh, You know who you are

Sweetheart bitterheart now I can tell you apart
Cosy and cold, put the horse before the cart

Those teenage hopes who have tears in their eyes
Too scared to own up to one little lie

Oh, you’re changing your heart
Oh, you know who you are

One, two, three, four, five, six, nine, or ten
Money can’t buy you back the love that you had then
One, two, three, four, five, six, nine, or ten
Money can’t buy you back the love that you had then

Oh, you’re changing your heart
Oh, you know who you are
Oh, you’re changing your heart
Oh, you know who you are
Oh, who you are

For the teenage boys
They’re breaking your heart
For the teenage boys
They’re breaking your heart

If Google is "The Force" which side is it working for?

The Big Ad Agencies used to be afraid of Google because they didn’t understand it, the web, or the future of advertising. When all of a sudden, advertisers started pulling money out of the media budget and spending it with Google it terrified them. So they all went and bought up “new media” shops- and still created sites that didn’t work with Google any better than, well you know those braille buttons on the drive-up ATM?

So when Google starts raiding the big agencies for top talent, their worst nightmare begins to come true: the $9 billion dollar gorilla now is quietly sneaking over from media to marketing partner.

Ogilvy N.Y.’s Berndt to Join Google
Berndt, who resigned from Ogilvy this week, will become the managing director of Google Creative Lab, according to a Google representative. In the newly created position, Berndt will lead the marketing of Google’s brand and services. He will also work with agencies to integrate Google products into campaigns.

The move comes as Google looks to expand its relationships with large brand advertisers. After initially offering only simple text links overwhelmingly geared to direct-response marketers, Google has added graphical and video ads more often used by brands.

The thing is- of all the people to hire, Google picks someone from an agency that still can’t get it’s own clients spots online in a way that customers can find them. I met Andy at the 2007 AAF National Convention- nice guy, super cool presentation of the new Fanta work- but, if you went to the Ogilvy site - or the Fanta site- or anywhere- you couldn’t find the campaign except for a lone spot posted by PSYOPS who did the animation. The big agencies have a long way to go to learn how to monetize advertising that works by earned attention instead of paid placement.

Maybe, Andy will be the new evangelist for the power of Google when used right- then again, he may be working for the dark side now… depending on your viewpoint.

One things for sure, no agency will ever have a bankroll like Google.