Archive for the 'start-up Tips' Category

Customer service Lessons Learned

I know, I know, not another blog rant about some crappy service received from a giant corporation. Well, I can’t help myself. After dealing with a nightmare of a issue with a computer manufacturer (Dell), I took the time to reflect on my own customer service experience and thought I would jot down my experience.

One of the first issues that sticks out in my mind is one that was a bit tricky, based on the product in question.  When skateboard.com first started, we had our returns policy in place and made it very easy to access throughout the web site. One of the products that we sold a lot of at skateboard.com was skateboard decks. The skateboard deck, for those of  you who don’t know, is the actual wood board that you put your feet on and is obviously the most important part of a complete skateboard. The skateboard deck is made from wood and will break pretty easily, if you land on the board incorrectly. The skateboard manufacturer has a lifetime guarantee from manufacturers defects on the deck. There are only a few things that could possibly be defective on a skateboard deck that manufactures would be responsible for. In reality, 9 out of the 10 decks that are returned for breakage are usually a result of landing incorrectly on the board when doing a trick. But, it’s usually pretty hard to explain to a parent that the deck that they just paid $50 for, for little Johnny, and that he broke the same day he got it, was not defective. One of the first of my dealings with this incidence was not to long after we launched and we got a broken deck returned to us with a note saying they wanted a replacement. So, after reviewing the broken deck, we conclude that it was not defective.  We called the customer and spoke with them to explain that we couldn’t replace the board because it wasn’t defective. The kid understood but the mom wasn’t having any of it, she was down right nasty to us, threatened to charge back her credit card and buy another deck elsewhere. The fact that she was nasty to me made my decision to stick by our policy that much easier. She eventually harassed our CSR team enough that she got through to our current CEO.  The CEO made the decision to send her another deck. I explained that decks break and that this was going to be a problem moving forward if we didn’t enforce our return policy. After the decision was made to replace that one broken deck, we received a letter a few weeks later from that same customer that was so rude to me. The letter stated that she was very grateful that we made a decision to replace the deck and that being a single mom, not making much money, it wasn’t easy to spend $50 for a skateboard,  bah blah. You know the regular old sob story. Never-the-less, she was happy, the kid was happy and we were cruising along. Fast forward a few months later, at Christmas time, one of our CSR’s had gotten a phone call from the same lady, she gave the CSR her CC info and gave instructions that her son had a $500 limit and could get anything he wanted for Christmas. He chose to get all of his skate gear from us, $500 worth, because he said that we replaced his deck months before. He could have been blowing smoke, but from then on we realized that it would make sense to change our return policy to include broken decks within a specific time period. Over the following years, that was one of the selling points that we had over our competition. We gained a certain amount of respect and trust as a result of that policy change. Turns out, returns of broken decks went up only slightly, but increased sells made up for it. We had also learned that our return policy was not written in stone.

Now, to bore you even more. I just wanted to highlight a situation that I had recently with Dell Computers that has significantly changed my opinion of them forever. I purchased a new Dell XPS M1530 laptop at the end of August that took them almost 2 weeks to build and ship. There were many things, from the check out to delivery that required me to interact with Dell customer service via phone, that I’ll spare you the detail on here. They finally finished my laptop and shipped it out on September 4, It was delivered on September 8. It had been more than two years since my last laptop purchase, and to say the least, I was excited. I actually, felt like a kid waiting for their skateboard to be delivered. Never-the-less, i got the computer, took a couple of days to get mostly everything set up, files moved over, and software installed. I then got back to business with client work and pretty much business as usual, but with my new laptop. For the next two weeks, I noticed that the computer moved slower than my previous laptop even though it had a lot more processing power and ram and just about everything else. Additionally, every time the computer would hibernate it would actually restart. Even worse, I would get the occasional blue screen, as well freezes and crashes and heat like it would catch on fire.  So, after dealing with this I decided I didn’t want that computer and wanted to return it, maybe exchange for a different Dell model, but definitely send it back.  So I tried contacting Dell several times on the 28th, every time would result in a disconnect. Eventually I sent them a email via their contact form. Additionally, I called the next morning and spoke with a live person, albeit a person that spoke very badly broken English and sounded as if the read from a que card. They informed me that they have a 21 day return policy and that there are no exceptions. Of course I asked to speak with a manager, and was told repeatedly that a manger would tell me the same thing and that there were no managers available to speak with me currently. I eventually did speak with a “manager” and was told the same thing that the earlier rep told me, 21 day return policy, no exceptions.  Screw it, I gave up and tried again the following day. Everyone read from the same que card. Since Dell has no showrooms where a potential customer can go and touch and feel the product, and I live in Austin. We have to take their word for it, that we’ll be receiving a quality product. You would think their return policy would be at least 30 days.

