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:

1. 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.
2. 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.

Ace Hardware, Amazon.com, American Express, Amica Mutual Insurance, Apple, Barnes & Noble, Branch Banking & Trust, Charles Schwab, Dell, Enterprise Rent-A-Car, Fairmont Hotels & Resorts, Four Seasons Hotels and Resorts, Jaguar, L.L. Bean, Lexus, Nordstrom, Panera Bread, Publix Super Markets, Southwest Airlines, Starbucks, The Ritz-Carlton, True Value, USAA, Wegmans Food Markets, WestJet

Investing in Employees

• Increased training budget by 13%.  Awards tuition scholarships for employees.  Answer
• Employees granted equity in company.  Answer

Investing in Technology

• Leveraged best of both worlds after implementing best practices from recently acquired company.  Answer
• Implemented overflow call system to use remote representatives when local volume overloaded local resources.  Answer
• Integrated online inventory with brick and mortar inventory to speed customer fulfillment.  Answer

Investing in Customers

• Escalated problems if not solved within 20 minutes.  Answer
• Developed outreach program to contact dormant customers.  Answer
• Roving check-out clerks bring service to customers.  Answer

The pivot point is that we can learn much from those companies that blaze the way with excellent customer service.  We don’t need to re-invent the customer service wheel.  And while not every solution will be appropriate for all companies, these stalwarts set the bar high when innovating around, and executing on customer service.

Which companies are customer service trailblazers that should make the next Business Week list?

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.

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.

First, a recap of their transgressions:

1. Checkout step did not accept the promotional code.
2. Customer Service Team unaware of current sales/marketing promotions.
3. Customer Service Team has insufficient tools to interact with customers on their terms.
4. Service response did not yield desired result on order ($10 discount).

To recover (in order of importance):

• Commit – Care about service and be committed to delivering it.  Customer service should be part of your culture; if it isn’t even the best strategy will fail.
• Get it Right the First Time – The team that thought offering a promotional code would be beneficial to customers must test the process so that it works in a variety of scenarios.  It simply isn’t good enough to dream up the good idea.  The value comes in implementation which requires testing.
• Communicate – Customer service cannot be the last to know about changes of any type.  After all, the customer service team will be the first to hear about the problem and when they are caught dumb-struck your entire brand suffers.
• Invest in Tools – The service team must be able to engage with customers in ways that are meaningful and convenient to the customer.  Restrictions like the one described earlier are a further insult in an already strained encounter.  Imagine what would happen if the “policy” had been to visit corporate headquarters in person… your terms (i.e. not convenient).
• Over-Recover – The customer expected to pay $10 less on the initial order.  The company should immediately send a check for more than $10 to the customer.  The amount doesn’t really matter as long as the company compensates the customer for the original value plus an amount for pain and suffering.

Superheroes know the pivot point; that leaping tall buildings takes work and commitment.  By committing to deliver quality service you can create satisfied customers who are willing to promote your company’s product.  Unfortunately, Shutterfly starts weak and finishes weaker by failing to over-recover.  Their uninspired response of a promised discount on a future purchase doesn’t even qualify as service.  (Remember, our experience shows they don’t keep commitments and if they won’t do that what’s the likelihood of a future purchase?)

For the customer service superheroes out there… what recovery steps did I miss?