The speaker cautioned about four warning signs of a company in decline:
- Employees no longer care about the customers. When a customer identifies a problem, the employee refuses to acknowledge it or take any action outside of their routine duties to solve it.
- Maintenance is poor. There is basic and obvious neglect in the physical environment: peeling wallpaper, a thick coat of dust, dirty or broken furniture, worn-out tableware. All of this seems superficial, but is significant as a symptom.
- Commitments are not made or honored. The company’s basic promises to customers are not being kept. Customers are stalled or brushed off in hopes they will go away and simply accept that their expectations will not be met.
- Employees show no initiative and merely follow orders. Rather than going above and beyond the call of duty to ensure customer satisfaction, employees take a not-my-job attitude and do nothing to address the problems they see.
Each of these are immediately visible to customers, and many of them exasperate or disgust them. The customers who feel a strong affinity to the brand will complain, in hopes that their experience is an unusual incident, and in hopes that management will take steps to remedy the problem and recover.
Customers who do not feel an affinity for the brand will not complain, but they will also not return to do business with the firm. Because they do not have experience with the brand, they do not see these minor deficiencies as exceptions to otherwise excellent service quality because they have never experienced excellent service from the brand. The service, as deficient and unacceptable as it is, is what can be expected of the brand.
The concept of the ”brand halo” suggests that customers will be forgiving, but only for a time. The halo dims, and the customers forget the way things used to be, or accept that the deficiencies they experience are the new way of things and that is what they can expect from the brand going forward. So experienced customers become disillusioned customers, and eventually former customers of the brand.
Customer advocacy is briefly mentioned: any customer who advocated for the brand is personally disgraced when a friend or acquaintance takes their recommendation and has a disappointing experience. If the problem is not amended, the advocate no longer advocates for the brand – and even if the problem is amended, there is reluctance to advocate. In this way, the poor experience of new customers diminishes the brand equity with established regulars.
When the level of service falls to such a poor level, this creates opportunity for competition to move in and take away customers simply by doing the basic things that your firm should have been doing all along. This is often the very method by which newcomers and upstarts topple industry giants who have become inattentive and apathetic.
In the end, it’s about maintenance – and maintenance may be unglamorous, but it is critical because the reputation of a brand is not permanent: all the work and money that has been poured into establishing a reputation is wasted if nothing is done to maintain that reputation.
And it is simply a matter of being inattentive: the management of a firm must not be so focused on the new that they neglect to maintain the old. They must not be so focused on the big things that they let the little things slide. In the end, a brand can only remain strong by being attentive to the little old things that customers have come to expect of it.
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