Wednesday, May 6, 2009

Influential Customer Service 101 - XM Sucks !




Many of you have heard me in my "Influential Customer Service" presentation talk about what happens when "Good Companies Go Bad!" For those that haven't seen me in action, Here's an example for you...




Thanks to Joe Vitale and his "Attractor Factor" earlier this year I got a new car. It's a beautiful Acura MDX in that dark burgundy color. The car is perfect, except for one thing... The XM radio. Now XM came with the vehicle for a three-month trial. I left terrestrial-radio behind almost three years ago and got a Sirius subscription. I was delirious with the Sirius Customer Service, the variety of channels, etc... It almost made my commutes bearable (almost!) So when I got this new car I was expecting the same level of outstanding service.




Well...XM sucks for several reasons. There are great customer service lessons to be learned from all this, so here goes:




  • My Trial Subscription Had Limited Channels - If you are going to offer your product/service for a "test-drive" like we do, why wouldn't you give prospective customers a feel of your entire product offering? Sign-up for our complimentary "Pathos Platform" and experience what I am talking about!


  • The Price Was Nearly Double What I Was Already Paying - If you have similar aspects of your product and your service is equal, how can you justify nearly double the price charged? I had an exchange with the Customer Service Representative at XM that honestly went like this....Sam "That price is nearly double what I am paying now!" XM CSR "Yes sir, that's the price." Sam "What's the logic behind that?" XM CSR "There is none sir."


  • There Is No Negotiating With XM - I could have lugged my old Sirius radio with all the wires and everything from my old car to the new one, but I opted to see if I couldn't retain some of the crisp/clutter-free interior styling of the vehicle. As such, I decided to make a run at XM to see if they could at least negotiate (Hey, my 3 month "FREE" trial was almost over!) I talked with an XM Customer Service Representative and asked if there were any "Economic Stimulus Packages" taking place (I had to inform them that I was talking about a discount, apparently the Training Department at XM hasn't had that comedy/humor training session with the economy being as it is!) They told me that if I paid in advance for an entire year that I would receive a month for free. One month? I asked if they could do better. The told me that if I prepaid for two years I would receive two months for free. I couldn't hang-up the phone fast enough!


  • My "FREE" Trial Just Billed Me - Imagine the look on my face when I received in the mail today a bill from XM for $7.58. The bill is broken down as follows - Invoice Fee $2.00, Late Fee $5.00, Tax-State $0.44 and Tax-Local $0.14. I called in to see what the deal was, as my official "FREE" trial ended at the end of last month. First I couldn't get to the right department (The automatic operator wouldn't give me the "For Billing Questions, Press 9" option). Next, when I did get to a "live" person, I could barely make out what they were saying (Watch for my "Customer Communication with Marbles in Your Mouth" training series coming soon!) Finally, I talked with someone that informed me that the bill was "in error"... Sure!


So here I am in this brand new car... still smells new even after three months! Unfortunately, I've reverted back to terrestrial radio for the time being (I'll be compromising that clean interior design by bringing over my old Sirius radio shortly!)



Sam Palazzolo, MBA, CPLP



Pathos Leadership Group



http://www.pathosleadershipgroup.com/