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How we got our groove… but the job’s not done

This week, I noted in my internal blog at the company that the Wall Street Journal ran an article on How Microsoft Rebooted Its Reputation, which mentions a survey of global opinion leaders at the World Economic Forum, and our efforts to focus on improving relationship with our customers, partners and employees.



“In June 2002, Mr. Ballmer sent an email to company employees heralding a change in the corporate mission. The email emphasized values, put a new focus on “trustworthy computing,” and talked about Microsoft’s responsibilities to “customers, partners, shareholders, employees and communities in which we live and serve.” Subsequently, company officials started focusing attention on programs serving “stakeholders” such as the arrangement announced yesterday with the U.S. Department of Labor, that provides computer-skills training in a number of cities.”


This is a great recognition, and at the same time a significant responsibility. It’s so easy for us to look at this and say “hey, great, good job.” 


But the hard work continues every day in the effort to improve the connections with our customers and partners at Microsoft. The on-going challenge is to improve their satisfaction with our service and products. It’s just good business sense to take care of our customers and partners.


In addition,  there’s been a great deal of discussion and press on what employees at Microsoft think about the company: it’s also important to ensure that Microsoft employees are satisfied as well. (Note: There is a large body of work —including this study, “Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction,” from the Corporate Leadership Council– that notes there are significant links between employee satisfaction and customer satisfaction, productivity, and financial performance. Happy employees = satisfied customers.)


I read Glenn Ross’ entry today on  “What Must You Do Before You Can Create A Great Customer Service Experience.” He mentions that you have to “treat your employees as if they were your most important customers, as happy employees = happy customers=greater net income.”


Ross also notes that you need to “build in an ongoing feedback mechanism using multiple channels so that your employees, your customers, and even your vendors can provide feedback. Act on that feedback.”


Yes, note to self to spend some time soon (after our next set of meetings that have kept me busy and off the blog this past week) to write about how we listen and respond (“then repeat”) at the company.



Just as much as this blog is a set of things I think and hope will have a positive impact on customers and partners, it’s also a place where I can acknowledge that there are so many people in the company who are super passionate about improving the company. They know that when they make the effort to improve our products, customer services, systems, processes, structure and internal day-to-day stuff, many employees believe it will result in improvements across the board.  


OK, off the soap box.


If you haven’t seen a reference to the mail from Steve Ballmer that the Journal quoted above, I think you can still find a synopsis here. In addition to that mail in 2002, Steve also wrote an email to our customers and partners in which he shared some of the ways we had established better connections with our customers, and a look to how we might implement these listen and respond systems in the future.



We are renewing our commitment to improve our communications with partners and customers. We are dedicated to being a responsible leader in our industry. And we are passionate about bringing the benefits of digital technology to every community in the world. Everything we do supports our mission of becoming a global technology provider that makes great software to help people realize their potential – whether that’s on the PC, the Internet, or a gaming or handheld device.


It’s funny… Steve wrote that almost four years ago, and I so impressed in what the company has achieved over that period.


But as I noted, that doesn’t mean we’re done.


I heard a quote during the Olympics, ‘though I don’t recall who said it: the effort doesn’t end with the end of the race or the closing of the games, it’s the beginning of the next four years of training for the next Olympics. That’s how I look at our efforts at the company to improve the levels of satisfaction with our customers and partners, as well as the internal satisfaction of our employees: four years after Steve’s mail, we still have a lot of work and a lot more ground to cover.


Speaking of satisfied customers, I’m off to read stories to the kids. Work-life balance, you know.


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Digital Music Sales: Over One Billion Served

News from the Apple’s iTunes Music Store: the one billionth iTunes song was purchased and downloaded this week. And I like how Apple recognized the lucky downloader of the tune: Apple will establish a scholarship to Juilliard School of Music in the winner’s name. That in addition to a new 20″ iMac, a gaggle of iPods and a music card packed with enough cash for 10,000 new songs from iTunes.


The International Federation of the Phonographic Industry (aka the “IFPI”) notes in their Digital Music Report for 2006 that sales of music via the internet and mobile phones was wildly successful worldwide last year: in 2005, such sales added US$1.1 billion to record company revenues (up from US$380 million in 2004). This rise comes at a time when various reports note that record companies are seeing a decline in CD sales (down 8% last year), even though overall music purchases (encompassing albums, singles, music video and digital downloads), were up 22.7% over 2004… and passed the major billion unit milestone. 


The IFPI notes in their report that…



  • Globally, there are now more than 335 legal download sites, up from 50 two years ago, with new music services available for the first time in 2005 in Argentina and China.
  • Online song catalogs doubled, with more than two million tracks and 165,000 albums now available on the major services.

