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Customers: Allies or adversaries ... you decide
By Robert Keenan
September 17, 2007
Vincent Ferrari, an avid blogger, heard customers were having difficulty canceling their America Online subscriptions. "There has always been this rumor that AOL was really hard to cancel, so I figured I'd prove it either was or wasn't and have something interesting to put on my site."
Signing up for AOL is easy. The software, once available on their ubiquitous free CDs, can now be downloaded with a single click from AOL’s website. After a few minutes you hear, “You’ve got mail,” words that heralded in the burgeoning Internet era of the late 1990s.
Some customers, however, find it’s harder to leave AOL, and today AOL is better known for its poor customer service than for its content or connection speeds. AOL refuses to allow some subscribers to cancel, and call center employees are actually trained to wear down subscribers with a long list of questions about their cancellation concerns and Internet usage habits. Some angry ex-subscribers have even resorted to canceling their credit cards to prevent AOL from withdrawing monthly fees.
As a result of their poor customer service, AOL has created high subscriber churn and been forced to set aside over $5 billion to settle customer lawsuits. In 2003, AOL was the leading U.S. ISP with 25 million subscribers; today AOL has 17 million subscribers and is number three in the business it once dominated.
Ferrari posted his recorded conversation with an AOL customer service representative, when after 21 minutes and roughly 30 requests, he was finally able to cancel his account. “Cancel the account. I don't know how to make this any clearer for you. Cancel the account. When I say cancel the account, I don't mean help me figure out how to keep it, I mean cancel the account.” http://www.msnbc.msn.com/id/13447232/
Embrace Loyal Customers
Connie DeVille of Rome, Ga. wrote to Crocs about how the popular shoes enable her to stand for hours without pain. “I am a second grade teacher, and I couldn't get through the day without my Crocs.” Crocs posts many of the enthusiastic testimonials they receive daily and features customer profiles on its company website.
Crocs may not be stylish, but you’d be hard-pressed to find a more comfortable shoe, or at least one in that particular shade of orange. Introduced by three friends in Ft. Lauderdale, Fla. as a non-scuff, buoyant and slip-resistant shoe ideal for boaters, Crocs-mania quickly spread by word of mouth. Soon they were gracing the feet of doctors, nurses, chefs and gardeners who appreciated their comfort and of kids who enjoyed their bright colors.
When written off as a passing fad or criticized for their color palette and odd shape, Crocs did not change their strategy. Rather, the company embraced its ugly duckling image and today remains dedicated to loyal customers who launched websites praising the brand and enjoys popularity with celebrities like Jack Nicholson, Rosie O’Donnell and President George W. Bush—all professed Crocs enthusiasts.
Amy Yuckich of Los Angeles also wrote to the company, calling Crocs, “The miracle shoes that make your feet smile.” Thanks to enthusiastic customers eager to spread the word about Crocs, shareholders are smiling too. Today, Crocs are available in 40 countries and analysts project $322 million in sales for 2007, up from $1 million in 2003. The company’s February 2007 IPO (CROX) was the richest in the history of the footwear business, and the company now enjoys a $4 billion market capitalization.
Robert Keenan is a Senior Consultant at Vox, Inc., a customer experience research and consulting firm. Contact him through the feedback form on our Contact Us page. Copyright 2007 Vox, Inc. All rights reserved.
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