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MARKETING

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What lies beneath Great marketing is soon ruined by poor customer experience

WRITING

What would it take to convince people that your business delivers a great customer experience? For tech giant Microsoft, the answer was more than $1 billion. That’s how much the company reportedly spent on its Windows 8 marketing campaign when the new operating system was launched in 2012. And how did that work out? Not so well. Windows 8 sales were underwhelming at launch, garnering far less market share than Windows 7 at the same point in its release cycle. So, what went wrong?

muscle to win the hearts and minds of consumers. Defenders of this expenditure argue that it is a required element for raising brand awareness and consideration among one’s target market. That’s a fair statement. Yet what often happens is that the marketing of a company’s brand promise gets far more attention than its fulfillment. And it’s this disconnect that will undermine even the most carefully orchestrated branding campaign.

Marketing matters… but customer experience matters more

The divergent fortunes of US wireless carriers Sprint and T-Mobile provide an excellent illustration of this dynamic. In the past few years, both companies launched significant new marketing campaigns, but realized very different outcomes. It was early 2014 when, with great fanfare, Sprint rolled out its ‘Framily’ wireless phone plan and touted its ‘revolutionary’ new pricing scheme. Within seven months, the Framily plan was unceremoniously shelved, and Sprint’s prospects looked bleaker than ever. The company had aggressively promoted Framily, but its marketing message was obscured by one basic reality: Framily made Sprint’s customer experience worse than it already was. Framily was essentially a familyshared wireless plan that could be adapted to groups of friends. The more people in your Framily, the lower the cost per phone line. That sounds good in theory, but in practice it was onerous for a consumer to set up and maintain a Framily plan. First,

In a word, it was the experience of using Windows 8. The software was designed to support both touchscreen tablets and traditional desktop PCs, but it handled neither particularly well. Many software reviewers and design gurus found the Windows 8 interface plain confusing. But this isn’t a story about the usability of a new software program. It’s a sobering reminder that great, loyalty-enhancing customer experiences – the kind that get people talking and buying – can’t be created through marketing, no matter how clever or expensive the campaign. Marketing programmes may help pique people’s interest in what your company offers, but it’s the actual interactions they have with your organization and its products – the customer experience itself – that will ultimately shape their brand perceptions. Microsoft isn’t the only organization that’s erred in this regard. Many companies try to use their marketing

Jon Picoult ILLUSTRATION

Joren Joshua

A tale of two wireless carriers

you had to herd cats to get friends and family to agree to be part of your group. Then you had to establish a Framily ID to link everyone’s accounts, as well as communicate that ID to all parties. Then, every time someone tried to join the Framily, you had to provide verification that they were allowed in. But wait, it gets worse... Framily wasn’t just onerous to set up, it was onerous to think about: who am I comfortable inviting into my group? What if I have a falling out with someone who’s in my Framily? Can I kick them out? Will other Framily members have access to my calling and billing information? All those questions created a cognitive impediment which made it difficult for consumers to wrap their heads around Framily, let alone decide to purchase the plan. For Sprint customers, Framily was more of an aggravation than an advancement. The experience wasn’t any better for Sprint’s investors – the company’s stock price fell more than 50% in the year after Framily was introduced. Contrast the Sprint story with that of T-Mobile and its ‘Un-carrier’ marketing campaign. In 2013, under new chief executive John Legere, T-Mobile started positioning itself as a different kind of wireless service provider – one that was willing to enhance the customer experience in ways other carriers had long resisted. Promoting itself as the Un-carrier, T-Mobile significantly strengthened its business in short order, and simultaneously dragged the wireless industry into a new era of competition.

Dialogue Q4 2017

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Dialogue Q4 2017