среда, 19 августа 2015 г.

uAngry Sephora Customers Invent Mass Returns As A Form Of Consumer Protestr


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  • What happens when a retailer encourages customers to buybuybuy in order to rack up rewards points for a special event, and then that event turns out to be a massive disappointment? If you’re the super-loyal, big-spending Sephora customers who tried to take part in the beauty retailer’s recent Epic Rewards promotion, you pack up all of your recent purchases and bring them back to the store.

    The “Epic Rewards” promotion at Sephora, which happened last Monday, was a fun event for makeup addicts. In Sephora’s rewards program, you earn a point for every dollar spent, and you can spend those points on sample or specialty items.

    Customers on the retailer’s mailing lists and social media feeds received messages like this one preceding the event:

    appreciation

    Once-in-a-lifetime rewards are available August 10.
    Shop now to bank even more points**

    At the bottom of the graphic: Epic Rewards online only. Extremely limited quantities.

    Customers were furious that they had spent money to earn points for what turned out to be something more like a raffle, with too few rewards to go around. Customers felt like they had earned those rewards, and they had earned them by shopping at Sephora, especially during a points promotion before the event that doubled, tripled, or quadrupled points for customers at different rewards “tiers.”

    They decided to take advantage of the retailer’s generous return policy: they’ll even accept used items back, within reason. They would bring it all back. Here’s the thread on Sephora’s own forum site where it may have all started. (To the company’s credit, they didn’t take threads like this down or close the forums.) The poster wrote:

    After carefully reviewing the return policy, I plan on gathering up everything I purchased from Sephora in the past 60 days and return it to the store. No matter the condition — new, used, half full, almost empty, EVERYTHING is going back.

    Who’s with me? I think if enough of us do it, we can make a difference. I also think we should post a picture of everything we’re returning along with an estimated retail value.

    Let’s hit ’em where it hurts ladies!

    Here are pictures of receipts and of items that were sent specifically to Consumerist in response to a message we put up on Facebook. There are more out there.

    In all of our combined years of consumer advocacy, we’ve never heard of customers doing a mass return like this as a protest. The combination of Sephora’s solicitations to bank points for the reward event and the store’s return policy resulted in mass returns.

    Even if only a few hundred people did it, that’s not much compared to the company’s revenue per quarter or even per day, but when customers do so loudly, making their opinions known to sales staff and management at the store and to other people standing in line, that’s a perfume cloud of bad publicity that sticks around long after the bottle has been put away. Or some other cosmetics metaphor.

    Yes, customers did interact and discuss the promotion when they ventured to stores to make their return. Reader Luke didn’t send a picture, but says that he accompanied his wife on her trip to Sephora on August 12, two days after the Epic rewards event. He writes:

    There were seven people ahead of us returning stuff. We asked four of them and they all said they were mad about the epic rewards mess.

    The very nice woman taking the returns told us she had been processing returns her entire shift and all of them were due to the epic rewards issue. She’s pretty sure she’d taken at least $4,500 in returns that day. We returned [about] $150, so her guess is probably accurate.

    irina

    Irina returned $759.52 in merchandise.

    marcela

    Marcela returned $433.92 in Canadian dollars, which is US$330.82 as of today.

    allison

    Allison returned $1,069.04.

    lea

    Lea returned $584.22.

    lauralee

    Lauralee returned $135.78.

    You get the idea. The returned purchases that just happen to have been submitted to Consumerist total $3,142.

    Sephora has promised some kind of solution to customers by September 10, and has also been handing out free rewards points as an apology. And they’ve been accepting these returns.

    PREVIOUSLY:
    Sephora Promises Epic Rewards, Customers Get Epic Letdown
    Loyal Sephora Customers Unhappy With Company’s Non-Apology For Unrewarding Rewards Promo
    Sephora Will Get Back To Angry Rewards Customers In Two Weeks (Update: Or A Month)



ribbi
  • by Laura Northrup
  • via Consumerist


uFox Offers Viewers Choice: Watch Traditional Commercials, Or Watch Just One Adr


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  • "Do you mind? I'm watching my shows here." (Vincent Verdult

    “Do you mind? They’re poaching the salmon right now.” (Vincent Verdult

    If you had the choice to watch just one commercial before a program begins, then watch the rest uninterrupted, would you consider it? Fox is beginning an experiment with that idea this week. Viewers of Gordon Ramsay’s kiddie cooking contest, MasterChef Junior, will have the choice to watch one minute-long interactive ad before the show begins, or regular old ad breaks during the program.

    The catch, of course, is that this doesn’t work on your old-fashioned TV. It will only apply to people who stream the show on Fox’s website. The ad chosen to test this idea during is for the California Dairy Board, and lets viewers click on various foods that contain dairy products.

