Moments of Truth
In 1981, at the ripe old age of 39, Jan Carlzon became the CEO of Scandinavian Airlines. After 17 consecutive years of profitability, the airline was facing losses of $20 million. Yet within his first year as CEO, he had returned the airline to profitability. By 1984, SAS had been voted Air Transport World’s "Airline of the Year". What did he do, and how?
In 1986, Carlzon wrote a book called ‘Moments of Truth’ that answers that question:
"Anytime a customer comes into contact with any aspect of a business, however remote, is an opportunity to form an impression."
As he puts it,
"Last year, each of our 10 million customers came in contact with approximately five SAS employees…Thus, SAS is "created" 50 million times a year…These 50 million ‘moments of truth’ are the moments that ultimately determine whether SAS will succeed or fail as a company. They are the moments when we must prove to our customers that SAS is their best alternative."
From this simple concept, Jan Carlzon took an airline that was failing, and turned it around to be one of the most respected airlines in the industry. I remember coming across that book, back when I was in business school. Now, in my role as a marketeer and a customer, I see a bunch of opportunities for companies to shape their ‘moments of truth’… and they’re blowing it.
Recently, I found myself in the market for an air conditioner. Now, you must remember that here, in India, buying any thing is infinitely more complex than else where in the developed world. Very few companies have websites worth a mention. Of the ones that do, very few carry product details of any relevance. The availability of products in the market is also quite unorganized, mainly through small local stores, with just a handful of really large-scale multibrand outlets to choose from.
I tried to ‘google’ the brand names I could think of, but not much dope could be gathered online. Then, I thought of trying out a few small stores in the area – each one was limited by a ‘favourite’ brand or two which it was interested in ‘pushing’, irrespective of my needs. As a last recourse, I approached bigger multibrand outlets to try and get a better understanding of the options.
Salesman after salesman, I was facing people who basically said "there’s no difference between the various brands on offer"… When asked about the price differentials, the average response was "different companies price their products differently"… When enquiring about the tonnage required, all I could elicit was an approximation of "100 square foot area needs 1 ton" !
Exasperated from this experience (not to mention the prevalent heat), I breathed a sigh of relief only when I found a sales rep that made some sense, and was willing to help me cut through all the bullshit… And that’s the guy I bought my AC from.
The frontline sales staff of the organization / store plays such a significant role in making that sale. And the various players in this space (Brands like LG, Samsung, Voltas, etc. as well as stores and multibrand outlets) all had an equal shot at making that sale. But they blew it (all except one, of course).
This story is repeated hundreds of times, each day, no matter what you’re in the market for… moments of truth, just wasted away.
If I were working for any one of these organizations, I’d be worried.
i can relate to the experience you went through since i have attempted gleaning information from authentic and reliable sources,while preparing to shop for a product.In contrast to the profusion of information in developed markets that can guide a prospective buyer to her final decision,there is a scarcity of organised information in this country both for product choices and disribution channels.The internet notwithstanding its status as an excellent medium to disseminate information is relatively nascent and has low usage in our country.how do those without access to the net,leave alone the unlettered, seek to make up their mind about their choice of product ? they visit the dealer who is their interface to the transaction and depend on him for impartial advice.as we know the dealer, he pushes a brand of his choice based on commercial considerations.ultimately the buyer who walks in with a smattering of knowledge allows himself to be influenced till he satisfies himself.the grey area is the domain of influence where incorrect or incomplete information,untenable claims and poor comparisons pervade clouding the mind of the buyer who apparently reaches a point of saturation.you take a decision when you are tired of thinking anymore.there is of course another lot who swear by the power of recommendations from their kith and kin or friends or other opinion leaders in their social circle.The majority who are conscious of price allow that factor to nudge themselves towards a decision ceterus paribus.naturally these salesmen volunteer little useful information either because they are ignorant or they dont care.these dealers never intended to offer customised advice,instead they host convenient shopping platforms stocking a range of products under one roof.they have not graduated yet to the next level where a sophisticated buyer would feel comfortable.there may be an exceptional salesman who might walk one through the steps of a logical decision-making process starting with understanding your requirements.the manufacturers seeking to promote their brand set up their exclusive showrooms which is where one could look for and obtain product knowledge.for the vast majority who have got accustomed to this process what better way than to approach a dealer for advice ? It is the savvy and privileged few who adopt a structured method to buying. In this country of teeming millions convention rules… traditions and normative practices are primary drivers in this system.a few companies have put up information online to make it easier for these few.yet the situation is a far cry from that in developed markets which appears utopian what with shopping bots and comparison engines to aid you. until we reach there,the buyers will remain ignorant about the questions they should have asked and the dealer blithe about successfully closing a sale with a docile buyer.the discerning few who walk away in exasperation are no different to them than curious onlookers. Frustration is but a natural feeling for those of us seeking order in a hodgepodge of a market.brand image and impressions are no less esoteric to them than the components that lie wired in the innards of the white goods they hawk.