The Missing Link: Transparency in Customer Relations

This is a personal story and a reflection on the separation that exists between a company’s online and physical retail stores. Given current economic conditions, companies have to be more customer focused and look to continuously integrate many facets of their businesses, including creating a linkage between their customers and suppliers. Through this, they can create a continuous cycle that delivers exceptional customer experience which will become a key competitive advantage as the world continues to become flatter and cheaper. Now to the story and reflections…

Recently, our son received a ToysRus gift card. After walking down the isles several times, we all agreed he should purchase the HyperX Radio Control BiPlane from Estes. We felt Estes was a well known brand in this space and the marketing materials on the packaging specifically indicated the design made it perfect for a beginner pilot. As a note, the plane was only and exclusively available in Toysrus.

Unfortunately, my son and husband’s excitement for flying this airplane died within the first minute as the plane crashed twice, destroying the 2 out of 3 propellers that came in the package. Wisely, hubby decided to stop the flying experiments in order to find a source for new propeller parts. Things went from bad to worse within minutes as 1) he found out that parts are not easily available anywhere (including from the Estes or ToysRus websites); and 2) Toysrus’s online store had nine 1-star reviews for the exact plane, strongly recommending a don’t buy rating from everyone who took the time to review their purchase. Each experience was identical to ours: plane crashes immediately and breaks, no parts available and extremely difficult to fly!

Now, if you had an online store enabling your customers to share their product experiences, and you had a product where your customers were providing a negative feedback with a recommendation of “don’t buy!“, would you:

1. Return the existing inventory back to the manufacturer along with your customers’ feedback and request them to revise their product;
2. Recognize that is just the feedback of a few, but would enable a transparent way for your customers to access the on-line reviews in the physical store and make informed decisions before they purchase;
3. Give a deep discount for that toy to sell out your existing inventory faster;
4. Pay people to write favorable reviews for these lousy products;

Ok, option C might be little too harsh, but after the deep discount we received at checkout and then finding out the toy just doesn’t work, I can’t help but wonder if that was their strategy after all…. And please don’t use option D under any circumstances.

After making a special trip back into town, we were able to return the toy. However, the return process was another less-than-pleasant experience…. Let me ask: if your customer has feedback for you or your suppliers, would you:

1. Give her a customer feedback form and thank her for her time;
2. Hand her your business card that includes all the different ways she can submit her feedback;
3. Tell her to call 1-800-toysrus and navigate the phone-menu of doom, and strongly emphasize that “as an employee I have no control over any decisions the company makes”;

Many firms still view their online and physical retail stores as separate entities. Yet, the line between what is virtual and what is real is quickly deteriorating and customers are demanding the best customer experience regardless of location. We are quickly moving from an integrated customer experience being a “nice to have” to a “must have”, as the young generation becomes the new generation of shoppers. Just think, what percentage of parents suggest that their kids check out the reviews and prices on Amazon.com before any major purchase takes place for video games, books, toys, …?

Lets go back to my previous questions. Now, replace ‘you’ with ‘your employees’ and repeat the questions. How would they respond? Recently, Amazon.com received the highest customer satisfaction index. This is not a surprise, as Jeff Bezos is obsessed with the customer and customer satisfaction. So much so that the Amazon.com logo reflects a smiling, satisfied customer (the “arrow” pointing from a-to-z) for the A-to-Z of products they carry. Bezos is also known for randomly testing his company’s customer experience and pushing the limits each time. Eating one’s own dog food is the best way to experience what your customers are seeing, and it should be a requirement at all companies…

I mentioned the importance of providing the linkage from your customers to your suppliers. Internet and social networks are making it easier, cheaper and more scaleable than ever for any producer to be directly connected to their customers. I have seen product managers connect with and respond to their customers on Amazon.com. Other times after reading reviews, I was left wondering if anyone was out there listening. Which do you think sends the message “we care, about you and about our products” to your customers the most?

On a more positive note, as the story shows, there are plenty of opportunities for firms to make a difference through their service, the products they offer, how they incorporate customer inputs into their procurement process and enable their partners to develop better products all the while using green materials and sustainable processes. With the current state of the economy, every aspect of your business’ touch points become key for building loyal customers. And frankly, if you are not focused on building the next generation of loyal customers in a toy business, what does that say about your longevity?

Technorati Tags: customer service, CRM, Toysrus, Amazon.com