An Ambush on Customer Loyalty

I’ve always liked Delta Airlines. In my perception (perception is reality, right?), Delta has nice airplanes, friendly staff, and generally good service all the way around. I consider myself a loyal customer of Delta. With the exception of mandated price shopping for work travels, I always like to look at Delta first when I need to go somewhere. But my recent service issue with Delta caught me completely by surprise. It made me question if I had misplaced my loyalty this whole time.

The Delta Luggage Incident

It was something simple really. While coming back from my international travel, I rechecked my luggages at the New York JFK airport for the last domestic leg of my long flight home. When I reached the destination, two of my three checked-in luggages showed up on the conveyer belt, and the third one did not. I filed a claim with the Delta baggage service right away and was informed that Delta would contact me for delivering my luggage. In the days that ensued, I checked the online status of the luggage regularly. Unfortunately it never changed.

Delta Online Baggage Status

After 10 days not seeing any change and not hearing anything from Delta, I finally picked up the phone to call Delta. Having to hold for half an hour on the phone and still no one on the line, I reached out to Delta via Twitter instead. Luckily that got me a faster response than the good ol’ phone. In a few minutes of messaging with the Twitter service rep, I was informed that the status means that my luggage was in the security area. The rep asked what the luggage looked like and what was in it. I told him/her that it was a smart balance scooter (like the one you see at the top of this page). This was when I was informed of a Delta policy that I had been complete unaware of previously. The screenshot of the stated policy is shown below. Continue reading “An Ambush on Customer Loyalty”

Averting Service Disasters – Quicken Loans the Sequel

Last week, I used my unpleasant mortgage application experience with Quicken Loans to demonstrate the danger of force locking in consumers instead of fostering loyalty. Since then, I have received some interesting communication from Quicken Loans. As a consumer, I emerged from the entire experience feeling OK again about Quicken Loans as a lender. While Quicken Loans had lost us as a customer for this mortgage because we already chose another lender, it successfully averted future negative word-of-mouth and ill will against the company. I detail my experience in this post as a case study of how companies can use social media to discover and address service failures and customer dissatisfaction.

Chronology
June 29 My unpleasant phone conversation with a Quicken Loans customer service representative
June 30 My blog on the experience as well as negative review on Epinions.com (note: consumers act fast when they feel unhappy)
July 1 Kelly at QuickenLoans commented on my Epinions.com review, offering to look into the problem and requesting more information from me
July 2 I emailed Kelly with full details of the incident
July 6 (after Independence Day Holiday weekend) I received a call as well as an email from Scott King, Lead Client Advocate at Quicken Loans. He had listened to my original conversation with their customer representative and read my blog. In the phone call and email, he apologized for our unpleasant experience and offered to introduce us to one of their best mortgage banker for a second chance.

The Response
You can read Kelly’s original comment on Epinions.com. With Scott’s permission, I am publishing his email response below: Continue reading “Averting Service Disasters – Quicken Loans the Sequel”

Lock in vs. Loyalty

Recently, while trying to obtain a mortgage, I spoke with a Quicken Loans customer service representative named Jorge (I omitted the last name here to save him some dignity). On the phone, I told him that we have not decided on a lender and that we wanted to get an idea of what Quicken Loans had to offer. Our intention was to shop around for the best deal AND service. Apparently, the fact that we are smart shoppers did not rest well with Mr. Jorge. He immediately asked us for a commitment that we are going to work with Quicken Loans if he were to spend any time working with us. When I told him that we cannot make such a commitment at this time, he refused to work with us. Needless to say, I finished my conversation with him quickly and crossed out Quicken Loans as a candidate lender.

What Mr. Jorge is trying to do is not uncommon in the business world — he is trying to lock in customers (or in my case, potential customers). Wireless companies do the same thing, by locking up our phones so that they can only be used with a specific provider. This attempt at locking in customers is not without a good reason. After all, today’s consumers are very fickle. Combined with the wealth of information we can find online and through social networks, we are given the power to choose the best service at the best price. So naturally companies want to create some kind of switching barrier so that we won’t go somewhere else.

 

Handcuffed
Image by mskogly | CC 2.0

The question is how effective such a switching barrier really is. The answer is: not very effective at all. Continue reading “Lock in vs. Loyalty”