Showing posts with label consumer satisfaction. Show all posts
Showing posts with label consumer satisfaction. Show all posts

Tuesday, January 03, 2017

Package delivery -- the other "last mile" problem

We've had bad luck with package delivery during the last six months:
  • An order of kids rain boots from Walmart was stolen from our front porch. Unfortunately, a small box containing a ring from TheRealReal was delivered at the same time and was also stolen.
  • Walmart replaced the rain boots and TheRealReal gave us a refund, but my wife was disappointed not to get the ring.
  • We received a package from TheRealReal via Federal express. It should have contained a bracelet, but it was empty. Again, we received a refund, but not the gift. It may have been taken by someone at TheRealReal or Federal Express.
  • We ordered a pressure cooker from Amazon. The package it came in was marked "fragile" but was in poor condition. We opened it, saw two dents in the pressure cooker and returned it for a refund.
  • We ordered a blanket from SweetDreamsHome, an Amazon Marketplace retailer. The order was placed on December 14 and scheduled for delivery. We planned to be out of town on the scheduled delivery date, so requested a different and were assured it would arrive on December 23. It did not arrive on that date, so we contacted Amazon. We were assured that it would arrive on December 28th. It did not. When it did not arrive on the 29th, we cancelled the order. It arrived on the 30th.
Amazon and the others were extremely polite and responsive and we received prompt, no-hassle refunds, but we were disappointed, a Christmas gift was late and we had to be worrying that a package might come while we were out and unable to sign for it or, worse, that it would be stolen.
I checked the American Customer Satisfaction Index of the Consumer Shipping and Internet Retail industries and found that their scores of 80 out of 100 put them in the top six of 43 industries surveyed. (Internet service providers were ranked last because there is little competition in the industry).

That being said, the survey only considers the US Postal Service (74), UPS (80) and Federal Express (82). The private companies are rated higher than the Postal Service and all three have been relatively stable over time. (The US Postal Service moved up in the late 1990s, while UPS and Federal Express have slipped a little).

Fortune magazine says Silicon Valley venture capitalists are giving up on on-demand delivery and I am not expecting on-demand drones or robots or self-driving delivery trucks any time soon. (If they do, the thieves may start stealing drones and robots as well as packages). Are vendor-agnostic local pickup locations a solution?

Maybe this was a run of bad luck and we plan to keep shopping online, but not as frequently.

Thursday, September 22, 2016

Verizon wouldn't lie to sell phones -- would they?

In previous posts, I have been unkind to my local-monopoly Internet service provider Time Warner cable and the US ISP industry in general. I've also been unkind to Verizon FiOS in their battles with Netflix and criticized their "gentleman's agreement" to abandon fiber to focus on wireless connectivity, leaving me at the mercy Time Warner Cable.

Those stories all had to do with landlines -- what about Verizon mobile? My wife had an unlimited account with a reseller of Verizon mobile service (a "mobile virtual network operator" or MVNO). She no longer needed the unlimited account, so decided to switch to Verizon.

This was shortly before the new iPhones came out, so she wanted to keep using her old phone for a month or so and, since she had been using it on the Verizon network, she assumed it would work after shifting her account from the MVNO.

To be safe, I went online and had the following chat with a Verizon salesman named Brandon:

Chat transcript -- click image to enlarge

As you see, I gave him the phone's mobile equipment ID (MEID) number and he said it was incompatible with the Verizon network and offered to sell me a new phone. I pointed out that the old phone had worked on the Verizon network for years and he suggested that it may have been blacklisted or have the wrong antenna -- like AM versus FM radio. He elaborated, saying it might be compatible with some, but not all, of their network or perhaps my wife had been roaming for five years.

Maybe the phone would not work somewhere on Earth, but it has worked everywhere my wife has been in the United States and abroad for the past five years. (She is not an early adopter :-). Here are the specs (MEID 990001106522642):


I am not a mobile phone geek -- Is there something that would render the phone incompatible with Verizon mobile service?

We ignored Brandon's warning and opened a Verizon account -- the phone worked fine (in southern California) until it was replaced with a new iPhone.

My guess is that Brandon was just telling me what he saw when he queried Verizon's database, so he was not lying. But is the Verizon compatibility database accurate and, if not, is Verizon lying in order to sell new phones? (This reminds me of the Volkswagen smog check shenanigans).

-----
Update 10/10/2016

Let's talk about customer service.

In spite of Verizon saying it was incompatible with their network, my wife has been using her old iPhone 4 on their network without problems. When she transferred her account to Verizon, they said she had to sign up for a billed (post-pay) account, but could then switch to an automatically-charged, pre-paid account (to get a higher data cap) whenever she wanted to.

She did that two days ago. Doing so required that she speak on the phone with three different Verizon employees -- a support person, a sales person and an account verification person. There were long waits on hold before each of those conversations and she had to explain the situation to each of the people -- there was evidently no transfer of information between them. The entire process took well over an hour.

I am posting this for two reasons:
  1. Verizon has sold their FiOS landline service, but it was the lowest ranked company in the lowest-ranked industry (Internet service providers, ISPs) on the American Customer Satisfaction Index before the sale. I've not seen a ranking for mobile ISPs, but based on this experience, I would expect Verizon to look bad.
  2. One frequently hears complaints about poor service from bureaucratic government agencies. Government agencies are large organizations with monopoly power. ISPs are also large organizations in monopoly or oligopoly markets. A large, private organization in a monopoly or oligopoly market is nearly as likely to provide poor service as a government agency.

