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…)

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.

Radio:Forget pay for play- it’s now play for pay

The payola scandals of the Fifties were a black-eye on commercial radio, where record labels would pay radio stations to play certain albums.

Now with corporate and satellite radio controlling the airwaves, and internet radio still in the nascent stages- the best way to get your songs played to mass audiences is to sell your song to a major advertising campaign. When Wieden + Kennedy bought the Beetles “Revolution” for Nike there was a major outcry of selling out. (Personally, this commercial still makes me love advertising- and what I do)

After the warning shot- it was a free-for-all, with every major advertiser buying top hits. Then Arnold changed the game again- by putting arcane, but catchy tunes into VW commercials- da, da, da, Dr. Roboto and the songs of Nick Drake- all turning forgotten tunes into hits.

But, besides bringing new exposure to old hits- or even hits in the making- there is also an area of concern for artists- will they be seen as selling out? Some artists have sworn off commercialization of their art- Bob Dylan taking a hit for selling music through Starbucks for instance.

So, when Crispin Porter + Bogusky follows in the footsteps of Arnold by putting Wilco’s “Sky Blue Sky” into a campaign, Wilco fights back- and in the tradition of David Ogilvy who believed you should use the products you shill, admits to driving V-dubs.

Pitchfork: Wilco Explain Volkswagen Ads
After millions of infuriated Wilco fans around the globe set fire to their copies of Sky Blue Sky and drove their Jettas off cliffs yesterday, Wilco took it upon themselves to explain their recent involvement in a Volkswagen ad campaign.

“With the commercial radio airplay route getting more difficult for many bands,” wrote the Chicago sextet on its official website, “we see this as another way to get the music out there.”

They continued: “And we feel okay about VWs. Several of us even drive them.”

Securing rights to popular music isn’t always easy- we once traded building a website for Buckwheat Zydeco in exchange for using his music as the background for a local neighborhood non-profit marketing piece- which cost us a bunch- but gave the neighborhood new life. Besides the website- (which has been sadly and badly basterdized over the years) Buckwheat gained a whole new bevy of fans- who would not have been exposed to his great music any other way.

With viral videos like Jud Laipply’s “Evolution of Dance” using a bunch of copyrighted music- the question is- is it better marketing for the music than the old school pay-to-play? If I was the copyright holder, I’d be thrilled to have “tastes” of my music given that much exposure.

It’s a whole new world out there in marketing, what you learned in school doesn’t apply anymore. Sharing is the new currency and attention is the new jackpot.

Consumer Generated Content gone bad

Call this round 5,839,493 in the continuing saga of letting customers generate your content. While everyone thinks they are an expert on advertising, few really are. While we live in a society that has the attention span that makes the 40 yard dash seem like forever- attempts to capture attention “by any means possible” are backfiring left and right.

Some may still believe that “Any press is good press”- but that was when newspapers ended up in birdcages instead of online forever.

When you start mixing religion with your brand- be aware, you could either lose or gain customers- and it may be permanent. Several times a year “Hobby Lobby” runs full page ads about Jesus- Christmas, Easter - and it makes me wonder how many Jews, Hundus, Muslims, Buddists etc. choose not to shop there every time.

When it comes to controversy as a marketing tool, it’s ok when you you are the upstart- but if you are the market leader, you are taking chances- here is the article about how God and Starbucks went on a collision course here in the flyover states:

Woman expresses indignation at quote on Starbucks cup
By Margo Rutledge Kissell Staff Writer

SPRINGBORO — – Michelle Incanno was an admitted Starbucks addict.

She’d buy the company’s coffee beans every week. Whenever she’d get the chance to drop by a Starbucks, she would, placing the same order every time: a large, house brewed coffee with nonfat milk and two Splenda. When the Seattle-based chain opened a drive-through near her Springboro home, she was in java heaven.

That was until she got an unexpected jolt last week from her coffee cup.

Printed on the cup was: “Why in moments of crisis do we ask God for strength and help? As cognitive beings, why would we ask something that may well be a figment of our imaginations for guidance? Why not search inside ourselves for the power to overcome? After all, we are strong enough to cause most of the catastrophes we need to endure.”

