Forgive and forget? Or not so much.
April 16th, 2008
Covalence, an ethical reputation tracking company out of Geneva, released its quarterly “ethical reputation ranking” today which highlights the highest ranked companies in addition to those that have made the most progress. Their process is interesting as a chunk of it is based on the number of positive and negative news reports on that company – except for the “Best Reported Performance” category, which only takes into account the positive news.
Most of the free report isn’t too surprising. But who tops the “Best Reported Performance” category? (Cue Darth Vader music.) It’s none other than the world’s biggest retailer, Wal-Mart.
I approach that information with mixed emotions. But the first thing that it makes me think about is how and why people forgive companies. With some folks, you get one shot. That’s it. They are wired in a way that if you screw up once, no amount of apologies or trying to make it right will restore their faith in you. They’re gone, so let them go.
But for the vast majority of people, they will eventually forgive and forget – depending on the offense. This is NOT a license to actively screw over your customers. But a lesson.
Personally I’m not a Wal-Mart lover. I recognize that they are trying to right some wrongs through pushing their environmental efforts, but the fundamental basis of who they are and the effect they have on the communities they move into is reason enough for me to never set foot in their mega-super-gy-normous centers.
But it would be interesting to find out what that magic point of forgiveness is. Is it based on the length of the relationship? The number of business transactions? I wonder. Of course, the main objective is to never screw up. But let’s face it – companies are made up of people. And people are imperfect. As what might come as a surprise to most companies, though, is that your customers like to know that you’re not perfect. So open the kimono and let them know what you’re really made of. It adds a face to an otherwise faceless entity. And I imagine it’ll increase your chances of being forgiven when you need it most.
Other posts by Spike.
Christian says:
I think that the “magical point of forgiveness” is the time when you step into a Wal-Mart and actually enjoy being there. Or when an employee actually makes an extra effort to help you out. (If this ever happens)
I don’t think that they can buy forgiveness through press releases. They need to generate it through personal interactions.
(An ex can write you an email to tell you that she’s changed. Or she can actually try to show you in person.)
April 17th, 2008 at 5:32 amMr. Steve says:
I don’t know if Wal-Mart is a good study for this…I mean, I still go there to get baby stuff, home & garden stuff and cheap clothes because it’s really easy. I don’t like Wal-Mart, but I still go there…at least once every two weeks. If Target or Best Buy treated me the way I get treated at Wal-Mart, I’d start shopping elsewhere. But Wal-Mart is just so darn convenient and cheap (same feelings I have for Charter communications). I think if the positive and negative news were combined, Wal-Mart would be a wash…but of course they’re going to have the most positive news…they have more opportunities than anybody else. It’s like saying “more people love New York than Easley, SC”.
Just my opinion.
April 17th, 2008 at 6:19 amolivier blanchard says:
Maybe Walmart stores are better in Switzerland. I can’t imagine ANYONE having a truly enjoyable or remarkable experience in a store like Walmart here in the US. Ever.
April 22nd, 2008 at 5:51 am