WWW.ord to the Wise

A friend once got so mad at a retailer over a billing dispute that he kept throwing away, unopened, all correspondence from the company. He vowed not to open an envelope until it had stamped on it, “This matter has been referred to our lawyers.”

He then hatched a better idea. Knowing he had no real choice but to pay the bill eventually, he paid all but $10. That would keep the lawyers at bay, while ensuring that the company kept mailing him bills. After a few months, he would send an $11 check. The company would keep sending statements showing a credit, then finally cut a $1 check. My friend figured he could cost the retailer far more than the $100 in dispute.

I’m not nearly that devious, but I’m getting almost as angry as my friend was, because of problems with online retailers. Every single recent order has been messed up, and customer service lacked the right information to deal with my problems. When only one of two packages arrived from American Girl in time for my younger daughter’s birthday, an agent said her computer showed I had received the package I didn’t get, while the package that did arrive supposedly hadn’t yet been shipped. When some shades for our vacation home didn’t arrive from Smith & Noble LLC by the promised date, an agent said his computer indicated they would be shipped the next day; when the doorbell rang 10 minutes later, it was the shades being delivered. When some sheets didn’t arrive on time from the Company Store, an agent checked his computer and said they’d be shipped that afternoon; they arrived half an hour later.

All those companies, plus several others, have lost me as a customer. (Except for American Girl; my daughters are addicted.) Most must have lost money on their dealings with me—especially those that had to repair something or ship an item a second time.

All because of lousy information systems.

With that as a backdrop, it did my heart good to read this issue’s article [“Jackpot!”] on how Harrah’s Entertainment Inc. uses information superbly and, as a result, provides stellar customer service. The book excerpt [“Who Are Those Guys?”] about EMC Corp. tells a similarly inspiring tale. The column by Mel Bergstein [“No Rest for the Weary”] explains how companies can follow the examples of Harrah’s and EMC and vastly improve how they use information to understand and deal with customers. If my experience is any guide, just about every company could benefit.

I know that technology is a dirty word these days, following the dot-com crash, but several pieces in this issue show that technology marches on. A column [“Batteries Included”] shows why electronic devices will continue to get smaller and more portable at a mind-boggling rate. In handing out our annual Killer App Awards [“Killer App Hall of Fame (and Shame)”], we explore why instant messaging and high-speed, wireless local area networks are becoming potent tools for business. In The Last Word [“The Wealth of Notions”] two eminent historians argue that the Internet is democratizing innovation, giving everyone access to the resources for invention that used to be reserved for a well-financed, highly educated elite.

Here’s hoping that companies will heed the sort of technological imperative described in this issue and continue to invest in innovation and in their customer databases. I’m determined that someday I’ll be able to get what I order, on the day I’m told it will arrive.

Cheers,

Paul B. Carroll
Editor-in-Chief


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