MarketingBeyond

Letter to Dan Hesse at Sprint: Salesmanship and Customer Service

(A podcast version of this post is at MobileBeyond.)

November 22, 2008

Dear Dan:

Today, Dan, I walked into one of your stores--the one at Newpark Mall in Newark, CA, not far from my home. I'm a Sprint customer, qualify for a phone upgrade and thought I'd check out a few of your phones that caught my eye of late: The BlackBerry Curve, HTC Diamond Touch and even the Instinct--your "iPhone Killer"--although I'm not heavy into multi-media or touch-based keypad phones.

Dan, let me be candid. If you're wondering why you're losing millions of customers to AT&T, Verizon and T-Mobile, it's because you haven't trained your staff how to sell and offer superior customer service. You haven't even conveyed to your staff a sense of urgency in our economically troubled times.

When I walked in the door, four--that's FOUR--Sprint employees were cracking jokes and having a great time behind the counter. I yelled out "Hi" to everyone, got a slight acknowledgment I existed and started playing with the BlackBerry Curve. (The demo Curve's screen, by the way, was full of finger prints and looked like it hadn't been cleaned in a week.)

Not one of your employees approached me. I looked at several phones, thought about upgrading and signing another two year contract, then walked out the door.

Meanwhile, excited T-Mobile salespeople at the kiosk outside your Sprint store were actively soliciting business from people walking near the kiosk. I heard one say: "Hey, would you like a free phone?" Further down the mall thoroughfare were TWO AT&T kiosks. Positive, excited salespeople were showing off shiny new phones from your competitor. Down further was Verizon's kiosk with a giant BlackBerry Bold display and sharp-looking employees showing off Verizon's line-up.

You know, Dan, I was almost tempted to stop by each of those kiosks, if only to listen to how excited, positive people offer superior salesmanship and customer service. But time was passing and I had to leave the mall.

Dan, just so you know I'm not knocking Sprint alone, read by blog post on AT&T: "Training Retail People People to Become Marketers and Delight Customers." In the post, I relate a negative experience I had at an AT&T store. Or, if you're in the mood for some humor, take a look at my blast against Verizon: "News Release: Verizon Wireless Announces $99 'Talk All You Want' with Rollover Plan."

Sprint is running some VERY cool online flash videos of your phone line-up and expensive broadcast and print advertising portraying Sprint as the leader in wireless technology. So, I'm very sorry to see that, having spent millions of dollars on quality advertising, you would allow its impact destroyed by your retail employees. It doesn't make sense.

Here's what should have happened today at your Sprint store:

1. A pleasant, well-dressed trained Sprint sales rep meets me at the door
2. Through a series of questions and rapport building, the rep makes me feel comfortable and helps me find several phones that meet my needs
3. The rep answers all my questions and skillfully handles my objections by presenting features and benefits of the phone, the plan and Sprint as a quality company
4. The rep closes the deal with appropriate statements and quesitons ("this phone does meet your needs, yes?")
5. The trained sales rep upsells me at the counter with accessories, phone insurance, a better voice and data plan
6. After handling the transaction, the Sprint rep gives me a business card, asks me to call him/her at any time if I have questions, thanks me for buying from Sprint, walks me to the front of the store, thanks me again for my business and wishes me well

Dan, I know you have a training program in place for your sales reps. But you disappointed me today. You made me feel that, just maybe, I made the wrong decision going with Sprint. Your reps' lack of care, attention and professionalism didn't jive with your cool, high tech ads. I walked out the door feeling negative about Sprint.

I know you're working hard, Dan, to turn the company around. You're moving ahead with WIMAX and other new telecom technologies and services. But, today, Dan, you disappointed me.

I thought you would like to know.

Regards,

Brian

 

Credit Card Theft Goes High Tech: Banking's Next Challenge

Before the debacle of sub-prime mortgages...before the creation of CDO's and CDS'...before the near collapse of the banking system...before George Bush entered the White House...and after God created the Earth in seven days...credit card theft reigned supreme.

Today, the Wall Street Journal reported that Target customers, who accepted the enticing offer of a free Target credit card, are in default to the tune of over $300M. CitiBank, which announced the elimination of 20% of its workforce yesterday, American Express and other major banks are also losing billions in their credit card operations. And the good news keeps dribbling in.

Just to add to your list of worries, however, the Department of Justice recently announced a masssive credit/debit card theft, CBS News reported a case where 11 people stole information off 40 million credit cards wirelessly by driving past retail outlets, then transmitting the stolen data overseas. And CrediMom, a blogger, wrote a post describing how credit card thieves clone and skim your private information off the metallic strips on the back of your cards.

Let me tell you a personal eCommerce story that should keep you awake at nights...a secret that few people know about credit card transaction processing in the U.S.

I spent three hours on the telephone today speaking with my former merchant account company (merchant account companies work in tandem with Authorize.Net and banks to approve credit card transactions). I also chatted with a police officer in West Virginia about a $2,500 loss I recently experienced in my business due to credit card fraud.

What I discovered is startling. Do you know that if someone has your credit card number, the three or four digit CVS security code printed on the front or back of your card, your zip code and numeric street address, a credit card transaction can be approved?

If it's an online transaction, the thieves don't even need your NAME. That's right. If the card is valid and the charge is within the credit limit, an online purchase can be approved even if the purchaser writes "Donald Duck" in the bill-to area of the shopping cart screen.

No one at my merchant account company, Authorize.net, a "gateway" company that coordinates CC transactions and the bank that processes approvals could tell me why credit card holder NAMES are not part of the authorization requirements. The answer from everyone with whom I spoke: "That's just the way it is."

Fraudulent credit card transactions--now estimated in the billions each year--are either charged back to online merchants, who have insuffiicent proof-of-delivery, or written off by the issuing bank. The owner of the credit card disputes the charge and that's it.

Now you know why credit card companies charge outrageous interest rates. Someone has to pay for credit card fraud and, guess what, it's you and me.

So, while Americans worry about losing their jobs, homes, 401k's and next year's vacations, don't forget about the plastic. Remember, the thieves are out there--and many have gone high tech.