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Columns - Ask Harish Bijoor
Disturbing brand equity

Harish Bijoor

Could your sales agents be damaging your brand with their behaviour on the phone?.

Tele-selling is becoming a very tough thing to handle. My company deals in selling holidays. A recent brand audit has revealed that our brand equity before the use of tele-marketing as a selling format was 21 points higher than after, on a scale of 100. Why does such a thing happen?

- Kavitha Murthy, Mumbai

Kavitha, it’s 12.30 p. m. on a Tuesday. I am in a serious meeting with a host of people who have travelled all the way from Boston to meet me in good old Bangalore. We are discussing serious business, and my mobile phone goes off.

The lady at the other end of the line is chirpy and cheery and tells me that she has an invitation for me from Dell Corporation for an exciting event that will change my life. Ouch! What can Dell do to me that modern society has not already? And how does she have my number?

This is possibly an outsourced call centre lady calling in from her number. I am irritated. I tell her this is a DND (Do not disturb) number and that she has no right to call me on this and disturb me. My meeting mates are amused. The voice at the other end then bursts into a tirade. The lady asks me why I carry a mobile then. “Why don’t you give up your mobile and be tied to a landline instead?”

My face goes ashen. I have no answer. Voices from call centres are aggressive nowadays, dear Kavitha. This one was. But what did she do?

She salvaged her personal ego, for sure. She gave me a shocker as well. She hurt the image and equity of brand Dell in my mind indelibly. And nobody in brand Dell will ever know this. This is the downside of the outsourcing of sales calls from a call centre. At times supervisors don’t listen. At times, supervisors themselves are insensitive as to how to handle a customer, irate or not.

As call centre operations evolve, brand managers need to take extreme care to ensure that their brands, built with hard work over the decades, do not suffer at the hands and voices of outsourced entities that don’t care too much for the brand at hand. When it comes to carefully nurtured and carefully built brands, passion in the hands and hearts of everyone who handles it is a vital component of success.

This is a big issue to deal with. At times, in a bid to get the sales numbers going, companies tend to buy into outsourced modes of selling through poorly trained entities who don’t give as much importance to the brand they handle as much as to the quick call rates, conversion rates of calls to sales and the cost involved in all this. Brands get affected in the medium term through such knee-jerk selling approaches. One needs to be careful.

At the end of this recession and slowdown, do you expect the consumer to return to his/her old spending habits? And how long will that take?

- Pathi Srinivas, Chennai

Pathi, I think they will. But this time, slowly, with plenty of caution. Recession is a scar. As is an economic downturn. It leaves behind a lesion on the consumer in terms of spending ability and impulsive spending. It slows down these processes and adds a dollop of caution to everything.

Advertising gets trusted less and less in these times as well. The role of the retailer grows instead. The role of consumer activation grows as well.

How has consumer buying behaviour moved during the current slowdown? What are the distinctive movements here?

- Rama Bansal, New Delhi

Rama, consumer behaviour is morphing. The consumer is downgrading on brands. At times this is a brand to brand downgrade and at times it is a pack-to-pack downgrade within the same brand. From larger packs to smaller.

In addition to this, consumer demand is getting stretched out over lower-cost variants. For example, in the automotive category we have consumers who have had two-box cars for all of eight years and are looking to change. When they re-enter the market to change, typically they would come in with aspiration to upgrade to a three-box version (sedans). However, during this slowdown we have had customers actually going in yet again for a two-box car replacement. This means they want to fork out less as an outlay in tough times.

What this does is that it does not only kill the sale of a two-box car which would have otherwise happened in the short-term, but in the medium to long-term, it postpones this family from being in the three-box car market for a cycle time which might be as short as six years in India or right up to 10 years in a strong value-delivery seeking family. This is a hit not for one quarter but for a stream of successive quarters!

The consumer is still brand-conscious, but this brand consciousness operates within a price format that is value-defining.

In terms of consumption behaviour, the consumer is much more careful in terms of usage. There is no surplus usage. There is less squandering. The toothpaste is used with care and the tube is squeezed till the last bit is out, just as the cake of soap is used to the very last scrap. Hotel soaps and shampoos picked up on travel by the man or woman of the house are being used as well to optimal levels.

Value is in. Wastage is out.

The celebration economy is also down. People are spending less on outings and eating out. Bill sizes have fallen in food and beverage retail in the metros.

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