http://www.alertpedia.com/recalls.php

Recently the FDA warned consumers not to eat Nestle Toll House pre-packaged, refrigerated cookie dough and this got me wondering what responsibility retailers have for product safety.

http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm167908.htm

As a concerned parent I did not check if my batch of Nestle Toll House dough was affected, I just tossed it all.

The typical consumer reacts to a product recall with concern and worry but no action. A recent Rutgers’ Food Policy Institute (FPI) study showed that many Americans fail to check their homes for recalled food products. Only about 60 percent of the studied sample reported ever having looked for recalled food in their homes, and only 10 percent said they had ever found a recalled food product. www.foodpolicy.rutgers.edu

So what should retailers do?  Most retail organizations already have the most important tool at their disposal for protecting consumers: data. Imagine if the loyalty card most grocers have is promoted and used not as a marketing tool but as a product safety service.  If I received a phone call or email message from a retailer telling me the specific product I purchased has been subject to a recall and that I should discard it or bring it in for a replacement, I would be a very loyal customer.  I would certainly favor the retailer who promoted this service over those that did not.  In addition, it would motivate me to sign up for and use their loyalty card.  Currently, I see no benefit in using these loyalty programs and avoid them out of fear that I will receive unwanted marketing.

If, on the other hand, participating in a loyalty program resulted in receiving information critical to me and my family, this is a clear win/win for me and the retailers. The retailer gets more customer loyalty and more customers participating in the loyalty card programs; consumers can be confident that they are being looked out for and their safety is being protected.

Would you sign up for a loyalty card if it was marketed as a product safety service?  I would.

The following link is for a presentation I recently gave at the Marketing Research Association conference in Minneapolis.  It describes in detail some of the tips and tricks we have learned at Questar for presenting market research findings to nontechnical audiences.

I would be interested in any suggestions or stories people have surrounding presenting market research findings.

questar-mra-presentation-09

Best Buy Store

Recently while traveling I lost the charger for my portable DVD player.  Last night I ran into a Best Buy and told the greeter I had 7 minutes and what I was looking for.  He steered me to the Home Theater area where via headset he said someone would be waiting for me.  I was thinking at this time, “wow, great customer service.”  Three employees indeed were in the department, but I felt like I was interrupting something more important than me, the customer.  They didn’t have the part.   Call the whambulance.   Don’t you hate those rush nights when you get nothing done? 

Today, however, I checked Best Buy’s website for the Eagan location which stated they opened at 9 a.m.   I rushed over once more as I am traveling again.  The store wasn’t open until 10 a.m.!  But OMG, the store manager, Cole was outside telling me to come in. They would take care of me.  Cole had changed the hours last night on the website, and understood there would be customers this a.m. based on the listed website store hours.  Guess what, yup, I left with my charger and am loving Best Buy again. 

These are two great examples of why it is so difficult for a large brand to have consistently great service across all locations.  There is nothing worse than the feeling you get as a customer when employees don’t treat you with respect.  In contrast, the manager of the second location knew the change in store hours might create confusion for his customers, so he made sure the store was open and ready at 9 a.m.

My dad is a huge fan of internet radio but got tired of listening to it on his PC. After visiting his daughter’s home and experiencing the quality of internet radio when played through a stereo system, he decided that it was a toy he had to have. Taking the lead from my sister, he bought an Apple Airport from a local big box retailer. The product was very easy to install and worked as advertised for about 4 months, and then stopped working.

This is where the story gets interesting. He took the Airport back to the big box retailer. They told him that they would have to ship it back to Apple where they would test it and may or may not send him a new Airport. Not liking this answer he took the Airport to our local Apple store. He showed the product to the staff at the Apple store, explained that he did not buy it there, and asked if they could help. The store was very busy, as it always is, however a staff member walked right up to him, promised to help and basically scoffed at the reaction from Mr. Big Box. He asked my dad to wait for one of their technical wizards to be available to help. After spending ten interesting minutes walking around the store, the same staff member asked him if he had been seen yet. When he learned that my dad was still waiting, he apologized and decided to just exchange his Airport for a new one.

My dad who has been teetering towards the Apple camp due to their design and ease of use is now an Apple convert and will probably buy his next computer from them.

