I’ll Pay for It - Price Packages by Service Level

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I’ll Pay for It - Price Packages by Service Level

370 points posted to Sales Strategies, Service and Support by dell_admin1 05/18/07

Dell wants your feedback on the following idea intended to improve customer service and support:

We're considering an option that would allow customers to "buy in” to differentiated packages of service, including where they choose to have the service delivered from.

UPDATE (May 18 at 8pm Central):
A number of people are asking for more information about this idea so they can comment. However, this idea is not a defined “offer” at this point, so many details have not yet been determined. That’s why we want your feedback!

Others have asked if this idea would cost extra or not… in this case, yes, the intent is to explore a “for fee” buy-up option from the standard warranty.

In this option we are considering, the standard warranty service would not go away, it would remain free with system purchase. And the buy-up option would be for incremental offerings, which might range from selecting to be served by local customer service agents in your country to other services such as system tune-ups, virus and spyware removal, etc.

Some of these incremental offerings might be included as the standard offering for premium products, but they might also be offered as an option for any customer to buy into – independent of the model of system purchased. For example, airlines have frequent flyer programs and Club Lounges. If you are a premium customer and fly first-class, you automatically get access to the Club Lounge. If you fly economy-class, you don’t, but you can still buy your way into the Club Lounge.

Again, none of the details for this idea are defined yet, this is just what we are thinking so far (based on your feedback), so you tell us what you think it should look like!

