Unhappy Customers are Customers Too; How Zipcar is Getting Off Track

If The Beatles, "Breaking Bad" and "The Dark Knight" are not immune to bad reviews, then what brand could possibly consider itself immune to negative feedback?

Given that logic, putting stock in AdWeek’s new article "Zipcar’s Customer Service Gets Horrible Reviews." Insofar as some degree of dissatisfaction is inevitable, that an organization is not loved by all is a statement of reality rather than revelation.

That the article spotlighted one negative anecdote made it even easier to dismiss. Context is needed before worrying about quantitative dissatisfaction; a few tales of customer service horror, while certainly relevant to the actual business’ customer experience design, can only carry so much reputational weight.

Still, that a modern company—raised in an era of customer-centricity and instant-feedback-sharing—could inspire overt negativity is indeed worth discussing. And upon further review, it is clear that while AdWeek’s journalistic approach might have dampened the story’s significance, Zipcar’s customer experience is indeed veering off the course.

The New York iteration of the company’s 3/5 score on Yelp makes it abundantly clear that customers are underwhelmed. While such an average is not necessarily bad in the broader context of Yelp, it carries specific, damning implications for a business like Zipcar.

Thanks to the existence of high-end, gourmet establishments, modest restaurants, no matter how customer-centric, will naturally face an uphill battle in achieving perfect Yelp scores. Their food is, at the end of the day, not as good as that prepared by the culinary elite.

But as the innovator and leader in the space, Zipcar is supposed to represent the Holy Grail. It is supposed to be the standard. With no inherent reason to lag behind other services or fall short of a 5/5 ranking, any such shortfall can be directly attributed to a flawed service experience.

Several recent reviews reflect poor—rather than merely underwhelming—service, which only further cements the fact that Zipcar’s customer experience needs work.

That fact, in and of itself, is not inherently crippling. Though businesses should always strive for customer experience excellence, they are not immune from rough patches. They are not immune from wake-up calls about shortcomings in the status quo. And if they recognize that vulnerability and pick up those wake-up calls, they can actually turn a period of customer service disappointment into an unprecedented opportunity for betterment.

What is crippling, however, is taking the wrong approach to such negative feedback. If the same complacency and customer disconnect that produced a phase of dissatisfaction prevails, it can spell long-lasting harm for the business.

Zipcar’s online complaint handling, which would provide the most vivid, public glimpse into how a business is approaching customer negativity (especially for a business that highlights "email, phone and social media" as its key support channels), suggests that an attitude of shielded complacency might be reigning within the organization.

An evaluation of Zipcar’s Twitter interactions reveals that the organization far prefers to engage with positive feedback (or neutral information requests) than negative commentary. While the company is right to notice and respond to its loyal supporters, its disregard for frustrated ones is both troubling and unintuitive in an environment predicated on curbing customer dissatisfaction.

Among the comments that either received no response or a delayed (more than 24 hour wait time) response:

@Zipcar's customer service is the worst I've ever dealt with. Wondering if occasionally driving is worth the hassle. #beingovercharged

@Zipcar Why is there a penalty to return the car early? Today was 1 hour early and penalty was greater than the extra hour?! #MakesNoSense

@Zipcar how in the world does one cancel one's Zipcar membership? There is no option to do so online

Had awful experience with @Zipcar but customer service was prompt & helpful. Problem is they made several mistakes - called 5 times! #upset

Thanks @Zipcar for inspiring me to buy a car. Awful customer service

Hey, @Zipcar, do you think you could make it a little more difficult to change my credit card information from my phone?

Unacceptable service today @Zipcar. Disappointed that they knew about issues with car I booked at least an hour and yet received no call. (generic response two days later)

Really @zipcar? Billing people for NOT using your service? Unreal. Seriously angry. pic.twitter.com/TRgZTj3Z7i

So you let me reserve and pay past my membership date but wouldn't actually let me drive the car b/c the membership expired? Thx @Zipcar!

Hey @Zipcar, my reservation isn't showing up on my #Zipcar app-- any words of wisdom? Thank you!

Here are some comments to which Zipcar responded more promptly (though sometimes with generic responses):

Hey @zipcar here's an idea, how about putting more zip car locations in the Norfolk area?

i'm a huge (+new) fan of @Zipcar; so quick and easy. especially after i used @DollarCars and had to wait 50 min in line to get an SUV; ugh

First time using @Zipcar, amazing!

@Zipcar great proof of customer care — late fee refunded and quick answer, thanks!

Another @Zipcar adventure begins now. Where will we go? What will we do? #SundayFunday

Even if one temporarily ignores the importance of customer service, there is little marketing rationalization for Zipcar’s effort. Cultivating loyal brand advocates is valuable, but managing customer complaints and preventing customers from exiting are also huge marketing objectives. With a strategy that dismisses those elements, Zipcar is not using social media wisely. It is not conscious of the manner in which social, by virtue of empowering word-of-mouth, can affect reputation.

Of course, one should not ignore customer service, and the poor response times are an issue there. While negative responses are not the only responses Zipcar ignored—it did overlook some positive and neutral comments—they seem far less capable of attracting the compay’s attention.

Problematic from a perception issue—it suggests that Zipcar does not care about righting its wrongs—it is also problematic from an experiential perspective. Several of the complaining customers were referencing either ongoing issues (ones that needed resolution) or ones that could prevent them from successfully doing business in the future. Without resolving these issues, Zipcar is not only demeaning its customers but not upholding its commitment to serve them.

When it comes to an insufficient, ineffective customer care platform, Zipcar is far from alone. Many organizations are as—or more—unresponsive on social networks.

But the Zipcar situation is notable because the impact of its inefficacy is so clear. Customers are chastising the brand on social networks. Major media outlets are attacking the business’ customer service model. A company known for being cool, hip and modern is building a reputation as an organization with traditional customer service shortcomings; an organization on which customers cannot rely.

Those at risk of facing a similar issue are advised to implement some key best practices:

*Customer service is the chief marketing strategy

Though there are some particularly-valuable ways to incorporate online media into a marketing effort, no such strategies should be used as alternatives to an excellent customer experience. Thanks to the resulting word-of-mouth, that experience—and the satisfaction that comes with it—is an organization’s biggest marketing weapon. Businesses must embrace that reality; they cannot use clever marketing tactics to finesse out of what really matters to customers.

*Unhappy customers are customers too

That this even needs to be said is troubling, but Zipcar proves it is not hailed universally. While every business should go above and beyond for its loyal customers, it needs to recognize the importance of satisfying all customers. When effectively engaged, disgruntled customers can become loyal spenders and proud advocates. When ignored or dismissed, disgruntled customers can take their value to a competitive organization. No matter how vitriolic his complaint, if the customer is looking to successfully engage with your business, your business must oblige.

*Make response and resolution your priorities

Will every issue be solved on the first interaction? No. But if every issue is taken seriously, then it must at least be seriously—and personally—addressed on the first interaction. Unhappy customers (and, hell, even happy customers) do not want to know that their feedback is being put on file, let alone that it might not even be making such a file. They want to know it—and the accompanying resolution—is priority number one for the business.