About 6 months ago, I purchased a new
BlackBerry phone. As I used it, I noticed there was an inordinate number of
double-typing – in typing “how are you?” it would spell out, “hhhhooww arrre
youuu?”
I just assumed it was my poor typing.
Finally I decided to do a quick Google
search to see if anyone else had reported the same issue. It turns out that
there is a problem with that model phone manufactured during a certain time
period that was causing the issue. I then called my carrier, and sure enough,
they will exchange the phone (for a slight fee as it is out of warranty).
What
lesson we can draw from this situation?
You sell a product that turns out to have a
problem. Do you try and contact all the purchasers and tell them to return the
product for another? Or do you wait until those who report it contact you, before
exchanging it? Most small businesses won’t have an issue the scale of a cell
phone manufacturer, but there will be cases where you need to determine the
right strategy.
Here is a set of criteria for making this
decision:
- Contact: Can you contact the customer?
- Scope: How widespread is the issue?
- Danger: Does using the defective product harm
the consumer?
- Cost: What is the cost of the solution (or
continuing use without solving)?
- Reputation: Will not acting harm your
reputation? What is your reputation with
consumers?
Let’s apply the criteria to some
cases.
A
restaurant serves something that can make the customer sick.
- Contact: will you be able to contact the
customers who may have eaten the bad food? Not easily.
- Scope: do you know how many meals were served?
Yes, of the x number of meals served, you should have a pretty good sense of
how many included the bad food.
- Danger: how dangerous is the food? If it is just
rotten, then of those who eat it, some may get sick, some may not. If it is
extremely dangerous – then you have a greater cause to act on.
- Cost: usually if someone is sick the restaurant
will pay doctor visit, or at the least a free meal.
- Reputation: if some people get sick, will it
affect your restaurant?
Often, a restaurant will just wait
and see who comes in a day or two later – most food pathogens take 24 hours to
germinate, and if the customer complains they were sick, do something to
recompense them. But if you were a small
local restaurant with a very supportive and regular clientele, you may decide
to call those people you remember ate the bad food and let them know.
Apple’s
iPhone has an antenna issue. You may remember back when their latest phone seemed
to have a problem where holding the phone in a certain way meant calls were
dropped or not completed.
- Contact: Could reach all the users, since they
are phones.
- Scope: All
new versions of the phone had this issue.
- Danger: No danger to any of the users
- Cost: If they’d had to replace all the phones –
high, especially in roll out with new phone.
- Reputation: People generally have a high opinion
of Apple. If Steve Jobs felt it not a big issue, then the users might give him
the benefit.
In this case Apple gave away free
cases for a while, management came out strongly on the issue, and generally the
issue petered out.
So
in my cell phone example -
- Contact: Can you contact the customer? While in
some cases it may be difficult to contact the customer, in the case of mobile
phones it is quite easy.
- Scope: How many phones are we talking about? If
it is 10,000, that is very different than 500 in terms of cost to replace.
- Danger: Does using the defective product harm
the consumer? Will the user be harmed by using the product? In the case of my
phone, it was annoying, but not dangerous.
- Cost: Unknown, but I would imagine the cost
would be pretty easy to calculate (# phones x cost of replacement body +
shipping).
- Reputation: Will not acting harm your
reputation? What is your reputation with
consumers? I think we can all agree that cell phones are rather balky devices
and we have low expectations regarding their operation.
From the above, the cell phone manufacturer
determined they would let the customer call, and when they do, then replace the
phone.
I happen to believe this was a
mistake, mostly on the grounds of reputation. BlackBerry owners generally are
business users, not consumers. As such, they are already disposed to the
strengths of the BlackBerry – reliable, email, voice mail. Since typing on the physical
keyboard is why I use a BlackBerry, a typing input problem is a real issue. Also, I bet that they could know which
business users are most important – those that use the Enterprise server
edition. Why not replace those phones? Since my company allows Apple iPhones to
be used for business email, I stick with the BlackBerry for its keyboard.
What would you do?