Rust corrodes customer trust

06 June 2016 - 09:33 By Wendy Knowler

The true test of a company's commitment to its customers comes when things go wrong.Sadly, most are so fixated on the financial consequences of fixing the problem in a way that will delight the customer that they totally fail to spot the marketing opportunity.One of the startling findings of the fourth SA Business Ethics survey, released by The Ethics Institute last week, was this: "The percentage of employees who agree that their companies expect them to do what is right for customers has decreased by 30% from 2013 and 34% from 2009."It seems as if companies do not yet understand the effect of unethical behaviour on customer service, and thus on customer loyalty and brand equity," the institute commented.Llewellyn Berndt's experience with Maxidor is a particularly appalling case of an employee failing to do what is right by the customer - and dragging it on for a year and a half.In December 2014 Maxidor installed security gates and burglar guards costing R30000 at Berndt's home in Umzumbe, on the KwaZulu-Natal South Coast.Because he lives close to the sea, Berndt had pointed out to the salesman that rust could be a problem but he was assured that Maxidor's top-of-the-range "coastal" product was designed to cope with such conditions.But, within three weeks of installation, the product began to rust."And bad rust at that," Berndt said.That was January. He asked for a refund but was told the company was working on a solution for the rust and was asked to be patient.When he'd heard nothing more three months later, he again asked for a refund, both direct and through his attorney.The Consumer Protection Act gives consumers the right to choose between a refund, a replacement or a repair if a product becomes defective within six months of purchase.The general manager of Maxidor in the region later told Berndt that, according to the CPA, he had to allow the company an opportunity to rectify the problem.That's not only totally incorrect but an astounding cheek, coming three months after the problem was first reported.The company acknowledged the installation was faulty and said it would remove the product, have it galvanised and repainted then reinstall it.Again Berndt said that wasn't acceptable as, apart from anything else, the security of his home would be compromised during that process.Berndt escalated his complaint to Maxidor's head office, where the customer relations manager reportedly reiterated that he couldn't get a refund, only a new installation .That happened in April last year. But a few months later the rust was back, and the cycle started again. More complaints, another inspection, and by late January this year Berndt was told the installation would be replaced, again, in late February.Berndt countered this by sending the company photos of the rust and pointing out: "The rust is evident all over the gate, and on all the working parts. You will see that one of the arms is rusted right through and is broken in two - that cannot be attributed to installation."Still the company insisted on replacing everything but on the installation date the installer said he'd been given the wrong material and couldn't proceed.Then came another promise of a new installation, with no date commitment.Interestingly, Maxidor's terms and conditions contain this gem: "The expected date of installation is an estimate only.""If I accept this new replacement, we are going to be back here in a few months' time and I am tired of battling with them," Berndt told In Your Corner. "Could you please advise what my rights are here."He had the right to the removal of the installation and a refund.And that's what I put to Maxidor in an e-mail.Responding, chief operations officer Jurie Botha conceded Berndt had not been treated well and apologised.He then blamed "a number of managerial challenges" in the company's Durban operation, and said the employees involved had been dismissed.The company had understood that Berndt had approved the remaking of the custom installation, Botha said. But having reviewed the case, he would arrange a full refund.As for the rust issue, Botha said the company's products were made from steel, which naturally corrodes."And although the company has state-of-the-art pre-treatment and powder-coating facilities, there remain a number of factors that can cause and accelerate the oxidisation."Berndt pointed out that he'd attempted to engage Maxidor's senior management " but it appeared that senior management did not have the time to speak to dissatisfied customers".It's an ethos which inspired my favourite Dilbert comic frame: "Our highest priority is satisfying our customers . except when it is hard . or unprofitable . or we're busy."CONTACT WENDY:E-mail: consumer@knowler.co.zaTwitter: @wendyknowler..

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