In this world of digitalization and omnichannel, where theoretically the purchasing power has shifted to consumers, there are cases that show this is not always the case. Often, users are trapped by a lack of supply that transfers power back to companies. Hotels in vacation areas during peak season, airlines, and car rental companies are just a few examples.
Experience leaves a digital footprint
But the user remembers and does not forget, and most importantly, their experience leaves a digital footprint. Digitalization allows companies to set up virtual call centers with countless rules and functionalities. It also enables the use of trendy chatbots (for the uninitiated, chatbots are just automatic response setups for questions asked via chat on websites).
Are companies making mistakes? I believe they are. At least some of them. Creating effective flows that guide users to solve doubts is more than correct. It is the path for companies seeking to be more productive, efficient, and thus competitive. But it cannot come at any cost—it cannot be at the expense of customer satisfaction.
CRM usage should improve the experience
Besides the technology mentioned earlier, nowadays it is not uncommon for almost all companies, regardless of size, to use some type of CRM (Customer Relationship Management), which is essentially a program to manage customer relationships. In these programs, companies record every interaction or issue with customers, making it easy for another representative to handle a returning call. They allow reminders, task assignments, and thus should improve the quality of service received.
The major failure of some companies is that, when facing an incident, they do not establish processes to anticipate it. This generates a loss of efficiency and productivity, which was initially the goal. Worse still, it harms the brand image, with effects amplified on social media.
The United Airlines case of 2008
In 2008, Canadian musician Dave Carroll from the band Sons of Maxwell was traveling with United Airlines. Waiting for takeoff, he saw ground staff throw luggage, including his guitar.
Upon arrival, he discovered the guitar was broken. He filed a claim, and after 9 months, the company denied payment because he did not submit it within the first 24 hours.
Dave composed a song (shown below) about the incident, which now has nearly 20 million views. It is estimated shareholders lost $180 million due to a 10% drop in stock. Sadly, the airline did not seem to learn, as a similar incident happened again in 2014.
The Iberia case of 2019
Now I want to tell you about a case from this same year, 11 years after Dave Carroll’s incident. It happened in Dubrovnik. A good friend’s special diving equipment was not loaded due to an error notified by SMS upon landing. The trip was to board a ship four hours after the flight’s arrival to go to Cagliari, Sardinia.
Summary of what happened:
- The ship could not depart until 24 hours later than planned.
- He had to call more than 6 times and nobody returned his calls, despite promises.
- Each call took about 10 minutes to reach an operator.
- No one could guarantee the luggage would arrive the next day, even after the flight carrying it had departed.
- He had to go directly to the airport to pick up the luggage.
You can see a summary of what happened in this video. Not recommended if you want your vacation peace to last a little longer.
It seems incredible that with the technology available, the airline did not anticipate this. A simple call at intervals or with any status change would not only have satisfied the customer but also reduced operators’ time handling a frustrated person. Another issue is how an airline does not have systems to track exactly where a located luggage is—perhaps they should consult Amazon—but that is beyond marketing and more logistics-related.
Customer service is also marketing. Users do not forget, for better or worse. Virtual call centers are useful, but when incidents occur, you cannot expect the affected customer to call you. It is neither fair nor ethical, and since it costs the same, you should do it. You may have purchasing power this time, but not always, nor in all locations.
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— DosSetenta (@DosSetentaMD) August 29, 2019
The goal of this post is not to complain. It is more of a reflection for companies and entrepreneurs about the great opportunities technology provides but also the risks if not used carefully. Frustration can easily arise, and ultimately experience is everything. Your customer should be your fan.
