Monday, April 4, 2011

Corporate Greed

I've just finished reading Fast Food Nation by Eric Schlosser. Although written more than a decade ago, not only does the book ring true even today, what's more -- it seems that conversion of skilled work to minimum wage jobs carried out by an unskilled workforce has become a pan-industry phenomenon.

Industry after industry is looking to "templatize" and "automate" work so that they can hire minimally skilled people at minimum wage (or less) in order to enjoy even bigger profit margins. While I will not get into the ethics or the social consequences of this approach, as a consumer, I can't help but notice how interaction with various businesses (ranging from cell phone providers to retail stores) is getting more and more dumbed down and therefore frustrating.

The following examples amply illustrate my view.

A few months ago, I complained to Airtel --  my cellphone service provider about receiving SMS spam despite being registered on DND. I duly received a complaint number and was told that the messages I was getting were from "another provider" who had been informed. The complaint was "Resolved" and therefore closed. The SMS spam continued unabated and I tweeted about it in frustration. The twitter arm of Airtel got involved and asked me to write to them -- which I did. A few days later, they wrote back saying that although I was being harassed by messages, statistically they were doing well at reducing spam. Duh? What kind of an idiot says that to a customer who has a genuine problem? An unskilled, minimum wage worker, no doubt. The SMS spam continues unabated till today, with tagged SMSes (presumably form Airtel) hitting my number with stunning regularity. Thanks to mobile number portability, I am actively shopping around for another provider.

***

I visited Total Mall and spent one horrifying hour trying to checkout. Smart managers would have hired extra hands for holidays; trained cashiers would have known how to unlock and operate tills. A skilled workforce would no doubt plan ahead for extra footfalls on public holidays, in addition to being quick at scanning, billing and bagging items. None of that was in any evidence at the store. Total was probably looking to maximize profits without a care to customer experience. I, for one, am never going back there. A little bit of googling revealed that neither are other disgruntled customers.

Which brings me to my point. When corporations try to maximize profit  at any and all costs, customer experience reduces to such an extent that customers begin to vote with their wallets and leave. This is a gradual process and therefore it is hard for a business who is focused on greed to the exclusion of all else to notice. (Total Mall did not take written feedback from me, despite my offering to give it). Only when it begins to hurt the bottom line, do they wake up. They pay exorbitant fees -- bring in management consultants who come in and state the obvious, while simultaneously laying off an already stretched and unskilled workforce.

By which time it is probably too late anyway.

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