Customer Perception and Satisfaction

It is safe to assume most everyone has seen the movie the wizard of Oz. In this movie the antagonist villain is a witch that has it out for the young protagonist Dorothy who wants only to go home from this magical and scary land 'Oz' after she is swept away by a tornado. Throughout her journey she encounters several distinct characters who have since been the subject of millions of analogies relating something or other to them. In this one, they will be lawyers.

As a matter of public opinion, the RIAA has had it out for the consumer since the advent of Napster, the first widespread peer-to-peer network where people could exchange the files on their hard drives. Originally, peer-to-peer and especially Napster spread like wild-fire, and only after the recording industry rejected the implementation of this new type of media did they decide to sue its creator and president for violating their property rights. They wanted royalties.
Now back to my analogy, the RIAA is of course the Wicked Witch of the West, and Dorothy is the tens of thousands of unsuspecting users blind-sided with lawsuits threatening millions in damages since 2003. Not that pirating information is right in any way, but due to their unscrupulous methods, the RIAA has been demonized and in my opinion lost out on more business than had they taken a proactive approach to the prospect of emerging technology.

After first attacking Napster with little success and moving on to members of the public who illegally uploaded material, the RIAA failed to properly bolster their image first. They used rock bands such as Metallica who were also demonized by the public for their efforts in suing what often appeared to be little old grandmothers whose grandchildren download a couple of dozen songs on their computer and were now about to lose their ability to afford heart medicine. In a nutshell, the RIAA didn't take the time to properly explain or put a good spin on their actions. They alienated their base by razing the infrastructure that had grown popular in a few short months, and precluded millions in business from utilizing rather than attacking the new technology. They destroyed their brand almost overnight.

Had the RIAA embraced peer-to-peer networks right away, and as in the mode of so many other online information companies, offered a lowered rate for membership and some set number of monthly downloads or individual piece payments (as later became the case) they could have avoided millions in litigation, and an almost damning public image. When you alienate your customer base they tend to go elsewhere to fill their needs. That is why restaurants offer to comp or discount a meal after there is a potentially experience shattering issue at one of their tables like paying for garlic bread put on the table when they sit down, rather than sue the table for believing the bread they received at the beginning of their meal was hospitality.

My point boils down to two things: embracing change and customer appreciation and satisfaction. If a company can't change with the times they operate in, they are doomed to fail. You don't see an abundance of people making their clothes at home, and if they do any sewing it is more than likely with a sewing machine, but you do see a lot of major clothing manufacturers who make designs, print them en masse and sell them to the public.

The second point is that if a customer doesn't know something is wrong or doesn't realize what damage their actions have it is hard to hold them liable in the court of public opinion. The Lion, Tin man and Scarecrow guided Dorothy out of the darkness of the forest and helped to get her home safely. Maybe if the Wicked Witch had an issue with boils on her feet and made it known to everyone that the ruby red slippers were the only known shoes to have Dr. Scholl's in the land, and had she offered Dorothy a viable alternative to her newly discovered ruby red feet adornments, she would have given up the shoes and acquiesced into the mode of transportation provided to her. In the end both the Wicked Witch and Dorothy could have been satisfied had they worked out the problem in the beginning stages before Dorothy got comfortable with what she knew, and resented the witch for her attacking her, ultimately leading to her demise.

If the RIAA doesn't figure out a way to revitalize their market and change public opinion, they make suffer the same fate. Maintaining a well-manicured and recognizable brand can keep your company out of some trouble if you have to resort to things people won't like.

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