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Soft Underbellies
By Jennifer Rice
Expert Author
Article Date: 2006-04-17
Tim Manners writes about the "vulnerable soft underbellies" of Apple and NetFlix in a recent Fast Company article.
Apple won't let us do what is ultimately the most important thing. It won't let us easily change the damn battery when it dies... This is not the stuff of which undying customer loyalty is made. They have needlessly left themselves vulnerable to any competitor able to design something of comparable aesthetics and smart enough to let the consumer have life-and-death control over its battery.
The famous Netflix promise is that you can rent as many movies as you want each month for a flat fee. Well, not exactly. Netflix recently acknowledged that it slows down the rate at which it fills the orders of its heaviest users, a practice critics call "throttling."... As with Apple, it took a class-action lawsuit before Netflix would publicly acknowledge that it is giving preferential treatment to its newest -- and least loyal -- customers.
A strategy that punishes one's most loyal consumers is hardly sustainable. There are so many examples of this. In the wireline telecom world, service providers promote a low per-line rate while adding special surcharges that almost double the advertised price. Consumer electronics are made to last only for the life of the one-year warranty. Wireless and cable providers give special discounts and promotions only to new customers, not to existing ones. Software companies like Symantec offer frustrated virus-infected customers no way to reach a live customer service rep without paying $40 to $70 for the call (which is why I ditched their software).
What is your company doing to sabotage its success with customers? Do you even know the areas where customers are frustrated and may cause them to jump ship? Are you willing to break away from "industry-accepted practices" in order to give customers a more desirable experience?
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About the Author: Jennifer is a brand and customer strategy veteran whose passion is helping businesses make meaningful change in the world. She’s the founder and chief strategist at Fruitful Strategy, which helps businesses profitably align brand and business strategy with social impact. Over the past 20 years, Jennifer has consulted to a range of clients including Microsoft, United Healthcare, NCR, Verizon and a host of growth-oriented mid-size firms. You can read more from Jennifer on her weblog.
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