Saturday, 25 April 2015
Are 'political leaders' an oxymoron?!
Friday, 17 April 2015
Do customers matter, or is 'customer lip service' just fine?
I'm tired of dealing with companies who trumpet their so-called customer focus and do the opposite. Over the years I've had plenty of negative experiences.
Last October I wrote three blogs about Tesco - How to make your company more resilient, Stop your company's demons coming back to haunt you, and Was Tesco's Terry Leahy really such a great leader? You may recall that Tesco started to implode last September following the sacking of CEO Philip Clarke and the subsequent revelations that the global supermarket giant had been cooking its books, the subject of an on-going UK Serious Fraud Office (SFO) investigation.
Clarke's demise reminded me of that of David Moyes as Manager of Manchester United FC. Clarke and Moyes both made fatal errors during their relatively short tenures, but the true seeds of their downfall, and their organisations', were sown by their illustrious predecessors - Sir Terry Leahy and Sir Alex Ferguson respectively.
The fundamental problem at Tesco was the contradiction between Leahy's professed passion for putting the customer first (captured in Tesco's strapline 'Every little helps') and the company's traditional passion for profit, at the expense of its customers and suppliers. This thinly veiled, cynical hypocrisy made Tesco one of the most loathed retailers in Britain.
However, this blog isn't about Tesco. It's about EE, another household name corporate whose behaviour over the last few weeks is the amongst the very worst I have personally experienced from any company in my 52 years on the planet to date.
Funnily enough, the other most appalling customer treatment I can recall suffering is from BT. What is it about telecoms companies??!! Oh, and by the way, it's strongly rumoured that BT have been negotiating for months to buy EE - now that's a match conceived by Lucifer, if ever there was one!!
Anyway, it seems I'm not alone when it comes to EE. I recently Googled statistics from OFCOM, the UK Government watchdog that monitors the ICT industry, and found that EE had TWICE the rate of complaints of its next worst two rivals and THREE TIMES the rate of its other rivals.
Here's a selection of some of the damning evidence for the prosecution:
http://eecomplaints.co.uk/
https://www.facebook.com/EEComplaint
https://twitter.com/eecomplaints
http://bit.ly/1CijsfC,
There's plenty more, I can assure you!!
So what did EE do to upset this particular punter so much that he's decided he's quitting and not coming back, after 10 years with Orange, one of the brands that EE bought out?
10 months ago we moved my 18 year old son's mobile phone account over to EE from a competing provider and put it onto my contract, to get a better deal. 8 weeks ago, bless him, my son decided he wanted a better mobile phone. So unbeknowns to me he went into our local EE shop in Skipton, North Yorkshire.
Now you'd think, wouldn't you, that if a customer walks in to a mobile phone shop and says they want to upgrade their mobile phone then the shop would assume they had an existing contract. That would be logical, wouldn't it? You'd also think that they'd assume the contract must be with them? I mean why would someone walk into a different mobile phone shop than the one through which they had their existing contract, for crying out loud??!!
Now bear with me on this - I know it's difficult. A customer comes into your mobile phone shop. Wait for it, they have a mobile phone, of all things. Now there's a surprise. They want to upgrade it. First of all you would ask them for their phone number, right? You wouldn't ask them for their contract details - most of us don't carry those round in our heads. You would key in their mobile phone number to EE's computer system to see what sort of contract they were on. And you would probably tell them that it would cost them to upgrade the phone, since it almost certainly would. Of course as soon as you keyed in this particular customer's mobile phone number you would see that the contract was not in his name, so you would ask him who Mr Mark Ashton was, and he would tell you it was his father.
Are you still with me? Yes? Good. Except that's not what happened.
All we know is that the EE shop proceeded to sell my son not only a new mobile phone, but a new two year contract to go with it, in his own name. He did not need a new contract - he already had one in my name, which still had 16 months to run. But somewhat naively, yet quite understandbly, particularly for a youngster, he was preoccupied with getting this sexy new mobile phone and perhaps assumed that EE would automatically cancel the existing contract?
