After the initial feeling of outrage (primarily because of the news articles I found prior to the wsj article where they talked slightly more the business aspect), I can see it from Birchbox as a company’s point of view more than I did. The points system was too generous and unsustainable. But there are obvious ways PR could have made a huge impact here. We relate to humanizing issues, studies have proven almost any excuse, even the illogical, make people accept less than great situations better. It just further illustrates how the company itself has gone downhill due to mismanagement when I think they have a lot of talented and great people on the service end of things. I would hate to be a customer service rep right now, because no amount of money is worth the frustration and verbal abuse of customers mad over something you can’t control.
How BB could have handled this situation better:
1. Instead of the sudden email after June boxes went out taking effect the next month, an email about why the points system was not sustainable and thanking the loyal customers who built up their business to be where it is now etc. ahead of time. Delivering this news a month earlier and humanizing the issue, mentioning having to cut great staff from their company because of needing to bring costs down, mentioning trying to bring us a better experience still, humanizing the issue as much as possible. How many of us would have felt like we were “in the loop” and that they respected us more by saying anything basic about Birchbox at the end of the day being a business that has to return money for investments because frankly, that’s just the way the world works.
2. Doing that a month earlier not only humanizes the issue, but it makes the loyal customers respect the transparency. Psychologically it creates a sense of intimacy with the company, especially where she had made reference to it being like people were “in a relationship” with Birchbox in one of the articles. She understands that sense of loyalty and expectation, and treating us with a dose of reality for the company would have commanded respect and empathy from many customers instead of alienation.
3. The things she said in the news articles should have been thought out carefully, don’t offend your customer base of you want to expand business online or in real stores. We’re the same people who spend more money on beauty items overall.
4. Cut down on the points program to keep maintaining a smaller points program. Make it about getting even two reviews or 20 points a month, for $2 off a purchase, I’ll respect your company more for cutting way back even if I liked the old perks instead of cutting them out completely. If you have to phase it out eventually, then address it again and do so.
5. Reassure us that you’re going to make an effort to make samples or collaborations better again. I loved the Tati Westbrook curated box even…$21 eye cream 1/3 size? Yes please. Give us at least one phenomenal item every month, even if in most boxes we may say meh to 3 of the 5 or something. Focus on really delivering those couple great value samples.
I just feel like there are so many simple lessons to be learned from this about marketing and psychology, and using the loyalty or sense of intimacy like a best girlfriend that the company fostered for awhile. Instead she just jumped out there representing the company and messed up their brand name bad. I understand aspirations to expand and an unsustainable amount of free items going out, I do. But all around this fiasco could have been handled in a much more savvy way.
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