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Thursday, July 29, 2010


   OUR TAKE -  The Multiplicative Effect of Denial

 
 
Recent Editions of CRMAdvocate


07.28.10    Daylight-Seeking Problems
07.26.10    How Far for Good Karma?
07.23.10    United Airlines, Meet Bob Taylor
07.22.10    Inviting Competitors to Your Party
07.21.10    Taking the High Ground
07.19.10    The Apple HIPPO

Lasting Impressions:
In any contest between power and patience, bet on patience. - W.B. Prescott
Yesterday's case study about allegations that Dell knowingly shipped millions of computers with known faulty components was an example of how the blunders that affect the customer experience have a way of seeking daylight - they don't remain hidden forever. The apparent lesson is that it is better to own the gaffe rather than letting it own you. There certainly is power and equity in being proactive rather than reactive.
 
Much has been written in this column about the power of getting in front of the issue especially as it relates to the court of public opinion. Also consider the multiplicative effect of doing nothing. Continuing on with "business as usual" just means that once the problem is exposed, the effort and cost to fix it is multiplied by the number of customer experiences involved. In this case, the number of computers shipped. In the case of PG&E, it is number of SmartMeters installed. In the case of BP, it is the amount of oil spilled.
 
Those are the hard numbers that have a way of changing the earnings statement. The cost of rebuilding trust may be even greater. So indeed we have more than one multiplicative effect when blunders in the customer experience are ignored.
 
That's my take. Do you agree? What's your take?
 
Gary Lemke, Publisher

 
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