I wonder if the more streetwise can work out where this is heading?!
I was aware that my son had been given a new mobile phone number - he gave it to me - but I did not realise he had taken out a new contract. This did not become apparent until I got my next bill from EE a few weeks later and noticed that I was still paying for his now redundant, previous mobile phone number.
I called EE. Guess what? "We're sorry, Mr Ashton, there's nothing we can do. You took out a 2 year, legally binding contract last June and we cannot cancel it. You can pay an early termination fee - it's £250. Your son was legally old enough to take out a contract in his own name. HE SHOULD HAVE TOLD US (my emphasis) that he had an existing contract with EE and that it was in your name. Without that information we could not find his mobile phone number on our system."
I went into the EE shop, I rang EE to complain and in each case I got exactly the same response. It was as if this sort of thing happens regularly and they are all programmed to deal with it. Every person I've spoken to from EE has pointed out to me that I have a legal contract with them for two years, my son now has a different legal contract with them for two years, and THERE'S NOTHING THEY CAN DO ABOUT IT.
I have a phrase for it, an ironic paradox - I call it 'legalised theft'.
My son was sold something he didn't need - a new mobile phone contract, which will cost him approximately £650 over the two years. The only sensible option now in fact is to pay £250 to terminate early the unwanted contract in my name. The helpful customer complaints guy from EE did point out to me that there was another solution - guess what folks, I could FIND ANOTHER USE FOR THE SPARE MOBILE PHONE NUMBER! Wow! Let me see now - what could I use a mobile phone number for when I have no need for it? Tough question! No, but wait, he did point out another option. Wait for it - I could find someone else who needed it! Wow again! So having created a problem for me that was none of my own making, EE now suggest I should figure out a way to solve that problem myself. Great, spectacular in fact! What genius! Where DO they find these people?!
That's why I'm leaving EE after spending 10 years with Orange, and will never return. They will lose my business mobile contract next week (as luck has it, that's when it expires), and once the contracts have expired they will lose my son's contract, my wife's contract, and my mobile WiFi dongle contract. Oh, and as I pointed out to them, I might mention it to a few people, including at least several hundred who typically read my blog each week!
EE's behaviour is a classic example of corporate taking - see Adam Grant's 'Give and Take' (2013). Takers ultimately lose out because people abandon them so they constantly have to replace churned relationships that have gone toxic on them. Then there is the bad press - people spread the word about their negative experiences with takers, like I'm doing now. But most people do it privately, so takers are never aware that their dire reputation is spreading.
By contrast it's well known and well researched that companies who genuinely put customers and customer relationships first, and who handle complaints sensitively and intelligently, are rewarded with far greater, enduring loyalty and a much better reputation.
The choice is yours!
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If this blog is particularly relevant to you, your organisation, or to someone else you know, I may be able to help or advise. I strive to be a smart giver – Adam Grant’s excellent book “Give and Take” (2013) explains why smart givers are the highest 25% of achievers in all walks of life. They go out of their way to help others, intelligently, without allowing themselves to be widely exploited. In this way they inspire higher performance and create sustained new value through collaborative exchange.
The business I lead, Resolve Gets Results (RGR), provides hands-on leadership, management, problem solving, customer/market development, sales and fundraising capabilities to companies with long-term growth potential. I'm also actively involved in Linked2Success (L2S), a business which helps clients to use social media intelligently to build professional relationships and grow. RGR and L2S work together as a single team to leverage the benefits of our respective skill sets, giving tremendous business value to far-sighted clients..
I work with a superb small team of Board-level professionals, each a leader in their field with over 30 years’ business experience. We are based in the UK but have international business backgrounds, in my case including 5 years in the United States, where I ran a high growth machinery sales and service business.
You can find my contact details under the ‘Contact info’ tab near the top of my LinkedIn profile.
Mark Ashton
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