AOL, the beleaguered online service, is probably glad that the month of June is over.
Besides aggravating many long-time customers by inserting ads into their emails, AOL execs found themselves in the spotlight for shooting themselves in the foot—again. In the now famous “I want to cancel my account” episode, AOL subscriber, Vincent Ferrari, battled mightily with a service rep to shut down his account.
Ferrari recorded his tussle, which circulated widely, and it landed him an interview with Matt Lauer on Today. AOL execs apologized to Ferrari, discussed the story with the media, and fired the customer service rep.
AOL’s self-inflicted wound reveals the perils of unleashing an aggressive sales strategy using customer service staff. Granted, most customers expect to hear some sales pitch when they talk to a service rep. But tenacious efforts to sell something to a customer seeking service violate a simple rule of marketing: customer service is a better marketing opportunity than a sales tool.
Customer support, of course, is an enormous expense for most businesses, and it’s tough to ignore the sales opportunity that presents itself in any interaction with a customer. But why not take advantage of the power of customer goodwill and word-of-mouth marketing by offering error-free service, rather than an unwanted sales spiel?
By focusing on service, and its marketing benefits, a business may not wind up on YouTube, Digg, or Today. But that could be the ideal outcome.


Yes, AOL fired the customer service guy. But was the firing just?
There is a possibility that the customer service guy was doing what he was told by the company: If needed apply some pressure and arm-twisting to avoid contract cancellations.
It’s interesting that so many companies have heavy-handed sales tactics, but when clients get ticked off, companies set the example by firing the salespeople who applied the otherwise endorsed tactics.
AOL problems are not over by having fired one person from the frontline. As I was taught in the army, battles are not lost or won on the privates. In most cases battles are won or lost in the war rooms.
This sales rep guy most probably did what he was told to do. Having fired him only makes AOL look even worse not better. The real culprit comes from the executive suite.
AOL should examine its overall strategy.
Posted by: Tom "Bald Dog" Varjan | August 16, 2006 at 07:00 AM