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Wednesday, July 11, 2007

The Customer is NOT Always Right

In a recent article,

Sprint customers get the brush off
McClatchy Newspapers

Sprint Nextel told about 1,000 disgruntled cell-phone customers that
they would be better off with someone else. ... Sprint executives decided to break up with a group of malcontents who called frequently with complaints. "While we have worked to resolve your issues and questions to the best of our ability, the number of inquiries you have made to us during this time has led us to determine that we are unable to meet your wireless needs," stated the letter Sprint recently sent to these soon-to-be former customers.

If you were a Sprint Nextel shareholder, how would you feel about how your company treats its customers? At first you may think that's pretty shoddy PR.

Some investors, on the other hand, may applaud Sprint Nextel for their good business sense. Sprint Nextel has the courage to recognize the fallacious statement The Customer Is Always Right and instead say, "We are expending too many resources trying to please a subset of users whose expectations may exceed the capabilities of our products."

We may see more companies becoming more selective in whom they will serve, and whom they will not.

Please see A Consumer Blacklist? for another example.


Sprint has been asked to pay each of these customers $200 - "the amount the customers would have had to pay if they had prematurely ended their two-year contracts with the company."

What works for the goose ...

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Anonymous Phantasmix said...

As a Sprint investor I'd feel they're trying to save money, in exactly the way you described.

We avoid headache'y clients like the plague. In fact I'd rather take a break than deal with some of them.

What's good for the mental health is good for the bottom line in my case :)

Tuesday, July 17, 2007 9:41:00 AM  

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