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Apologies – The Bad and the Ugly

Written on May 13, 2009 by George Krueger & Mary-Lynn Foster in Relationships

Yesterday we talked about how Ramon De Leon, the owner of six Chicago Domino’s franchises, responded to a complaint by Amy Ravit Korin on Twitter and created a video apology promising to “wow” her. You owe it to yourself to see how he did it.

When it comes to apologies, this is the good. Today we want to talk about the bad and the ugly and discuss three steps in the art of the apology.

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Hear George & Mary-Lynn compare recent video apologies on The Bigg Success Show! Click the purple player to listen while you read: Play Now | Play in Popup | Download

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The bad

Domino’s, the chain, recently found itself making the news when two employees of one store posted a video on YouTube showing them mishandling food, to say the least. Domino’s President, Patrick Doyle, was featured in a video apologizing for the mishap and reassuring customers that this was an isolated incident.

There was backlash to this video because it didn’t seem sincere. We think that the apology itself seemed sincere. However, he wasn’t looking at the camera so it’s obvious he was reading from a script. He should have at least looked squarely at the camera when he said, “We’re sorry.”

The difference between this video and Ramon’s video is striking. Ramon is looking right at the camera and it’s obvious that he’s not reading from a script. There’s no question about his sincerity in the way he delivers his apology.

The ugly

You’ve probably heard about the free grilled chicken promotion by KFC. Unfortunately, KFC was not prepared for the overwhelming response to this promotion. Countless customers were turned away when they arrived at their local KFC to redeem their coupon. KFC’s President, Roger Eaton, issued a video apology.

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george I’m a positive-thinking person who loves positive-thinking people. But he was too positive in light the situation.

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marylynn I agree completely. He seemed happy. If I’m dissatisfied as your customer, I want to see that you’re unhappy about it. Show me that you’re empathetic to my terrible experience.

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george
Show you know I’m as mad as a chicken on a hot tin roof?

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marylynn
No … as mad as a chicken in a frying pan!

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The KFC apology focused too much on the success of the promotion and not enough on the debacle that followed. However, we’ll cut them some slack because they’re dealing with a more massive problem than the other two.

The art of the apology

Bigg success is life on your own terms. The five elements of bigg success are money, time, growth, work and play. Sometimes we experience the most growth when we’ve made a mistake.

No matter what medium you use to apologize – video, phone, e-mail, in person or some other way – there’s an art to it.

First, simply apologize.
Get it out of the way right upfront. Ramon, the Domino’s franchisee, gets right to it as does Patrick Doyle, the Domino’s President.

The KFC President, Roger Eaton, completely missed the mark. Instead of apologizing right away, he starts off talking about how successful the promotion was.

Second, talk about what you’re going to do about it.
Once again, Ramon nails this one. He told Amy that he was going to wow her. And wow her he did along with the rest of us. Patrick Doyle got this right too.

Roger Eaton eventually gets to the point – they’re going to honor the coupon and give you a free Pepsi product if you do a whole bunch more work. Instead of talking about how they will remedy the situation, the people who were affected have to follow-up to get what was promised to them in the first place.

Third, look to the future.
There’s nothing wrong with ending an apology on an upbeat note. Look to the future of the relationship. Ramon hit this one out of the park as well. We think the park was Wrigley Field!

Patrick Doyle closes strong. He thanks people for their support and says Domino’s will work to rebuild our trust. However, right before that, he says that “it sickens him that the actions of two individuals” could impact their brand. You could feel his emotion. This is where he should have started.

This is a mistake that’s easy to make – beginning and ending with an apology. Follow the process mapped out here to avoid doing that.

The President of KFC completely struck out. He apologizes right at the end of the video – the best apology in the whole video we might add. Fortunately, he didn’t close on that note; it appeared as if he would. He does end on an encouraging note.

Use this three-step process and deliver your message with sincerity the next time you have to apologize. We all make mistakes. When handled properly, even they can lead to bigg success!

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Please join us next time when we talk about out of this world communication.

Thanks so much for hanging out with us for a bit today. Until next time, here’s to your bigg success!

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2 Comments

3 Tips for Buying Health Insurance

Written on May 4, 2009 by George Krueger & Mary-Lynn Foster in Money

Today we want to talk about insurance … just for the health of it!

Health insurance is a significant expense. If you’re fortunate enough to be part of a group, your company is probably paying a good portion of the cost. However, companies are increasingly asking their employees to bear a bigger share of the total cost.

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Hear George & Mary-Lynn discuss today's topic on The Bigg Success Show! To listen while you read, click the purple player: Play Now | Play in Popup | Download

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Of course, if you’re self-employed, you have to pay it all. This really hits your budget in either case and, as we look to the future, it appears it will occupy an ever larger share.

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george I used to sell insurance years ago so I’m familiar with that side of it. I also approved our group plans when I was in business before Bigg Success.

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marylynn When we started Bigg Success, it was an eye opener for me. I went from being an employee with group insurance to being self-employed buying individual coverage. I saw the full cost, not just my share of it. I was amazed at the array of choices. And I couldn’t get some of the coverage I really liked under my group plan.

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Obviously, your age and your health are two major factors in the cost. The other key factors are:

Your deductible. This is the first money that will be paid out. You pay it up to the deductible you choose.

Your co-pay percentage. Once the deductible is satisfied, you begin sharing the cost with your insurance provider. You may split it down the middle or some other arrangement.

Your stop loss. You don’t have to share costs forever. At a certain point, your insurance company will pay 100% of the covered costs.

Your maximum coverage. It will look like a large number (e.g. $2 million) but it can be used up fairly quickly if there’s a serious health problem.

Your maximum out-of-pocket. This compiles the first three factors. Your maximum out-of-pocket equals your deductible plus your maximum co-pay amount. It only considers covered costs so just be aware that your actual out-of-pocket could be higher.

So now we want to talk about three mistakes that people often make when buying health insurance.

Pushing too much risk onto the insurance company. Being too conservative is very costly. For example, the higher your deductible, the less you’ll pay.

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marylynn But George, I know when I’ve been light on money, it’s scary to think about a large hospital bill. Even a doctor’s bill of $300 – $500 can be a burden when you’re really strapped for cash.

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george I understand that, Mary-Lynn. But I’ll give you an example of what I’m talking about. A couple we know has over $50,000 in the bank, yet they insist on having a deductible of $500. They could save a lot of money by being a little less risk averse.

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Not shopping around. As we’ve said, this is a major expense. Like most major expenses, it’s worth your time to try to save some money. So get two, or even better three, quotes.

Make sure you’re comparing apples-to-apples. The plans from two different insurance companies probably won’t be exactly alike.

Settling in. Shop carriers at least every other year. You may be surprised at how much you can save by switching plans.

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george This is something I learned the hard way. I liked my insurance company, but when I finally shopped coverage, I was astounded at how much I could save.

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marylynn This really boils down to personal preferences. It’s nice to only pay a small amount of money when you go to the doctor. But make sure you’re weighing that convenience against the actual cost.

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The key question to ask yourself is, “How much risk can I afford?

The general rule, in a financial sense, is to assume risks that are small, frequent, and inexpensive. You cover large, infrequent and expensive costs.

But also consider the emotional costs. If it’s going to keep you up at night knowing that you’re bearing a larger share of the burden, then push more risk off on the insurance company.

Think about the impact on your finances and your personal preferences to help you make this bigg decision.

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