wasmisterfu
Distinguished Member
- Joined
- May 11, 2018
- Messages
- 5,062
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Let me sum all this crap up.
Pricing error. (ok, it happens)
Off the hip decision to give 40% off. (Great.)
Management realizing how many 40% off coupons they are on the line for. (rut row, can't do that!)
Let customer service satisfy those who ask. (Do not make it easy tough)
It seems with an error such as the one they had the first step would be to just stop them in the system and email and apology and an assurance that this will be addressed within a given time frame. At least that would have bought them enough time to evaluate what the correct remedy should be if there is one, or just apologize and take cover for the fall out. I think if they analyzed this, they may have come to the conclusion that a coupon code for 30% off your next purchase of regular priced shoes would have served them better. It would give AE an acceptable margin, a lot of sales are 30% off, and would have encouraged multiple shoe buys. Now they are stuck with a mistake compounded with unequal treatment of the mistake. Most customers are ok with a mistake and a resolution, but not when some get the product, most get cancelled, some get coupon inducement and a vast majority don't. I was a little peeved with the maritime situation. They decided to scrap the golf line and take back product out of the pro shops. This left them with some Maritime firsts and some other styles like the Woodstock. What do they do? Woodstock goes right to the bank and the first Maritimes are put in super secret inventory. You can only get the $99 Maritime if you know the correct SA.
Ya know what would have been easier? To simply go through and normalize all orders to 1 pair per customer (for those who attempted to abuse AE's mistake) and just eat the damn cost. This whole exercise, by the time we factor in 40% discount coupons, lost customers, bad PR, etc., has saved them very little from a top-line perspective and has likely landed them at the same place from a bottom-line standpoint (and substantially worse place when it comes to the more difficult to quantify issues of brand perception).
This is a leadership issue. This should have gone to whoever the decision maker was, that person should have performed a rapid risks/benefits analysis against the potential resolutions and taken the decision that offered the least risk to the brand and customer perception (as Steve Jobs famously said, perception is reality). That answer is obvious, so chances are the that the person making the decision wasn't truly empowered to make the correct (albeit more short-term expensive) decision so took the one that would be viewed as the least risky from an internal policy standpoint. This is a classic example of leadership vacuum.
This leadership issue further manifests itself in how they've dealt with the situation post-decision. Once the path was chosen, they needed to make sure that they handled this with care, which means someone ensuring that communications are unified and consistent. CS personnel need to be very clear as to what will be done for customers and when. Number one rule: customer is king - instruct CS to say yes (not no) in the context of this incident and related fall out. If the customer facing resource can't say yes, they need to escalate up the chain until they find someone who can say yes. When you created the mess and chose the less than ideal (from a customer standpoint) resolution, make sure your default mode from thereon (in the context of this issue) is to say yes to the customer (e.g. can I get my gift card split transaction refunded - yes, can I have the 40% coupon - yes, can I speak to a manager - yes, I can't answer that sir, but I'll get you to someone who can, and so on).
Last but not least, come on AE, this issue of not having your order fulfillment and billing systems properly integrated is ridiculous. For 30 years, POS and online billing systems have been able to reverse chained methods of payment either individually or grouped to main payment method. This is not rocket science and you're not a little shoemaker doing a 3 million in revenue like in 1980; you're closing in on 100 retail locations, have multiple online properties and are, easily, the largest maker of shoes in this space ($250+ GY-welted). Get your act together (and yeah, I know exactly how you got away with these poorly implemented back office systems and polices - by pushing it all into the CS bucket, which was likely crushing your margins).
So, Mr. Malcom Robinson, get out in front of this, communicate effectively, resolve these issues for the people complaining and fix your systems so this doesn't happen again. And in the future, your bias should be to always favor brand perception and customer satisfaction over top-line numbers. Remember, this was YOUR f'up, not the customers (even if some customers acted like jerks).