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Why Cell C got it all wrong

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Cape Town – Cell C got it all wrong when it took a disgruntled customer to court over a billboard that slated the cellular provider, according to a brand reputation expert, who warned brands that we now live in the “reputational economy”.

Solly Moeng, MD at Don Valley, told Fin24 that Cell C should never have taken George Prokas to court for defamation and for him to take down the billboard.

Instead, said Moeng, they should have engaged meaningfully with the customer before the issue got into the public domain.

Brand reputation crucial

“The fact is, a lot of people will not sympathise with Cell C,” he said. “He is not the only person with this kind of frustration.”

He said it sets a good precedent. Big brands need to know how to respond to customers and when to respond, said Moeng. “[Cell C] took him for granted, thinking he would one day give up … and he didn’t.”

“What brands should be worried about is not whether or not people are going to tarnish their reputations, it’s whether their own inaction, visa vie customer unhappiness, will tarnish their reputation.”

Watch the full interview:


Power of the consumer

“Brands tend to listen to lawyers [and not brand reputation advisers],”said Moeng. “You could win a legal battle in court, but you could lose face in terms of faith [and] trust.”

Social media has increased the power of the consumer. “Social media has placed into the hands of customers the opportunity to say what they want to say,” he said.

“They are informed, they know what is happening elsewhere in the world, and the information passes very quickly,” he said. “By the time your customer has put negative stuff on [social networks] … half of the world already knows about it and you find yourself on the back foot.”

Watch the full interview:


What can brands do?

Moeng said that companies are increasingly investing in brand reputational strategies, citing Woolworths and their David and Goliath case against Frankies. It was a fight in which Woolworths lost, both in court and public opinion, and was a turning point for them.

“They have put a lot of money into managing and protecting their reputation,” he said. “Brand should follow in that route.”

What do you think about customers standing up against big brands? Tell us your story.

- Fin24.

- Follow Matthew on Twitter

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