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Overpromise, Underdeliver.
By Aaron D. Allen
Thursday, 10th March 2005
 
Companies routinely undermine their credibility by overpromising what they can actually deliver. When will we ever get it? A brand equals a promise.

Every company knows the mantra. "Don't make promises you can't keep. Don't lie to your customers." It seems so simple and so clear. That's because you don't build a strong brand by failing to deliver.

Yet companies continue to violate this fundamental principle. The result: Company communications, much like campaign promises, are inspiring more cynicism than enthusiasm. Some observers have even claimed that advertising messages no longer have the power to move consumers to action. Overpromising leads to consumer overload and, frankly, undermines brand image.

However, today's marketers still make promises they can't keep. Often, companies that make these promises are reaching beyond their grasp. They know where they want to go, and they have defined the customer experience they'd like to provide. The problem is, they can't deliver that level of performance yet. But instead of waiting until they actually can deliver on the promised experience in every customer encounter, they go ahead and announce the offer.

Subway – Are they selling opera or sandwiches?
Subway is still in the process of launching its new line of breads and sauces, heavily supporting it with millions in advertising. That's understandable and smart. When a company has real news to deliver, its marketing and communications activities should accelerate, and in the midst of white hot competitors it's no surprise that Subway was forced to innovate their product.

But have you seen the most recent commercials? They are ditching what has worked to adopt something new – probably just for the sake of new.

It's no secret that the Jared campaigns garnered significant sales lifts for the chain. In the last two years of the campaign Subway's comparable store sales grew 40%.

So why do they have a new no-Jared-angle? If I were to venture a guess I'd say it is because they have new blood in the marketing department that wants to shake things up and break from the creative campaigns of their predecessors. They want to make new claims at the reckless abandonment of what has been working.

Their latest series of advertisements feature an all-to-enthusiastic counter person that – when asked what he recommends – bursts into dramatic poems that captivate the by-standing public. I don't know about you, but the last time I went to a Subway, I felt lucky to get a "hi-ya", much less a run-down of favorite menu items. A song hardly seems likely.

There isn't a consumer in shot of those television airwaves that really believes there is any chance of a GQ looking model belting out operatic praises of the Subway menu at any store they've ever been to. While the advertising may be shooting for cute and dramatic, it's flagrant disregard for reality emasculates trust. When there is a gap between the promise and the delivery, it erodes consumer confidence in the company to a proportionate degree.

Now perhaps no real damage is being done by generating excitement for a brand that may need a lift. Maybe it's just another instance of harmless advertising puffery. After all, Subway's ongoing ad campaign has been highly noted and well received. The "Eat Fresh" tag line is familiar to many consumers.

But lacking products and service that can fulfill heightened consumer expectations, Subway could face disappointing residual effects…Especially as things continue to heat-up in the emerging phenomenon known as the "fast-casual" segment of the industry.

It could later be argued that a decline may reflect only a general industry sales slump in the quick service restaurant (QSR) segment. But some of it has to represent the reactions of customers who had been promised they'd "eat fresh" and be served by the Shakespearean actor from the commercials but encountered something decidedly less. What's more, Subway risks endangering its future consumer relationships, which ultimately affects the health of its brand and future prosperity of the company.

But let's not just beat up on Subway. Consider McDonalds, which has asked consumers to believe they "Love to See You Smile." McDonald's same-store sales have been dismally disappointing, while rival Wendy's saw a revenue increase of 13.1% last year. The reasons for the decline in McDonald's performance, must include the fact that the hip, witty vibe created by the advertising doesn't always translate to the stores. No one believes that all of a sudden you'll be greeted by a Tickle-me-Elmo band of McDonalds employees…the hype and the reality don't match.

Even more examples abound. A bewildering number of banks promise immediate personalized attention but deliver long waits and recorded messages that claim, "Your call is important to us." Cosmetics promise transformational glamour. And yet, in the words of Procter & Gamble's chief executive, "Too much of beauty care has been promises unkept."

Pursuing transactions versus relationships
Fast food, hotels, beer, weight-loss programs, investments, airlines -- marketers in all these categories also seem to have followed the advice of the old and unforgettable ads: "Promise her anything. . . ." The problem is endemic. Gallup surveys have shown that, across a range of industries, about one-third of the average company's current customers aren't convinced that the company always keeps its promises. That's a shocking figure. The net result is a loss of customer confidence that -- as Gallup research has also shown -- creates an unstable, disengaged, and unprofitable customer connection.

Why do companies play this game? Because, in their headlong pursuit of short-term volume goals, they have focused on creating transactions -- building traffic count, creating trials, "butts in seats" -- and not on building competitor-proof relationships. Why? Because that's what companies typically measure, and that's how their managers are held accountable. So companies make promises, hoping that the more powerful and grandiose the promises are, the stronger the consumer response will be. But the more powerful and grandiose the promise, the tougher it will be for companies to keep it.

It doesn't have to be this way. Yet as long as short-term volume and archaic profitability ratios remain the metrics of business success, the situation will continue. Until companies adjust their sights and reset their goals on creating enduring customer relationships, overpromising will remain rampant.

Overpromising generates transactions. It stimulates trials. But those trials won't be followed by repeat purchases. Overpromising engenders customer disaffection, disappointing those who were attracted by an expectation that remains unfulfilled. The long-term consequences for companies, customers, and stockholders are anything but positive. And that's a promise.

Aaron Allen, Founder/CEO, Quantified Marketing Group, www.quantifiedmarketing.com
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