
- Image by Getty Images via Daylife
The Story
For months I had been champing at the bit to upgrade from my BlackBerry Pearl to the BlackBerry Curve. When the day arrived, I hustled over to the neighborhood AT&T store and had a really pitiful customer experience.
The sales rep told me the Curve was $250. My jaw dropped – the online research I’d done indicated $150 was the right price. She went on to explain that their store had dropped rebates because customers didn’t like them. That was it – no credible explanation, no alternative. Stunned, I asked if I could buy the phone for less on line. She said, “Probably.” So I said that’s what I’d do. As I was walking out the door, she lamely asked, “Are you sure?”
I went home and attempted to shop on the AT&T website. But I didn’t have my login password, and prior experience with the byzantine and bureaucratic AT&T site made me reluctant to even get involved in a shopping expedition that would no doubt entail 20 or 30 clicks to get to the pricing page … assuming I could log in.
Then I got the idea to visit the Best Buy website. I quickly found the phone I was looking for, but no prices. There was, however, a chat line, and within seconds, I was talking to Jose, who quickly informed me Best Buy offered the phone – same exact model as I priced at AT&T – for $79. I asked Jose if I could buy the phone for that price at my local Best Buy. He said, “Sure.”
I went there and the sales rep who helped me was knowledgeable and bent over backwards to help me. In less than half an hour, he had switched over my phone data, set up all my apps (I’m a cell phone Neanderthal), and sent me happily on my way.
Best Buy vs. AT&T – A No Contest Sales Contest
Don’t you love happy endings? Let’s take a quick look at what happened. Are there any lessons in all of this for your sales organization?
Sales Communication. Pretty important, wouldn’t you say? If you have bad news to deliver, or a customer-unfriendly policy to explain, are you doing it like AT&T, driving customers – quite literally in my case – out the door? Do your sales people know what they are talking about and how to get things done? If not, they are subtracting, not adding, value to your organization.
Pricing Strategy. If AT&T had a pricing strategy to be $170 high on a $80 item against a store directly across the street, it’s either the most brilliant or most ridiculous strategy I’ve come across in decades. When is the last time you surveyed the market to validate your pricing? If you are high priced – how well are you justifying your premium?
Are You Web Friendly? Like most people, my stomach begins to churn when I contemplate the necessity of visiting the website of an airline or a phone company. Excessive layers of navigation, complex login routines, and inability to get help, drive people away in droves. Best Buy makes it easy. I really enjoyed talking to Jose. He was responsive, knowledgeable, and nice. The fact that he saved me almost $100 didn’t hurt, either.
Is Your Website Integrated or Stovepiped? Notice that my experience on the Best Buy website led me into the store. Does your website lead customers to you in the same way? Too many companies set up their website as a separate marketing “initiative” instead of trying to blend it in with their overall sales and marketing strategy. In terms of content strategy, this is a defect I continually counsel clients to fix. A website can take a company very far. But if your business model is like Best Buy’s, where you have all kinds of products and services to sell, you want customers talking to you. The more they learn, the more they’re likely to buy.
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An excellent call to action, Brad! This sort of thing drives me up the wall, too.
Now, if only we could figure out how to deliver it to AT&T’s C-level folks…
Brad, congrats on the cost savings and excellent experience. Funny that you got better service from sales reps who do not receive commission! As I read I found some lessons to apply to my own business. It’s amazing how someone else can point out what should be obvious. This is a great example with excellent teaching points. I’m sorry for the AT&T hassle but grateful you shared!
Karen Swims last blog post..Vision or Lie?
Hi Robert, Maybe they’ll find it on Twitter.
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
Hi Karen, Now that you mention it, the Best Buy made a point of telling me the no commission compensation was a major reason why they outperformed AT&T on price and service. It seems the Best Buy comp system (I don’t know how it works) encourages teamwork and competitive pricing. What a concept!
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
One of the things holding me back from getting an iPhone is the poor AT&T customer service. I know that whatever I learn about my phone will be done on my own. The sales reps on the floor of AT&T showrooms are incentivized to sell and nothing else. Consequently the customer gets sold and nothing else. Not the path to customer loyalty.
Jay, You really said a mouthful – do you know why Apple, a pretty savvy company to say the least, partnered with AT&T? Apple must have been aware of AT&T’s service deficiencies. All I know is, from now on, my first line of inquiry on any mobile phone purchase or service issue will be Best Buy.
