Friday, July 15, 2011

Customer advocacy in advertising: Domino's and GQ

If I had to pick my favorite ad campaign of the last few years, it is easily Domino's Pizza relaunch. It helps that the new pizzas are delicious and I appreciate the bold move to change everything. But when they asked for customers to provide the photos for their new pizza line, I was floored. Talk about standing behind your product.

But then they raised the game. They couldn't have expected everyone to return fantastic shots, and they could have hid all the haters if they wanted. But they used that, too.

This is all about using customer advocacy in your advertising, and in the modern marketplace, it is essential. Combined with a quality product, this campaign turned me, and many like me, into consumer advocates for their brand. This customer service seems to have trickled through their organization, too. Check this - http://everydayfunnyfunny.com/funny-special-pizza-delivery-instruction/

This brings me back to my previous rant about Netflix (check out my last blog for more). There was no effort given to understanding or taking care of your customer, and that's just horrible. Well, while cruising the internet today, I caught another group who agrees with me.

GQ magazine posted the following note in their articles that reviewed a series available for streaming on Netflix:


Dear Netflix,

We love you, but you're killing us. This week you announced price hikes and reduced subscription options. Don't get us wrong: The content is wonderful. Keep it coming. But the sting still lingers, and we cannot in good faith recommend that our readers use you this week. We have no choice but to look to other sites. Consider this our (very) minor protest.

Sincerely,
GQ

Read More http://www.gq.com/entertainment/movies-and-tv/201107/stream-this-misfits-hulu-netflix#ixzz1SC63t04S

I have to give it up to Netflix. They are risking a large amount of advertising dollars by taking this stand, but in the process, they are making a bold stand for their customers. It may impact immediate dollars, but such consumer advocacy is likely to spur many lifetime subscribers, and such honesty is likely to endear brands promoted by GQ to their consumers. It is a long game, but I think it is one worth recognizing.

Thursday, July 14, 2011

Back with some thoughts on Netflix

I've been away from this blog for a while, but since I'm applying for jobs again, might as well come back to it. I also got a good source of inspiration earlier this week.
Netflix hit me with a blast informing me that my monthly subscription could go one of three way come September. I could:
1. Get less service for less money - I just have to make the choice of whether I like streaming movies or getting DVDs in the mail more. I have to also think carefully as to whether I want a smaller selection and longer delays in streaming or a wider selection, but not get anything instantly... but hey, I save $2.
2. Keep both streaming and a single DVD at a time program for a slightly larger than 50% increase in cost per month.
3. Cancel.

As a consumer, I'm angered from every angle. Yes, I understand cost of business goes up. Yes, I understand wanting to move customers from one service to another. But you're giving me three bad options, one of which includes "take a walk." For a company that prides itself on customer service, that is just awful.
As someone involved in marketing, the move makes even less sense, mostly because of the lack of care and insight used.
Consider what Netflix has built their brand around - Innovation, customer service, and cost-friendly entertainment. This announcement flew in the face of all of the pillars. There is no innovation in the way they are limiting service. There was no corresponding announcement of increased streaming options or a special promotion for streaming devices. If the hope is to push people to the more cost effective streaming option, then there should be more help in getting them there. This did not happen.
According to an article in adage (http://adage.com/article/mediaworks/netflix-s-prices-caused-a-customer-service-uproar/228704/) customer service reps were all over the map in helping customers make this choice. There was no company line or game plan in place. I was left wondering if the phone reps were only notified shortly before the customers because of the scattershot reaction and lack of preparedness. This is not the customer-friendly help that I've got in the past when calling in for help.
And finally, suggesting that customers may just want to quit service in the announcement email is sheer insanity. DVDs are not tobacco. They can't shrug their shoulders and say "then quit" knowing that their customer won't - this is especially true when competitors like Red Box, Hulu, and even Blockbuster are starting to cut into Netflix's success by offering slightly tweaked but equally useful services to the same customer.
In the end, this is a terrible move by Netflix, and I'm not specifically saying it is because of the service and price changes. Companies must remember what their brand is built around ESPECIALLY if that brand is successful. The crew at Netflix dropped the ball here, and they will feel the results over the coming months.