deepstar 05/18/07	Hi, could you give an example ? I have no idea what you mean...
bbarnwell 05/18/07	You need to elaborate more.
phubert 05/18/07	Local (national) support - yes, I'll pay more Retail support - yes, I'd pay more - IF it's good support (compare to Apple store "genius") Higher level tech support (no hoops, no pablum) - yes, I'd pay more However, I also believe Dell could provide _software_ support that could eliminate or simplify many support calls. The software could be provided in one or more forms: * directly off the Dell web site * as an included CD * as downloadable software * as downloadable ISO I've already addressed that here: Hardware diagnostic software and http://www.ideastorm.com/article/show/65367
phubert 05/18/07	Dell could provide better service by analyzing how to PREVENT problems and KEEP customer systems RUNNING (as others have suggested as well)
dockhigh 05/18/07	I think that, only if someone's warranty period (or extended warranty period paid for) expires, should customer or tech service be fee based, regardless of the level of expertise requested. I believe that you are not only buying the product with its warranty (or any extended warranty that is fee based originally), but the customer service and technical support that goes along with it. In some cases, Dell could offer a post purchase extension of warranties (like in year(s) increments), but not that "pay per incident" stuff. That is rather unattractive to me; as a notion or consideration. But really, I don't think any of the above is a good idea. Really, I think that the best (good will) has been Dell's support to the "grave" of the computer or device. I think that kind of support engenders a loyalty that results in "tip to tail" purchases of Dell equipment to replace Dell equipment, when the time to replace becomes obvious (or attractive) to the user. We are always "detailed" on the latest and greatest Dell products. Just keep being prolific with the equipment and supportive of old to ancient purchases, and the new equipment will keep flying off the assembly floors. Look at the XPS 700 (ignoring the issues and assuming that the issues never were). People, many more people than Dell ever expected, dug deep to purchase this rather unusually expensive device from DELL. Why would they "stretch it" in many cases ? I think because Dell had supported their old equipment from purchase to grave and had earned the trust of those people, many of which were really stretching their budgets to get the best that Dell had ever assembled and designed for them. What happened was unfortunate, but it can be rectified (sooner would have been better than later), but the point is, don't think about changing the wrong things. I have found tech support at Dell to be stellar. But, they need Customer Service to help them when there is a problem that they can't fix. It is up to Customer Service to identify the problem (of design) and get it rectified with a sense of urgency. Profit Center is not about stratifying fee based support, to me. Profit Center, to me, is about loyalty and expediency and purchase to next purchase free support of Dell equipment. Dell's success has been built on this. Why look around at what others are doing, when your formula has always worked the way it was ? You just weren't ready for a meltdown the size and expense of XPS 700. Don't start putting square wheels on your proven mode of operation and the loyalty that you had engendered. Stay the course and fix the "crater". All will be fine. You read it in people's responses when you gave them hope that their very expensive computers would be fixed. This is what they expected from you and wanted from you (to be betrayed or feel that way is the worst thing that could happen). Grabbing this unfortunate bull by the horns and fixing it with a sense of urgency will obviate the need for too much interospection and redesign of your structure. Customer Service was just not prepared for a meltdown of this magnitude. Who would have expected it ? None of us. Don't tinker too much. Please. Just internalize the word expediency (something our armed forces are drilled on every day). Thanks for reading. DockHigh
badblood 05/18/07	I'd buy that IF we saw an immediate price reduction in the product by choosing a NO SERVICE OPTION.
phubert 05/18/07	Well, with competitors moving to an offshore model to reduce THEIR costs, thus making them MORE price-competitive with one another (and Dell), the entirely FAIR question is: will YOU be willing to pay more to RETAIN (or return to) service you came to expect in the past! A number have commented about keeping jobs here... or keeping SERVICE here because it was perceived as better... but, like it or not, people, that has COSTS. So, I vote for custom service levels FOR-PAY.
mistern 05/18/07	Can you really vote for an idea that starts with "I’ll Pay for It"? :-D
akidan 05/18/07	I like this, but isn't this what Dell already does with its different support levels (silver/gold/platinum+)? If not, could you http://www.dell.com/content/topics/global.aspx/services/ent_support/ess_compa...
dockhigh 05/18/07	Wonder how many competitors are posting "FOR" tiers of pay for support right now.
dell_admin1 05/18/07	Clarification - this idea would be for Dell's consumer customers. It is correct that today our small business and other enterprise customers already have the option for different support levels.
phubert 05/18/07	"Wonder how many competitors are posting "FOR" tiers of pay for support right now." Which is likely exactly the point...
jervis961 05/18/07	It is really hard to vote for something without the details. This is a basic idea taken from alot of posts that were more detailed. Maybe an update of a price point and what you get for that price would help people understand better. I'm all for options being offered so I VOTED for this but if it isn't a good value or service I WON"T PAY FOR IT.
stevied 05/18/07	The idea is great, but being a cheap person I would be inclined to buy cheap and then moan about service.
