Phil's Blogservations
Thursday, September 05, 2002
Posted by philgomes 2:34 PM
Palm Makes Good:
Far too often, the media does not let the news of a company's customer service remedy to fly nearly as high as the coverage of what required said remedy in the first place.
We won't make that mistake here at Blogservations. Nosireebub.
Palm is offering to make amends with owners of the m130 handheld who felt hoodwinked by the fact that its color display does not offer as many colors as advertised.
News.Com is carrying the story.
This outlines a key element of crisis communications that was perhaps neglected here. Once news of a company's transgression has been distributed, the company must get out there fast with an acknowledgement of that mistake and the remedies that it will employ. Palm was arguably slow with both—about two weeks by News.Com's count.
Still, I'm guessing that this wasn't a failing of the PR operation so much as an artifact of the company's financial situation. As I've said before, when you have huge coffers, it's a lot easier to set up a solid refund/return program. It'll still hurt, yes, but it won't be a huge problem. With a current P/E ratio of -5.4 (?) and a stock price that makes one debate "share-purchase-or-game-of-Star-Wars-Trilogy-at-the-arcade?" (Source: c|net), I'm wondering if the decision to delay the remedy was a financial one. As in "Can we really afford this?"
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