Vision - July/August 2008 - (Page 25)

chasing the product, their expectations and value derived were unmet. In other words, while the product worked, it did not work for them. Examples of this: it’s important to take a hard look at how to deliver a winning customer experience and take serious actions to get there. • CE companies need to understand their ter throughout the industry’s value chain. • The product actually doesn’t work (which is rare). • It is too complex to install, activate or maintain. • It is not as “cool” or doesn’t perform as the customer thought it would. • It is a “hassle” to use. • They cannot get the support or help they need. The Get-Well Plan Transformation implies a large magnitude of change. In this fast-moving industry with all its cost pressures and competition to get ahead, it is difficult to drive wholesale change in a business. For some companies, doing this will determine how much they can grow and how profitable they will be. For others, it might determine whether they survive or not. While each company has unique challenges and opportunities, there are a number of common actions that every CE company needs to consider: • Every company—from semiconductor suppliers to retailers—needs to recognize that this is a widespread problem shared by the entire industry. What Is Breaking Down? Stories abound of the weekend-long endeavor to get a wireless LAN to work, or to set up a new mobile device. Yet it’s not just the high-end, more complicated products that trigger so many product returns. Mid- and lower-end products also continue to get hauled back in unacceptably high numbers. Granted, today’s consumers are becoming more technically literate and comfortable working with technology. However, the reality is that the vast majority are not computer or software programmers. Mastering the intricacies of multiple operating systems, menus, drivers and protocols remains daunting for most lay people. Making the situation worse, the CE industry generally provides minimal support prior to the sale, during installation/ activation and post-sale. In fact, the service experience has become so poor in the eyes of consumers that they loathe searching online for answers. They want to avoid insufferable interactive voice response systems and the endless phone queues waiting for a live service agent. The good news for the companies that deliver solid customer support, and a positive experience, is that those customers tend to be even more loyal to the company. These factors create a real set of problems for the entire CE industry in the form of product returns. However, caution is warranted because these same shortcomings causing the products to be returned inevitably will cause the customer to stop coming back to shop. To reverse this trend and drive CE companies toward achieving high-performance, www.ce.org markets and segments more fully, especially given the rapid changes in today’s consumer habits. Although most companies currently segment based on demographics and products, they also need to do it based on consumers’ behaviors, preferences and abilities. • Customer service and support is not a necessary evil; it’s the key to long-term profitable growth. When effective, consumers are willing to pay for service and support. The problem is that most service experiences are not positive. Companies need to take a step back from trying to minimize their service exposure and, instead, elevate their service-level performance to be on par with their products. In a figurative sense, companies need to have a mentality akin to “We’re not just going to sell you a fast car. We’re also “We’re not just going to sell you a Fast car. We’re also going to teach you hoW to drive it.” — al delattre, accenture • Proactive consumer education and awareness is required to better educate consumers about how to use the product before they purchase and leave the store. Pre-sales education plays a pivotal role in reducing returns when customers understand what they are buying and how to use it. Similarly, a post-sale, proactive phone call to that same customer within 24-hours of the purchase is an idea gaining momentum for reducing product returns for major items. • During the design phase and at the time the product is sold, the industry needs to have a more complete understanding about how consumers want to use the product. Major steps of the consumer experience (how they buy, connect, use and solve problems with the product) need to integrate into a true end-to-end model, which will require companies to work bet- going to teach you how to drive it.” • Companies need to continue to evolve and tailor their service offerings. There is a balance between services that can become revenue streams, services that support product sales pull through, and managing how much they are willing to give away in warranty and returns. Solving the returns problem does not boil down to a simple equation. Product returns are the result of a set of complex problems that will not be simple or inexpensive to correct. But if the industry does not start overcoming this colossal challenge, CE companies will continue to struggle to sell their products, “keep the product sold” and achieve financial goals. Al Delattre is managing director, Communications and High Tech Practice, Accenture. He can be reached at: allen.j.delattre@accenture.com. • July/August 2008 25 http://www.ce.org

Table of Contents Feed for the Digital Edition of Vision - July/August 2008

Vision - July/August 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Embracing Disrupting Technology Vaulting Ahead with Your Brand International Risk Stop Boomerang Products CEA Newsline Tech Speak Tech Policy Going Global Eye on Business Market Insider Just the Stats

Vision - July/August 2008

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