Is Google Abandoning its Customers?
Google entered the mobile telephone market with a bang in January by introducing the Nexus One and then just as spectacularly imploded on a rash of customer service complaints.
Since Google launched the Nexus One, its stock has underperformed [the declining] DOW and Nasdaq benchmarks by 10 percent. Consumers and shareholders are trying to make their voice heard. Is Google listening?
They were hip, rocking along on a wave of innovative features. Google might just be the David to Microsoft’s Goliath… or so we’d hoped. But in dramatic fashion, Google proved that launching products without providing customer service capabilities makes for a short, choppy ride with a sudden stop. Mind the gap, Google!
Google should take two immediate steps to right the ship:
- Provide a Service — Google has failed to recognize that mobile phone service includes an operating system, compatible handset, and comprehensive customer support. Referring Nexus One customers to HTC for handset complaints is like Toyota asking its customers to contact the manufacturer of the flawed brake assembly.
- Respond to Customers — Google must actively respond to its customers. Google’s misnamed help page provides very little help and states “in most cases you won’t receive a personal response”. If the customer service itself weren’t so underwhelming I’d applaud Google’s honesty in setting expectations. As it is, the non-response smacks of a slap in the face for consumers.
Google can navigate its way out of this customer service maelstrom, but it’ll have to do better than half-hearted measures and low-value initiatives. The pivot point is to be prepared for problems with new product launches. Abandoning customers, as Google appears to have done, merely adds insult to injury.
Originally posted on BNET.
Add comment 10 March 2010
Setting Your Company Apart in a Commodity Market
In a recent Business Week article about JPMorgan and Bank of America we learn that bank consolidation has led to unhappy customers. Not surprising really and tough to think of this as “news”. Clearly, pushing two behemoths together causes change. Banks know they can benefit when they leverage economies of scale and so M&A activity is an attractive option. What they seem to have missed is that these benefits should extend advantages to their customers too!
I don’t understand why bank-owners (which now largely deliver a commoditized service) think they can cut corners on customer service. I’ve written before about three controllable dimensions of service: cost, quality, and speed. In a commodity market cost and speed are equal which is why companies like Bankrate even exist. Customers see little difference between one bank and another. And because costs to switch are low consumers can choose with whom to do business. Bankrate provides the perfect answer.
In a commodity market, only service differentiates. (In this example of bad PR, the Bank of America and JPMorgan are definitely not creating positive differences.) Excellent service creates strategic advantages which:
- Protects your existing customer base,
- Generates positive word of mouth, and
- Attracts new customers.
- (Repeat as needed to develop your business.)
About the only thing that does make sense in this article is the bank’s reticence to comment publicly about the poor customer service they are delivering. What can they say? “We are improving shareholder value by short-changing our customers.”
The pivot point is that spending money on customer service should be considered an investment, not a cost. Wells Fargo’s customer satisfaction has benefited after acquiring Wachovia, a company with high customer satisfaction. Part of Wachovia’s value to their customers and to their shareholders comes precisely from their investment in a customer-focused culture.
1 comment 23 February 2010
Toyota Recall: Better to Lose Profits and Save Face
Toyota’s safety recall, (followed by Honda, then Peugeot Citroen) of an additional 2.3 million cars made me think about the intersection of customer service and financial prudence. Toyota’s repairs to correct a mechanical fault will cost the business hundreds of millions of dollars in lost profits.
Why is Toyota spending this money now when it will obviously damage the business’s bottom line? Read more at the original BNET post to find out.
1 comment 16 February 2010
Customer Service Superheroes – Leaping Tall Buildings
In a previous post I picked on a Shutterfly, Inc. transaction to demonstrate how easy it is to spot customer service problems. Now, let’s turn our attention to what they should do to atone for their customer service sins.
First, a recap of their transgressions:
- Checkout step did not accept the promotional code.
- Customer Service Team unaware of current sales/marketing promotions.
- Customer Service Team has insufficient tools to interact with customers on their terms.
- Service response did not yield desired result on order ($10 discount).
To recover (in order of importance): (more…)
Add comment 10 February 2010