dell_admin1 05/18/07	A number of people are asking for more information about this idea so they can comment. However, this idea is not a defined “offer” at this point, so many details have not yet been determined. That’s why we want your feedback! Others have asked if this idea would cost extra or not… in this case, yes, the intent is to explore a “for fee” buy-up option from the standard warranty. In this option we are considering, the standard warranty service would not go away, it would remain free with system purchase. And the buy-up option would be for incremental offerings, which might range from selecting to be served by local customer service agents in your country to other services such as system tune-ups, virus and spyware removal, etc. Some of these incremental offerings might be included as the standard offering for premium products, but they might also be offered as an option for any customer to buy into – independent of the model of system purchased. For example, airlines have frequent flyer programs and Club Lounges. If you are a premium customer and fly first-class, you automatically get access to the Club Lounge. If you fly economy-class, you don’t, but you can still buy your way into the Club Lounge. Again, none of the details for this idea are defined yet, this is just what we are thinking so far (based on your feedback), so you tell us what you think it should look like!
lenny_eh 05/18/07	Absolutely I would pay for it if it was provided from an American or Canadian call center but wouldnt use it if it comes from offshore centers.
badblood 05/18/07	Well yes as you say Canada is part of the USA.
akidan 05/18/07	@dell_admin1: I'd say definitely go for it, then. Let's say your consumer line had the equivalent of Basic/Silver/Gold/Plat+, just for the sake of discussion. First: To avoid confusion on these extra service options when buying a computer, I'd have it select a sensible 'default' service level.. let's say the business equivalent of 'Silver'. You could then entice the 'luxury' buyers to upgrade support with something like "Want us to be there for you, 24/7? Upgrade to Platinum+ support". 'Bargain' buyers will find the cheaper 'Basic' level on their own with no prompting from you, trust me. Second: You might want the default type of support to vary depending on the model of computer being purchased. I'd say that an XPS owner is going to expect a higher level of support for his/her purchase than, say, a low-end Latitude owner.
lindahewitt 05/19/07	As a Dell customer who paid for platinum extended tech support on two computers, it wasn't worth it. I bought the extended support, which cost almost $500 (for each computer) based on the fact that Dell advertised this as "Next Business Day" support service. Six months after buying the top of the line latitude, I got a BSOD, and I got to deal with Dell's Indian support services. After spending 2 months trouble-shooting the problem myself, I finally made my first tech support call to Dell. Dell's tech support started at the top of the script every time. The conclusion of every call was that my operating system had become corrupted, so I needed to reinstall everything. They had nothing to base this on, but this was their solution to any problem that they could not solve. I was told that my platinum tech support "next business day" support did not mean that a technician would be sent out to my worksite on the next business day. First Dell tech support had to verify that it was a hardware problem, then they would send out a technician, who would remove the malfunctioning hardware component and install the replacement component (not a new component but a refurbished component). Then the technician would leave. Tech Support incorrectly informed me that Dell did not provide tech support on the OS; however, Microsoft representatives said that the OEM is responsible for OS support. I found that Dell's diagnostic tools were very inadequate. The Microsoft website site stated that the BSOD error that I was getting was caused by malfunctioning hardware 95% of the time. After working with Dell's dysfunctional tech support in India, I hired my own tech support person to trouble-shoot everything from hardware to application software. The problem turned out to be a malfunctioning software application. I spent 6 months trying to work with Dell's tech support without success. Once I got this problem resolved by paying someone else, I never called Dell's tech support again. I never had a problem with my Dell Latitude laptop, so during the 3 year platinum support agreement, I never had a need to call Dell's tech support. Bottom-line: I paid almost $1,000 extra but Dell did not provide the level of tech support that I had expected. If Dell had disclosed to me all of the details about what I could expect to receive in terms of technical support, prior to my purchase; then I definitely would not have bought it for my workstation but I might have bought it for the laptop as insurance. Dell really needs to provide full disclosure. If Dell had had real experts performing their technical support services, this problem could have been solved in very short order. Dell needs to provide its customers with a best practices guidelines and sell software which can assist the customer in resolving problem issues. Software that I would recommend are as follows: Acronix True Image -- full and incremental backup software Acronix DiskDirector -- Partitioning software TechSmith SnagIt -- Customers should be encouraged to snag and save every error message Kaspersky Internet Security Raxco PerfectDisk RX Suite In the past, Dell has won many awards for its technical publications. Dell needs to write a best practices document for its website and downloadable. Forget about producing a document in 4 languages. Start with producing the document in English with ample illustrations. If this is effectively implemented, this could easily reduce Dell's tech support calls by 75% because most of the tech support problems are not caused by the hardware. I do not think this is a good idea because as Dell is currently configured, I would still be buying a pig in a poke and getting nothing viable in return. This whole suggestion is based on service level not on resolving the customer's problem. Another suggestion for proposed solutions, use the KISS principle and keep it simple...
petzymathuram 05/19/07	Hi, Provide only PC tune up for four years with minimum service charges, wherein customers have to renew their PC tune up usage whether they use it or not. If an issue pops up then charge them and then give a resolution quickly by pinging them on the spot thro the PC tune up. Service Engineers are also better options. They can be called home to fix the issue. Best Option: Build a computer without any fault or minimum fault. ;-)
