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Risking More Than you Gain in the Lead Generation Game

April 20, 2016 by Lisa Gerber 6 Comments

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There is no shortage of shady practices across the internet but I’m always surprised when well-known, reputable brands engage in questionable, somewhat deceptive practices to improve lead generation and customer retention numbers. These practices aren’t necessarily unethical; certainly not illegal. But basically, they’ve resorted to “tricks” to pull unsuspecting consumers into their web, making it hard for them to disentangle, and in so doing, they risk way more then they gain. Call me naive, but I don’t get it.

What’s more frustrating is that I’m preaching to the choir. Those who should be reading this likely aren’t. It’s why we still get auto DMs on Twitter and reply alls in email chains. Because the people who don’t get it, don’t get it. Nevertheless, I shall persevere on my mission today to rid the internet of these practices that hurt brands and simply let customers down.

Things like:

  • Getting customers to commit to a contract period without being up front about it. (I’m looking at you Adobe Creative Cloud)
  • Making it hard to downgrade your package to a less expensive one – yes that’s you Quickbooks Online.
  • Subscribing by default to six, SIX email newsletters when forced to register for an event through your service. Yep – that’s you Active.com

All three of these are big, well-known brands.

Again, none of them did anything illegal or unethical. I am sure the contract obligation was detailed somewhere in my terms when I subscribed to Adobe. I didn’t read everything. I actually caught the six email checkboxes for the newsletters the instant before I hit send, but I think most people wouldn’t.

The problem is, they are taking advantage of the fact consumers are likely not paying attention and while there are no laws against that, it’s kind of sucky. Don’t you think?

Why make it so hard for consumers to disengage with you? I am sure by forcing me into a 12-month contract for your software, you can show your C suite an increase in revenue and longer subscription terms.

I am certain QBonline, that when you introduced a lower priced product to expand your customer base, you were concerned about cannibalizing your current business so you made it virtually impossible for me to downgrade to a product that better fits my needs.

And Active.com? Someone thought it was a neat idea to check all those boxes in the check out funnel by default. The planning table discussion probably acknowledged that most people won’t even notice and uncheck them. “So let’s just check them by default, rather than the other way around.” And someone got a high five for the idea; maybe even the star parking spot for a month.

While you gain customers, leads and revenue, it’s a short term outlook. You become a brand people, if given the choice, would rather not do business with. And in some cases, they might not have a choice so they stay. Until they don’t have to anymore. Because someone will come along and do it well, and do it better. and you’ll be wondering what the hell just happened. Uber, watch out for Juno. U.S. Bank, watch out for Ally. They might look like copy cats when they come onto the market, but all they have to do is not disappoint their customers. That’s not a high bar in many cases.

[ssba]

Filed Under: Strategy Tagged With: active.com, ally, juno, qbonline, uber

About Lisa Gerber

Lisa Gerber advises purpose-driven leaders on how to effectively use the power of storytelling and communication to influence action and bring ideas to life. She guides non-profits and individuals through the digital maze of constantly changing tools to build discovery, loyalty, and ultimately help them achieve their own big leaps. If you like what you read, contact us for more or to subscribe.

Comments

  1. Bob Phillips says

    April 20, 2016 at 9:16 am

    I’d probably disagree with the classification of NOT(Unethical).

    bob

    Reply
    • Lisa Gerber says

      April 22, 2016 at 10:21 am

      Ha. Good point. That is definitely subjective.

      Reply
      • Bob Phillips says

        April 22, 2016 at 11:14 am

        I just sent a give subscription to Grassroots Motorsports to a colleague.
        When the receipt came, it turned out that I’d purchased a year’s extension to my subscription –in addition to the purchase that I’d intended to make.

        b

        Reply
  2. Aaron says

    November 25, 2016 at 1:50 pm

    This is awesome! Great writing. I appreciate you writing this. I call this “effect” the “gym “membership” effect. Every time I have joined a gym, and then moved, “I have always cancelled the other membership months after the move, because one, It is just something that I do not pay attention, to, and two, It is so DIFFICULT, to disentangle with them. You have to go round and round with 20-30 machines, and then finally get someone who moves at a snail’s pace. Luckily with things on the virtual realm you can usually unsubscribe quickly. Great read! I am glad I bumped into it.

    Reply
    • Lisa Gerber says

      November 29, 2016 at 9:14 am

      Great analogy and thanks, Aaron!

      Reply
  3. Fitoru says

    December 4, 2019 at 9:38 pm

    This is a very informative and helpful article, nice content. Learn a lot of stuff today and love reading your opinions about this generations leading companies and their gimmicks.

    Reply

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