Which one of these companies is destined for failure?
FreeCreditReport.com
FreeCreditReport.com is a service built on deception. They lure customers in with the promise of a free credit report, requiring that credit card information be submitted (red flag) upon signup.
If the customer doesn’t enroll in something optional called the “Triple Advantage,” they are faced with monthly charges of up to $14.95. The company has paid over a million dollars in settlements since 2005 as a result of their deceptive tactics1.
Experian (the company that owns freecreditreports.com) continues to make a mockery of the FTC. (For truly free credit reports, you can visit annualcreditreports.com.)
Zappos.com
Zappos has a return policy that’s begging for abuse. They offer a 365 day return policy and will pay for shipping when you’re returning an item.
The company doesn’t hide the details about their return policy on a terms and conditions policy page. It’s right on the home page.
Additionally, they’ve embedded a humorous YouTube video on their site to illustrate how to return something. No legalese and no fine print, just a plain-english explanation of the terms:
With our 365 day return policy, there are no special catches or exceptions. All we ask is that you send the items back to us in the original packaging, and make sure that the merchandise is in the same condition.
Reasonable and transparent. Which company instills confidence in the consumer? Which establishes trust?
People will talk about both companies (the best marketing there is), but which company is being recommended?
Rhetorical question.
{ 5 comments… read them below or add one }
Thanks for the shout out and I am glad I was able to help in some way.
And I had never heard of Zappos.com until now but I will be checking out their site now. Companies that take part in deceptive practices ultimately fail since people tend to talk about bad experiences/service more. “Typical dissatisfied customer will tell eight to 10 people about their problem” http://bit.ly/10T7le.
Zappos is a pretty special company. As I’m sure you’ve seen, they’ve been acquired by Amazon for almost a billion dollars. Their CEO (Tony Hsieh) is a really (really) smart dude.
Not to mention…the Customer Service number on FCR is hard to find and when you try to cancel, they give you the stupid run around. I literally had to tell dude “look man…I’m not trying to hear all that. Just let me cancel the subscription and get off the phone. Thanks.” Sheesh…might have to try that other one you got lined up tho.
I almost got upset when I was canceling mine, but I knew (just from how most companies operate) that the person taking my call was a poorly-compensated schmuck following a script that’s required by management.
I’m sure you know people who have worked at call centers before, and one of the reasons I try to be patient with them is that they’re just trying to make it through the day just like I am.
In many cases, their manager will hit them up after the call to reprimand them if they deviate from the maddeningly long termination script :-/
I was watching “American Greed” on FNBC the other night. They did a feature on “Smiling Bob” and this con man name Steve Warshak.
Steve whom was the mastermind of these herbal pills that were supposed to be an alternative to Viagra got hit with a big sentence. To read more check – http://www.cnbc.com/id/35988285
I was greatly appalled at the fact that there were a lot of company that try to get rich via deception sales tactics.
The word that I learned that a lot of these bad companies engaged in “continuity” program which is simple in plain English where an automatic deduction is deducted from your credit card account for a product/services that is often auto-shipped to you.
These continuity program are often are passed off as membership that is almost like joining a gym and have so called iron clad contract that are often in small print or on another page. The company that are deceptive would have lawyer that signed off of this.
I recall being a victim of a continuity program but it was for some vitamins and it was for a free trail sample and it stated that I was paying just for s/h. However – since the company bank on us not reading the detail and not having the ability to search the entire site because it was a limited offer then imagine my surprise when I got bill the next month. I raise a stink storm about it on twitter and the company rep saw it and resolve my issue promptly and I was lucky because it could have been worse.
In closing, I feel that a honest marketing professional should be against continuity program unless it there is a very simple way for member/consumer to quit and does not create a legal lockjam for the company.
So if the company management insist on a continuity program then the marketing professional check to see if management will follow Zappos’ return policy and offer full disclosure on the landing page PRIOR to the sale. Has a fair simple way for allowing member/consumer to cancel. Because if you have a high volume of cancellation then obviously the product/service isn’t up to par and it time to bounce ship.
Now I just have to ask myself a question – would I incorporate a continuity program for a website for an idea of mines. I said yes I would but it would not be built upon deception and overnight get rich scam/con. it would be built on the product/service and the word of mouth.
So I am open to engaging in a continuity program that is fair and open.
The main thing is I would allow for the party to cancel their membership but as CEO it would be my fiscal responsibility to refuse refund based on usage – meaning if you read the disclosure and acknowledge it and try the trail period for FREE and you like it then you would show that you are a “member” and you agree to a specific time-frame. As a consumer/member you have an obligation for monthly dues. If you after 90 days want to quit then you should be able to quit and stop paying future dues but for the 90 days the company keeps the money.
I would hate to lose a customer but I would be sure to offer an exit survey to see why they are leaving and then see what can be done. Then if I can fix the problem – then I would offer a “from the desk of CEO” email expressing my apologies and letting them know that the problem has been fix and invite them back at a discount rate.
Grant the problem should be avert in the first place but emotions always get in the way but I would make sure I have a compliant mailbox for members to send their concerns to offset any negative action.
Social Media is a powerful tool but when a company does it member wrong – and a company try to sweep it under the rug – hell well break loose!
And company need to do away with scripts – pressure sales are time waster. Let the rep engage with the customer and let the rep treat the customer like they would treat their best friends.
I would go on but i dont want to jack Willie’s log. But reading this article has my brain awoken!
Kudos!
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