Tom Peters, co-author of the classic In Search of Excellence used to highlight in his newsletters companies with outstanding service and those who failed badly. Inspired by Peters’ example, in the next few issues of this newsletter, I will continue that process.
Companies that provide great or improved service deserve recognition and can provide lessons to business owners on to how to excel. Companies that fail to serve customers well provide examples of what to avoid, and the companies named can take the feedback to heart. Readers can also make more informed decisions about where to spend their money.
No current and past clients will be discussed, for obvious reasons. The category titles may change, but for this month we discuss the Great and the Appalling.
APPALLING—BEST BUY
As a “member,” I have provided this company a lot of business over the years, laptop, desktop, large kitchen appliances, smart TV, Geek Squad service, etc. Heretofore, I have always been very pleased.
A couple of weeks ago, however, my wife asked me to order a couple of smart TVs, along with installation, which I did online from BestBuy. A delivery date was set, from 7 a.m. to 7 p.m. About 8:15 a.m. of that day, which we had rearranged to accommodate installation, I received a voice mail that the delivery would not happen due to the items not being in stock. Checking on-line, I found a contradictory update saying we were scheduled for that day and that we needed to reschedule. Not wanting a repeat, I sought an explanation that the online “chatbot” would not provide. A call to a live person was cut off.
Next, I went to a brick-and-mortar store for a clarification and/or refund. I was told repeatedly and insistently by the person in authority that I needed to reschedule the delivery, which I refused to do without a firm commitment. Finally, in the face of my insistence, I was told that not only were the TVs we ordered not in stock but that they had no idea when they would be. The appalling part is that they considered it appropriate to reschedule me anyhow! All the inconvenience, frustration, and cost involved in staying at home for 12 hours for a delivery that may never happen apparently means little to them. What is infuriating is that this was no mistake. It is clearly a matter of Best Buy policy.
It is very telling about management at Best Buy that the store representative seemed to genuinely empathize and want to do better but said, “there is little that we can do.” The phone rep who processed the refund was similarly courteous and asked if there was anything else they could do for me. I concluded with an admonition: “Businesses that are customer oriented and make mistakes, as we all do, do not simply ask what else they can do. They offer something of value to atone.” It was clear that the rep was not authorized to make any such offer.
In the end, we ordered from Amazon, a truly amazing company, and felt foolish for not starting there. The TVs arrived two days ahead of schedule, and we paid a friend’s grandson to set them up.
Take Aways:
Best Buy has hired and trained some great people who want to please, but some feel powerless. You do not need an expensive team of Harvard MBAs from McKinsey consulting to discover how to attract and keep loyal customers. Ask your employees often about interactions with customers, press for details and solutions to problems, and motivate more creativity by implementing their ideas when feasible. Give them authority to please on the spot. Mangers are often afraid that such authority will lead employees to “give the store away.”
A clue to the motivation for the appalling policy comes from Best Buy’s publicly reported sales and earnings numbers. For the last four quarters, ending with the latest, sales have been -3%, -5% -1%, and +2%. Earnings have been -2%, -5%, -4%, and -4%. Earnings are projected to decline another 2% in 2026.
With such dismal results and bleak outlook, it is easy for a business to enter a “death spiral” wherein desperate attempts to grab revenue instead drive customers away and thus accelerate decline. There is a lesson here for tough times lest we go the way of Circuit City. Remember them? Of bankruptcy, a Hemingway character said it comes two ways, gradually and then suddenly. You can still have time for a turnaround during the gradual part.
GREAT—AT&T
It may be surprising to see AT&T called great, after much bad PR for poor service. As one who tends to be a “loyal customer” until driven away by appalling service, however, I have for many years used the company for mobile and landline service, as well as wi-fi through U-Verse. In the past year, I have noticed significant improvements. Bill-paying online or through text has become smooth, easy, and no longer results in payments being assigned to the wrong account. When technical help is needed on the phone, I have found it now to be second to none, sometimes even offering substantial help on issues for which they are not directly responsible.
For example, I recently called about emails no longer downloading to my desktop. After remote diagnosis, tech support said that the problem was not on their end but with Outlook. They then walked me through creating a workaround until Microsoft resolved it. Lastly, without my requesting it, they offered to replace the modem at my office with an upgrade. Cost? Nothing. The professionalism and efficiency of their installation crews have also been upgraded. Clearly, management at AT&T has listened to customers, taken complaints to heart, and put the time and money into significant improvements. Bravo!
Take Aways:
Not to belabor the obvious, but the AT&T case shows that in huge, complex systems the problems that arise with reorganizations and mergers/acquisitions cannot all be resolved rapidly. Persistently improving one step at a time and never giving up pays off. Many customers like me prefer staying with a disappointing vendor that listens and gradually gets better, rather than switching to another who may be as bad or worse. In contrast to Best Buy, sales and earnings of AT&T, though weak, have generally been upward the last four quarters. EPS are projected to increase 8% in 2026.
If any reader has a story or incident they would like to share for mention here, or a representative of a company discussed here would like to comment, drop me an email. No promises.
If you feel frustrated about how to get your business to the “next level” or to emerge from a downward slide, strategic planning or executive coaching might the needed catalyst. Give me a call or send a message to discuss if it is appropriate, which is not a foregone conclusion. I do turn down potential clients if there is not a good fit. When there is, results are generally great. Don’t take my word for it. See https://mulkernassociates.net/client-testimonials/ as well as recommendations at https://www.linkedin.com/in/tonymulkern/