Customer service Archives - Page 6 of 8

Toyota’s epic PR fail

In spite of my own recent issues, I had thought Toyota was doing the best it could with its massive recall. James Lentz, president of Toyota USA sales, was all over the press shows last weekend with the two key statements considered essential in the post-Tylenol era: “we screwed up and are sorry” and, “we care about our customers and are very concerned.” (Tylenol took a similar open, earnest tack when someone poisoned some of its bottles in the late 1980s and, coupled with an intensive “get to the bottom of this” campaign [they never did, but they were obviously trying] it saved a brand everyone was writing off. For how NOT to handle a PR disaster see “Woods, Tiger”.)

But today I read this Reuters article that points out Akio Toyoda, the REAL president of Toyota, has said not one single word on the recall problem. And that another Toyota executive blamed the problem on (presumably inferior) U.S. made parts, chosen out of a charitable desire to help struggling American economy! Meanwhile the recall expands to the Prius (different problem, but nobody’s tracking the details any more) and Twitter #Prius traffic, which I’d been following because of my own recent posts, goes from sleepy to through the roof.

Concidentally, my original post about my dead Prius battery has become one of the most-read articles ever on this blog. Lots of new readers are discovering it linked to articles on the Toyota recall as they lick their chops for other Toyota schadenfreude. Speaking of which, my request for some financial relief led to timely response and some nice talks with friendly people in the Toyota Customer Experience Center, but a firm turn-down. I was frankly surprised at that.

[UPDATE for new readers: Toyota has now paid for the replacement battery. Details here.]

My casual research suggested a hybrid battery failure at 70K miles was extremely unusual if not unprecedented. It would seem like a good investment to fix an anomalous problem and placate a good customer who’s been evangelizing your product. Instead, here I am writing another post about problems at Toyota. How is that good for their brand?

Early Prius owners get screwed on battery warranty

I wasn’t too incensed about the dead battery on my Prius, just surprised, but after a bit of research I’m getting my dander up. Turns out, according to this article in the Toyota Pressroom blog, that the Prius battery has a 10 year warranty… EXCEPT for the first three model years that have only an 8 year warranty. (Mine died at 8 years and 8 months.) In other words, the earlier adopters who put their faith in Toyota and spread the word and built the Prius brand potentially get a $3700 repair invoice while later adopters would get a free replacement for the same problem.

I predict there is a bit of trouble ahead for Toyota if more owners see their batteries go south* and discover the company isn’t going to replace them. This is a classic example (getting back to marketing which is what this blog is supposed to be about) of taking your best customers for granted and treating them worse than your marginal customers.

Speaking of marketing, there are some other not-to-do’s worth learning from the Toyota Pressroom post. They acknowledge that “battery replacement in a Prius is neither as simple nor as inexpensive as replacing the battery in a conventional car.” That’s disingenuous because the massive and complex hybrid battery has no basis for comparison to the battery in a conventional car; in fact the Prius ALSO has a “conventional” battery. And they quote a bargain $2,299 for that replacement battery without mentioning that installation and tax at your Toyota dealer are going to add another, oh, $1400.

In a day when anyone can and does have access to your press releases, glossing over the pesky details is not a good idea. What exactly is this article trying to accomplish? How could anybody who actually has a battery problem not feel pissed? And how could any news source that picks it up, then later discovers the truth, avoid feeling duped?

* Fortunately for other early Prius owners, mine may be a fairly rare occurrence. According to the Driving Sports blog only 306 Prius batteries had failed as of 6/09, out of 750,000 installed. “The life of the battery pack is generally about the same as the life of the vehicle,” said Toyota’s Jeremiah Shown. Well, that’s good to know.

Ok, now I’ll stop. No more about Toyota. I promise. Maybe.

[UPDATE for new readers: Toyota has now paid for the replacement battery. Details here.]

Prius hybrid battery fails at 70K miles, Toyota won’t pay for $3700 repair

[UPDATE for new readers: Toyota has now paid for the replacement battery. Details here.]

Last week our 2001 Prius started acting strangely, and today SF Toyota gave me the bad news. The hybrid battery is shot and a replacement will cost just under $3700, tax included. We’re a year and half 8 months out of warranty, it turns out, so the repair cost is 100% our responsibility.

Our Prius in happier days. Photo courtesy of sfgate.com. — Our 2001 Prius in happier times. Photo courtesy sfgate.com.

