Sprint's sloppy reputation for customer service needs repair


Sprint Nextel Corp. (NYSE: S) has been through the ringer in recent years. The merger between the two companies -- Sprint and Nextel -- didn't work out as planned and actually one could say it backfired. Customers are leaving by the hundreds of thousands and the company is integrating billing systems only this year. The merger was over three years ago, so what took so long? A lack of vision and problems from the start hexed just about any move Sprint Nextel wanted to make.

Nothing can kill your business, though, like not focusing on the customer. The only strategic advantage any company has when operating in a commodity environment is service. Yes, marketing folks can trumpet wireless handsets, data speeds, coverage areas and more. But at the end of the day, how you treat customers is paramount -- and Sprint's reputation is less than stellar.

New CEO Dan Hesse is set to change that, but it won't be easy or immediate. Here's your sign: in his first operations meeting as CEO, the subject of customer service wasn't even on the agenda. Bad move -- it needs to be first, much to the chagrin of accounting, engineering and any other business unit.

Sprint has such great assets and has so much potential it's staggering. The wireless licenses it holds are world-class as is the national network it operates. (Actually, there are two: the Sprint and Nextel networks are still separate.) However, it must integrate the two companies from the consumer's perspective and provide the service level any world-class company should be able to. That means treating customer service associates like responsible adults and not like call center peons. If other companies know what is good for them, they should pay strong attention to that preceding sentence as well.

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