Because of the staff reaction over the return of a $100 device, Mr. Big Box and Microsoft have lost a customer and Apple has gained one.

Now more than ever, no one can afford to lose a customer. What are you doing to ensure that your customers are happy and loyal?

It’s easy to ask a question. In fact, it might be too easy. Brainstorming survey questions seems simple, but there are plenty of traps to fall into. The way a question is asked has a profound effect on the response it produces. I asked one of our consultants for a few tips on choosing quality questions. He also gave me examples of weak questions. For survey results that give you what your business needs, you have to give customers the information they need to answer your questions. Use these tips to make that happen.

1.    Beware of double-barreled questions.

Bad: “Were the employees who served you helpful and knowledgeable?”

Sure, your waitress could recite every single beer they had on tap, but she couldn’t remember to bring you a pint. “Knowledgeable” and “helpful” do not go hand-in-hand. A question like this confuses survey respondents. It asks people about two different characteristics, and this will not result in actionable survey results. It’s like asking if the bathroom was “clean” and “tidy,” or if the food was “warm” and “delicious.” Cold food can be delicious, right? And believe me; tidy bathrooms can still be dirty. Don’t make this mistake. Split the one question in two.

2.    Be specific- do not use ambiguous words in your questions.

Bad: “Do you believe gun control law should be changed?”

This question makes assumptions and gives no clarification. It assumes the respondent knows all current federal and state laws on gun control. It also presumes that survey-takers have an opinion. And are they asking about all gun laws? The important point here is to specify what you are talking about. The people reading your survey need to know what you are talking about. Don’t leave room for questions on their part. You should be the only one asking questions here.

Better question: Do you feel Minnesota handgun laws should be more or less strict?

3.    Avoid using emotional words in your questions.

Bad: “Do you believe gun control law should be changed?”

“Gun control” is an emotionally-charged phrase because people have strong opinions about the idea. So when you ask customers if you should use cage free eggs in your cooking, expect the possibility for skewed responses. You are asking for a response to an idea or belief, and not about what you really care about such as quality service, value, etc. Stick to the point and don’t start a political debate in your survey.

Every survey question requires a second thought. Read each one out loud, or ask multiple people the questions before you present it to your customers. Make sure the questions you ask allow you to measure the points you want to know about. It might help to think backwards; if you want to measure customer service, think of the question to be asked, and then write it. The next step is choosing the appropriate scale. But until then, work on those question-writing skills.

As a new Netflix customer, I’ve been impressed with their dedication to customer satisfaction. A few weeks ago, I received an e-mail from them asking for the arrival date of my latest movie, so they could make sure the delivery was timely. Today, they sent me another message:

“Dear Liz, You recently watched Goal! 2: Living the Dream. To help us ensure a great experience for all members, would you take a moment to tell us about the picture and audio quality?”

Two things came to my mind. 1. What in the world is “Goal! 2: Living the Dream,” and why was my husband watching it? 2. Netflix is dedicated to their customers in a way that other companies are not.

Netflix communicates one-on-one with their clients and genuinely cares about their experience. Being a web-based business, this is fairly easy for them to do. Still, I believe every company has the ability and technology to do the same. Imagine buying a computer from Dell and receiving an e-mail from them a few weeks later asking if you like it. Retail stores frequently ask for e-mail addresses during transactions. In addition to adding these patrons to an e-mail newsletter list, why not ask them if they are happy with their purchase, or how the service was? This is customer appreciation. This is making sure customers know that their opinion is valued. This is one of the reasons why the $14 bucks a month I spend on Netflix will be one of the last things ever cut from my budget.

Photo credit: HackingNetflix (Flickr)

By now, you may have heard about Skittles handing over brand power to their customers via their website. I promised myself I wouldn’t blog about that, or the recent situation in which Tropicana reverted back to their old brand design when the new cartons bothered their loyal customers. Like I said, I promised myself I wouldn’t write about it, so I’ll keep my opinions to myself. However, I think it’s important to reflect upon whether or not these bold acts of confidence are good for the company.