    Cooking shows and ads for food go together nicely, but the new interactive ad idea is about more than that. Media companies and advertisers know that shoving more and more ad in front of customers isn’t a long-term plan to make more money, especially online. “Advertising can’t be a volume game,” Fox’s president of advanced ad products told a reporter for the network’s former corporate sibling, the Wall Street Journal.Selling more ads doesn’t mean more revenue if viewers find a way to ignore them.

    Instead of beaming ten minutes of ads at viewers, this experiment will only show a minute’s worth and ensure that viewers are paying attention by making them click on grilled cheese sandwiches.

    Fox.com Aims to Conquer Ad Avoidance With ‘MasterChef Junior’ Experiment [Wall Street Journal]



ribbi
  • by Laura Northrup
  • via Consumerist


uTarget To Test Program That Gives More Specific Delivery Window For Online Ordersr


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  • Back in February, Target upped its shipping game by reducing the amount of money consumers had to spend to qualify for free shipping from $50 to $25. Now the big box retailer is taking its quest to attract more online shoppers a step farther, by testing a system that better pinpoints just when customers can expect deliveries to appear at their doorstep.

    Starting this fall, Target will test what’s being called “available to promise,” a program aimed at narrowing down the timeframe in which customers should expect packages from the company, Fortune reports.

    Currently, when a customer makes an order via Target.com, they receive notification that the purchase will arrive within a set date range, for example, seven to 11 business days.

    Apparently Target thinks the four-day date range is a bit too much. So under its new program, customers will receive an email notification providing a more specific delivery window – generally a range of one or two days.

    The purpose of the program is to not only make consumers aware of when their packages should be arriving, but to also drive up sales by taking the guess-work out of online ordering.

    “We believe this capability will drive further increases in digital conversion rates, which are already improving rapidly, as guests respond to a faster and firmer delivery commitment,” Target CEO Brian Cornell said.

    Cornell notes that Target has attempted to trim delivery times by using the merchandise from its physical stores to complete online orders. The company currently fulfills online purchases at 140 stores, but plans to increase that to 450 stores to meet fulfillment needs this upcoming holiday season.

    “We want to give them the confidence when they order, they know it’s available to promise and we’re going to have it there for them when they need it,” he said.

    Target’s latest e-commerce weapon? More precise delivery windows [Fortune]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uAre Student Loan Forgiveness Programs Just A Free Pass For Grad Students With More Than $100K In Debt?r


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  • Just two years ago, the Consumer Financial Protection Bureau estimated that nearly 33 million american workers eligible for student loan forgiveness weren’t taking advantage of the programs. Times have certainly changed, as the federal government earlier this year revealed that these program were now so popular they cost nearly $22 billion more than they anticipated. But it doesn’t appear the increase in use for such plans is by those who might benefit the most.

    Instead, as a new report from the Wall Street Journal points out, they’re being utilized by those that often have the most debt and the best chance of actually earning enough money to one day repay their obligations: graduate students.

    The promise of student loan forgiveness has drawn thousands of students to take out additional loans to pursue post-secondary education, a move critics say is a misuse of federal programs meant to keep the most vulnerable student borrowers from defaulting.

    Student loan debt has now topped the $1.9 trillion mark, thanks in part to a surge of students taking out loans in excess of $100,000 to finance their graduate school education.

    As the WSJ points out, postgraduate borrowers account for about 40% of all student debt, but represent just 14% of students in higher education. In all, nearly 1.82 million consumers have graduate student loans exceeding $100,000.

    Unlike many government loan programs – such as those for undergraduates and home buyers – that put a limit on how much a borrower can obtain, programs for graduate students, like GradPLUS, don’t place a limit on the amount that can be borrowed.

    These unlimited loans, coupled with federal forgiveness and income-based repayment programs, have created a “moral hazard” by allowing borrowers to amass debts they have little hope or intention of repaying, critics of income-based repayment programs such Pay As You Earn, tell the WSJ.

    It’s these programs that some post-secondary graduates say propelled them to pursue higher degrees and, in turn, take out more loans, creating a cycle of borrowing.

    That was the case for Bonnie, who owes almost $209,000 after earning her doctorate degree from a for-profit college.

    She tells the WSJ that after borrowing for her bachelor’s degree, she decided to pursue her master’s and then doctorate as a way to postpone making student loan payments.

    “There’s no way to pay it afterward. It’s a continuous cycle. I’ll be the retiree that’s getting Social Security garnished,” she says of her student loan debt.

    Still, she has hopes that federal income-based repayment programs will help.

    The situation is similar for Virginia, a public defender in Florida, who says the promise of forgiveness was the only reason she even considered taking out additional loans to attend law school.

