What is acceptable?

September 30, 2009 · 8 comments

I’m off to Boston today — with a speech tomorrow to one of my all-time favorite clients, Harvard Pilgrim, the best health insurance company in the nation. (Not just my feelings — J.D. Power agrees!)

So…as I’m doing some reading this morning, I stumbled across this item, buried on a website for Apple fanatics, MacRumors.com. It seems as though a customer of Apple’s went into the SoHo store in New York City complaining about his iPhone. The problem was, according to the customer, the phone dropped a significant number of calls.

All of us know the frustration of dropped calls. Either our inability to connect, or losing the connection when we’re in the middle of a conversation, can create one of those moments that make us want to fling our phones and say words of which our parents would disapprove.

Being the outstanding organization they are — one that creates “Ultimate Customer Experiences” ™ for their clients — the Apple employee at the Genius Bar runs a diagnostic test on the phone.

It’s important to understand a technological point here — Apple makes the iPhone, but AT&T provides the system upon which the phone must operate. As you probably know, the iPhone is only available through AT&T…and, therefore, to a monumental degree, the functions of the iPhone that are actually a phone (as opposed to the part where “there’s an app for that…”) are highly dependent upon the quality of AT&T’s service, rather than Apple’s.

The result of the diagnostic tests? The customer’s phone was dropping a little over 22 percent of the calls. The amazing part about that? Here’s what the Apple Genius wrote:

    Issue Description: dropped calls, poor signal

    Steps to Reproduce: plugged into behavior scan, report concludes that phone has dropped over 22 percent of the phone calls made. customer states that the percentage is a bit higher but does not register to the phone due to the fact that when a call begins to fail he manually disconnects the call.

    Issue Verified: Yes

    Proposed Resolution: this is a basic trouble shooting case so that the customer may report back to ATT to show that the phone is fully functional and the problem is consistent with the service provided by ATT (emphasis mine)

The report also notes that AT&T has “acknowledged” performance problems, particularly in New York City and the Bay Area in California.

However, how in the world is a 22% failure rate EVER acceptable for ANY company?

Ponder this for a moment — what if EVERY customer complained? You and I know it will NEVER happen. Customers instead are waiting — particularly in New York City and the Bay Area — for the exclusivity arrangement that Apple has with AT&T to expire so they can move to another carrier. They won’t complain — but they won’t remain, either.

What’s your failure rate? How many times are you, unfortunately, letting customers down? Are you depending upon THEM…or a provider like Apple is to AT&T…to tell you? If so, you may wish to reconsider. Customers may not be complaining — they may just be enduring a high rate of failure until another option becomes available.

I hope the fine folks at Boston’s Logan Airport have a significant lower tolerance of failure than AT&T.

If they accepted a 22% failure rate, it would mean there would be about 200 plane crashes there.

Today.

  • http://jimseybert.com Jim Seybert

    Scott – love reading your comments about AT&T and the iPhone. As a Mac addict, it has been difficult for me to resist buying an iPhone – but you hit the nail directly on the head: The iPhone itself is amazing and is being dragged down by the partnership with AT&T.

    From my perspective, the big lesson here is: Be Careful Who You Join in a Partnership.

    When you form a partnership for any reason, the actions of one partner will reflect on the other. Apple should have done its homework. I heard early on that Verizon was Apple’s first choice and it’s too bad that deal couldn’t have been worked out sooner.

  • Jeri Omernik

    Well said, Scott! I am one of those iPhone customers who eagerly anticipates escaping from AT&T’s incompetent grasp as soon as that option becomes available. Safe travels!

  • http://www.KristinaEvey.com,www.CentricStrategies.com Kristina Evey

    You make a very good point, Scott. Perhaps they are banking on the fact that the expectation is so low that when they actually do perform to a reasonable expectation, it is perceived as excellent service. That is a sad state of affairs.

  • Edith

    Apple originally contracted exclusively with O2 for the iphone, but as of November the market has been opened up with Orange and Vodaphone about to sell the iphone. I think Apple was wrong to contract exclusively however I suspect Steve Jobs knows more about his business that I do, but as a consumer I welcome choice and competition

  • Edith

    Sorry of course I was referring to the UK market!

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  • http://www.leadwithhonor.com John Ikeda

    Hi Scott..

    Great post as usual. While reading this, I was reminded of Boeing’s Dreamliner which is almost two years late. One of their challenges is the performance of their subcontractors who are delivering vital parts behind schedule. Yet, Boeing is taking the hit for this lack of performance because they chose these vendors.

    I don’t own an iPhone or Mac but recently visited an Apple store for the first time. I was so blown away by my experience that I bored my wife for 15 minutes with how great their customer service was. I was totally impressed.

    But – I won’t by an iPhone for the very reason you stated, poor connectivity. I don’t know why Apple partnered with AT&T, but they did. Apple/iPhone = A++++, AT&T = C- (below average), Total experience = B-/C+?? It reminded me that we need to be careful of the company we keep. I would LOVE to by an iPhone, but can’t give up the dropped calls.

    All the best!
    John

  • http://scottmckain.com Scott McKain

    John -

    Thanks for adding the Boeing Dreamliner to the discussion! How can you be TWO YEARS late to market, and expect your customers to wait?

    I don’t get it…

    I’m grateful for your participation…you always add a lot to the conversation!

    Scott

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