In one scene, the pair sat chained to their coach seats In a stuffy, tarmac- stranded plane. Sweating women and children in prison garb begged for water from surly flight attendants dressed as guards. In the next, the two men crawled on their knees before a leather-clad gate attendant, crowned with devil horns and holding a long whip. They begged her to finally assign them their “guaranteed” seats Hob’s cases, which are affliction, present common managerial dilemmas and offer concrete solutions from experts. Hub. Org December 2007 Harvard Business Review 31 dismissively and shouted, “Next in line!
In the final sequence, the men took turns reeling off a series of probabilities. “Lifetime chances of dying in a bathtub: one in 10,000,” said Jerry. “Chances of Earth being ejected from the solar system by the gravitational pull of a passing star: one in 2 million,” said Jeff. “Chances of winning the Auk’s National Lottery: one in 14 million,” said Jerry. “Chances of anyone from our 3,persons company ever flying with Angel in the future: zero! ” they shouted in unison. The video ended with a message to Angel’s CEO: “Now, Mr… Watkins, we’re letting the world know about your scalded customer service!
For his part, Jim had expended a lot of energy trying to improve customer service at Data. Historically, the arrear-old automobile manufacturer had had a better reputation for innovative styling and high performance than for service. But Jim, who had turned around customer service operations at another Detroit carmaker, had been brought on board a decade ago to change all that. The company now offered a comprehensive warranty on all its new vehicles as part of its massively promoted Red Carpet program, covering everything from transaxles repairs to the paintwork. An
Data credit card rewarded customers with accessories for their cars and apparel sporting the Data logo. Returning customers even received a free satellite radio. Ins me to take revenge on our dental insurer. I Just spent another fun-filled hour on the phone trying to get them to pay for these damn implants. ” Jim pursed his lips in sympathy. “Any luck? ” “l swear, Jim, it’s Just been a nightmare,” she said exasperatedly. “It seems like every time I call to get help, they refer me to some new idiot who doesn’t know anything, and I have to explain everything all over again. And it’s not my fault!
Maybe I should sic Michael Moore on them. Or sneak into their offices at night and smash their computers with a sledgehammer. ” A Love-Hate Relationship “Loved that video,” said Lisa Ross, Jims head of customer communications, as she took a sip from her cola can. “After all that flying back and forth from India last year, I can certainly relate to it! ” She smiled, taking in the party atmosphere. “It sure is nice to be home for a while. ” The autumn afternoon was sunny but crisp. The lunchtime smell of roasting hot dogs mingled with the tinny sound of the Beach Boys drifting over the PA system.
The Detroit Chaser Club’s annual show was packed with hundreds of car enthusiasts who had come to pay homage to the asses model that had made Data Motors famous. In their baseball caps and blue Jeans, Jim and Lisa were indistinguishable from the enthusiasts. The event was an annual ritual for the two of them and sundry other Data executives who came to spy on Chaser fans. They sidled up to the Best in Show, a heavy, cherry-red convertible with immemorial chrome headlight bezels and fat, white sidewall tires.
The vintage car featured a large stylized hood ornament – a silver-and-black checkered flag – and a doughnut-shaped Continental Kit on the back bumper for holding the spare tire. Little wind wings afforded a breeze for the driver and passenger in the wide front seat when the top was up. “Wow, what a beauty,” Lisa said. Dental insurer. Maybe I should sic Michael Moore on them. ” Jim chuckled as he forwarded the e-mail to his wife, his mother, and a few frequently flying executive friends at Data. Mill’s all enjoy this,” he typed. “Sure glad we’re not on the receiving end of it. Cheers, Jim. Nor will we ever be if I can help it, Jim thought, as he snapped his laptop shut. During the 40-minute drive home, Jim contemplated the video and recalled his last miserable, multiple-leg trip on the trundling airline, when his baggage – including an expensive digital camera, a gift from his brother – was permanently lost. He’d resolved never to fly Angel again. Another nail in their coffin, he thought. When you treat customers like animals, they snarl and bite. As a result of Jims efforts, Data had finally built a state-of-the-art call center in Bangor the previous year.
