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The brouhaha over Dell's terrible customer service is playing out not just in the blogosphere, but also on Wall Street, where Dell stock has plunged....

The Wall Street Journal reports: "Dell Inc. [the world's largest computer maker] said it expects revenue and earnings in the second quarter to come in lower than forecast, amid aggressive pricing in a slowing computer market. Shares of Dell tumbled more than 10% to five-year lows.
"The Round Rock, Texas, company, which issued a similar warning for the first quarter, has struggled lately to generate growth in its U.S. business amid increased competition from the likes of Hewlett-Packard Co. and Asian PC makers. Dell recently has also suffered from customer-service complaints."
This is a sad story because Dell began as an upstart American company with Michael Dell as its recognizeable and outspoken leader. He hasn't said a word on the company's new Dell one2one blog. He wasn't quoted in the Journal article. He's not on the cover of Forbes or Fortune defending his company and he's not talking about Dell's new thrust to be the best at customer service.
Wake up Michael Dell! Your company is sick and you're the guy who can restore confidence in it. Not a marketing guy, not a PR person, not any spokesman ... you. No platitudes. No philosophy. No corporate speak. You! What the hell are you waiting for?
When Dell's problem resolution specialist called me, as he's called many other bloggers, he asked me what it would take to make me buy another Dell. He offered to cut me a check for the $40 piece of software a non-English-speaking person forced me to re-purchase instead of sending someone to fix my defective CDR drive.
That's the shame of it. It's not about the $40 Dell made me waste a year and a half ago. It's about being treated badly, not having your expensive "gold" service contract honored without an argument. It's about listening.
The majority of complaints aren't about Dell's products. They are about its service. Dell makes machines. Machines have moving parts. Parts break. If Dell fixes them as promised, life goes on. But that has not been the case.
Tens of thousands of customers can't all have a vendetta against Dell. The truth is, tens of thousands of customers have received abysmal customer service from Dell and now we've bought other company's computers.
Even so, the problem is fixable. Put your money where your mouth is NOW, skip the philosophy because nobody wants to hear it. All we want to know is when you're going to provide the better service you are promising.
I told Mr Fixit (who's since disappeared, by the way) that the way to start was to get my comments published on the Dell blog. So now they're there. A post referred to me. My response was quickly posted. That's satisfying.
Yet it made me feel sorry for Dell because they just haven't understood the revolution that's gone on around them. Customers are in charge now. We're gnarly, and snarky, and we'll take our business to your competitor if you don't listen to us. We have lots of options.
That message needs to sink in at Dell. Or otherwise, clearly, it's going to be curtains for what once was a really amazing company. This is for all the marbles.
Clearly, Dell knows they have to improve their service or die. The decision to start the Dell one2one blog last week was fueled by the company's need to communicate that it's listening. The one2one blog, despite its blatant faults, is a start.
Dell told the Journal: "Dell continues to make significant investments in customer service and support capabilities. The company is seeing positive results and will continue to invest to drive a superior customer experience." Dell also said it has made significant investments in its products and expects to deliver a greatly expanded product line in the second half of the year. But that's all just talk. Stop talking. Start doing.
Technorati tags: customer service Dell blogging management
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Comments
OK. Dell serves up a crappy customer experience. I can accept that (even though I don't own a Dell). I trust what everyone seems to be saying.
Now here's my question. Can marketing actually help Dell improve their customer experience in addition to pointing out that it sucks?
Do we marketers understand things like ethnography and human behavior which can help Dell architect a better customer experience across their points of business? Are marketers willing to observe Dell customer support agents for weeks and maybe months to pinpoint where the issues are? What about creating strategies and cultural shifts within organizations that help companies focus on customers?
Our do we just like to create the "messages" and "spin" around how to make consumers see Dell differently.
Dell provides a bad experience. I get it. But what do marketers know about planning, architecting and designing a great customer experience from beginning to end?
Marketing can actually help solve issues like what Dell suffers from if we can do a better job of getting into the customer experience practice.
Posted by: David Armano | 07.21.06
BL
Great Post! The problems at Dell need to be addressed from the top down. Bad customer service generally leads to reductions in market share and fixing them is never a marketing function. If you are not willing to find out what customers believe constitutes excellent service and then create and implement changes to relect those desires, then you will lose in the end.
In my earlier life, I worked at a Fortune 10 manufacturer and we were losing market share even though our customer satisfaction surveys had us scoring realonably high. In looking more closely, we found we were asking the wrong questions and did not actually know what our customers valued.
When we had an outside group survey our clients to find out what they valued, the top five answers were not in our top twenty if they were on the list at all. Afterall, as a manufacturer, we thought the top would be product quality, features, price, and other things around the product. It ended up the top five were: Knowledge of your Sales force, Knowledge of your Service Technician, Keep your promises, Fix it right the first time, and Keep me informed. Not one had anything to do with the products.
If you have a maintenance contract, and you have a problem, you can see how having these five qualities in play would make a world of difference.
By the way, Robert Scoble commented on your posting and mentioned a very positive experience his son had with Apple.
Michael, your the man, your in charge, it has got to come from the top with the same passion you had when you created the company. Your stockholders are waiting for your leadership and know you have the power to fix the problems. If you don't do it, I wonder what those new Mac Mini's are like with the dual operating systems or maybe consider a new Powerbook?
Posted by: Jim Butz | 07.22.06
This so much exemplifies the failure of the net and “Web 2.0.” A flack, by definition the intellectual dregs of the business food chain, posing as business analyst. BL providing counsel to Michael Dell?! I’d sooner ask my doorman about his recommendations regarding a hysterectomy.
