June 2009 – Industry Insight

DR Watchwords: Due Diligence, Vigilance and Customer-Centric

By Chris Rosica

Sales in the direct response industry remain buoyant while many traditional retailers languish in the doldrums. From this position of strength, now is a great time for direct response marketers to review what has contributed to their success so they can sustain sales momentum and ensure an ideal business and regulatory environment in the future.

Consumer confidence is the key to the industry’s continued growth and overall success. Everything hinges on how the industry and its products are regarded. It’s essential for the industry to pay attention to why people became customers in the first place–and why they keep coming back for more.

Companies in the electronic retailing space need to work collectively to meet high standards and optimize customer service. The adage about what one rotten apple can do to the entire barrel has relevance. It only takes a few negative incidents to spoil the industry’s reputation. To elevate and maintain the best possible perception of the industry takes due diligence and constant vigilance.

New Internet tools, such as Twitter and Technorati, can help companies monitor the online conversation about their products, companies and customer service and respond in a transparent, sincere way. Just be sure to be fair, reasonable and openly disclose information so the customer sees what he or she may be overlooking or taking for granted (e.g., the daily costs you incur associated with doing business).

A GOOD FIRST STEP
The ERA’s Marketing Guidelines for Electronic Retailers provide an excellent starting point for reviewing best practices. Here’s a summary:

• All ads must identify themselves as such and may not contain any deceptive or misleading information or claims.
• Comparisons with competing products or services must be presented fairly and accurately without denigrating competitors.
• Claims must be reasonable and based on competent authorities and reliable evidence.
• Demonstrations must actually take place and must not misrepresent any material feature of the product.
• Claims related to warranties must be truthful and consistent with the terms of the warranty, and all material conditions, limitations or charges related to the warranty must be disclosed.
• Products or services must be deliverable if offered and orders must be fulfilled in the timeframe specified. Customers may not be charged for merchandise or services that aren’t delivered as promised. “Free trials” must be free. No exceptions.
• Customer requests for confidentiality regarding personal information must be honored.

The bottom line is that electronic retailers must fight for what is fair for the industry and keep in mind what is fair for consumers. That means doing business ethically and transparently. If we do this, this sector will continue to improve its image and ensure its future survival and growth.

Chris Rosica is author of “The Authentic Brand” (www.theauthenticbrand.com) and CEO of Paramus, N.J.-based Rosica Strategic Public Relations (www.rosica.com).