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Survey says… Many Online Retailers ignore as much as One-Third of Customer Emails

An interesting article on BusinessWire (Sept 25, 2007), Survey Reveals Top 100 U.S. Online Retailers’ Customer Service Shortfalls, highlights how top retailers don’t live up to customer’s demands when it comes to providing “an exceptional customer experience.”

Seems that most dropped the ball and found that success could be as simple as answering their email, providing better self-help tools and returning customer calls…

“Overall, the Talisma audit revealed that online retailers are failing in three key areas:

1. One-third of email queries were ignored – Email is generally accepted as one of the most efficient communication tools. This seems to have been overlooked by many online retailers as 34% didn’t reply to customer emails.

2. Lack of Self-Help Tools – 97% of online retailers had no knowledge base to help prospective buyers make an informed decision based on product features and suitability, known issues, or customer service accessibility and policies.

3. Accuracy of information provided – only 51% of emails and 72% of phone calls answered provided accurate information.”

Gives me greater incentive to ensure that I am getting to my email backlog in a more timely manner (with apologies)

A copy of the report (along with a list of the online retailers surveyed) is available at http://www.talisma.com/tal_emails/us/retail/ret_us_form.asp.

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News: Acer to buy Gateway

Jason Dean reports in today’s today’s WSJournal that Acer is buying Gateway…

“Taiwan’s Acer Inc. said it had reached an agreement to acquire Gateway Inc. in a deal that values the U.S. company at about $710 million and pushes Acer past Lenovo Group Ltd. as the world’s No. 3 vendor of personal computers.

“The deal appeared to mark a double blow to Lenovo, which has been the world’s No. 3 PC vendor since buying the PC business of International Business Machines Corp. in 2005. Lenovo disclosed earlier this month that it is in talks to buy a stake in Packard Bell BV, a Netherlands-based PC maker. That deal was aimed at giving the Chinese company a leg up in the European consumer market, where Acer is especially strong.”

As noted in this blog posting on ZDnet by Larry Dignan, Acer has been doing well in securing a better retail presence, which has put Dell “at a disadvantage because the fastest-growing segments of the PC industry are consumer and emerging markets, which was demonstrated by Dell’s share losses to HP and Acer in the past year.”

A benefit to the merged companies: improve their combined customer service image. Good to note that Gateway has seen their customer satisfaction scores in the American Customer Satisfaction Index increase over the past three years, hitting 75, up more than two percent. 

Acer seems to be everywhere with a number of models in retail, and I’ve seen a number of Acer Ferrari notebooks around town–models that users say they like.  Acer should do well if they are able to continue to bring out more highly-rated computers like the Acer Aspire L310 and Travelmate 8204WLMi (one of PCMag’s Favorite Laptops). 

But I haven’t seen a similar rise in quality wen it comes to their monitors, especially when I looked at home desktops recently. Although the Aspire 310 received good marks, the Acer X221W LCD monitor paired with it at retail didn’t match up. Said John R. Delaney of PC Magazine in a recent review, “an attractive appearance and low price don’t compensate for the Acer X221W’s dismal image quality.”

Tags: Acer, Gatewaymergers, PC hardware, customer satisfaction.

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Seattle Times’ article on the post-Gates era, plus ThinkWeek and the need for “more cowbell”

Benjamin J. Romano has an insightful article in today’s Seattle Times on the preparations “for the post-Gates era” at Microsoft by the leadership.  

“Building a bank of collective wisdom is one part of the preparations going on at the highest levels as Microsoft prepares for a momentous shift to the post-Gates era.

“For the past year, and really the better part of the past decade, Gates has been downloading the institutional knowledge of Microsoft and the software industry stored in his head to the leaders who will handle his responsibilities at the company he co-founded 32 years ago.”

