KFC Issues Apology for Oprah Grilled Chicken Giveaway Coupon Redemption Problems

I don't know what KFC was thinking. Teaming up with mega star, Oprah, for a free meal giveaway, KFC offered America the chance to download and print up to four coupons for a free meal, including two pieces of their new Kentucky Grilled Chicken, two sides and a biscuit. The site was hammered with requests, and not everyone was able to gain entry to claim their free coupon. There were grumbles, but nothing like what happened when the lucky ones who did print their coupons attempted to redeem them at KFCs around the country.

As reported by Fox News, when customers made a run on a New York City KFC to cash in their free dinner coupon, they were turned away. The run on the stores created a supply shortage. To make matters worse, the coupons are short-dated, expiring on May 19. The short time period for redemption only added to the frenzy.

Free coupons printed earlier this week no longer valid; must visit store for a rain check

KFC was so embarrassed by the handling of the Oprah giveaway that they issued a public statement to quell customer angst over the inability to redeem coupons for the promised free meal. According to KFC's press release, customers still possessing coupons can visit their local KFC restaurant to obtain a rain check form. A replacement coupon will be mailed, which will include the promised free meal consisting of two pieces of their Kentucky Grilled Chicken, two sides, 1 biscuit and, as an added bonus, 1 free Pepsi drink. Customers wishing to claim their rain check will need to do so before the May 19 deadline. The new coupon reportedly will have a short two week window for use as well.

3 Lessons KFC has hopefully learned from the Oprah/KFC coupon giveaway

Much like Dr. Pepper fans were hot under the collar over the handling of the Guns n' Roses Chinese Democracy debacle, KFC customers were equally as peeved at the mishandling of the free coupon giveaway. KFC should have been well aware of reach and influence of Oprah Winfrey, let alone the virulent spread of freebies on the Internet via social media and bloggers. As a blogger, I did share a link with my readers and assume that many other thousands of bloggers did the same.

Lesson 1: Cheap is not always better

Cheaping out and allowing the free coupon to be printed was their first mistake. KFC chose economy over crowd control in this instance. The ability to verify that each printed coupon was legitimate slowed down the long lines. KFC was justifiably concerned with coupon fraud. In this instance, they should have issued paper coupons via mail. As it happens, repairing customer relations will cost them dearly since they will now need to absorb the high cost of mailing replacement coupons to disenfranchised customers.

Lesson 2: Stagger the redemption dates

To avoid a run on KFC restaurants by freebie seekers, KFC should have staggered the redemption dates for the free coupons. The short time period for redemption feeds human nature, that we must get our fair share or be left out. This is the reason why so many stormed KFCs around the country, coupon in hand. Had the coupons had a staggered redemption date, then the traffic would have been spread out, making it less likely that supplies would be depleted before customer demand was met. One can only hope that the replacement coupons issued will have the redemption dates spread out to avoid another run on restaurants.

Lesson 3: Too many promotions for same product

Anyone who read the Parade two weeks ago likely found a coupon for free Kentucky Grilled Chicken, good until May 17. In addition, on April 27, KFC offered a free piece of their Kentucky Grilled Chicken, no coupon needed. The Oprah/KFC promotional giveaway came right on the heels of a one day promo and in the midst of a the redemption period for an outstanding free coupon. Is it any wonder that supplies ran low? KFC would do well to spread out their product promotion and ensure that they have adequately planned for customer demand.

Sources:

http://www.foxnews.com/story/0,2933,519256,00.html
http://www.kfc.com/about/newsroom/050709.asp