From the category archives:

Competition

Due to the nature of my job, I find that I am constantly thinking about how to improve customer satisfaction, but as a consumer, it’s also something that I am acutely aware of when it’s done incredibly well (see my post about J.Crew).

Add technology to the mix, and you can bring satisfaction levels to new heights with process innovation and customer facing technological improvements.

I also believe that an acute and strict focus on customer service is also increasingly important for all business transactions — even if your firm is not in the retail or hospitality industries. Why? Because there is always a competitor eager to snap up your customers if you don’t meet their expectations perfectly. This is where technology can greatly add value, and create competitive advantage. Just ask Apple and USAA.

Technology Drivers in Satisfaction

This year Apple has ranked third in Business Week’s customer service survey. Apple’s service technology including the genius bar, and “roving in-store checkout clerks” were primary reasons listed for their success.

The company’s sleek devices and user-friendly software aren’t its only innovations. Appointments at Apple’s (AAPL) “Genius Bars” and its roving in-store checkout clerks are just two ways the company has pioneered new approaches to customer service. The iPhone maker is likely got a bump this year as more companies created customer-friendly apps for their own services, helping to burnish Apple’s customer service brand. // via Customer Service Champs 2010: No. 3 Apple - BusinessWeek

The article continues that USAA (an online-based banking/insurance institution for the military) has taken the number two spot, mainly because of the use of technology within it’s “brick-and-mortar-less” operations and their iPhone app. Just think, when you are in Iraq, how are you going to get to your nearest branch? What about mailing in a check? That’s where technology comes into play.

When Staff Sergeant Corey Mason wants to deposit a check, he doesn’t use an ATM, a teller at a branch, or even a stamped envelope and deposit slip. Rather, the 37-year-old GPS systems specialist takes a picture of the check with his iPhone, uses an app to send it to his bank, and within minutes the money shows up in his account. // via USAA’s Battle Plan - BusinessWeek.

In reading the business week article about USAA, it’s remarkable how their revolutionary technology has increased customer satisfaction, and created life long relationships and brand loyalty.

It’s not just the people piece any more, it’s the technology behind their customer interactions. What I find even more surprising, is that they are able to quantify their return-on-investment in technology with top-notch customer service ratings and rankings in these types of surveys. So very difficult to make a business case for these technologies, but with the right filter, it can mean the difference between a world-class and mediocre firm.

Take Note

It is remarkable how technology has influenced customer service in today’s marketplace and world-class brands like Apple and USAA are at the forefront of this phenomenon. This is certainly not an easy feat these days, but is something that other service brands should take note of and strive for in order to survive the onslaught of Consumer 2.0.

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Full Disclosure: I am an employee of Apple. I am not commenting on the company other than to report a positive Business week article. Any opinion above is my own, and that not of my employer.


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Cloud computing could become mainstream with Google’s annoucement this week to release the Chrome operating system for NetBook PCs.

I believe the cloud is the platform of the future, and Google is uniquely poised with their already popular office suite, Google Docs, and their other Google Apps which do just about everything owners of netbooks would be looking for.

This is certainly an exciting announcement for consumers looking to the future, and should cause real innovation and competition within the other computer and software makers.

On a side note, Ars Technica has an article discussing the reliability issues with cloud computing, and whether or not our infrastructure is ready for Chrome. I agree, with the downtime that Google has faced earlier this year, which took down a large chunk of Internet traffic in North America, it may be too soon for firms to invest their money making ability (read: computer software) in the cloud. What happens when Google’s data center is down, and my netbook can’t open an office document that I have to send to my client because of a server issue? Well, we need to make reliability and uptime as close to 100% before people will take this service seriously.

But, SaaS and Cloud are looking brighter as we move further into the future.

Update: See this Barron’s article describing the problem with Chrome, and what they believe to be Google’s major misstep. (Editorial Note: I think they are missing the value of the cloud. They are using the old value model of standard software architecture, and are discrediting future innovation and consumer preferences changing in the open market. In short, I think they got it wrong.)

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Facebook has just hired Greg Badros, a Google Senior Director of Engineering, we’ve learned. Badros joined Google in early 2003 and has worked his way up the chain since then. At Facebook, his official title will be Director of Engineering.

At Google, Badros was in charge of the AdSense engineering team from its formative years in 2004, through when it exploded in popularity with billions of dollars in revenues. He has also led the Google Calendar, Google Reader and Gmail teams. Since March 2009, he has led the Application Platform group. But it’s the AdSense experience that is particularly interesting here, as Facebook is attempting to better monetize its service.

[Via TechCrunch]

I not-so-secretly love the “people wars” that are playing out in newspapers, and on our tech enabled cell phones. It seems there are a quite a few companies trying to out do their competitors when it comes to human resource aquisitions.

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