9xb - Creating Online Success

THE HORRORS OF BAD PR - WHEN IS A DISCOUNT NOT A DISCOUNT?

Vouchers and discounts are great motivators to buying online. Used correctly, they can drive new sales, convert browsers into buyers and increase market share. But what happens when technical glitches, combined with the instantaneous transfer of information online, conspire to make the deal better for your customers than it is for you? It's a lesson that Hamleys are suddenly having to learn in the full glare of the public eye.

Like many online retailers, Hamleys intended to boost volume sales over Christmas with a promotional code that could be redeemed through their website. This code was good for a 20% discount. But savvy buyers soon found out that three codes could be applied at once, giving them a discount of 60%. Oops.

The first lesson here is one that has been hammered home time and again. Test once, test twice, and when you're sure that everything is working as it should: test again.

PR Compounds the Error

Hamleys had taken 1000 orders before the error was spotted. On the internet, news spreads like wildfire, and emails and messageboards were abuzz with people passing the flaw on to their friends and relatives.

How Hamleys handled the error can be considered a textbook example of how not to deal with customers online.

Their initial response was to agree to honour the incorrect transactions. Had they stuck with this position, none of the subsequent aggravation would have occurred. In fact, their name would have been seen alongside many feel-good stories in the press, and their site would have probably seen huge numbers of people seeing if the error was still there. Given that the original 20% discount code still worked, probably quite a few sales would have resulted and everyone would have been happy.

But then, looking at the raw figures, Hamleys panicked and told their customers that they would not be honouring the discounts after all - but would offer a single 25% discount instead.

Cue outrage.

Hamleys have contrived to turn a positive (if slightly costly) news story into a platform for aggrieved customers to pop up on radio and TV to voice their displeasure. In addition, their homepage is currently home to a large, unsightly apology instead of an upbeat, seasonal sales message.

There is still a legal question hanging over their moves as well, as the products have been bought, paid for and confirmed. This will only serve to drag this story out for longer and keep Hamleys name in the press for all the wrong reasons over their most important selling period. Whoops.

Today's Moral

Things will go wrong with your website. Punishing your customers for your mistakes only serves to make you look worse. Developing a defensive strategy to quickly sort matters out to the benefit of your customers should be part of any online PR activity.

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