Wonga is known for its innovation in online business and remarkable customer service. It is among the pioneer companies to supply the ever growing demand for convenient and easy-to- apply payday short-term credit. The fact that their transactions are online opened up a market that is reputable and technologically savvy. Their customer service is marked by they are upfront and transparent with their credit procedures, that online customers always prefer (Crowther, & Aras 2008). This is also what often leads to rapid word-of-mouth advertising and multiple links and visits to their site. From their launch in 2007, Wonga has managed to sell an innovative product and combined it with impressive customer service. It has also been a staunch advocate for responsible lending and is the first to advice their clients about credit responsibility and money management (Gupta 2011). Wonga has high approval ratings from their customers in terms of the site’s convenience and knowledge. Ninety percent of its customers also recommend the site to their peers. Bad reputation, criticisms and backlash, however, have not eluded the company. The actual cost of a payday loan from Wonga is high and the fees and interest rates that accrue following non-payment have also left many of their customers needier that when they were before the loans were approved(Crunchbase 2014). Its practices on debt collection have also earned the flak and concern of the Office of Fair trading. At one point, Wonga accused its customers of fraud in the process of streamlining its procedures. This marred the company’s goodwill toward its already disgruntled customers. As the business continues to grow in innovation and services, it has been having difficulties in keeping it is customer-base satisfied. Most of these people only want short-term Payday credit but frown on the conditions. Although its advertising campaigns have always been effective in spreading brand awareness, its public relations and crisis management strategies have dismally contributed to their dwindling customers. Lush is another company that has an established corporate social responsibility. It has the mission of producing fresh and organic cosmetics and fragrances (Nealy 2014). Its advertising campaigns have supported these through the years. It is driven in business and its organizational structure has a close-knit family atmosphere. Lush’s socially responsible projects stand out. Among these relatively unpopular projects are saving the orangutans’, reduction of packaging, fight against Guantanamo’s detention and torture before trial and the fight against harassment of migrants. To help facilitate these advocacies, two percent of their profits go directly to its beloved causes and charities. However because of thriving competition in the cosmetics industry, and in part because of its brand values, Lush is unable to expand in terms of product lines. In the midst of cutthroat competition, Lush’s resistance to change and expansion, despite their good causes, is what’s keeping them from achieving business goals (Eady 2013). The success of these two companies is indeed largely dependent on the economy but not on the same side of the wheel (Harriet 2014). The economy’s upturn diminishes the need of Wonga’s services and high interest loans and increase the market for the Lush products. Conversely, a bad economy will increase the need for Wonga services and diminish the demand for Lush products. However, the economy is only one of the factors that contribute to these companies’ success (The Guardian 2013). With clear goals and strong values, the challenges of the times provide opportunities for these brands to be bold and innovative. What will push them forward is their commitment to their customers and stakeholders. In the end, they will measure their achievements on the ability to drive change in the society wherein they belong.
Bibliography
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Eady 2013, Wonga offers 400 Pounds loan to 13-year-old. Mirror Online, 23 Nov.
http://www.mirror.co.uk/news/uk-news/payday-loans-wonga-offers-400-2840581
Gentlemen 2012, Wonga: The Real cost of Payday Loan. The Guardian, 1March, 2012. Available online at
http://www.theguardian.com/business/2012/mar/01/wonga-real-cost-payday-loan
Gupta, R 2011, Lush: Cosmetic or Real. Open Democracy, 23 March. Available online at
http://www.opendemocracy.net/5050/rahila-gupta/lush-%E2%80%93-cosmetic-or-real
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http://www.theguardian.com/money/2014/feb/27/payday-loan-customers-seeking- advice- stepchange-double-number
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