Although major analysts estimate that the CAGR  for US online digital music sales will be 50-90%, I wouldn’t be surprised to see these numbers be trashed when you take into account the new ways that consumers will enjoy music: not just through the now-traditional rip-your-own or pay-for-download (the MSN Music or iTunes idea that you purchase an individual song or album), but the way I have exponentially increased my own library through my music subscription service. (I noted earlier this week that I finally joined the Rhapsody To Go crowd.) MTV’s new Urge will reportedly also offer a music subscription option, featuring an online library of more than 2 million tracks. (PR available here.)


From the emarketer report:



“Widespread broadband access and the growing popularity of digital audio players have been important drivers for the online music sector,” said Mr. Macklin. “By the end of 2005 there will be over 41 million broadband households in the US and an almost equal number of digital audio players in the market. iTunes and iPods go hand in hand — two peas in an iPod, one could say — and with the recent phenomenon of podcasting and the growing popularity of satellite radio, on-demand audio entertainment has moved to the next level.”


Music stored on computers rose by more than 20% year over year (as of last march), but free streaming music grew by more than 35%. With the new subscription packages that allow customers to download as much music as their PC hard drives and devices can hold (in addition to the number of subscription-compatible players), people may start to change how they “buy” music, just as I’m sure subscription DVD services (like Netflix and Blockbuster, which we use) increased the number of movie rentals per month. As consumer broadband installations increase, I believe that there will be a greater than proportionate increase in online music sales.  


I would venture to guess that we will see a significant increase when the analysts run the numbers this March, with significant increases: I’ll go out on a limb and estimate that we’ll see a 25% increase YOY (a significant rise over the previous YOY period) of music stored on computers. And that the next billion tunes will chalk up at a faster pace than the first billion… but iTunes may have to play the game of “follow the leader” and offer subscription services of their own in order to get there.


Until then, I wonder if Apple will follow the tradition from the fast food market, launching a road-side sign outside One Infinite Loop announcing “More than one billion served.”


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“For help navigating the IVR system, please press zero”

Paul English’s IVR Cheat Sheet is a great resource for getting to a live person when you’re seemingly stuck in an automated operator call system. “IVR” means interactive voice response, those core of those automated systems that handle inbound and outbound call center telephone traffic, hopefully routing a caller to the right department.


Of course, it’s easy to get stuck.


That’s why I appreciate this gent’s cheat sheet on navigating various corporate IVR systems. On his site, you can check out how to get to a live operator on many popular business phone banks. (You are alos given the option to rate their customer service.) These are some of the top performing numbers  from his site:



Nordstrom (1-888-282-6060) is legendary for their customer service, in their fine stores, on the web, and on the phone.


Lands End (1-800-963-4816) has very friendly reps who usually answer the phone on the first ring! (I also hear that LL Bean and Patagonia are great.)


Southwest Airlines (1-800-435-9792) answers their phones. Do you think their head of customer support is measured just on saving money? Or do you think they realize that serving customers well will result in loyal customers. Did you know that Southwest Airlines has been more profitable than all other US airlines?


What I liked was that he noted that you can dial 0 to get the operator through Microsoft’s main number (listed on his site as 800-936-5700).



For more info on how companies are using Microsoft Speech Server (MSS) to meet their data management and analysis needs, check out the home page. You can also order the MSS 180-Day Evaluation Kit  which includes a evaluation version of MSS and a full working version of the Speech Application SDK.


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My MSN Support experience

OK, it’s almost the weekend and I decided to sign up for a Windows Live beta off of the address I have linked to my IM account.


Nope, not recognized.


So Friday night I sent in a text request via a form off of the MSN support page





 
Support


Thank you for contacting Microsoft Passport Network



E-mail Support


Thank you for submitting your issue to Support.


A support representative will reply to your message.

Your Support Ticket Number:

For reference, please print this page or write down your support ticket number. Use this number when communicating with Support about this issue.

A number would have been nice. ; )


In the end, I received help from Passport Support and solved the problem.


The frustrating point is the Support team for Passport and the Windows Live beta teams aren’t apparently connected very well — their mutual success is connected through the most basic of experiences — yet it took the customer (me) to make the connection. I ended up having to send two separate email trails to two separate Microsoft groups. And last, it appeared that neither group had access to the other’s backstory on the support call.  

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Players into Plowshares

I was talking to friends at the office this week about the effort to equip senators with their own iPods (as nadyne notes in her blog). (I wonder what Maria Cantwell has on her player.)

And why just an iPod? I’d heartily recommend another inexpensive multiformat audio player such as the new Samsung YP-U1X or one of the many great products from Creative (I may one day trade in my PMC for the Zen Vision M).


And while you’re at it, send them details on signing up for Rhapsody To Go, my favorite new subscription service. My only complaint is that most of the music I own (or “possess licenses to”) is ripped at a much higher rate (WMA lossless or VBR) than Rhapsody apparently provides (160kbps). But for travel and the car, it’s great.


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