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Wednesday 20 July 2011

N.O.W saga: four things Businesses should never fail to learn about customers


By Patrick Mayoh

I have had to take a break from writing and I was thinking about posting again from August. But then everyone is talking about what I call the News of the World saga. To the point that one of my friends actually suggested I should write a post about this. Once I studied Journalism and needless to say from an ethical point of view that the hacking scandal is indeed well...a scandal.
It really never got my attention to be honest. I was wondering what the media and the public furore about N.O.W was all about. After all, phone hacking allegations have been around for well over 2 years. But then it began (the scandal) to get my attention when I read about SKY, Virgin and other big giants withdrawing commercials from the paper. And then there were shocking revelations about 7/7 victims’ families’ phone conversations listened to. I read with great dismay how Miley Dowler’s phone was also hacked and how even her parents’ private conversations with friends were monitored by N.O.W staff. From then on the phone hacking scandal just got uglier every single headline. Her majesty, Gordon Brown (other victims) and then the death of the whistleblower Sean hoare just a few days ago.
I believe this is what happens when an organization fails to adopt an outside-in perspective. Reflecting on the unfolding of this catastrophe I cannot help but draw lessons for all businesses in light of what we are witnessing in N.O.W. Organizations when it comes to the public (customers) should never fail to:
· Lose touch with reality
· Listen
· Fulfil expectations
· Realise people are in charge not CEOs

Organizations should never lose touch with the reality

I think what has happened is clearly a case of that. A paper that can go as far as listening to people’s private conversations just to get the big scoops has lost a sense of reality. Likewise organizations have to operate within clearly defined frameworks that protect them and the people they serve is that why we have codes of ethics? I honestly believe people should go into business because they want to help others meet their specific needs. I do not believe in the “profit first” culture. I genuinely believe you have to achieve a margin if you sell a product but when this is done at the expense of others reality always catches up and the N.O.W should serve as a stark warning. Like Muhammad Yunus I believe businesses’ goal to make profit is only one part of the story; much more has to be paid attention to.

Organisations should never fail to listen

N.O.W should have proactively reacted in 2009 when rumours about phone hacking of celebrities began to emerge. Foresight would have dictated the editors and the management to adopt a more ethical approach. Businesses will inevitably make mistakes sometimes big ones. But before mistakes move from minor to major ones there is always an opportunity to repair, amend and improve those aspects the public is not happy about. Actually the customers will always be useful in terms of reminding you as a business of what you need to be wary about before things get too ugly. When in 2005 Dell noticed that many of its customers were furious about the quality of their products; the CEO reacted by creating a blog: Direct2DellBlog entirely dedicated to answer queries customers had as well notifying them of all the measures being taken to provide an outstanding service to users. Dell even allowed like Amazon, customers to directly rate products on their website. According to Dick Hunter head of Customer service at Dell, measurements show satisfaction among customers at about 77%[1].

Fulfil expectations

Customers want good products; full stop. Meeting this need in a meaningful way is what companies should strive to do. A customer wants to buy a paper that reads well but also that excels on accuracy of facts, equilibrium and respect of privacy especially those that infringe on vulnerable sources’ basic rights for tranquillity like victims or distressed parents. In the same vein, organizations have a crucial responsibility to meet our needs without resorting to indecent means.

People are in charge not CEOs

This is probably the biggest lesson from the N.O.W saga. People are always in charge. It was not Rupert Murdoch who decided to close the paper. The advertisers did because they knew people would not buy the paper. What company would genuinely desire to be associated with a media outlet people resent?
No doubt Rupert Murdoch is a genius and a revolutionary in the true sense of the terms. However he is what he is because somehow people like what he brings to the media world and approves of his style and management. But the recent reactions to the hacking scandal have sent a clear message. People make and unmake, therefore organizations should be mindful of that and always adapt to changes outside the organizations.
I have always been a big proponent of the outside-in perspective. Although the inside-out approach can be best suited for some companies like Apple, the majority of organizations cannot afford to function without ascertaining what people outside think, what their concerns and interests are and how they can be met adequately. This is what we expect of media outlets and businesses in general
See you next week!



[1] See Understanding digital marketing by Damian Ryan and Calvin Jones