For years, Dell has enjoyed one of the strongest brands on the market. Lately, however, the giant computer manufacturer here was some real heat in a number of blogs and websites, consumer affair. Browse In fact, a quick websites like My3cents.com, Ripoffreport.com, ConsumerAffairs.com BuzzMachine.com and will be satisfied by several negative posts and comments left by Dell customers. Not exactly what you expect from a company with such a good reputation.
Dell executives sayThey control online complaints and take action to correct these problems. Above all, they have added more customer service centers and employees in an effort to improve the resolution of customer complaints. These measures seem to pay off. In a recent article, cited Investor's Business Daily, Dell's internal figures showing a 35% years versus the previous year, improving customer satisfaction and a 30% improvement in their ability to solve problems, for the first time.
GivenSurveys that Dell around 24,000 private customers in the month, these numbers are remarkable. But I wonder whether some of the steps that Dell is currently perhaps come back to bite their brand over the long term.
Great out of the blocks
I recently purchased a Dell computer online, and I must say the experience was excellent. In fact, Dell executed properly.
I was just on the market for a new PC and saw a great price in one of advertising from DellCirculars. I went to their website and easy to find in the advertisement. (I added a few extras nothing like a little extra horsepower to jazz a new PC!) For Laid and sat down to wait for delivery. Then Dell sent me some tracking e-mails I receive has to keep on the status of my order knowledge.
The computer came a few days ago promised - a nice surprise. I threw him out of the box and set it in a matter of minutes. Everything went well and I started my own installationSoftware. During the installation, but I hit a snag, and my computer locked up. I called Dell, and in a few minutes she helped me solve the problem.
I'm sure my experience is repeated thousands of times a day around the globe. Finally, this is where Dell seem really is. The acquisition and setup experience in a shorter time at lower cost and with less effort than any other personal computer company. That's what Dell value proposition and brandPromises are all about - providing a cost-effective, tailor-made PC to your home with minimal effort on your part.
Not So Great Down the Stretch
Although Dell PC procurement and installation experience has mastered, they are struggling and offer the service after the sale. And that's where the Dell brand is taking place a hit.
Dell built its reputation by providing high quality PCs at a very low price - a classic application of the lowest total cost valueRecord. What does Dell is not a real customer intimate solutions or the best overall solution. If a complicated problem arises several months after the purchase of computers to solve your problem experience with Dell is likely to vary considerably (and far less satisfying) as the first acquisition of experience.
Until now, Dell has received with this approach, because their traditional customers, as experienced users of technology, do not expect much service after the rulethe sale. However, Dell is expanding customer base, and to be where many of the problems seems to be coming from.
As Dell has achieved dominant market share, and took in more new customers, a growing number of them are first-time buyer or PC novices who require a high degree of hand-holding after the sale. If you read the articles on the customer affairs Web sites and blogs to be able to react fast to the idea that most complaints come from technology novices. Plus, as theabsolute numbers of customers continue to increase the number of errors on the part of Dell's commitment to raise with them.
A shift in strategy
Dell does not have as low-cost provider, have the profit margins, extensive customer support. But that's about to change.
Dell recently announced a spate of paid customer support options ranging from consumer services for the comprehensive in-home services offered by Best Buy, the Geek Squad to reflectto coordinate comprehensive services for businesses. The business services run the gamut from simple system set-ups to complex implementations, rollouts, that at several locations and customers meet tight deadlines. Looking ahead, it's only a matter of time before Dell offers comprehensive IT outsourcing that similar service offerings from HP and IBM mirror.
Why this change in strategy? One is Dell trying to protect his mark by clearing with a growing number of customer complaints. Two,and more important, they hope to revenue by increasing customer service from a cost center into a profit center. For me, the most interesting aspect of all this, what it could do for the Dell brand.
Currently, Dell dominated the best overall value proposition in the market for personal computers. But one day, their first line sales growth will stall if they do not do more - hence their businesses in the provision of value-added services after the sale. My bet is that Dell successfullynavigate this shift and the additional services the customers will want to pay for them. However, by these services and services to a company can be confusing to customers. Ultimately, they might confuse their brand.
Dell is a best total cost or overall best company? Can they also implement value proposition without confusing customers and / or diluting the brand? Remain entrenched for now, but in the best total cost of camp. But if their intentionsmigrate - but slowly and cautiously - to an overall best strategy, she should for a very interesting trip. More importantly, should teach us all some valuable lessons about the challenges in maintaining a # 1 brand in a rapidly changing environment.