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No Strategy, Don’t Care About The Customer.
Posted By: Six Six Strummer on 11/13/2006 6:05 PM (CST) 250 Points
Our executive team routinely admits that we are an unethical company. In fact, even without that statement, there is much evidence of this in review of the many lawsuits that we have had to respond to, our “F” rating with the Better Business Bureau and numerous comments and letters from our customers that attest to the lousy relationship we have with our customers. In the face of all this, company culture still remains steadfast in its commitment not to the customer, but to the next sale. In fact 5-7% of our customers monthly receive orders they did not place. This is seen as good “aggressive” sales. These customers usually call or write to have us drop there accounts and to no longer contact them. All efforts on my part to create reports and other tracking evidence of this problem and bring it to the attention of the execs, have been fruitless. We have 30,000 customers and annual sales of $15M. Add to all this, an utter dearth of strategic vision. If good marketing begins with a strategic goal and a desire to recognize areas of improvement such as customer satisfaction, where is my starting point?

Posted by: W.M.M.A. Member Response
11/13/2006 6:23 PM (CST)
Starting point for what? Are you marketing director for this model company? BBB doesn't mean anything. Companies don't care. What is this, telemarketing? No one checks with BBB. Come on....

It seems you have absolutely nothing to do. Anything you do, or recommend to do will more than likely fall upon deaf ears.

I would turn the company in to the District Attorney's office, make their practices public...name names, and go into business against them.

Suddenly, account lists will become public when they are indicted. Then, you go after all of the existing accounts...

This seems ludicrous. Although I am sure there are many companies out there w/similar policies.
 
Posted by: NuCoPro Member Response
11/13/2006 6:27 PM (CST)
Start by updating your resume, then move to networking your tail off, because there is NO HOPE in this situation. Your company is NOT going to change, and (trust me) over time you will be seen as a hindrance to the company, since you aren't embracing their Tony Soprano sales and marketing techniques.

I speak from experience - I worked in a company that I described to others as, "Like working for the Mafia, only not so much fun!" Because I wouldn't participate in the fraud and intimidation I ended up being fired, which was actually a very happy day for me!
 
Posted by: Peter (henna gaijin) Member Response
11/13/2006 6:29 PM (CST)
I agree with W.M.M.A..'s direction, but would probably just take the easier step of getting a new job for myself instead of turning them in.

Very likely that this company will get pulled into more lawsuits, and possibly you also, so assembling a paper trail of the actions you took in the past showing that you realize what the company was doing was wrong and how you tried to change their actions may be good for you to do. A CYA action.
 
Posted by: KathySmithFilms* Member Response
11/13/2006 6:31 PM (CST)
Your working in the enemy camp. I agree with WMMA. Until the ethics gets cleaned up your tech can't even arrive. You have a suppressive on board. You would need to handle the firing as well as the ethics.
Kathy
 
Posted by: ceitliong Member Response
11/13/2006 6:32 PM (CST)
Dear ed.pollock,

Well....the first order of business is to change the execs way of thinking. Yes, they do not care about customer service and are interested in the next sale but this does not mean you cannot change that.

Just by reading your dilemma, I can see what the main concern of your execs are - to make money. To be honest, you can actually use this greed to your advantage. How you might ask?

If you are able to create reports, then create a report to your bosses showing it costs more money for this "aggressive" sales program than what is being brought in. For example - aggressive sales costs $15.00 a day and generates revenue of $5.00. (That is if this is what is occurring)

Use prediciton models and what if analysis to show where the company will be if it continues on its present path. If this does not wake up the execs then your next bet is to make friends with accounting.

The accounting department knows all and says nothing. Hence they can pretty much help you determine what is going on. In any event, they can be valuable allies to turn the execs heads around because most bosses and managers listen to the accountant. Accounting tells the bosses the bottom line and whether or not they made a profit. And if they don't - well remember the Enron scandal?

If all else fails, well then I would simply report their improper practices and conduct to the regulatory agencies and quit.

"What good is it for a man to gain the whole world and loose his soul in the process?"

Good luck and whatever you decide to do hopefully it is a decision you can live with.
 
Posted by: Six Six Strummer Author Response
11/13/2006 6:43 PM (CST)
Great comments all. I appreciate the advice and the suggestions. I am actually pursuing several of these options.
 
Posted by: W.M.M.A. Member Response
11/13/2006 8:15 PM (CST)
I would hope so.
I would have hated for you to come to the forum and be on the other side, wondering how to get rid of the guy w/ethics, or turn him around.
 
Posted by: jamie Member Response
11/13/2006 8:36 PM (CST)
You should also consult a good employment attorney before you leave. This kind of management may decide you are a nice scapegoat for ethically questionable, legally actionable or just plain poor customer service.

Then, go. Eventually this catches up with them in some way, like some of the execs now under the gun for backdating options, etc. You won't want to be brushed with that taint when you do leave.
 
Posted by: PRSME* Member Response
11/13/2006 9:19 PM (CST)
Run for the hills....
 
Posted by: Dare4More * Member Response
11/13/2006 10:11 PM (CST)
What industry are you in, Ed? I would be interested to know what type of company can afford to do that to its customer base - 5-7% of your customers receiving products they didn't place...So what happened to 'a satisfied customer will tell an average of three people about a product/service he likes and eleven people about a product/ service with which he had a negative experience?' Is your market big enough to accommodate this?