lindahewitt 05/19/07	Dell has a sizable profit margin on the top of the line computers, which is what I tend to buy. I am talking about Optiplex workstations and Latitude laptops. When I purchased my workstation and laptop I spent between $3,500 - $4,000 but this included the $500 that I spent on their 3 year extended platinum tech support. Since I made these purchases, I have talked to a number of people who have shown that I could build a top of the line workstation for about $1,000 less than what I paid Dell. Obviously, there would be no tech support, if I built the system myself but that is not terribly different from what I have gotten from Dell. Personally, I am not really inclined to build a computer. Until the recent downturn, Dell was posting a net profit increase of 25-28% for the most current quarter, when it is compared to the quarter for the previous year. All of the massive profits were at the expense of Dell's customers and in the end it was at the expense of Dell's credibility and reputation for quality and excellence. What I see with these ideas, is that Dell is looking for easy quick fixes, where they can charge the customer more money; instead of making the management decisions, which can produce the desired results that we all want.
jorge 05/21/07	I could see a support deal/contract where the customer only wants Hardware support and no OS/Software support and pays less for that. Most corporations do their own OS install regardless if the computer came with an OS (even if its the same OS) or not. Also, if its a Club why not have the Club meet certain requirements like forcing them to run the Dell Diag before even ringing the phone basically meet certain troubleshooting tasks before calling in, this would be for a select group. Those requiring support for everything would then fall under a different Club and Dell can filter requests accordingly.
eileen 05/21/07	No. The answer is to provide uniformly excellent customer support. Given the current level of support, it seems you are suggesting that I make the choice between Bad, Worse and Awful support. Maintaining multiple support levels is expensive. Keep it simple and perfect your overall service after the sale. The additional per unit cost passed on to the customer would not be significant when compared to the sales regained by the improved reputation.
jorge 05/21/07	I think your confusing Excellent Customer Support with Directed Customer Support, you it seems want full coverage from hardware, software and peripherals. Whereas I only want hardware (contents of the box). For Full Coverage you need a more broad spectrum of Support Staff if not an intermediary who directs it to the next depending what the issue is. No way will one person fully satisfy your every need, well there might be a person but you're gonna have to pay for that and that one person will not be on call all the time. Dell's different customers are not simple or the same, I will not deal with having to go through the average shmo's path for support, that takes way too long.
maverickcruise 05/22/07	When Dell sells a system it's free of virus or spyware but the computers acquire this over time as result of usage. Now how is Dell expected to service these kind of issues free of charge. After all isn't Dell a hardware manufacturing company, isn't the Dell hardware more important. Priority and urgency should be given to Hardware issues and factory installed software issues only. All third party software and any virus issues need to be charged.. I think Dell is doing a good job in offering a paid support for such issues. Apple doesn't even support their own software after 90 days.......................................
jervis961 05/22/07	Is that your real name? If it is , your parents have a bad sense of humor.
claypidgeon 05/25/07	Cafeteria is the best of these three options. Let me give you a very common issue to where customers do not get service (can't get fixed). When you buy a system (from any vendor) you get a "HARDWARE" warranty (not software support). A common call is where the customer is caught in an ISP connection "Limbo". The dell tech has the customer tell to run the network diag and it says all is good, but the customer cannot connect to the ISP. Dell tech says the ISP is the issue, goodbye. The ISP says through their "checks" that all is good on their end, it must be the dell computer and this goes in a long circle. Now, both companies are technically correct in that the error lies in windows and it is not covered under the warranty, so who fixes?? The customer obviously can't (hence the phone calls). I mean 10 minutes, the tech has the issue fixed and dell has a happy customer, why won't the dimension/inspiron service techs fix it (XPS usually fixed this issue)??? The XPS customer essentially "paid" for it. This still has the same root failure point tho, if dell doesn't actively manage the process, it will fail the same as the current sourced centers (including US) are failing.
lindahewitt 05/25/07	According to Microsoft, the OEM (Dell) Dell is responsible for supporting the OS. When I got my one and only BSOD and after repeatedly testing my NIC card, in 10 minutes the Dell tech could have told me where to look to solve my problem. Instead I spent a total of 8 months chasing this problem and finally hired an independent tech support person to help me trouble-shoot this problem. The other thing that Dell could do is to provide best practices documentation, which re-inforces for the customer which preventive measures that they can take, as well as, what the process that they should go through to trouble shoot the problem on their own. I agree completely that they have to manage the process. Tech Support must be viewed as part of the solution instead of part of the problem. I also wonder if there is a tech support blog, where reps can provide a URL to how they solved a specific problem. This benefits the customer two ways. It increases the training level of the tech support personnel and it allows the tech sufficient time to document the problem and the attempted solution process. As they say, "An ounce of prevention is worth a pound of cure."
jorge 05/25/07	I can believe that, Dell knows more about Windows than Microsoft.
