Can Companies Succeed with Questionable Customer Service?

I didn't set out to answer the above question, but in fact thats what I proved. Can a bad customer experience still result in a sale? So goes my phone replacement saga. It's not Washington DC specific but it is 'customer experience' worthy. So indulge me,... this may take some time.

My poor little LG Verizon Wireless phone has just about expired. The camera went a few months ago and now after an unfortunate mis-step in the kitchen the LCD screen is shot. So basically I can't see my addresses at all or even screen my calls. So for all you debt collectors or ex-boyfriends out there, ring away, I'll answer.

Since I have to get a new phone I contemplated gettin an iPhone. After being late to the iPod party I'm a big convert and really use my iPod to full capacity. So I thought I would enter into the 21st Century, pretend I'm Gen-Y, and get an iPhone. Yes I'm selling out. But since I'll incur at least $100 for a new phone I figure I'll foot the difference and get the iPhone.

Now it's off to call AT&T. Since my employer has a discount program with AT&T I thought this made sense first rather than going direct to the iPod store. I call the number on the corporate discount program website and do battle with the Voice System asking me for my phone number. Hold out for an operator instead which the computer politely tells me will take 6 minutes. Sure enough it takes about that long only to have the operator tell me she can't help me without a phone number. Here's the play by play, just in case you needed to boil your blood some today:
Agent: I need your phone number
Me: But I want new service.
Agent: I can't help you w/o a phone number or employer code
Me: I have that,... it's xxxxxx.
Agent: It has to be a 9 digit code.
Me: But the code on your website says xxxxxx
Agent: It has to be a 9 digit code
Me: Ok, let me start over. I would like to get new phone service. I work for a major fortune 25 company and I know we have discounts with AT&T.
Agent: You'll have to call this other number. xxx-xxx-xxxx
Me: Ok great. Can you transfer me.
Agent: [No response but the call goes through to a fast busy ]
Me: [I then call the number she gave me,... which promptly goes through to an all fantasy chat line]

I decide to punt for now on calling AT&T and instead think maybe I'll swing by the iPod store on my way home.

Let's call Verizon and see what my contract penalties are,... should be zero since I've had this service for over 4 years now and don't ever recall signing a re-up. The IVR doesn't have an option for "I want to discontinue my service so I can get an iPhone" , so I say a quick prayer and then hit the Zero.

I get a nice gentleman, Dante, on the phone and explain that my phone is on the fritz and want to understand my options. He looks up my account information, delivers a small and friendly greeting, and empathizes with my phone situation. He politely explains that my phone is under warranty and I can apply a $100 credit to any phone or PDA. Tempting, just a tad. For giggles I look around at the website and am intrigued by the Blackberries but it does still seem so last century. Cleverly he does an exceptional job of explaining the Blackberry options to me and I'm intrigued even more by the Blackberry Curve. The Blackberry Storm sounds interesting but sadly it's not released yet. Dante continues to sell me on the Blackberry.

When I finally inquire as to canceling my contract altogether, he expresses the appropriate sadness, but then explains that if I wait til the first week of November there is no charge. So thats not a tough sell. Even if I get a new phone today I can just cancel my old phone in a week.

I'm off to drive by the iPod store now and check out my options. Stay tuned.

Update from my Apple Store trip. Well I'm not really sure what to think. On a Monday nite there are at least 40 people in the store. I mill over the iPhone 3Gs, and I'm surprised to see they are not as expensive as I thought they were. $200 for an iPhone 8Meg. But with my Verizon offer, if I go with Apple, I'm really out $300. The plot thickens.

So, I take in the Apple Store. The cacophony of sounds and sights makes for a kind of frenzied energy. It's definitely not a relaxing shopping experience. After about 10 minutes of looking over the iPhone I decide I really need to talk to someone (and I don't mean head doctor either!). I head over to the densest place in the store, something called the Genius Bar. I'm pretty much not getting the time of day from any of the 'geniuses' behind the bar and I put 2+2 together and realize there is a waiting line. So where to signup? No signs anywhere. Maybe only geniuses can come into this store. Clearly they know something that I don't. There is a big computer nearby advertising a store Concierge - well who doesn't need one of those? So I signup. Seems a bit extreme, email and phone and address ,all just to talk to a salesperson.

I meander around for a bit until finally a salesperson, at least I think he's a salesperson since he gives me a rather cryptic response when I ask, sidels up. But alas, he can't really help me, he says that I need to speak with the woman in the orange shirt for new iPhones. Umm, how would I know that? No greeting - customer service rule number one for me. Finally the salesman comes back over and tells me that the iPhones are on backorder unti lthe New Year. What? He was kiding of course. Over the course of our discussion he's interrupted by other salespeople 7 times. Other customers 6 times. He leaves me to go help other customers 4 times. There's an element of a way too friendly/flirting going on, it's too much. It's been an hour of deciding on an iPhone. During our conversation there is an obvious attitude of 'we're Apple and we've got the coolest product around'. Several times the salesperson made comments about not really needing to move all that fast and they don't really care if I buy an iPhone, someone else will. Grrrrr

So, in the end, I got an iPhone. I think the interface is better than the Blackberry and I'm vested with iTunes at this time and the alternative is not attractive. Basically it was a $300 decision that I'm counting on. The customer experience,...well it was just weird. I hope I don't have to go back to an Apple Store anytime soon. Thankfully though you can do all of it pretty much on the web.

Apple Store, B-, Very Weird Experience