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Because high quality customer service and support doesn’t scale well. Especially at the scale and (sadly) profit margins FAANG companies expect.
by eunoia 4y ago
Because high quality customer service and support doesn’t scale well. Especially at the scale and (sadly) profit margins FAANG companies expect.
- neura 4y agoThis. Simple, succinct and most importantly correct. Thank you for summarizing most of the other answers in 1 sentence. The second wasn't even necessary. ;)
- musicale 4y agoWhy wouldn't it scale approximately linearly with customers, which should be approximately proportional to sales? Isn't that Apple's "genius bar" model in a nutshell? Stores/in-person support scaling linearly with customers?
- eunoia 4y agoThe “Internet scale” input-to-profit function is most certainly not linear. Introducing linear cost centers would cut into the profit margins that essentially define “Big Tech” these days. Yeah Apple retail and the Genius Bar in particular is an interesting case. Apple clearly invests a lot on the customer experience in those contexts. I would argue that’s a value add to their massive hardware sales. Apple is a much more “traditional” company than most FAANG in that sense. Its web services/ dev relations divisions have the same old modern internet scale company customer service problems though. Edit: Apple’s text/phone support for hardware purchases is also excellent.
- solarkraft 4y agoNo, no, it totally does. What these companies want/are used to are just more customers but without any more expenses in servicing them. https://imgflip.com/i/6n0pko https://imgflip.com/i/6n0pko