On Think Week:  The article also touches on Gates’ much-heralded Think Week. If you haven’t heard of Bill’s week-long retreat to go through many of the dozens (or usually hundreds) of papers submitted, Think Weeks are semi-annual opportunities for employees to submit the best ideas that are bubbling up in Microsoft. As Gates’ said, Think Week is an opportunity to “read the latest Ph.D. theses, try out new technologies, and try and write down my thoughts about where the market is going.”

Bill reads and comments on the papers supported all the while by what the Journal termed as “a steady stream of Diet Orange Crush.”  I recommend the coverage a couple of years ago by Robert Guth here in The WSJournal and Dare’s good write-up in an old blog posting

Past Think Weeks used to be one of those things that people talked about in hushed tones and references, almost like some sort of secret ritual, but no longer.  That’s good, as there’s a tremendous benefit to expose the ideas to a larger set of employees.  It’s not so much “done by committee” as Romano wrote in his article: Ray Ozzie, quoted in the article today…

” ‘Think week’ has been transitioning from a single ‘Bill thing’ to something where a broader audience gets the chance to comment on submitted papers. The tradition of think week is incredibly strong,” Ozzie, who replaced Gates as chief software architect, said in an interview earlier this year with the Wharton School’s online business journal.”

That’s also good, as The Journal reported in 2005 that there were nearly 300 papers for his week’s review: having more eyes looking at the papers benefits us all.  People should be encouraged to take the initiative and be exposed to the insight and ideas of the incredible talent at the company. They can also see an evolution of different areas, technologies and thoughts over the years. 

On technical leadership: Switching gears for a moment… and thinking about a “post-Gates era”…  Brad Silverberg, ex-Microsoft exec and strategic consultant to Ballmer, was quoted in the article that Microsoft is “a notoriously difficult place for outsiders to come in and be successful.”

That’s true. It’s also a place where Ozzie has been able to capture the attention and respect of employees in the company. 

And we need more Ray.  (Said with the same emphasis as in the historic SNL quip of “more cowbell!”) 

IMHO, it’s important that he also espouse on what he believes we should focus on, improve upon. As mini-microsoft blogged in this post on “random unconnected things” back in February… 

“Where’s Ray? I’m sure Ray Ozzie has been busy being the wizard behind the connected services scene of the future, but he’s just plain running too silent for my comfort. And I’m sure with Mix07 he’s going to go through presenting some new technology we’re thinking about… perhaps even add single 2007 entry to his unloved blog. But if Ray is the bridge to the connected future from the present Gates, we all need more obvious leadership infrastructure getting us there, and more engagement from Ray and his brigade about what’s happening and what kind of coherent vision is coming about. Silence makes me edgy.”

I agree. As I posted previously, Ray’s external blogs may not be updated regularly, but it appears that Ozzie gets it, and is working on being more visible.  He is in the press more and more, thankfully, and increasingly visible, more communicative and thoughtful on the big issues that impact the company.  He’s positive on the focus needed on the customer experience: “the most important person is the customer or integrator that understands how to match the capabilities of a specific technology to what’s needed.”

Again, IMHO, this is an area for improvement, an area that Gates has mastered. It was noted in the Times article (by Matt Rosoff, an analyst with Directions on Microsoft) that Bill has the “automatic respect of every Microsoft employee.”

IMO you have great, articulate and technically astute leaders in people like Bob Muglia, Jeff Raikes, Jon DeVaan, J Allard, Satya Nadella, Soma, Steven Sinofsky… the list goes on.  These leaders also understand the importance of providing a great customer experience with our products and services. 

Ray is from the same mould. And I believe that Ray can also help — along with the rest of the company leadership — fill the need for insightful, public technical voices at a global level as Gates departs.

More cowbell.

Worth reading also are the sidebar articles on Craig Mundie and Ray Ozzie…

  • Craig Mundie: Company envoy will keep that role
  • Ray Ozzie: Collaborative leader has “coaching style”
  • Tags: Bill Gates, Ray Ozzie, customer satisfaction, Microsoft.

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    ACSI report: Apple’s customer satisfaction falls nearly 5 percent; Microsoft fell, too

    The latest customer satisfaction numbers are out from the ACSI customer satisfaction study.