In its last annual report, the company boasted that the call center would reduce costs and call-waiting times, standardizing and streamlining service for customers. Executives had high hopes that the current strong sales of the gently introduced Andromeda XSL would excite Wall Street. All in all, Jim concluded, there certainly was a great deal to be proud of. When he arrived home, his wife, Michelle, was in the kitchen, sipping a glass of pre-dinner wine and stirring the gray’. Y for the pot roast. She gave him a quick kiss and poured him a glass of Pinot Noir. Hey, that video you sent was hysterical,” she said. “It’s inspire- Dan Rarely (ariely@mit. Deed) is the Alfred P. Sloan Professor of Behavioral Economics at the Massachusetts Institute of Technology in Cambridge and a visiting professor at Duke University in Durham, North Carolina. He is the author of the book, Predictably Irrational (forthcoming from Hairlessness in 2008). 32 Harvard Business Review A group of fans had gathered around the car, peeking into the interior and marveling at the pristine leather. One man was pointing his video camera at the backseat. No belts,” he said to a friend at his elbow, as he focused on a slim red cord attached to the back of the front seat. “Safety sure wasn’t Job one in those days. ” “Heck no,” said his smiling friend. “But boy, that backseat sure was fun. ” Soaking in fellow with the camera posted his video on Youth. He remembered why he loved irking for the company. “People really do love these old Ideas,” he said to Lisa. “My father restored a few of them, you know. It took him 12 years to bring one back to life. Anyway;ay, that’s how I got into this in the first place.
I guess this company is in my DNA. ” “Kind of makes you wonder what this show will be like 30 years from now,” Lisa said, sighing. “Will people be drooling over classic Andromeda XSL, I Harvard Business Review 33 wonder? ” She lowered her voice. “Which reminds me, I e-mailed you the report. We need to have a little chat about a few problem children when we get back to the office. Later that afternoon, Jim scanned the divisional quarterly report tracking customer feedback, which logged more than 30,000 calls.
In addition to noting average wait times and call duration times, the report summarized the content and disposition of all calls, e-mails, and letters. Several had been escalated. Looking them over, he saw a number of messages marked “read original text. ” One of them was a letter from a customer named Jessica Long. Apparently, this person had been inundating Paul Turn, the CEO, with letters complaining about her Andromeda XSL, which she had bought shortly after the car came on the market. First the reconditioning failed, then the CD player Jammed, then the catalytic converter went out, and so on.
The company had repaired each problem at no expense to her – in fact, Data had actually replaced the car – but she kept on sending in complaints about the new one, too. Her latest letter was attached to the report: Dear Paul, It’s only been two months since I wrote you, but it seems the repairs to my Data Andromeda XSL, which you replaced three months ago, are now sadly happening more often. This time my daughter organized a birthday party for me. We were on he way there when we started hearing a high-pitched squealing, which sounded like have the mechanic take a look.
He said it seemed like one of the brake pads was going bad and RISE TO ANY CHALLENGE, such as making global connections. With an approach that inspires you to put your ideas into action, the Kellogg Executive MBA Program can help you fulfill your aspirations. And with a global network of programs in Europe, Asia, the Middle East and the Americas, you can fulfill them almost anywhere. Visit www. Kellogg. Northwestern. Deed/MBA or call 847-491-3100 to sign up for an upcoming information session. Deed to be replaced immediately.
By the time I got to the birthday party, it was so late that four of the invited guests had already gone home. I called customer service and sat on hold for an hour. Of course they were useless. The person who finally took the call could barely speak English, so I asked to speak to a actually got freebies. I’m sure Ms. Long would get an A+ in that class,” she added, trying to hold in her frustration. “We’ve already replaced her car to shut her up. She needs to get a life. ” Then she pointed to the report in Jims hand. “Did you see that other letter in the appendix? The one from the guy named Tom? Reinventing Leadership: A Breakthrough Approach March 2-7 “Looks like our friend Jessica is on the rampage again. ” Lisa looked up at Jim and smiled. “She’s a piece of work, isn’t she? ” supervisor. After 30 more minutes on hold, I finally spoke to someone. He told me to contact my local dealership. Now the dealership is giving me the runaround and won’t reimburse me because I took the car to a mechanic instead of to them, and in a total catch-22 they are telling me to take it up with customer service! I wonder, am I Just part of some bizarre economic experiment you are conducting over there?
Or is this some new business model they each now? I can only hope that you start making cars that actually work for real people in the real world. Thanks for ruining my birthday. I hope someone ruins yours. Disrespectfully yours, Jessica Long c: Élan’s Consumer Blob Jim stood up and carried the report over to Alias’s office. “Hey, Lisa,” he said, poking his head in the doorway. “Looks like our friend Jessica is on the rampage again. ” Lisa looked up at Jim and smiled. “She’s a piece of work, isn’t she? ” She motioned him to a chair. “l remember taking a business-writing course as an undergraduate.
