Yarn Harlot Outperforms KFC: What to Do When a Promotion Goes Wrong

A few weeks ago I blogged about the KFC Free Grilled Chicken Fiasco. KFC not only screwed up the promotion — they couldn’t even get the apology right.

My wife, PDX Knitterati, alerted me to a similar kerfuffle in the knitting community over an event called Sock Summit. Like the KFC promotion, consumer demand overwhelmed the organizers’ ability to handle the traffic. But unlike KFC, Sock Summit bounced back with a very effective response.

There are lessons here for all marketers in how to handle a promotion that goes south.

For those among my readers who aren’t familiar with the needle arts, Sock Summit is a knitting convention with workshops, classes, and a marketplace, organized by Stephanie Pearl-McPhee (who writes the Yarn Harlot blog) and Tina Newton of Blue Moon Fiber Arts. As this story develops, it’s important to know that:

1. There is a very large, very passionate knitting community in this country. They read blogs, buy product, and spend money in huge numbers.

2. The lineup of speakers and teachers at Sock Summit is full of big-time names. Really big-time names. If Sock Summit were a basketball camp, the instructors would be folks like LeBron James, Shaquille O’Neal, Dwight Howard, and Brandon Roy.

It’s a first-year event. Registration was to be online. The organizers looked at other knitting conferences, tried to calculate the number of people who would register, and then put together a system designed to handle a much bigger number.

The response was much bigger than they ever dreamed. The server crashed. Some people were kicked out of the system before they could complete their registrations. When they were able to get back in, many classes were full.

I mentioned earlier that the knitting community is both large and passionate. When they found that they couldn’t get the classes they wanted, some got cranky. Really cranky.

Angry emails poured into the organizers’ mailbox, and into  various knitting blogs and forums.

After getting the server back up and taking care of as many registrations as they could, Stephanie Pearl-McPhee posted an explanation, apology and general response on her blog.

You can read the full post here.

And you should. It’s long, but it’s really, really good. Where KFC got it almost completely wrong, Yarn Harlot got it right.

  • It’s personal. Where KFC President Roger Eaton’s message appeared to have been composed by a committee of lawyers and PR flacks (“Everyone wants to get the great taste of our new product, so we can’t redeem your free coupon at this time”), Yarn Harlot’s message was clearly written by a human being. An embarrassed, frustrated human being who wants to do the right thing.
  • It explains the problem. Pearl-McPhee spells out the thinking and preparation that went into the system they built, their surprise when the system crashed, and their efforts to get it back up and running.
  • It clearly explains what they’re doing about the problem. KFC made a vague offer of a rain check that could be redeemed at some point in the future. Yarn Harlot takes personal responsibility for repairing the damage, and gives consumers an easy way to communicate with them:

We’ve decided to make sure that everything is accurate by doing it all MANUALLY, ourselves. That means that if you have trouble, you should write to us on the Contact us page with as many details as you can, and we’ll sort it. If you already wrote us, we’re on it. The first refunds went out today, and we have all our staff working only on this, and we hired more staff, and the IT company is lending us staff. It should go fast, but please be patient. We’ll sort everybody out as best we can, as quickly as we can.

It acknowledges that there are limits to what they can do. All of their efforts do not eliminate the fact that there is considerably more demand than supply.

I might quarrel with Pearl-McPhee’s attempt to put the issue in perspective

We’d like you to remember, before you email… that your problem is that you didn’t get into a knitting conference. It is actually not like Tina and I napalmed a village of orphan babies and then ate their puppies and it is up to you to exact revenge.

Although she is absolutely right about this, she risks appearing to belittle her customers’ frustration. I’ll give her a pass, though — the line is in character with the tone she often takes on her blog, and her readers likely will accept it in the proper spirit.

The honest, heartfelt message appears to have done its job. In the days following this post, many people deleted their comments from the message boards (email, alas, is forever), and some folks even donated money to Doctors Without Borders, a favorite Yarn Harlot charity.

Nobody’s perfect. If you’re in business for any length of time, something will go wrong in an interaction with a customer, or a group of customers. KFC and Sock Summit offer instructive examples — one negative and one positive — in how to treat customers after the fact.

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Can a Frequent-Shopper Program Save Lives?

There was a message on our answering machine when we returned from a trip this weekend.

Hello, this is your local Fred Meyer store with an important announcement. We wanted to alert you that you may have purchased Private Selection 10-ounce Shelled Pistachios that have been recalled. You should not consume the product. You may return the product or receipt to a store for a full refund or replacement [the speaker then gave a phone number for more information, and continued]

This message is possible because you are one of our loyal shoppers, and used your shopper’s card to make this purchase. Thank you for being a Fred Meyer customer.

Turns out there’s been a recall of pistachios because of a salmonella outbreak. And we had some in the cupboard.

