The Customer Service Survey
VocaLabs' weblog providing news and commentary on the challenges of providing good customer service.
The 40 Million Dollar Customer
Monday - September 25, 2006 03:43 PM in
In the early 90's the US government decided that having only two phone company controlled cellular companies authorized to operate in any territory was anti competitive. So they auctioned off radio spectrum to other aspiring entrants. That's why today there are four to nine choices for wireless phone providers in every urban market. But especially for those of us in smaller markets, raising capital to build out our networks was time consuming, painful and hugely expensive. While my company was focused on building networks in places like Fargo ND, or Brainerd and Duluth MN; friends were having the same issues over in Wisconsin.
After several difficult years, the founder and CEO of this Wisconsin carrier called me: "Rick, guess what? We have our first customer!" Me: "That's great George, what did he cost you?" George: "40 Million Dollars!" Me: "Well, at least, number two will only be $20 million."
I was reminded of that often shared story today when I got another solicitation to submit a VocaLabs product for an industry award. Excuse me. A "prestigious award" that will "attract new customers, investors and even staff!" And it will only cost $600.
Don't be taken in. Frequently promoted by industry trade magazines who would be foolish to offend their advertisers; this is a money making strategy. I can't say it more plainly. These awards are practically always paid for by the vendors receiving them. And they got the award at least in part because their competition didn't choose to spend the money. And no, it is no coincidence that the winners very often have an expensive advertisement in the same issue that announces the "award". Now this isn't to say that the vendor's products don't perform; they wouldn't last in the business otherwise. But do not use the winning of one of these "product excellence" trophies as an endorsement that it is the best available when it is much more probable the award was given without any comparison to the products and services of companies that have chosen not to play along.
Posted by Rick Rappe'
I was reminded of that often shared story today when I got another solicitation to submit a VocaLabs product for an industry award. Excuse me. A "prestigious award" that will "attract new customers, investors and even staff!" And it will only cost $600.
Don't be taken in. Frequently promoted by industry trade magazines who would be foolish to offend their advertisers; this is a money making strategy. I can't say it more plainly. These awards are practically always paid for by the vendors receiving them. And they got the award at least in part because their competition didn't choose to spend the money. And no, it is no coincidence that the winners very often have an expensive advertisement in the same issue that announces the "award". Now this isn't to say that the vendor's products don't perform; they wouldn't last in the business otherwise. But do not use the winning of one of these "product excellence" trophies as an endorsement that it is the best available when it is much more probable the award was given without any comparison to the products and services of companies that have chosen not to play along.
Posted by Rick Rappe'
Posted at 03:43 PM by | | | |