The instructor asked us to write complaint letters. Our goal was to get a free box of chocolates after complaining that we found some hair in the candy, or whatever. A few people Customer Insight Tools: Turning Insight into Effective Marketing Strategies March 9- 12 Jim turned to the back and found the letter, which was written on letterhead from and former Data fan who is now close to desperation. Several months ago, I purchased my fifth (! ) Data, the new Andromeda XSL. (l also hold one of your company’s presumptuousness credit cards. It was peppy, it was stylish, it handled well. I loved it. On September 20th, I had Just finished shooting a commercial in Lass Vegas. My production assistant and I were driving back to Los Angels with a trunk full of very expensive filming equipment. It was late at night, and we were driving at approximately 70 miles per hour. All of a sudden, the car stopped responding to the gas. It was as if we were driving in neutral. I tried to make my way to the right. Looking over my shoulder, I saw a big truck bearing down on us as I tried to move over. The driver barely missed us.
We managed to make it onto the shoulder alive. It was one of the most frightening experiences of my life. After sitting for more than an hour in the breakdown lane, our car was towed. We were forced to haul all the heavy equipment from it into the tow truck, spend the night in a bad motel, Managing the New Workforce March 9-12 Understanding Asia March 16-19 Kellogg Post-MBA Program Part l: April 6-18 Part II: September 7-12 Managing Customer Relationships for Profit April 6-9 567567567567 Find the program that will inspire you to put your ideas into action. Logo. Northwestern. Deed/exceed 847-491-3100 then move everything into a taxi and a train to get back home to Los Angels. In the morning, I called your customer service line and described as colorful as I could the night’s ordeal to the rep. L am sorry about the inconvenience, she said. ” Inconvenience! This Just made me furious. Here I was, very close to having had a serious accident (not to mention having had a five-month-old car severely break down on me) and the best description she could come up with for this was Inconvenience!
To make matters worse, she said you wouldn’t reimburse me for the motel or the train because according to your records I don’t live in Nevada where the month, I called your customer service line two or three times a week, asking them for more information on the state of my unimpaired car, to no avail. (l taped each of the calls for future reference. Vive always bought Ideas because I love driving them, but now I’m angry, spiteful, and I want you to share in my misery. I feel the need for revenge. Vive contacted the state attorney general’s office, which gave me the regulations for the Lemon Law.
It appears I’m entitled to get my car repurchased or replaced. But when I called your customer service to discuss this option, they sounded surprised to hear of the Lemon Law, claiming that it was completely beyond their knowledge or Jurisdiction. I’m now talking to my lawyer, and I’m seriously thinking of making a very slick and nasty little film about your company and putting it up on Youth. I guarantee you won’t be happy with it. Sincerely, Tom Charlie “Wow,” said Jim. “Have you checked with Legal about this one? ” “It’s not a legal problem,” said Lisa. Our lawyers are saying that our only obligation is to fix the car and nothing else. They say this customer can certainly hire a lawyer, but once customers understand how much pursuing the legal option will cost, they almost always see things differently. They take their loss, and they move on. ” “Well, we have more to worry about here,” Jim said thoughtfully. “PR would probably say the Youth thing needs to be taken seriously because the buzz on the Andromeda is Just getting darted. ” Alias’s shoulders began to tense. “Jim, we’ve got a policy for handling this stuff, one we’ve been following for decades.
Our Job is to build good cars backed by decent warranties. It’s the customer’s responsibility to get the car to the dealer. It’s all written right there in the warranty manual they receive with the car. ” “l understand, Lisa,” Jim replied. His stomach churned. Whether it was the hot dog or the conversation that was backing up on him, he wasn’t sure. “But this guy Tom has been a pretty loyal customer. I think Marketing would say we need to think more about the effects of positive versus negative word of mouth. ” Lisa frowned. “Jim, look at that report! There are 30,000-plus calls there!
We can’t afford to coddle people whose complaints border on extortion. ” She glared at him. “Vive been doing this kind of work a long time. And my Job is to get those customers off the line. ” A Shift in Policy? “Heads up, Jim,” began the message from Marine Stutters, the head of PR. “The new U. S. Customer Satisfaction Survey has Just come out. Unfortunately, it looks like we’ve dropped down the rankings in the auto category. Might it have something to do with those call backups in Bangor? Should we huddle about this before Paul calls us all on the carpet? ” Damn, Jim thought.
The news was coming at exactly the wrong time, as the CEO would certainly point out. He called Lisa into his office and invited Marine to Join them. The cuss- toner feedback report lay on the round table. As they sat down, he pushed it over toward Marine. “Take a look at this,” he said, showing her the appendix with the letters from Jessica and Tom. While Marine reviewed the report, Jim peered at Lisa. Solutions, and pronto. ” “Well, Jim,” Lisa responded, “given the backlog of calls, this was inevitable. We were probably too ambitious. Nobody can set up a call center halfway around the world and expect it to operate perfectly from day one.
