Summary
Phil Wahba wrote the article “Chipotle Is Giving Away More Free Burritos” on March 16 2016, and it was posted on the Fortune website (Wahba par. 2). In their article, the author suggests that Chipotle, a Burrito chain, has resorted to giving customers free burritos as one of its promotional strategies. According to the CFO, the strategy worked at it managed to attract many customers into the restaurants different chains. Nevertheless, people are still cautious of Chipotle’s offerings, especially after an E.Coli outbreak that affected some of its stores. For example, out of the customers that downloaded Chipotle’s coupons, only 50% redeemed them (Wahba par. 7).
The company’s sales dropped significantly, as people were focusing on consuming the free burritos and not making actual purchases. As a result, the store has to maintain its promotional strategies because many customers still have negative perspectives regarding its products (Wahba par. 5). Even though the CFO suggests that the company has built a long and fruitful relationship with its customers, the E.Coli outbreak has shattered that trust. Therefore, the company must use the profit-sapping promotions to attract customers back to its establishments (Wahba par. 9).
Reaction
Through the article, the author outlines the effects of bad customer experience. Contemporary customers are transforming the field of customer service. They are using varied channels to communicate, can switch businesses after the inadequate experience, and some can end up taking revenge online.
In this case, Chipotle gained a poor reputation because of the E.Coli outbreak that affected its stores, and it lost some of its most loyal and forgiving customers. Most consumers do business with a form because of its convenience or because it offers a particular product that is hard to find elsewhere. However, after a poor experience, even the stalwart customers can find other options.
Works Cited
Wahba Phil. Chipotle Is Giving Away More Free Burritos. March 16, 2016. Web. March 17, 2016. <http://fortune.com/2016/03/16/chipotle-burritos-giveaway/>
