Different situations with famous brands....
We read Jim's story in groundswell , in which, after a long month of travel, a key zipper on Jim's laptop bag failed. The folks at eBags replaced it the next day. But that's not what turned Jim from a guy annoyed with his broken luggage into an eBags fan. What energized Jim is that people at eBags actually listened to the review he posted on their Web site, contacted him, and then improved the product, getting the factory in Hong Kong to change the design so the zipper wouldn't break anymore, even after constant punishment by road warriors like Jim.
So, the company was scared about its reputation and that's why they contacted him. This story was finished without court or some compensation, the company just fixed this mistake. However, we can find a lot of conflict situations, court situations with world brands and companies, on social media. Here I provide a couple of examples.
Apple presented the new Iphone10(X) on September 12. The whole world loves and uses these phones, because Apple is a top company, and has a good reputation. This new IPhone has a lot of function and one of them is a Face ID, a secure and private new way to unlock. Your face is now your password. But a lot of twin brothers and sisters had some issues with this because one phone can recognize both faces.
Twin brothers from the Russia, city of Vladimir are demanding 20 mln. rubles (over $357,000) in compensation from Apple because the Face ID feature of their new iPhone X smartphones cannot tell them apart, their lawyer told TASS
After this situation, a lot of twins started to check it, made a video and posted on YouTube.
A lot of famous companies and brands have paid compensation for different issues to their customers every year. This is so bad for their budget and reputation. All people are different, some people like some functions some people don't. They resort to using the court and companies often have to pay compensation because they want to save their reputation. This is statistical data about customers experiences of compensation from different companies.
Each company should monitor their reputation, produce only high quality product and service, and respect their customers. As we have seen on groundswell, eBags actively responded to just one review by fixing the problem with the zippers and avoided conflict and loss of reputation. But what about if Jim went to court? He could have sued eBags and they may have had to compensate him and had their reputation weakened. This YouTube video, "Your companies reputation - A big Asset", shows the importance of managing a company's reputation.
So, the company was scared about its reputation and that's why they contacted him. This story was finished without court or some compensation, the company just fixed this mistake. However, we can find a lot of conflict situations, court situations with world brands and companies, on social media. Here I provide a couple of examples.
Apple presented the new Iphone10(X) on September 12. The whole world loves and uses these phones, because Apple is a top company, and has a good reputation. This new IPhone has a lot of function and one of them is a Face ID, a secure and private new way to unlock. Your face is now your password. But a lot of twin brothers and sisters had some issues with this because one phone can recognize both faces.
Twin brothers from the Russia, city of Vladimir are demanding 20 mln. rubles (over $357,000) in compensation from Apple because the Face ID feature of their new iPhone X smartphones cannot tell them apart, their lawyer told TASS
After this situation, a lot of twins started to check it, made a video and posted on YouTube.
Another interesting example was Nurofen. Australia's Federal Court ruled that products marketed as targeting specific pains, such as migraines, were actually identical. Reckitt Benckiser was fined $1.7 mln. in April, but Australia's consumer watchdog argued the sum was too low. "The UK manufacturer of Nurofen has been hit with an increased fine of $6 mln.", said BBC.
A third conflict situation took place between Nick Stafford and DMV. He used to change to pay an auto sales tax bill for $2,987.45 and took revenge on his local Department of Motor Vehicles by paying a hefty bill using five wheelbarrows filled with 300,000 pennies. You can read about it more on Daily Mail.
Each company should monitor their reputation, produce only high quality product and service, and respect their customers. As we have seen on groundswell, eBags actively responded to just one review by fixing the problem with the zippers and avoided conflict and loss of reputation. But what about if Jim went to court? He could have sued eBags and they may have had to compensate him and had their reputation weakened. This YouTube video, "Your companies reputation - A big Asset", shows the importance of managing a company's reputation.




Hello Tim! Nice job in summarizing the chapter! And thank you very much for providing us so many different examples. I agree with you that big companies should pay attention to their reputation and keep an eye on maintaining it.
ReplyDeleteHi Danni, thank you very much for your comment. I was try to provide, if it is interesting for you, just let me know, i will send you couple of examples with this problems.
DeleteHi Tim, I enjoyed reading your blog. Apple's iphone reference is a good example of listening to the Groundswell. However, I wish Apple listened more to the consumer's feedback vs. being so arrogant because they are Apple.
ReplyDeleteThank you very much Tara for your comment..enjoy :))
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