Today's Buzz:

Wednesday, August 17, 2005

Should Vonage ape Dell on customer service?

That's what ZDNet's Russell Shaw has to say in his column today. Basically, it's a warning shot to Vonage, and just about every other tech company that relies on call centers armed with scripts and outsourced tech support.

Shaw's pointing to the latest American Customer Satisfaction Index, where Dell and Apple have long outperformed their competition in the hardware market.

Digging deeper, the report's commentary notes that even Dell, a top performer for years in the survey, took a sharp (6 percent) drop in customer satisfaction.

"Customer complaints are up significantly with long wait-times and difficulties with Dell’s call-center abound," said Prof. Claes Fornell, who among his other credits is also the director of the National Quality Research Center at the University of Michigan.

What Fornell's getting at here is something many have experienced firsthand at the consumer level. The customer's time is valuable, and if companies don't treat it accordingly, they run the risk of losing a percentage of their customer base.

All this calls into question the metric companies use to determine whether it is better to reduce the FTE count and outsource customer service to people who make little better than minimum wage, and often aren't even in the same time zone as the companies they call their clients.

For companies that live and die by their customer base, is it really better to hand over their most valuable possession to contractors?

It's a rhetorical question, but from this correspondent's perspective, the formula that includes the drop in fixed costs from outsourcing, should also factor in what happens when the likely attrition of a company's customers begins a few quarters later.

posted by Sean Wolfe at 8:47 AM

0 Comments:

Post a Comment

<< Home

The news, what the pundits said, and selections from bloggers...

A complete roundup of news and current events on VoIP, Wi-Fi, WiMAX, mobile telephony and computing, and advanced IP applications.

Syndication via FeedBurner



IP Inferno is sponsored by:
Lok Technology, Inc.

VoIP Magazine Home Page

IP Inferno is written by:
Dan Brekke
Ted Shelton
Sean Wolfe

Press inquiries: press@ipinferno.com

Previous Posts

  • Dual mode: Wave of the Future?
  • Rumor Mill: Yahoo to enter VoIP fray?
  • More E911 Rumblings
  • Can You Hear Me Now?
  • Your tax dollars at work
  • Q&A with Phil Zimmermann
  • Podcast #2
  • Research: ABI Predicts slow VOIP growth
  • FCC Wiretap Ruling: Releases and comments
  • IP Inferno Interview with Zimmermann Tuesday

Powered by Blogger

Where We Find the News

Sources are in the order referenced, most recent listed first
SF Gate
Broadcasting & Cable
Andy Abramson
NetworkingPipeline
The Register
Computerworld
Wireless Unleashed
Jeff Pulver
eWeek
CNet News.com
Internet News
TheStreet.com
NewsFactor
Om Malik
Wi-Fi Planet
Reuters
Brian Kane
Greg Galitzine
Wi-Fi Networking News
Rochester Democrat and Chronicle
TMC Net
SF Gate
UPI
Paul Victor Novarese
William Hungerfold
Baltimore Sun
CRM Buyer
Seattle Times
Dan Gillmor
Glenn Fleishman
Dana Blankenhorn
David Isenberg

Other sources
Doc Searls
Ted Shelton
All Headline News
Technorati
North American Bandwidth News

 

Afterink Publishing Network
* * * IP Inferno * * *