Tuesday, December 4, 2012

Compromising Experience


I noticed an off-brand of tomato sauce at the supermarket - it caught my eye because it was sold in a slightly larger can than the other brands between which it was shelved, and it struck me as an interesting and effective packaging gimmick - but on closer inspection, it led my thoughts in a different direction: to the way in which customer experience is compromised for other goals.

Specifically, the "large" off-brand can contained 16 ounces of product - an even pint - whereas the leading brands were sold in odd quantities, 15 ounces or 14.5 ounces.   Quite some time ago, most products were packaged in more or less even quantities (a 16-ounce pint, an 8-ounce cup, or a 4-ounce half-cup) and that today, most brands seem to offer slightly less (14 ounces, 7.5 ounces, 11 ounces) that don't even come out to an even quantity in metric units.

This is a common observation, and the knee-jerk reaction among people who notice is along the lines of "they are cheating me."  There's some argument that firms were faced with increasing ingredient costs and made a compromise: to keep the unit cost to the customer the same, they would reduce quantity per unit, so it's for the economic benefit of the customer that package sizes were reduced so the package price could stay the same.  I don't think this dismisses the complaint, especially since the producers who short their content during a crisis never seem to size their products back up to the previous standard when ingredient costs normalize.  Also, when you consider price-per-ounce, the customer is still paying more, and the producer is hoping they don't notice.

But more to the point, companies that make such decisions have clearly failed to consider the impact to customer experience.   That is to say that the producer didn't consider the consequences of downsizing their product after the financial exchange - specifically to the experience of the consumer who will be using the product after it has been purchased.

Obviously, a shopper buys tomato sauce because it is an ingredient in a recipe (I'm not aware people heat the stuff up and eat it like soup) - and the recipe calls for a pint of tomato sauce.   So in a situation where 16 ounces is needed and the product is sold in 14-ounce increments, the ultimate outcome is negative:

  • Compromise: the customer can buy one can and accept that the meal they make will taste slightly off due to the imbalance.   The conclusion: "Brand X makes my recipes taste worse"
  • Complexity: the customer can buy one can and adjust the remaining ingredients proportionally, doing the calculations to consider that if they use 14 ounces of tomato sauce rather than a pint, they would have to add 1.75 tablespoons of basil instead of two.  The conclusion: "Brand X makes cooking more complicated."
  • Dissatisfaction: Another consequence of the previous solution, downsizing the recipe to accommodate a smaller package, also means having less benefit (food) than is needed.  It's just a little less, bit it leads to the conclusion: "Brand X does not fully satisfy my needs."
  • Guilt: the customer can buy two cans, use 16 ounces, and throw the other twelve ounces away because it is not needed.   The conclusion "Brand X is wasteful."
  • Obligation: the customer who buys two cans and has leftover, and can't bear the guilt of throwing away perfectly good food, could find another use for the leftover 12 ounces.  The conclusion: "Brand X burdens me with additional tasks"
  • Disgust: the customer who has leftover and fails to make use of it quickly will eventually notice a smell of rotten tomato in his refrigerator, emanating from a container of leftover sauce that has turned foul.  The conclusion: "Brand X is disgusting"

I don't think that any of these conclusions are attributes a firm would like to be associated to its brand - nor do I think that if the full range of outcomes were considered, producers would have been so hasty to make this compromise.   All that was considered is that reducing package volume would enable the firm to maintain profit, and maybe get people to buy an extra unit once in a while.   And if customer experience were really considered, it would be clear that all of these problems are not worth saving a nickel or a dime on the purchase price.

It's worth noting that all of this is speculation - that customers have largely accepted the compromises above, though likely not because they had a choice: all a customer can do is decide whether to accept what is offered or undertake the effort to find other alternatives, and when their preferred brands and close competitors all made the same operational decision, the customer has to accept as fact that tomato sauce now comes in 15-ounce cans (for all brands) and to ratify the decision with their dollars.

It would be interesting to see if the emergence of a competitor (the off-brand that caught my eye) will lead the remaining brands to upsize their packages, but I don't expect that to be so.   People have strong loyalty to the brands they buy habitually and accept disappointment as a matter of course, and its likely that recipes that call for "a can" of product are used by the people whose palates are not that discerning to begin with.   It's a bit depressing, and very counterproductive to the general welfare ... but such is the way of things.

I recognize that I am lapsing in a cynical state of mind and meditating on this topic urther will likely not be productive - but to end with a quick summary of the points: decisions made for reasons of economy and efficiency can easily achieve their primary goals, but often at the cost of customer experience - and that it's worthwhile, and perhaps even critical in the long run, to pause for a moment to consider the full breadth of the consequences.

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