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
Had a similar – in that it was lousy – experience with AT&T in porting my cell phone # to another carrier. AT&T did everything possible to drag their feet on the changeover, including saying I had to open a new account with them as part of the process – and then I could cancel it later! As an aside, Consumer Cellular, a reseller based in the Northwest, is excellent if you use your phone on a limited basis and don’t want/need too many frills. My monthly bill for 2 numbers, a 200 shared minute plan, is about $40. The irony of it all is that their national coverage is the same as AT&T’s since I understand they use AT&T towers! Found them through AAA Auto Club.
On the Best Buy vs. AT&T thing, could their be some leaning, based on your background, towards what a distributor vs. direct sell manufacturer is prepared to do for a customer?
Hi Bill, Thanks for sharing your insights and phone tip. Sure, I may be biased toward a distributor, but in this case it’s more a function of having multiple lousy experiences with AT&T. The main reason I use gmail is the horror show that was a recent AT&T/Yahoo server upgrade.
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
I’ve been wondering if stores like AT&T are so terrible because they are focused on selling long term contracts and assume they will only see you every couple of years anyway. Versus a place like Best Buy that has to win you over every single time you decide to buy a gadget. (I’ve had terrible experiences with Sprint and irritating experiences with AT&T so far – Don’t have the energy to keep trying others… Plus the I-phone does make me happy) Do you like the new Blackberry?
Fred H Schlegels last blog post..Marketing Should Be Everywhere All The Time
Hi Fred, You are much better suited than I to hypothesize on what motivates AT&T to do the things they do. As the discussion suggests, though, it strikes me as ironic that the non-commission Best Buy sales department outhustles the commissioned folks across the street. I think AT&T is all tangled up in wireless knots.
The BlackBerry Curve is fabulous. Easy to use, reliable, well designed all the way around. If you do a lot of mobile web browsing, it’s exceedingly clunky compared to an iphone, for sure.
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
@Brad – Interesting question on the commission issue. I’ve always considered the consumer benefit of a non-commission policy as proving ‘advice honesty’ – salesperson wouldn’t be swayed by a temporary spif. On the other hand I would expect the commissioned salesperson to be highly motivated to make sure that the goods in their care were sellable – so the situation you outline would be a cause for anger and frustration among employees at AT&T. Maybe, when the corporate office appears to be incompetent it drives their best salespeople out. Do that and there is no one left to complain about the web experience, customer service failings and all the other processes that could improve in-store sales. (Or do commissioned sales folks hate an efficient web experience? Can the web kill commissions?)
Fred H Schlegels last blog post..Physics and Ideation: Customer Entanglement
Hi Fred, Commissioned reps do tend to see the web as a threat. They fear sales will be “stolen” from them, and even if management works out an equitable compensation program, there is still that nasty issue of “control”. Commissioned reps often see themselves as independent agents, and as a result, they are very protective of their customer relationships.
Brad Shorrs last blog post..Best Buy vs. AT&T – A Tale of Two Customer Experiences
Wow Brad – That’s a huge price difference. I almost fell off my chair when the Sales Assistant asked you if you were sure you wanted to buy it online.
Cath, You got that right! What did she expect me to say? If they had any sort of proper sales training, management would surely equip the poor girl with a better response, knowing they are almost $150 high. You’d think this wasn’t the first time the problem had come up.
Brad Shorrs last blog post..Words that should be banned: Solutions – Guest Post by Clare Lynch
Hi Brad,
I’m glad to hear that the story had a happy ending, and that you ended up getting a great deal.
Too often, in these types of cases, I think that it is all too easy to blame the sales representative. But in most cases, I would be wiling to bet that in the vast majority of cases, the behavior of sales representatives is reflective of the broader corporate culture. To be sure, there will always be some cases where responsibility for poor service rests with individual sales assistants, but I would certainly have thought that in the vast majority of circumstances, the primary responsibility would rest with management, who for whatever reason fail to either to provide proper and effective training or resources or who fail to instill an organizational culture in which people take pride in service which they provide.
None of this is to condone the behavior of the AT&T representative – based on your description, she failed to fulfill her responsibility to you as a customer – but the primary responsibility for poor service rests with management more than with individual service representatives.
Andrews last blog post..Pehaps Hong Kong’s tycoons don’t always get their way after all
Andrew, You’re so right. I really felt sorry for this rep. She was completely unprepared to do her job. It wasn’t her – she was obviously poorly trained and not ready to talk to customers. Sales is really hard. You can’t just throw someone to the wolves, and shame on her managers if that’s what happened.
Brad Shorrs last blog post..Is Your Website Working? Take The Content Competence Quiz
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