I figured if I was going to be stuck with the computer that didn’t work the way I had hoped, I should at least get Tech Support involved. I did, they had me run a bunch of test, they said it would take few hours to run all of the tests and that they would call me back at a agreed upon time to discuss the test results. Our agreed upon time was 9pm and guess what, no one called back. I suppose at some point I’ll have to call tech support to try and get them to replace the computer, but, I fear since the test looked like they ran without error, I’ll have a hard time convincing Dell that I have a lemon. So, I restored the laptop back to the factory settings with intentions of selling it. I’m not sure I would feel comfortable selling the laptop to someone else. What do I do? Either way, I’m currently stuck with $1,500 brick. I know one thing is for sure, coming from someone who has purchased over $100k in Dell servers and Desktops in the past, I will be very reluctant to do business with them in the future.

I refer back to my experience with skateboard.com and other customer oriented companies that I’ve worked with,  your return policy should be not written in stone.

P.S. If anyone wants a good deal on a “top of the line” line Dell laptop, just let me know.

Startonomics is over but the presentations are online

If you were unable to to attend Startonomics today in San Francisco. You’re still in luck, as they’ve archived everything on Ustream.tv and on SlideShare.

Startonomics is a one-day workshop designed by entrepreneurs for entrepreneurs on how to create simple, actionable metrics; and how to use them to make better product and marketing decisions for long-term growth and startup success.

One of the standouts for me was the presentation by Muhammad Saleem.com/


Cocktail Napkin to Startup

The Texas Startup Blog has a great series of posts describing how they’re taking an idea from a cocktail napkin and putting into the real world. They’ve come up with a great idea. It’s a edgeio type concept “resumes on the edge”. You can read about the whole thing via the links below.

Part 1
Part 2
Part 3
Part 4
Part 5
Part 6
Part 7
Part 8
Part 9
Part 10
All

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Marketing to 53,651 might not be a bad idea after all

A few weeks a go Josh Kopelman wrote a really popular post on his blog that expressed his concerns about web 2.0 entrepreneurs marketing to too small of an audience.

”A good review in Techcrunch can get a company their first 5-25K beta users very quickly. However, I’d strongly caution entrepreneurs from taking their initial consumer adoption metrics and extrapolating them too far into the future. I believe startups will find it difficult to cross the “Techcrunch chasm” between the Web 2.0 geeks and Mainstreet USA.“

Techcrunch has over 50k readers and he thinks that those 50k + readers are not a “mainstream America audience”. Well, he’s partially right. Those 50k + readers are not your typical casual internet user. That audience, is what I would call, power internet users and early adopters. They are the people who can make or break a product. They are also the best beta test audience, for several reasons, mostly because they are willing to give quality feedback. But, the most important attribute of that groups is that they are influencers. That makes them a very important group of people to market to. If you’re building a new web product or service, that potentially, will have “main stream” appeal, but you don’t have a budget to “blow it out” from the beginning. Then, why not market to that Techcrunch group for a lot less dollars. If you have a good product, they will evangelize for you. If your product is not so good they’ll tell you that also. Either way, I think the best way to launch your new web product is to market to that group of 50k + users. They will add value to your product or service.

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ERP, CRM, $500,000 and $700,000, I must have been nuts

I was going through some of my old business plans today and was shocked and amazed of how much things have changed in the web world. One section of my business plan caught my attention more than others; Technology. You can read it below.
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3.4 Technology
Our technology investments will be concentrated in four areas, ERP systems for e-commerce fulfillment and business automation, CRM for customer relationship management, profiling, and site customization, site hosting, and Web Design/Development.

Our first phase ERP and CRM technologies are currently being implemented by eQuarius, Inc. in Seattle, Washington. The platforms for ERP and CRM are Great Plains and Onyx respectively. EQuarius is one of the top e-business implementers of both Onyx and the Great Plains products in the country. Both Great Plains and Onyx lie on top of the Windows NT operating system, and both software vendors have very strong ties with Microsoft. The site itself will be hosted on Microsoft’s Site Server platform. Equarius has conducted many successful similar implementations, and the risk of cost overruns due to technical snags is minimal.