It is attributed to Bill Schell, a Starbucks customer from London, Ontario, and was included on the cup as part of an effort by the company to collect different viewpoints and spur discussion.

“As someone who loves God, I was so offended by that. I don’t think there needs to be religious dialogue on it. I just want coffee,” said Incanno, a married mother of three who is Catholic.

She wasn’t satisfied with a company disclaimer saying the quote is the author’s opinion, not necessarily that of Starbucks. It invites customers to respond at www.starbucks.com/wayiseeit.

Starbucks spokeswoman Sanja Gould said the collection of thoughts and opinions is a “way to promote open, respectful conversation among a wide variety of individuals. “

But Incanno said her Starbucks days are over.

“I wouldn’t feel right going back,” she said.

This morning- it was the “most popular story” at the Dayton Daily News site- which means it will be making the rounds- and eventually becoming sermon fodder for the fire and brimstone set- and possibly setting off yet another Starbucks boycott.

I went to the Starbucks site- and couldn’t find this quote on the site (btw- the site wasn’t very web 2.0) and am already wondering if this had been pulled because of complaints already.

Often times agencies look for “hot, young, talent” to “spark” their creativity- and with many of the big agencies isolated from “mainstream America” by being in the major meccas of advertising- sometimes the sensibilities of business get overlooked.

No matter what your position on religion, it’s best to check it for being a universally accepted theme before allowing it to make it into your advertising.

Note: a quick Google of this phrase only brings up the Dayton Daily News article. I’m sure that will change soon.

Greater Dayton Advertising Association tries to learn web 2.0

Today, the Greater Dayton Advertising Association (formerly known as the Dayton Ad Club) made an effort to finally bring it’s members into the year 2003. The speaker was Matt Bailey from SiteLogic- a Search Engine Optimization consultancy.

Matt did a decent job of explaining the power of social media in his alloted 45 minutes- using eepybird’s Mentos/Diet Coke video as a viral example, discussing how Price Rite Photo got destroyed after a bait/switch deal and the Pork Producers failed attempt to slam a breast feeding support site for using the phrase “the other white milk.”

All great stuff- all stuff we’ve been trying to get the ad club to discuss for over 2 years. All the stuff that we’ve been offering in our Websitetology seminars- but, of course, if you aren’t from out of town, you can’t be an expert.

Matt had a hard time coming up with business to business blogs as an example of generating business- yet, had we been the presenter- we would have been able to point to this blog- to show the b-to-b results. I looked at Matt’s blog- and found this bit:

SiteLogic - Marketing Logic » Why are Analytics so Difficult? by Matt Bailey
Building a website requires an understanding of search engines, as search engines are one of the primary methods of acquiring visitors and customers. However, once the search engine’s information requirements are met, the site has to be able to communicate a different message to the human visitor.

We agree- since 80% of Internet use begins in search, search is key. And, once they get to your site- they need to engage. Apparently Matt’s blog isn’t providing him the kind of traffic he needs. We think we know why.

In the Q&A, someone asked if “tags” in a blog are like Meta tags of old- and he answered they weren’t the same- which is true. Metatags were for the machines; blog tags/categories/taxonomy are for the user. He got that straight- but then, he took what I call a Guru Nosedive- he said that he didn’t use them much, they aren’t that important- content is.

WRONG. At least with WordPress, categories are a way to supercharge a search term, by grouping a bunch of posts into a single post. It’s probably one of the most important SEO techniques we teach- but, alas, the Dayton Ad Club people won’t learn that. Their Executive Director still won’t attend our seminar- and is still building sites the old fashioned way.

It was particularly telling of the 2.0 literacy in the room when there was only one other person in the room that knew what the Long Tail was (besides yours truly) and only a handful (including SAA students) had heard of Digg.

If the Greater Dayton Advertising Association and it’s members (and SAA students) hope to survive, they are going to have to do some serious catch-up. Web 2.0 is only the beginning of The Next Wave, and they aren’t there yet.