These businesses are putting a lot of trust in their customer-base by letting them make such important decisions about their brand image. Many people believed that what Skittles had done was brilliant, while others remain undecided about the new homepage. Let’s look at the bigger picture of these circumstances: what do you think about putting customers in the driver seat?

Paying attention to customer feedback is paramount for a business. But my thought and question is this - is it a good idea to lose complete control of your brand by handing it over to the general public?

Most businesses understand the importance of monitoring customer satisfaction levels. What some often fail to do is plan for action. Anyone can ask questions, but that won’t result in a winning survey. To be successful, some considerations must be made. Stop and ask yourself these five things before you jump on Survey Monkey.

1. What are your company goals in conducting this survey?

Lots of B2C companies gather customer data, so yours should too. But that’s not a goal. Do you want to improve overall satisfaction? Are you looking to implement a loyalty program based on the results? Is the company interested in branding based on consumer insights? Having a few set goals will help you form the appropriate questions for your survey. You don’t want to end up with a bunch of data and nowhere to run with it.

2. Is your business prepared for a reality check?

Your customers might think something is important your business doesn’t. You might also find that your customers aren’t as happy as they were yesterday, or that they’re happier with your competitors. Are your colleagues going to point fingers instead of look in the mirror? Make sure your team is ready to take accountability for negative feedback. Your company has to be prepared to accept disappointing reviews and use them to improve business operations.

3. Can you effectively interpret the results to your team?

Nobody has time for a stack of numbers with no interpretation. If this is the case, why even begin a customer survey? Don’t allow a customer satisfaction report to be hardly glanced at by your co-workers and ultimately left to gather dust. Be sure that your data is properly analyzed and tells a compelling story. This will ensure that your customers’ opinions can facilitate positive change.

4. What will your company do with the findings?

Surveys generate priceless information that you can use to improve your business. In the end, it doesn’t matter what company executives think; your consumers decide what your brand is. Gathering numbers and opinions is not enough. You must act upon the results, and your team should be ready to do exactly this. Based on your initial goals, make sure you have a plan for using the data to improve your business.

5. How will you communicate this to your customers?

Nothing is more frustrating for survey participants than feeling as if you wasted their time. You not only need to act on survey results; you must communicate them. If a customer is upset about something particular, make sure someone responds to them. Let them know their opinion has been heard and changes will be made. More importantly, make sure your team is on board. A leader with no followers is just out for a walk.

Your competitors are gathering customer insight, and you should as well. However, make the most out of your efforts and create a plan that will allow your company to be successful.

Celebrity endorsements do nothing for me. I can see some logic though; Tiger Woods is promoting Nike golf equipment, so it must be good. In a discussion on Marketing Profs about the use of superstars in advertising, one response states that “Celebrity endorsements can be quite effective. The key is finding the right celebrity and communicating the right message in the advertising.” Okay, so how exactly can brands find the right celeb?

According to an article from the New York Times, Sarah Jessica Parker turned out to be the wrong celebrity for the Gap. Allegedly, her association with high-fashion didn’t align with Gap’s image. This resulted in a decline in sales for the retail store. Although a high-fashion image isn’t necessarily a bad thing, it was bad for the Gap. So what happens to brands that end up with lawbreakers representing their products?

Time will tell, because in the last month alone Michael Phelps and Chris Brown lost endorsement deals due to criminal behavior. There have been plenty of discussions about these news stories already. What I’d like to know is how this affects customers. I assumed that these situations would not affect sales. On second thought, as seen with Gap, it is clear that the wrong spokesperson can potentially cause a major drop in sales. On the flip side, a company’s decision to can an endorsement deal can backfire as well. Since throwing out the agreement with Phelps, upset consumers are petitioning and boycotting Kellogg products. This means trouble for the company, since over 5,000 people have now agreed to not purchase from Kellogg.

I see how celebrities can be both good and bad for advertising. People care about what they do, and they especially care when they screw up. My question for brand managers: is it really worth risking the overall integrity of your company (or worse, your loyal customers) by having famous people endorse your products? In my opinion, there are much better ways of building loyal customers that do not involve paying high-profile people to attract them. Lately, celebrities seem to be hurting companies much more than they are helping them. Why not focus on mobilizing existing customers to spread the word about your products? Something tells me that would be much more effective.