Cheers,
Dare4More
 
Posted by: shghosh Member Response
11/14/2006 4:11 AM (CST)
Well- till such time that you find alternative employment, why not look at implementing a simple 'call back and confirm order' with customers. In that call have a 3 point questionnaire which checks on customer retention and satisfaction scale for the 93-95% correct orders.
You will reduce the order cancellations as well as have data to back up your anecdotal evidence to top mgmt.
 
Posted by: telemoxie Member Response
11/14/2006 8:39 AM (CST)
find another job.
 
Posted by: cread Member Response
11/14/2006 9:49 AM (CST)
Start up a competitive company

You know the market

You have 30,000 leads

Be an entrepreneur, you will have no trouble taking away clients from your existing company if you are honest and reliable.

For funding think of your suppliers if you need to. They can't be happy with the way your company operates, it taints them as well.

What an opportunity!!!!!!!

Good Luck

Charles
 
Posted by: paca001 Member Response
11/14/2006 11:00 AM (CST)
Hi ed.pollock,

I can understand all views suggested on this post (yes, even those of 'your money grabbing execs').

Most businesses are in existence to make money - your bosses feel this 'aggressive sales strategy' works for them (and with the turnover maybe it is..) However, as a marketeer I would not agree with it as a business model (especially a long term one).

My fellow marketeers - stand up, stand together & FIGHT (sorry I was watching Lord of the Rings last night so in fighting mood ;)

To answer your question - where to start - I would suggest:
There is no short-term approach to this therefore suggest start with a list of the issues. Prioritise them and then arrange a meeting with the exec.s. Here go through what you believe are the top 3 and give solutions from theory and how it would work in practice on a day-to-day situation

I think 'ceitliong' has a good beginning. Since the exec.s understand money and figuers go to them with those types of reports. Also, if you are loosing accounts as you suggest, you must also be getting more accounts to replace them esp. if you have a turnover of 15m - therefore, how much are they (you) currently spending on advertising??? (BTW- There must be some expectation gap here..) Use the old quote 'It costs 10 times more money to get a new customer than it does to keep one' (or whatever figure that is at these days) but importantly here show them cost of ad; cost of phone calls; cost of meetings (whatever is currently done here) then show how a FREE change in culture (e.g. don't send out an invoice for a product not bought) would keep an existing customer & over 2 years this would have brought in X amt.; 5 yrs. Y amt etc... You get the picture!! And end your presentation/meeting with the hook - 'currently 15m co. in 5 years we could be a 50m one'

Suggest this change of culture and then suggest methods of helping this culture change e.g. a sales may feel their commission under threat if they abandon their current behaviour so suggest another incentive scheme such as a reward if the customer stays for 1 year & then % if they stay 2 years etc...
 
Posted by: mvr0915* Accepted Answer
11/14/2006 12:24 PM (CST)
LOL! Ahh paca001... is it you who stole my precious??!!

You know, it reminds me of the CareerBuilder commercials, where the monkeys run the show. The board meeting has a graph of the annual earnings (earnings LOST) and the monkey simply turns the graph on its side and... PARTY TIME!!

Do you have a personal stake in the company?
Do you have a personal stake in the industry?

If your answer is no to the first, and yes to the latter- it seems to me you can get more out of a position with a company in the same industry whose values are in line with your own. Life is too short to spend the time you must spend away from your family, being miserable... or, worse, spending all your effort trying to save a company that doesn't want to be saved. Do more for the customers they are treating badly by offering them an alternative to having to deal with the wretched unethical monkey-boys.

Good luck with whatever you decide,
Mercedes
 
Posted by: Six Six Strummer Author Response
11/15/2006 4:28 PM (CST)
Dare4more - The company sells Diamond Saw Blades. They sell via telesales and have been doing so for 30 years. In the early days the atmosphere was a boiler room operation. Today while the company is up to speed with an ERP system, they do not have a CRM and would have no idea how to use it. In fact much of that boiler room attitude remains. I'm having difficulty getting across to the bosses that this model is antiquated and offensive to many people. They see the $$ and don't see the problem.
 
Posted by: NuCoPro Accepted Answer
11/15/2006 8:30 PM (CST)
Ed,

Do you honestly think you have a chance to change things? My assessment is no.

Please consider the advice I and many of my esteemed colleagues have put forth - get out of there. You are in a classic case of a no-win situation.

Gary
 
Posted by: mop Accepted Answer
11/15/2006 9:27 PM (CST)
Ed,
We all have to choose our path. Why choose to stay in a negative situation? These folks only honor the almighty dollar. Which means, they really don't give a cat's patootie about anything else, including their employees.

I would get my ducks in a row and get the heck out of Dodge before the bullets start flyin' and some of the gunpowder rubs off on you.
This company doesn't deserve you.
 
Posted by: KathySmithFilms* Accepted Answer
11/16/2006 1:47 PM (CST)
Ed,

If you have the knowledge and now stay,
reciprocity comes into play for anyone knowing
about the wrong acts. Tht person is also
agreeing it's ok so would have to pay if
the owner bails on you. There are 80%
people on the planet doing good and you
can do more in one day helping the "'white hat"
than one criminal can be stuck in for a lifetime.
If in doubt, leave while your hands are clean but
do the write up on what you know and give it to
the ones responsible. To the degree you confront
something is to the same degree you won't be
the adverse effect of it.
 


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