Wednesday, April 21, 2010

Buyers Aware

About a year ago I went for lunch at a certain restaurant chain (who shall remain nameless, other than the name starts with an ‘N’ and it once had some affiliation with Celine Dion, but that’s all I’m going to say). At any rate, I was trying to find something reasonably healthy on the menu and came across a chicken sandwich that seemed relatively benign, except for the fries that came as a side. So I asked the waitress if I could exchange the fries for a salad, and was told it would cost me an extra $1.50. ‘Really?’ I thought out loud, ‘since when does a bowl of leaves cost more than processed deep fried starch?’

I don’t get why businesses think there is an advantage in nickel and diming their customers. Unless, of course, your establishment is named after the first coin. The biggest consumer turn-off are those silly extra charges for things that should have been included in the first place. It seems to me once you’ve actually attracted a customer (which, as business owners will tell you, is not easy) you should be trying to find ways to keep them. It isn’t rocket science.

A recent example, a recreation centre actually charged us for helium filled balloons used for decoration at our son’s birthday party. This despite the fact that ‘decorations’ were included in the price. Evidently balloons are NOT considered decorations. Net result, zero positive feedback.

I’ve had this beef with a few businesses over the years and I can’t quite get my head around why vendors treat their customers with such contempt. A couple of classic examples:

Mexicana airlines, who from check-in to return, managed to bungle just about every aspect of my vacation travel itinerary. Among the highlights: tickets issued by the airline but not recognized by the staff, accidentally cancelling my reservation, losing my luggage, and a seatbelt that wasn’t actually attached to the aircraft. I was offered virtually no compensation for my trouble other than some air miles with their company. Which I declined. I have this crazy thing about safety harnesses actually being attached to my seat.

Then there were the slimy weasels at H. Gregoire who sold my wife quite possibly the worst lemon of all time. This car needed a transmission repair and an alternator replaced only days after purchase. When I pressed the company for a refund or replacement, they threw the Quebec Consumer act in my face claiming I had no recourse. The transmission later failed completely when my wife and six-month old child were returning from a trip to Ottawa. Thankfully, Mazda came to the rescue and replaced the transmission for free. Apparently it was still covered, something the bottom-feeders at H. Gregoire never bothered to tell us.

Recent data indicates that over two thirds of consumers trust social media sites such as Facebook and Twitter when searching for product information. Only 14% trust traditional advertising. With the social media revolution, more and more consumers are relying on word-of-mouth recommendations than ever before. The Internet has given consumers tremendous power to share information with one another as well as exchange experiences. Just over a quarter of Canada’s population are Facebook users, that amounts to well over 8 million consumers. These numbers don’t include other far-reaching communications services like consumer review sites, blogs, and basic email.

Businesses should take note. Modern consumers have far more powerful research tools at their disposal, as well as an information network that can communicate instant feedback, positive and negative. They are quickly losing faith in traditional forms of advertising, which were once the leading driver of product sales.

It is becoming increasingly apparent in today’s competitive business world, that first impressions are vital to continued success. Particularly with Internet savvy consumers whose attention span is shorter than a toddler. This is why companies like Apple have invested big dollars into creating a unique and positive consumer experience with their stores. They are among many businesses who recognize that branding is much bigger than product value, it is also the shopping experience that drives future sales.

Retailers and service-providers will have to get with the program or face the wrath of an outspoken and well connected consumer base.

I think I speak for all of us when I say it’s about time.

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