    She now owes $256,000 in student debt, but pays just $330 a month under a federal income-based repayment program that allows borrowers to only put 10% of their discretionary income toward their student loan balances on a monthly basis.

    Virginia’s plan is to have her entire balance forgiven in seven years under a debt-forgiveness program meant to encourage students to become teachers, public defenders and other public-service employees.

    Under that program, borrowers who work full-time for a government agency or a nonprofit employer – and make on time payments of their debt – will have their balances forgiven after 10 years.

    While these programs have likely increased the number of individuals working in positions deemed to benefit society, the influx of graduate students covered by the program means those being benefited might actually be those that need the least amount of help.

    In many cases doctors and lawyers will go one to make six-figure salaries – often enough to manage their debts without assistance from government-run programs.

    According to the WSJ, the Obama administration is reportedly taking steps to ensure that these federal programs are better targeted to borrowers who need help the most.

    Grad-School Loan Binge Fans Debt Worries [The Wall Street Journal]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uCheating Website AshleyMadison.com Reportedly Made Nearly $2M/Year From Users Trying To Delete Accountsr


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  • ashleymadison-580x370One of the reasons that hackers first attacked AshleyMadison.com, the dating site for people looking to cheat, is because it charges upwards of $20 to users for a “Full Delete” service that scrubs their accounts and photos from the site; something it could just do without charging. Just how many people paid for this? Enough for the website to make nearly $2 million a year.

    This is according to BuzzFeed News, which cites a leaked internal document detailing the number of people who paid for the Full Delete.

    The document says that in 2014, nearly 90,000 Ashley Madison users paid for the service, resulting in a total of $1.7 million in revenue for the company.

    Unlike some dating sites, where closing your account means it’s deleted from the company’s servers, Ashley Madison and other sites merely hide your account from its search results. The Full Delete, which some view as an attempt to wring money out of married users who regret signing up, is supposed to completely erase all traces of your account.

    Though, as BuzzFeed notes, it remains unclear whether these users’ credit card information is deleted, meaning they could still be exposed as part of this week’s massive data dump.



ribbi
  • by Chris Morran
  • via Consumerist


uGuy Late For His Flight Accused Of Running Onto Airport Ramp In Attempt To Stop Departing Planer


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  • It might sound like a scene from a romantic comedy: A man is on his way to his high school reunion, but he’s late for his flight, he goes all out in his efforts to keep the plane from leaving without him, he reunites with his former love, all ends well, etc. Except in real life, police weren’t pleased with a man accused of running into a secure area of the Denver Airport to try to halt a departing plane he was supposed to be on.

    A 58-year-old man has been charged with one felony count of endangering public transportation and one misdemeanor count of hindering transportation, a spokeswoman for the Denver District Attorney’s Office, said in a statement to Reuters.

    The incident went down on Aug. 6 but the details were just released today: According to police, the man arrived at his gate in Denver only to find the United Airlines plane headed to Ohio was already pushing back.

    Officials say he then “forcibly” opened a locked emergency exit door on the concourse, which set off an alarm, and allegedly ran onto a secured ramp area.

    The suspect then ran “out of the door into a sterile area of the airport and chased down on foot, a tug and tug driver who was actively engaged in pushing back… (an) aircraft filled with passengers,” the police’s probable cause affidavit said.

    The tug driver stopped, at which point the man allegedly insisted on boarding the plane before he was arrested. It’s unclear if his demand was met, or if he ever made it to the reunion to see what Peggy Sue was up to.

    An airport spokesman said the incident didn’t significantly delay the flight or any other flights at the airport.

    Man charged with trying to halt departing plane at Denver airport [Reuters]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uApple Keeps Demoting iPod, Moves Them To Accessory Racks In Storesr


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  • While the iPod was a revolutionary gadget when it first hit the market in 2001, now the ability to play music files or stream them from the Internet on a portable device is something that we take for granted. Apple is continuing the slow, graceful retirement of the iPod by moving the devices to the “accessory” racks in its stores, freeing up display counter and table space for more current gadgets.

    The change is part of a store redesign that’s happening next week, 9to5Mac reports. One important change, other than the iPod demotion, is that items will no longer have iPads sitting next to them serving as virtual brochures and smart price tags.

    That has long been a normal part of displays in Apple Stores, but the redesign will make the price tag and product information part of the demonstration mode of the item itself. Except, of course, for the Apple Watch: those will keep their iPad buddies.

    Apple to simplify retail stores by demoting iPods to shelves, dropping iPad Smart Signs [9to5Mac]

    RELATED:
    Apple Confirms It’s Not Getting Rid Of The iPod, Finally Updates The Device



ribbi
  • by Laura Northrup
  • via Consumerist