This is a vehicle that was on the front page of the SF Chronicle in 2001, as a poster child for early adopters of green technology. We’ve bought another Prius since then and I’ve been looking with interest at the lithium-powered next generation coming in 2012. But this changes the equation. If you can expect to pay for a $3700 repair at 70,000 miles, the car suddenly becomes much more expensive as well as less reliable… what happens if the failure occurs elsewhere than in a major city?

I remember the naysayers when we bought it: “the battery’s going to die and it will cost you a fortune.” The reviewers scoffed at this: batteries don’t last forever, but it is unlikely to fail in the driving life of the vehicle. Too bad that’s not true. The $3700 new battery is warranted for 12 months. I guess that tells you something.

News like this could have a chilling effect on hybrid sales, just when we need a nitty-gritty, ready-right-now antidote for energy waste and climate change. (I love seeing the MPG on our 2006 Prius creep over 50, combined with the fact that the car has actually been made less efficient in order to come close to zeroing out the emissions.)

Toyota needs to fix this. I’ll update if they do.

The perfect upsell

On New Years Eve, I stopped by BJ’s, the Costco equivalent in upstate NY. I’d received a coupon in the mail good for a 60 day trial membership, expiring 12/31. Since membership is normally $45 a year, this was my opportunity to check it out at no cost or risk if the savings weren’t that great or the products weren’t that useful (I imagine these are the two objections most prospective members would have).

The associate was happy to sign me up, but she wanted to mention another offer: get 14 months for the price of 12, AND a coupon good for $10 off any purchase, AND a full money-back guarantee for the life of my membership. But, I had to choose one offer or the other. If I signed up for the free trial then I couldn’t get the $10 later on. And since I’ve got an unconditional money back guarantee, doesn’t that count as a free trial anyway?

Didn’t have time to do any shopping, so I happily handed over my $45 when I’d planned to spend $0 and walked out with a fistful of coupons and not a trace of buyer’s remorse. If anyone knows a better-designed upsell than this one, I’d love to hear about it!

Social media marketing best practices

At the SXSW Web Awards on March 15, the Adobe presenter gave a shout out to “all the social media gurus in the audience” and a titter ran through the crowd. The reason it’s funny is that, certain people’s business cards notwithstanding, this whole business is simply too new for anybody to be an expert. Everybody is figuring it out as they go.

Here are a couple of examples of companies that are figuring it out. They’ll do as best practices until something better comes along, and they’re also good illustrations of why companies are so fascinated by the potential of social media.

Everybody in the US knows about the Oscar Mayer WienerMobile: a funky vehicle shaped like a hot dog that tours America and shows up in the oddest places. In years past, someone who saw the WienerMobile might have told a few friends about it. Now, they’re likely to Twitter to a much larger audience… and Oscar Mayer’s PR folks are regularly searching the subject #wienermobile so they can respond to these posters, thank them for their interest and offer a coupon or just a continuing relationship through mutual following. (This illustration was presented by their PR consultant in one of the SXSW Core Conversations. Didn’t catch his name.)
Steve Barnes writes Table Hopping, a lively restaurant blog on the Albany Times Union website. When he reported that Red Lobster was going to offer flame broiled fish, skeptical readers commented that installing a flame broiler is very expensive and they were probably going to just sear it with a poker. But then the Red Lobster president himself found the thread and commented that indeed they were going to install flame broilers with a plausible explanation.

Not only did this defuse the negativity in the comment thread, but it got a new post from Steve Barnes himself: “Check out comment No. 18 on the post below about Red Lobster. It’s from the company’s president — yep, the top guy of a 680-location chain — and it’s not a canned reply but one that addresses specific comments made by Table Hopping readers.”

That’s good PR you can’t buy, but you have to work for it. And what is happening here is that Red Lobster is monitoring comments throughout the social media space using a tool like radian6 or boorah, both previously mentioned on Otisregrets, to keep track of comments so they can be responded to.

Customer Service… do it with a smile, please

A company offered a $10 billing credit over the holidays if I clicked through to their site from a promo email. My statement showed up, no credit, an inquiry to customer service went unanswered, so I contacted PR department and sent them a pdf of the ad along with the email thread. The response:

In response to your inquiry about the $10 off credit, please note that the offer for this credit expired 12/31/08, as indicated in the PDF file sent. However, to reestablish your happiness as a Bill Me Later customer, we have credited your account $10.00. Please be advised that you shall see this change on your next billing statement.

Uhuh. First of all, if she’d checked my file it would be clear that the purchase was made during the eligibility period. Even if not, the customer is always right. To “reestablish my happiness” it would be helpful to eliminate the nyah-nyah.

