The Customer Revenge Case Study

970 WordsOct 12, 20114 Pages
Harvard Business Review Case Study : The Customers’ Revenge by Dan Ariely (December 2007) As an introduction of this case, a little recall of the facts may not harm anyone. Atida is a 70 year old motor company, producing and selling stylish and innovative cars and they have just launched a new one on the market : the Andromeda XL. The brand has many loyal customers and devoted fans among various clubs and communities. Jim MacIntire and his colleagues from the customer service department have tried to enhance their operations by implementing various methods : For instance, the company offers comprehensive warranties, a special credit card rewarding customers with presents, and a new call center was implemented a year ago in India…show more content…
Their solution would be to forster the idea that the company treats customers on an individual basis and that it cares about them. Thus bad word-of-mouth would turn into good one, and customers would tell their relatives how the company treats them so well and they would become brand advocators. But think of the costs of such a solution. It might work for a while but it is surely not a long-term solution. As the emphasis is put on these two extreme solutions, the golden means must be found in order to deal with the unhappy customer problem. The solution would be to compare the CLV of each customer (because we know that some customer relationships are more profitable than others) with the «word-of-mouth value» (this can be positive or negative and it is part of the Customer Social Value). An efficient Customer Relationship Management System shall be able to consider and assess the potential gains and losses for each value, so that and individual response can be found for each complaint. For instance, as I have previously explained, Tom has a high CLV but the value of his bad-mouthing is higher since he probably belongs to a fan community of Atida cars, and since, as a film-maker, he is able to make a really good video to tell people about his bad experience with the customer service and put it up on YouTube. In this case, in order to avoid huge losses and retain this valuable

More about The Customer Revenge Case Study

Open Document