The Tribune

By Ian Ferguson

Many people have become familiar with the damaged brands of General Motors, Target and Paula Deen Enterprises. Each of these entities made gross errors in their delivery of products and services, resulting in reduced customer loyalty and, ultimately, lower output and profits.

In the Bahamian context, we can point to many existing and failed companies whose brands suffered tremendous blows, resulting in their corporate demise or contraction. This article addresses some of the common reasons for waning customer loyalty, due to brand damage.

• Customer Service Issues

There is nothing more damaging to a company’s brand and standing in the business community than poor service standards. Whenever employees fail to recognise they are extensions of the company’s brand, and their behaviour adversely affects the organisation, customers communicate their feelings by walking away.

• Defective Product Issues

Nothing replaces the feeling of being - and feeling - safe for many customers. If they believe your products or services are not safe for themselves or their loved ones, they will walk swiftly away from your brand. One food poisoning scare at your restaurant could signal the end of your career as a restaurant owner.

• Rigid, non-customer friendly policies

Burger King tells the customer to have it their way. Essentially, they have said that our policies are flexible enough to provide you with options that best suit your taste, likes and preferences. When companies forget to be customer-centred, and create policies and procedures that are inflexible, they lose those customers to the competition, who will tailor their policies to the customer’s fancy.

• Price/Value Issues

Customers seldom complain about the price of goods and services, if they feel they are receiving good value for those items. If the price seems exorbitant, and the service element does not complement the excessive price tag, the customer will leave feeling robbed and may not return.

• Public Scandal Issues

There is a growing faction of consumers who are becoming more concerned with a company’s reputation in the wider community, and its stance on certain moral/ethical issues. When companies and their employees take a public stance, or find media attention on some issue becomes vexing to the customer, the results for that brand may be disastrous.

When the image of a company takes a blow, leaders must move swiftly to bring resolution. One ounce of prevention is worth more than a pound of cure. In business terms, if you spend little to safeguard your company from brand damage issues, they will clean your account dry in trying to rectify them when they arise.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.