AT&T: anti-marketing ninjas at work

So I am finally got my iPhone. Per the earlier post, my web order disappeared into automated customer service limbo yet was impossible to cancel until I called a live sales rep. Meanwhile the price dropped $50 so I place the order again and it goes through with me $50 richer and ATT $50 poorer. And with me, a long time AT&T customer who is now a “new” wireless customer, holding a vastly reduced favorable view of the company. How is this good for the shareholders?

For people who have to call customer service on their lunch hour, stories like this are just more yadda-yadda. But for the marketer came up with the promotion that drew me to AT&T at this particular moment, and is getting reviewed for it possibly with their job on the line, it’s not at all trivial. You did your best work, you got the click, and then the order was deep-sixed by a combination of bad IT architecture and moronic overview by whatever human is supposed to spot-check to ensure all is going well.

I will not bore you with the details of yet another poor customer service experience beyond citing a couple of particularly telling details:

* “Unfortunately, either we have not heard from you in several days, or you have chosen to cancel your order. In either case, this e-mail confirms your order cancellation”. That was in an email I got from AT&T during the first attempt to order. But notice we’re talking about two totally different customer relationship scenarios, and they’ve chosen to respond to both of them in the same email.

Why would this happen? Because some human life form has decided it is “too complicated” to have two different stock emails to respond to two different scenarios that create the same result. The computers don’t care! It is people thinking for the computers that is causing the problem here.

* Now I’ve finally got an order placed, and a confirmation email arrives: “Congratulations! You’re now part of the largest wireless community in America—71 million and growing! You will receive your new wireless phone in a few days.” Well that’s interesting news, since the original order confirmation promised two-day guaranteed delivery! There is also a tracking number in the email but when I click on it, it takes me to AT&T’s home page!

So recognizing it as a UPS number I go to their tracking page and do indeed find the package quickly and discover it actually will be delivered on time in spite of AT&T’s hedging.
Why didn’t they actually confirm that they were delivering on schedule in the confirming email? Why didn’t they reference my specific smart decision to buy an iPhone? You guessed it… they send the same confirming email to EVERYONE, regardless of what offer they responded to.

Just imagine the phone calls to customer service this generates. But there is apparently no consequence and no human cost to AT&T because they have no intention of answering those calls. They’ll be led through a phone tree and ultimately disconnected as I was in my first encounter.

I feel like such a whiner in describing all this but I actually do have a point worth making. In this terrible economy, when every company should be scrambling for every last potential order to keep its bottom line healthy and to keep employees employed, AT&T is running its business like there is money, and orders, to burn.

Much of this definitely goes to the laziness of midlevel IT and customer service folks who are scheming ways to go home on time, not to execute their job which should be to make things easier for the customer. But it also goes back to a hubris that has existed from the tim companies like AT&T established their websites… because face it, the web experience with any phone company is terrible.

What they did: get on the web early, because they’re an Important Company that needs a “web presence”, then cobble on an e-commerce function as an afterthought. Now the tail is wagging the dog because their ecommerce engine doesn’t work and the ridiculous official explanations sound like one of those clone commanders in Star Wars. What they should have done: emulate sites like amazon.com. (or, just emulate amazon.com) which realize that no order can be allowed to get away.

Need customer service? Call a salesperson.

So I got a new iPhone for Christmas! Gift from my wife, but it’s hard to handle somebody else’s details so placed the order myself… a refurbished 16 GB from AT&T at a $50 savings, with guaranteed 2 day delivery, what could be better? But when the phone did not arrive today as promised, I realized such smooth service from a wireless company was too good to be true. And took a leap into the AT&T customer service rabbit/rat hole.

I jumped in by clicking through to the “order status” link on my confirming email. The web site said ATT had no record of that order. I called the customer service number on the email (800-331-0500) and after I provided much information to gain access to a rep, got a recording “we are unable to transfer your call.” Here’s an idea! I have a landline account so I’ll login in that way and see if I can talk to somebody. I get a message “we are unable to accommodate your request at this time.”

So I am stuck, right? No, I have one avenue left which is where I recommend you go whenever you are met with a customer service roadblock: call the SALES department. Unlike customer service or tech support, they will always have plenty of people to answer their phones. And they have the clout to get in through a back door to the customer service department when a lowly customer would be denied.

The sales guy was prompt and helpful. My order did exist but its status was “pending” because of “credit review”… this for a 20 year AT&T customer who never has paid a bill late. He cancelled the order for me and I guess we are both better off. Though in this economy it would certainly seem that AT&T would want a few thousand dollars in guaranteed commitment from me.