The site and all critical applications will be hosted by Futurelink Corporation of Irvine, California. Futurelink will be responsible for all hardware, backups, security, upgrades, and ensuring the proper functioning of all applications. They will maintain a redundant copy of the site at another one of their hosting facilities in Canada. In the event that local conditions have a significant impact on the performance of the California site, the Canadian site will act as a backup.

Our first phase architecture will consist of a hybrid 2-tier/N-tier architecture. Great Plains has developed a series of COM objects enable a robust and cost-effective 2-tier implementation with Site Server. Our initial implementation of Great Plains will make use of these standard objects. Equarius will build an middle tier on the front end of Onyx as part of the Phase I project. Phase II will expand this middle tier to Great Plains. The creation of a comprehensive middle tier reduces the likelihood of site downtime, eases the integration with drop-shippers’ systems and other systems, and speeds up the response time from the consumer’s perspective. Assuming adequate financing, we expect to have this tier in place and tested prior to the Christmas shopping season. We estimate that the total cost for implementing Phase II will range between $500,000 and $700,000. This includes approximately $200,000 for integrating suppliers’ warehouses. This will cover the integration of anywhere from 2-7 warehouses, depending on the state of their existing systems.
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This is definitely one of those hindsight things. If I knew then what I know now, well, let’s just say, I would have done things a whole hell of a lot differently. What were we thinking; ERP, CRM, N-tier architecture. Even then we could have gotten by with much, much less. Today, I could certainly build a robust e-commerce (front and back end) web site for next to nothing. Live and learn.

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How to Build a bullet proof startup

I got my copy of the June issue of Business 2.0 yesterday. On the cover is a big teaser pic for their feature article, written by Michale V. Copeland and Om Malik. How to build a bullet proof startup. With the exception of a few, there are no bullet proof startups. Don’t get me wrong, the article has some solid advice and um, cool illustrations. I think they had the wrong approach when writing the article. Lots of companies don’t start with VC money these days and most sure as hell don’t have $500k to $1M to develop a beta product. As I’ve written in other posts, the tools are available now that will allow you to start a legitimate company with much less capital than Business 2.0 trys to tell you.

You can read more at the following:
Business 2.0
GigaOm
SignalVsNoise

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6 Steps to being your own boss

MSN Money has a really good article on entrepreneurship for young entrepreneur. Good stuff, well worth the read. You can check it out here.

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startup school

The Hardest Lessons for Startups to learn

Paul Graham has posted a really cool list of advice for startups. Below are some of my favorite ones. Go to PaulGraham.com to check out the entire list.

2. Keep Pumping Out Features.

Of course, “release early” has a second component, without which it would be bad advice. If you’re going to start with something that doesn’t do much, you better improve it fast.

4. Fear the Right Things.

Another thing I find myself saying a lot is “don’t worry.” Actually, it’s more often “don’t worry about this; worry about that instead.” Startups are right to be paranoid, but they sometimes fear the wrong things.

7.Don’t Get Your Hopes Up.

This is another one I’ve been repeating since long before Y Combinator. It was practically the corporate motto at Viaweb.

Startup founders are naturally optimistic. They wouldn’t do it otherwise. But you should treat your optimism the way you’d treat the core of a nuclear reactor: as a source of power that’s also very dangerous. You have to build a shield around it, or it will fry you.

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Great Entrepreneurial advice from O’reilly’s Marc Hedlund

This is a great read from Marc Hedlund.

I started out this year’s talk with a set of “proverbs” I’ve collected or thought up over the years. I liked the format of a Go book I recently read, called (not surprisingly!) “Proverbs,” and decided to adopt it for the talk. These are basically little nuggets of wisdom for bite-sized nutrition.

Go read Entrepreneurial Proverbs

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Mark Cuban’s speeches from 1999

Mark Cuban has made is Power Point slides available for public consumption. Actually, it’s his speeches from 1999. In his words:

I doubt they will be as entertaining to others as they were to me, but heck, you never know. Flashbacks can be fun

Check them out here.
By the way, his stuff is downloadable via Box.net, which I’ll be doing a profile on next week.

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