Archive for the 'Business' Category

TJX Loses Customers and Their Information

Jonathan Richardson March 30th, 2007

Communicate Your Success - Credit CardAs I give regular presentations on how to prevent identity theft, I expect to be ahead of the curve on understanding how to safeguard against ID thieves. But even if I didn’t know a single thing about it, I’d still laugh at the statement from a recent TJX press release regarding the company’s loss of what turns out to be 45 million credit and debit card numbers.

In standard quasi-apology form, the company states it regrets the inconvenience and that “TJX will also provide information for customers on its website, www.tjx.com, including tips on preventing credit and debit card fraud and other steps customers may take to protect their personal information.” I’d suggest that first on the list should be “Don’t buy anything from a TJX company unless you’re using cash, because it’s our fault your information was compromised in 2003 – 2006.”

If I sound bitter, it’s because I am. I was one of TJ’s lucky customers that received a letter from my bank stating my account could be compromised. I will never shop at TJ Maxx again, even with cash.

There is more to a shopping experience than just the storefront. Customer experience starts at the store but carries through to actions made by nearly every employee within an organization. As communicators, we should remember to regularly consult with other departments within our organization to be prepared for this type of negative situation. When practicing for a crisis, ask other employees what’s being done to prevent that crisis from ever happening. In TJX’s case, the fact that the company was storing certain consumer information, which may have run contrary to VISA’s Payment Card Industry Data Security Standards, should have raised a warning flag about possible issues regarding network intrusions.

So goodbye TJ Maxx. I’ll miss your great deals and wide selection, but I’m just not down with any brand that suggests a credit check after every purchase.

Nike Holds Customer Service School

Jonathan Richardson March 26th, 2007

Picture of the Nike Sumo2 DriverNike is known around the world for its sports equipment and apparel. It is also known for public relations fumbles on important issues like using child labor. Past problems aside, the company is now handling a product recall issue like a pro.

Recently, Nike issued a recall of the company’s Sumo2 drivers because they are actually too good. In tests the driver added 1-2 yards of distance, putting the club just out of acceptable USGA conformance standards. To ensure fair play, Nike is asking customers who purchased the Sumo2 to fill out a form to have the club replaced at no cost. The best part is, Nike will ship those customers the new USGA compliant club first, then ask that the old club be returned in the box used to ship the new club. The only thing worse than screwing up a product and releasing it to consumers is making said mistake then forcing consumers to jump through hoops to have the problem, your problem, fixed. By quickly and responsibly handling this recall, Nike may have actually boosted its image among those golfers who purchased the club.

I understand this isn’t a big issue in the grand scheme of things, but then maybe that’s the point. Consumers demand companies take action when their computer batteries explode or the local chemical plant spills a substance with skulls and crossbones on the container. But what if the problem is something small, like a club that gives someone an unfair advantage? To most, the slight advantage probably won’t matter. But to a few of the more serious golfers, Nike is proving their respect for their customers and the sport of golf. Instead of shrugging it off, Nike faced this issue head-on and turned a small glitch into a great opportunity to show its dedication to providing fair, quality equipment.

Public relations practitioners should take a page from Nike’s playbook and remember that correcting a problem, no matter how small, can actually increase customer loyalty and respect for your brand.

ConAgra Saves Face in Wake of Recall

Jonathan Richardson February 16th, 2007

j0402507.jpgConAgra Foods announced this week that it is voluntarily recalling Peter Pan and Great Value peanut butter produced by the company with product code 2111 imprinted on the lid. The recall stems from CDC information suggesting the yummy spread contains salmonella. A quick check of my pantry reveals I’m one of the consumers that should discard the product.

So now that I can’t eat the peanut butter I purchased, I need more PB for my J. As a consumer, do I give ConAgra another shot at my business or make like choosy moms (or dads) and choose Jif? As I don’t consider peanut butter an emotional purchase, I’ll probably just bring the label from my old jar back in and replace it. No harm, no foul.

I was initially concerned as a ConAgra press release stated I would have to “return the Peter Pan Peanut Butter or Great Value Peanut Butter product lid along with (my) name and mailing address to ConAgra Foods, P.O. Box 3768, Omaha, NE 68103.”

Translated, this means:

  • Find box for lid
  • Travel to post office to mail said box and lid
  • Pay to ship box to ConAgra
  • Wait for refund check
  • Take refund check to bank and deposit so I can purchase more peanut butter
  • Return to initial place of purchase to replace previous peanut butter

Instead of a peanut butter to-do list, ConAgra wised up and, as of 2/16/07, is now allowing consumers to return the product to the place of purchase for a full refund.

By not making consumers jump through hoops to resolve the issue, ConAgra has saved face and prevented adding insult to an already injured consumer trust.

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 License