It may be a little creepy that they’re keeping such close tabs (note to self: do not use Rewards Card when purchasing murder weapon), but this is a real benefit to customers who might otherwise suffer some serious health consequences. Fred Meyer handled it beautifully:

  • Gave an exact name of the product so it was easy to figure out what to look for
  • Gave sufficient reason to stop eating it (it’s been recalled) without creating undue alarm
  • Gave a toll-free number to call for more information
  • Offered a full refund without onerous restrictions — you can bring back the product or just the receipt
  • Reminded customers that this is a benefit of using the Rewards Card
  • Thanked us for shopping at Fred Meyer

It does raise an interesting question, though:

This procedure works perfectly for a relatively innocuous product  — a husband isn’t likely to be upset if his wife hears a voice mail about the pistachios he picked up on his lunch hour. But the store sells other items that might require a little more delicacy.

Would they leave a similar message in the event of a condom recall?

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One Way to Get New Customers Fast — And Keep Them

While most of you were out having a wild Saturday night, I was home reading one of Dan Kennedy’s marketing newsletters.

Go ahead. Envy me.

In the newsletter, Dan described the “dry cleaner’s secret” — a method that a dry cleaning franchise operation used to ramp up its business, quickly.

Using a series of carefully-designed marketing steps, the franchise owner was able to attract a large number of new customers in a short time,  and turn them into profitable regular clients.

Although this particular entrepreneur was in the dry-cleaning business, his marketing method can transfer over to any business that depends on customers coming in several times a year or more. Examples that come to mind include:

  • Aesthetic medicine practice — Botox, laser hair removal, mesotherapy, lipodissolve, etc.
  • Cosmetic dentist
  • Garden store or nursery
  • Pet supply store
  • Yarn store
  • And, yes, a multi-location dry cleaner.

What’s the method? I’m not going to tell you here.

But if you’re a Portland or Vancouver-area business owner, I’ll be happy to describe it to you in person.

I can tell you that to make it work, you’ll need to make an investment in advertising. That investment does not necessarily have to be with me, but you’ll need to do it somewhere.

This won’t pencil out for everybody, but it might for you. If it does, you’ll gain a lot of profitable new customers fast. And you’ll be able to track the results right down to the penny.

Isn’t that what marketing is supposed to do?

Interested in learning more? Call me at 503-323-6553, or email me here.

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The Value — and Risk — of Rebate Offers

When I wrote recently about the ethics and advisability of rebate offers, local reader and attorney Kevin Spence had this to say:

Gift cards, rebates and vouchers are all kind of a scam in my opinion. They are all designed with a certain failure rate. Whether the failure is caused by the recipient losing it in the wash the cost of the voucher to the business is less than the value of cash. Gift cards are particularly bad in my opinion.

Why people are convinced that buying a gift card to a particular store is better than giving cash that can be used in countless different ways is beyond me. Add to that the limitations and fees that are placed on some gift cards and I’m left scratching my head.

In the Oregonian, Laura Gunderson recently tackled the same topic:

Although some companies nationwide have veered away from redemption programs in recent years, many remain and are legitimate. Typically, marketing experts say, the easier a deal is to fulfill, the more trustworthy and beneficial it is — for customers and the company.

In Oregon, the legal bar on promotions is rather low. Offers that are inherently misleading — even simply confusing — can trigger an investigation.

In my work with car dealers and, in one memorable case, a siding company, I’ve had a chance to talk at length with Eugene Ebersole of the Oregon Department of Justice. Gunderson’s warning is correct — Oregon has always had some pretty explicit and strict rules concerning advertising and promotion. Those rules became even stricter about a year ago.

Considering a rebate or gift-with-purchase offer? Doing it wrong may not only anger your customers — it may get you a subpoena from the D.O.J.

Call me first.

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FedEx Wins Some Christmas Day Word-of-Mouth

In my office, our main overnight delivery service until recently was DHL. It was cheaper than FedEx, and reasonably reliable. But the word around the office was always that if you were serious about getting a package to someone overnight, you should spring for FedEx.

DHL is gone now.  On Christmas Day FedEx took a big step in reinforcing its reputation in the consumer’s mind as the most reliable choice overnight delivery. While UPS gave all of its employees the day off, FedEx announced that it would keep all 665 of its Express Centers open on Christmas morning.

A huge portion of the country has experienced really rough weather in the week before Christmas. Heavy snow and ice created havoc in air, rail, and ground transportation. Here in the Pacific Northwest, many roads are still iced over. Some packages — including many holiday presents — just couldn’t be delivered on time.

FedEx understood the disappointment that would cause, and decided to give parents one more chance to put the presents under the tree. This undoubtedly cost them a considerable amount of money, and created inconvenience and hardship for some of their employees. They did it anyway.

So if you were expecting a Christmas present via FedEx, you may be able to get it today. If it’s coming UPS? Sorry, you’ll have to wait until they get back on Friday.

Customers of both companies will remember what happened, and how each company responded to the challenge. So will all the people they talk to, and millions more who hear about it in media reports.

Which company will they choose when it absolutely, positively has to be there overnight?

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