Recently we’ve seen two blatant examples of consumer revolt. These uprisings followed acts of extreme corporate arrogance or stupidity – or both.
First Netflix announced that they were slamming their customers with a huge price increase and providing less services. Nice combo. And oh by the way they made it more complicated to use their services.
Idiots.
Then they even bungled their apology. Their CEO letter explained that Netflix had to punish their customers with higher prices and poorer service, it’s just that they did a poor job of communicating the situation.
Hey it’s just 5 bucks.
Then it was Bank Of America. It’s not enough that banks like B of A can borrow from the government at zero interest and make money on our backs. Nope, the big banks are annoyed that new consumer protection laws going into effect won’t permit them to continue fleecing customers to support the enormous profits they’ve been racking up.
Free money. Onerous interest rates and fees. Nice gig those banks have.
Faced with the prospect of losing some of those nickels and dimes, banks got an idea. Charge customers $5 a month to use their debit card
Debit card transaction are an excellent alternative to credit cards. They don’t carry interest charges orlate fees, and you can’t spend more than you have. It’s responsible money management for many.
Got to punish good behavior right?
Bank of America was the first to grab hold of the idea in a big way. They announced the new fees figuring that customers would just get used to them. Then came the revolt.
Congressmen, the President and other big mouthpieces ripped the new fees. Feeling empowered, customers sprang into action to find competitors without the fee. And of course, many seized the opportunity to steal unhappy customers. Credit Unions gained tremendously, in goodwill and new customers.
B of A announced they were abandoning the new fee at the end of last week. A spokesperson said they’d listened to their customers and so they took action.
In both of these case-study worthy examples, customers forced a change in plans in a very public way. And in the process the company’s they attacked took a big hit to their reputations and their stock prices. Ouch!
Its easy (and kinda fun) to talk about these bonehead moves, but some serious issues arise.
Words and momentum travel fast. People mobilize and opinions are broadcast. Therefore, businesses must somehow involve their customers in the decision-making process.
Today it’s Netflix and Bank of America. Tomorrow it could be you. Large and small are both subject to the same reality.
There are critical questions to be answered:
- How much power should you give your customers?
- How would you want them to express it?
The answers are different in each circumstance. And, they will change over time.
But they need to be addressed in your marketing plans…or else.
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