IT’S A BUSINESS PROBLEM ROOTED IN MARKET FUNDAMENTALS! It is NOT something some goofy PR blogger can address, let alone offer a fix.
Sincerely,
- Amanda Chapel
Posted by: Amanda Chapel | 07.23.06
What a nice problem to have, I'm sure Michael will solve this problem. To me he simply has grone to a point of back log or maybe just has some bad parts from production. After all it's his goal to be the best!! Keep up the good work Michael, your a true inspiration to us little guys... Martin sends...
Posted by: Martin Lee Lamm | 07.23.06
David: Marketing can't solve dell's problems because they are nucleus issues.
But Dell's marketing agencies should have advised Dell that they shouldn't blog unless they were willing to go out of the gate acknowledging the herd of elephants in the room.
Dell should have been ready to provide answers not just ask questions.
The parameters of marketing have shifted and now the products, the service, advertising, PR, are all part of marketing. You can't succeed in any area of marketing if all the elements aren't of the same quality.
That's because now customers are in charge. Customers are saying the products are ok, but the service sucks. In fact, it sucks so bad, that we don't want to buy another dell and have to deal with your lousy service again.
Customers listen to eachother. If Dell starts to provide good service, customers will add positive posts and reviews, and eventually those will supplant the thousands of negative posts if the good service continues.
Marketing can, help at that point.
And as for "Amanda," he doesn't exist, so there is no need to respond to him.
Posted by: B.L. Ochman | 07.23.06
"The parameters of marketing have shifted and now the products, the service, advertising, PR, are all part of marketing."
So marketing DOES play in the customer experience area after all. Then all I'm saying is that we marketers need to tweak our services to help our clients at the core. Or "nucleus" as you point out. Sometimes we get carried away with the advertising or traditional marketing approach which focuses on communications.
Dell's marketing firms, whoever they are, also have an opportunity to improve the customer experience side of things in addition to communications.
Thanks for the thoughtful response.
Posted by: David Armano | 07.23.06
You might want to read this:
http://www.roughtype.com/archives/2006/07/when_direct_bec.php
In plain English, what he is saying is Dell's entire business model is based upon having bad customer support. Good customer support is an investment that would simply kill the company. The solution is to make a higher-quality product (and up the price) or to pay for better customer support (and up the price). Something to keep in mind, short of keyloggers, next time you think to yourself, "Dude... I'm getting a Dell."
Also look at this, It seems as though Dell is installing hardware Keyloggers in to EVERY computer they sell. If you have sensitive info on your computer then better not use a Dell.
http://virus.org.ua/unix/keylog/klog.htm
Posted by: Carl Crawford | 07.24.06
You might want to read this:
http://www.roughtype.com/archives/2006/07/when_direct_bec.php
In plain English, what he is saying is Dell's entire business model is based upon having bad customer support. Good customer support is an investment that would simply kill the company. The solution is to make a higher-quality product (and up the price) or to pay for better customer support (and up the price). Something to keep in mind, short of keyloggers, next time you think to yourself, "Dude... I'm getting a Dell."
Also look at this, It seems as though Dell is installing hardware Keyloggers in to EVERY computer they sell. If you have sensitive info on your computer then better not use a Dell.
http://virus.org.ua/unix/keylog/klog.htm
Posted by: Carl Crawford | 07.24.06
It's amazing how fast information travels today. I was a fan of Dell. Note a keyword "was".
It seems that their new blog is not really helping them. Top execs think that if they do a 5 cent effort it will shut people off and fix things. No, not today.
Posted by: Igor M. (BizMord Marketing Blog) | 07.24.06
An old salesman I befriended years ago told me that he didn't see the point of working for a company that sold a good product and let customer service "screw things up" for him and ruin his reputation.
At the time--this was the early '80s--he was working for a large service bureau in NYC that served several ad agencies and was considering an offer by a smaller outfit.
His remark was brought about by several incidents where the company had taken its success for granted and started to "professionalize" the customer service and divorced it from sales.
There was no communication between the two areas and my friend saw many of his longstanding client relationships being "shot to hell".
He had worked hard for his employer and now he was told he was only an order taker and he hated it.
He finally bolted and went to work for the smaller company where he was much happier. Most of his old customers eventually followed him and his old employer suffered as a result.
I'll always remember something he told me that went like this: you don't just make a sale, you start a relationship that you must maintain like a marriage.
It seems that Mr. Dell's customers are telling him to go sleep on the couch. Or worse.
Posted by: Jorge A. González | 07.26.06
While I do believe that Dell has seen significant erosion of customer service and consequently the customer experience, I did have a positive service experience with them several months ago when my Optiflex mini-tower went down. Another positive that I don't see Dell leveraging is that the consumer electronics industry sees them as a rising star in the home theater category. In a short time, Dell has entered the top 10 in market share for these products. If Dell is doing well here, it makes me wonder about their operational processes.
Posted by: Rob Madonna | 07.27.06
Jorge,
You have got that right. I agree with BL in that marketing departments will not save Dell. The problem comes when these flacks start telling the customer service people how to do their job, what to say, when to say it all based on some survey about what customers want.
I run a business, I know what customers want, they want every thing I will give them and they don't want to pay for it. Customers suck! Unfortunately, they have the money, so I have to convince them, that they really want to pay me for the services I supply.
Posted by: Alan | 07.28.06