Frown Upside Down

I’m just now catching up to this stellar New York Times article, Put Buyers First? What a Concept. It details Jeff Bezos’ obsession with customer service.

The author, Joe Nocera (who’s a great business reporter), gets a free Playstation 3 for his son (mm-hmmm) shipped to him from Amazon.com just in time for Christmas — even though his originally purchased Playstation had been delivered and signed for by someone in his apartment building.

The article points out that Amazon’s focus on customer service isn’t exactly a barn-burner of a strategy when it comes to pleasing Wall Street, but that it seems to be working when it comes to repeat sales.

Best part of the piece:

“

There is simply no question that Mr. Bezos’s obsession with his customers — and the long term — has paid off, even if he had to take some hits to the stock price along the way. Surely, it was worth it. As for me, the $500 favor the company did for me this Christmas will surely rebound in additional business down the line. Why would I ever shop anywhere else online?

Then again, there may be another reason good customer service makes sense. “Jeff used to say that if you did something good for one customer, they would tell 100 customers,” Mr. Kotha said.

I guess that’s what I just did.

”

Indeed, you did, mister journalist. I believe Amazon just spent $500 very wisely.

[Amazon.com is on Get Satisfaction.]

Freakonomics gets it right, even when they get it wrong

A few months back I gave some unsolicited advice to Digg after its users rebelled against the company’s decision to comply with a DMCA takedown notice. My point then was that Digg could have avoided relinquishing control of their business if they’d defaulted to greater transparency; specifically they should have engendered a dialog with their customers prior to making their decision. My point was that this transparency and conversation would actually enable them to retain *more* direct control over their business then they could by maintaining an opaque process. As it turned out, they were coerced into reversing their business decision, effectively ceding the management decision to an angry mob of users.

Digg is doing just fine today. In fact, their traffic seems to be significantly up since then. The temptation is to conclude that Digg was well served by their decision. I worry that they’ve set themselves up for unnecessary future power struggles with their own hyper-empowered users.

Last week we saw a counter-example unfold on the Freakonomics blog. This most popular of economics blogs recently moved to the New York Times, and one of the changes was that its formerly full RSS feed had now become a partial feed (i.e. people reading the blog in feed readers were suddenly viewing excerpts rather than the full article). This created a torrent of resistance from many long-time readers: “Please fix the partial feed problem. They’re just plain rude and I’m afraid I’ll have to unsub from your blog if its not fixed.”

The unbridled frustration from readers continued for weeks (albeit with a fraction of the vitriol as Digg’s users), and the Freakonomics writers posted twice in response, explaining that they were examining the issue closely. Via the blog comments and all over the Web, people took the opportunity to express themselves at length for and against the truncation. Finally, Freakonomics’ Stephen Dubner published a post explaining the blog’s final decision: against the wishes of the most vocal users Freakonomics would be sticking with the excerpts. Importantly, he prominently mentions (even links) to the critics:

Are there strong and sane opposing views on this issue? Absolutely. You can read, for instance, what TechDirt wrote about full feeds potentially creating more site traffic, not less. There’s another interesting view at Online Spin and another at Poynter.org.

While I agree with TechDirt that the decision to truncat feeds are short-sighted and silly, I do think that Freakonomics exemplified a winning strategy: they engaged users in a conversation about the issue and then, after due consideration, made the decision that they felt was right for their business. Like Digg, Freakonomics is nothing without its readers, but its owners are also the only ones responsible for keeping the site a going concern. By being inclusive in the process they respected their readers, even if their decision didn’t please them all.

Now I bet their traffic will go up. Just like Digg’s.

I’d like to thank our detractors for all their support…

Palm, Inc., Your Destination for Handhelds, Mobile Managers, Smartphones, Accessories and Software TitlesIt’s easy enough to thank the folks that say nice things about you. But it takes real wisdom to embrace your critics. Recognizing that it’s passion, whether positive or negative, that fosters forward progress, Palm Computing’s CEO Ed Colligan has paid real respect to those who are clobbering his company with the truth.

In “Dear Palm: It’s time for an intervention“, Engadget’s Peter Rojas basically tells Palm that it is falling apart and better fix itself before it’s game over. It’s a detailed laundry list of things the company needs to do, and analysis on what it’s done wrong. All in all a very tough review.

What’s remarkable is the grace by which Ed Colligan accepts this very public feedback. The traditional approach is to ignore negative press like this, as if by not acknowledging it will become less credible. But Colligan instead expresses his gratitude, then reinforces the criticisms as a way of expressing his seriousness of intent:

I really appreciate the fact that you guys and others care enough to take the time to write such a comprehensive list of actions. I forwarded it to our entire executive staff and many others at Palm have read it. Although I can’t say I agree with every point, many are right on. We are attacking almost every challenge you noted, so stay tuned.

This is a Judo move worthy of a master.