-----
Update 10/15/2016

The customer-service saga continues.

I made two payments on my wife's pre-paid account. Perhaps because she changed her account from post-paid to pre-paid, Verizon failed to credit one of the payments and does not seem to realize that she is now post-paid and should be getting a higher data cap.

I tried to clear it up by going to the "My Plan" page on the Verizon Web site, but the page was temporarily down:

That was 25 hours ago. The page is still temporarily down.

I also tried to clear this up with a phone call or chat, but could only find sales pages on their Web site. (I got the phone number last week from a Best Buy store clerk).

Verizon is making the folks like the IRS or Department of Motor Vehicles look good.

Friday, July 18, 2014

Comcast executive apologizes for obnoxious phone call to a customer service rep -- ex customer rep says it was in line with company policy.

Last week this bizarre recording of a call to a Comcast phone representative requesting termination of service went viral. (You can listen to the first couple minutes then stop because it is repetive to say the least).

A senior vice president at Comcast publicly apologized for the call, stating:
We are very embarrassed by the way our employee spoke with Mr. Block and Ms. Belmont and are contacting them to personally apologize. The way in which our representative communicated with them is unacceptable and not consistent with how we train our customer service representatives. We are investigating this situation and will take quick action. While the overwhelming majority of our employees work very hard to do the right thing every day, we are using this very unfortunate experience to reinforce how important it is to always treat our customers with the utmost respect
Great -- except that Lauren Bruce, a former Comcast customer account executive says the customer service rep in the recording was not going rogue, but adhering to company policy. Bruce says the Comcast rep in the recording was trying to upsell the caller and also complete a mandatory questionnaire they had for each call. She says it was sometimes easier to make up answers than get them out of irate customers and that the customer rep in this call is being made a scapegoat.

This call recording with a Comcast rep makes my experience with Time-Warner Cable look good. It's no wonder the Internet Service Provision is the lowest rated industry in the United States according to the University of Michigan Customer Satisfaction Survey.

-----
Update 8/7/2014

Here is a copy of the Comcast retention representative handbook -- the call rating system encourages them to be persistent and -- "take control, ask targeted questions, make an offer", etc. I'd hate to have their job -- it's like working on an electronics assembly line.

Wednesday, June 04, 2014

A tale of two industries: package delivery and Internet service

Why do customers like the package delivery industry and dislike information delivery service? Competition and the US Postal Service.

Comcast CEO Brian Roberts recently complained that Netflix paid the Post Office for delivery of small packages (DVDs), but did not want to pay Internet service providers (ISPs) to deliver the same content over the Internet.

In his view, the Post Office is in the consumer package delivery business and Comcast and other ISPs are in the information delivery business and both should be paid for their service.

The University of Michigan publishes the American Customer Satisfaction Index in which they rate both companies and industries. Let's look at their latest ratings of the consumer package delivery and ISP industries.



They rate 48 industries and it turns out that the package delivery industry is rated seventh overall and the ISP industry is 48th. Furthermore, merger hopefuls Time Warner Cable and Comcast are the lowest rated.

How might we explain the differences in customer satisfaction in these two images that Mr. Roberts considers similar? The difference is that there is competition in customer package delivery between Federal Express, UPS and the Post Office. We would normally expect three companies to tacitly establish oligopoly prices, but in this case the Post Office is disruptive -- Federal Express and UPS must compete with a government agency.

Thursday, May 08, 2014

ISPs have the lowest American Customer Satisfaction Index.

The ISP industry ranks 48th out of 48 industries on the American Customer Satisfaction Index. Subscription TV is 47th.

Individual companies are also rated. Large companies are rated separately and smaller ISPs are lumped into "all other." Here are the ISP customer satisfaction indices:

Verizon Communications (FiOS) 71
Cox Communications 71
AT&T (U-verse) 68
Charter Communications 65
CenturyLink 65
Time Warner Cable 63
Comcast 62
All others 71

I am happy to see that my ISP, Time Warner Cable, which I have commented upon in previous posts, is not the lowest rated company in this dismal industry -- that honor belongs to their hopeful merger buddy, Comcast.

-----
Update 5/19/2014

The latest quarterly survey results are out and Internet service providers are now the lowest ranked industry and merger buddies Time Warner Cable and Comcast are now the two lowest ranked companies of all industries. The inverse correlation between size and customer satisfaction still holds for the ISP industry, so I am confident that if Comcast acquires TWC, they will continue to set dissatisfaction records for years to come.



-----
Update 6/11/2014

I just got a copy of the latest ACSI company ratings from the University of Michigan. Comcast is no longer the second lowest rated company in the survey -- that honor now belongs to Time Warner Cable (TV). My ISP, Time Warner Cable (ISP), retained its position as the lowest ranked company -- 230th out of 230 companies.

The ISP industry remains at the bottom of the list, with subscription television services next to last

The American public is fed up with the cable TV and Internet service companies (and we are ridiculing them) -- let's hope that translates into political pressure.

-----
Update 6/23/2016

Time Warner Cable and Charter Communication recently merged. Now a US Senate report concludes that they routinely overcharged customers and failed to issue refunds.

ISPs are aggressively pursuing their goal of remaining the industry with the lowest customer satisfaction index and worst customer service in the US.

The Senate subcommittee’s report also said that consumers are frustrated by the ongoing rise of the cost for cable and satellite TV, with some packages increasing up to 33% since 2011 A copy of the report is available here.

Don't you love monopolies?