claypidgeon 05/25/07	@lindaheitt: You are correct but not for the "support" you think support is. Dell is responsible for supporting a few "Microsoft" items: 1) shipping you windows media, 2) helping install the OS, 3) basic windows functionality support. If you have advanced support, then you can pay MS, Dell or others. The official windows support is "best level support" ultimately ending in an OS restore/reinstall which is guaranteed to "fix" windows if windows is truly the cause. Another "out" (if you want to call it an out) is the warranty only supports the OS as it is given to the customer and for "basic" functionality only - if the customer makes a change to the OS (adds programs, etc0, then support is out of scope. Not saying this is the best way for customer service, this is just the way it currently is (not only dell, but other vendors also). The example of your NIC is my point, the tech probably asked you to verify activity lights, run the netdiag, and probably passed it off as a windows error and recommend a new OS install which you probably declined. In reality, some people just shouldn't buy a system that they can't get carry-in service to a local shop. The dell forums used to have a customer supported tech forum, not sure if it is still there (but in your case, the NIC not working wouldn't typically help most customers). It is going to be real interesting to see how Dell ramps up customer service for the various linux installs. Check out the warranty you are currently buying: http://www.dell4me.com/termsandconditions and look in the what is NOT covered section. It seems pretty clear what is NOT supported and why it is called a hardware warranty. Depending on what is offered in this cafeteria, this would be the best customer option letting them tailor support for their own skill level. such as a service like for fixing windows issues. Let me speak from my XPS support experience, we generally supported ALL errors (hardware or windows) because that is what the XPS customer paid for. This is the sales speak for the XPS Support: "With a limited warranty minimum of one year (upgradeable to up to four years), your technology investment is protected. XPS-level service includes 24/7-access to our rapid-response support team, made up of specially trained XPS experts." I haven't said it in this idea, so here it is, "If you buy a budget system, expect budget hardware and budget support".
lindahewitt 05/26/07	Claypidgeon, "If you buy a budget system, expect budget hardware and budget support" Your point about budget hardware is well taken but I think support should be the same based on the warranty that the customer selected. One of the many reasons that I always buy a top of the line computer, is that I want a quality system and top-quality support. The last two Dell systems that I purchased cost me between $3,500 and $4,000. These purchase prices included paying almost $500 for your premium extended warranty. When it comes to purchasing computers, it has been my experience that buying leading edge has also worked to extend the amount of time that I can use the computer before I need to purchase a new one, so that I can run the latest software.
claypidgeon 06/02/07	@lindahewitt: Just to let you know, I do NOT work for Dell, nor have I ever worked for Dell. I worked for one of their sourced providers offering phone tech support in the US. Now, couple things you should watch out, $500 for premium extended warranty is just that, extending the time of your warranty period. All of Dell's warranty is "premium", everyone that purchase a home system, get the same level of support. If you spent 4 large on a desktop, you should have purchased an XPS specifically for the US based support. This is why I think this is the better of the options, select what level of service you are willing to pay for. If someone wants NO support, then so be it. If someone wants in home support so be it, you just need to pay. If you want an "in-store" type service so be it. Customer wants in-country support, so be it. The list could go on. Your support was based on the warranty you purchased with the system, it didn't say you wouldn't have offshore service, it just says you will call in, help diag the issue, and parts will be dispatched if that is the cause. In reality you probably paid $150/year for warranty coverage. Me personally, for desktops, I wouldn't by more than one year (I am techie type so I can fix stuff) but for portables, I would buy the entire 4 years plus the accidental (cost fixing portable are much higher). Mind you, this is hardware only. If you start speaking software support such as OS (Windows, Linuxs, etc), applications (Office, Norton, etc), games, etc etc now you are getting into more costs because of training etc so that would be a separate issue (The reason for Dell On Call).
izach 06/02/07	Dell you got my support on this one. Why shouldn't we pay for a higher level of service. Make perfect sence to me. /IZ
jackie_c Apr 21	FYI: What’s Next for Dell Customer Service
jervis961 Apr 22	$$$???
bretta Apr 26	I suggest that you need to beef up standard service and have a 'pay-for'. The fact that you don't always stock replacement parts for (what I believe is) a reasonable time is grossly unfair and unbusinesslike. In one case, an Optiplex was unusable because there were no low profile AGP video cards capable of dual monitor support found world-wide thru Dell, ATI (they say it's Dell's fault as Dell orderd the cards) and several major retailers. I spent ~12 hours on the phone trying to source one without luck. And this for an Optiplex not yet 5 years old. This is like selling a top-line car that happens to have a carburetor, switching over to fuel injection and then not holding enough carbs as spares for the existing owners, such that cars with unfixable carbs are no longer usable in 4+ years (much less 5+, 6+, 9+ or more reasonable years). And you provide zero support for these now-useless computers. And still - as they did years ago - your pre-sales people say to buy an Optiplex for the longest-lived computers due to standard and stable parts (too bad they can be non-existent). I submit you absolutely need to support customers you now leave high and dry because someone at Dell didn't order enough ~$60 parts for $3,170 machines of <5 years of age.

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