Warranties, Guarantees: Reducing the Barriers to Purchasing (the Good and the Bad)
UPDATE: Right after this blog post published, I got a call from someone at CompUSA. I was told two things:
- That the CompUSA I was writing about went out of business and the NEW CompUSA would never treat customers with warranty issues so shabbily.
- CompUSA had made arrangements for me to get a new TV for all my troubles.
I'll get into more detail on this in my next post, but for now, I wanted to let you know that last week I received a new TV from CompUSA as a peace offering for the four years I spent fighting with its (well, actually the OLD CompUSA’s) warranty company, Assurant Solutions.
Some years ago I worked for a clothing cataloger that offered a no-strings-attached, lifetime, money-back guarantee. Occasionally it received a tattered, well-used article of clothing two years to three years later, but mostly the guarantee worked for the brand. The company at the time was pioneering organic fiber fashion, and wanted to do everything it could in order to reduce risks that could have a negative effect on purchasing decisions.
A solid guarantee is an important part of the selling process. It tells consumers that you stand behind your products and are truly focused on their needs. Prominently displaying your guarantee on your website and/or catalog makes sense, and should be heavily promoted as part of your offer.
In the age of social media, it's critical that you offer the best possible guarantee you can, then back it unconditionally.
Take a look at your company’s warranty. Is it clear, simple and to the point? If not, simplify it. Make it so easy even a child can understand it. Why? The internet, particularly social media, is the great equalizer. Simple things like upsetting a customer with a hard-to-understand guarantee will end up being tweeted, yelped and status updated.
Warranties, on the other hand, can be a mixed bag — especially the paid variety. Last week I had two warranty experiences that were unbelievable.
The first was a horror show: Four years ago I bought a TV from CompUSA, along with its four-year TAP (Total Assurance Protection plan, I think it was called). The warranty was expensive, costing nearly 20 percent of what the TV cost.
The TV was a lemon from day one. There was an intermittent problem with the sound; sometimes it worked, sometimes it didn't. But the way CompUSA's warranty was structured, I had to jump through way too many hoops to prove the TV was a lemon. Long story short, I was forced to have three separate companies come and fix the TV. Guess what? Each time the repair companies came, the sound was back on.
Two of the repair companies came more than once. In fact, one time it took the TV back to its shop for two weeks while I was going on vacation to “see if it could recreate the problem.” Nothing! Each time I documented the case with CompUSA’s warranty division and did everything it asked for. And each time I requested a new TV, only to be told that I hadn’t met the criteria for a replacement. I was even told there was nothing wrong with the TV, as the repair companies couldn’t find a problem.
I wonder if the good folks at CompUSA understand the concept of intermittent. Each time I called to report a problem with the TV, I was treated with indifference by people who seemed to hate their jobs — people who clearly had no business dealing with the public.
Three weeks ago, right after the warranty expired, the sound went out yet again. I figured that with all the documentation I had, even though the warranty had ended, I could get a repair company out. After all, this was an ongoing issue, right? Wrong. Like a mantra, all I heard from CompUSA was “I’m sorry Mr. Gilbert, I can't help you since your warranty ended.” Finally after pleading for 15 minutes for someone to treat me like a real human being (I spoke to the supervisor, too), I gave up.
So CompUSA, if it's listening, be prepared to be tweeted, yelped, facebooked and anything else I can do to let people know that it doesn’t stand behind its products and its people, well, suck!
On the flip side of paid warranties, there's Apple. My two-year-old iPhone died recently — wouldn’t take a charge. One 10-minute call to AppleCare and a half-hour in my local Apple store later (the customer service rep I spoke with made an appointment at my local Apple store when he couldn’t help me fix the problem over the phone), I walked out with a brand new iPhone. I was treated with respect by a caring, smiling human being who honored my warranty.
So Steve Jobs if you're listening, thank you!!! And to CompUSA, learn!
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- CompUSA
Jim Gilbert has had a storied career in direct and digital marketing resulting in a burning desire to tell stories that educate, inform, and inspire marketers to new heights of success.
After years of marketing consulting, Jim decided it was time to “put his money where his mouth was" and build his own e-commerce company, Premo Natural Products, with its flagship product, Premo Guard Bed Bug & Mite Sprays. Premo in its second year is poised to eclipse 100 percent growth.
Jim has been writing for Target Marketing Group since 2006, first on the pages of Catalog Success Magazine, then as the first blogger for its online division. Jim continues to write for Total Retail.
Along the way, Jim has led the Florida Direct Marketing Association as their Marketing Chair and then three-term President, been an Adjunct Professor of Direct and Digital marketing for Miami International University, and created a lecture series, “The 9 Immutable Laws of Social Media Marketing,” which he has presented across the country at conferences and universities.