    Ouch.



    “Personal Computers: Apple Stumbles; Dell’s Problems Continue


    “Dell’s result is not surprising. A year ago, even though the company’s ACSI score was up, customer service remained an issue and we noted that the company would need to take significant steps to reverse this trend.  However, it appears that any fixes the company may have attempted were short lived. Dell now resides among the lower echelon of measured PC makers, a solid 5 points behind Apple, and only 1 point above the Compaq division of Hewlett-Packard.    


    MacNN.com reports that the American Consumer Satisfaction Index saw Apple’s customer satisfaction fall nearly 5 percent



    “Apple remains the industry leader of customer satisfaction despite falling 5 percent in the eyes of consumers since the second quarter of 2006 according to the American Consumer Satisfaction Index. The Cupertino-based company along with Dell helped to drag down the entire PC industry 3 percent in total. Apple’s score now stands at 79. Dell, meanwhile, continues to experience customer service problems that have pushed the company back near the bottom of the PC rankings with a score of 74. HP improved 1% to 76, though its Compaq division is the worst in the industry at 73.


    “Professor Claes Fornell, head of the ACSI at the University of Michigan, believes Apple’s decline may be related to the company’s outstanding performance. “Apple has experienced unprecedented growth in recent years,” Fornell said. “As Toyota can attest, it’s not easy to manage quality and customer satisfaction when a company quickly has to increase production or provide service to a larger number of customers.” Dell, conversely, ultimately worked its way back near the bottom of PC rankings, according to The American Customer Satisfaction Index (ACSI).”


    The ACSI report contines…



    “With more than $21 billion in revenue, Apple has grown by nearly 400% in sales during the past 5 years.  Recent demand for Mac computers is up by about 25%, which is more than twice the rate of growth for the overall PC market.  Many analysts seem to believe that Apple is gaining market share in part because of iPod users switching to Mac computers.  It is very difficult to ensure that both customer service and satisfaction stay high when a company suddenly needs to service many more customers.  This is probably what is behind the decline in customer satisfaction for Apple.  According to the Economist (6/9/07), there are also “grumblings about manufacturing defects and customer service.”


    The ACSI found that Microsoft slipped to 70 percent from 73 percent a year ago, and Yahoo Trumps Google



    “With a new survey indicating that Yahoo has trumped Google in consumer satisfaction, analysts are attempting to interpret the survey results, with some suggesting that it’s not clear what factors contributed to Yahoo rising in consumer satisfaction and Google declining. “It’s not necessarily Yahoo search versus Google search,” said Greg Sterling.”


    (See also these past posts re: the ACSI.)


    Tags: , , Apple, .

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    HBR on Companies and the Customers Who Hate Them

    A quick note and a thanks to the folks for the fwd of this article from Harvard Business Online on “Companies and the Customers Who Hate Them,” an excerpt from the Harvard Business Review article by Gail McGovern and Youngme Moon…



    “The Idea: A company’s most profitable customers may be those who make the worst purchasing decisions. Consider retail banking. Depending on the minimum balance consumers agree to keep in their accounts, banks set particular interest rates and fees. If a customer’s balance falls below the minimum, he pays penalties. If it climbs well above the minimum, he’s stuck with a low interest rate. Either way, the bank wins; the customer loses.




    “Sometimes all it takes to trigger a mass defection from a company-centric firm is the appearance of a customer-friendly competitor—one that puts customer satisfaction and transparency first.




    “Example: Virgin Mobile USA offers a pay-as-you-go pricing plan with no hidden fees, no time-of-day restrictions, no contracts, and straightforward, reasonable rates. It has nearly five million subscribers and a customer churn rate well below the industry average. Customer satisfaction hovers in the 90th percentile. And more than two-thirds of customers reported recommending Virgin to friends and family.”


    If you are in a position to work with and listen to customers, what are you doing to provide greater value to your customers?


    The full article is available here.