deal architect

Banks: New tech, old processes

a) "Immediate Credit for Cash Deposits" says a big sign in red at the new Bank of America ATMs.

Huh - what's the big deal? Well, I guess there is the risk of counterfeit notes so immediate credit is a step forward. But it also draws attention to the fact that other 99% of deposits - checks - do not get immediate credit. In fact, the bank can put holds for up to 2 weeks. So they can make money on what they call "Interest on Uncollected Balances". And even more punitive in-bound wire charges if you get an electronic payment to your account.

Banks spend 3-4 times more on technology than the average manufacturer or retailer. In this day and age of 24x7 electronic banking, you think we would be able to do better. With all the data mining available they can see patterns of accounts where deposited checks are more vulnerable to problems.

b) Like most, I toss the countless credit card applications we get in the mail. But I do scan for what I call 0/0/0 offers - 0 annual fee, 0% interest on cash transfer, 0 transfer fee and will take advantage of those. Recently I got one from Capital One. Even better it has an invitation reference number and a web site where you apply. Great so far, except the web interface just will not accept data in certain fields. Reluctantly I call the toll free number. The agent wants all kinds of information - you know what I mean by all kinds. 2 weeks later I get a letter in the mail. No card, they want my address. Well, duh - you just sent me that form at my address. Curious beyond belief now, I sent the form back.

I just want to see just how convoluted they have made the application process - so far they have made me use the web, the phone, the post. Guess SMS is next? Next an in-person visit?

c) Wells Fargo just introduced vSafe - a "personal online safe that lets you safeguard, organize, and access electronic copies of the things that matter to you most - from wills and trusts to insurance policies and immunization records." Ok, you got my attention. Then you start to lose my attention when you remind me "For certain kinds of signed paper documents - such as wills, deeds, trusts, stock certificates, passports and powers of attorney, for example - an electronic copy often does not have the same legal effect as the paper original.". You also have physical safes to offer - how about something innovative which scans, take pictures, and otherwise digitizes what I put into the safety box and then store those digits in the vSafe.

If not, tell me why exactly, I would pay you $ 4.95 a gb a month when a number of cloud providers offer storage at 25c a gb a month, and services like Google at zero cost? Oh, for the 256 bit encryption?

Rebates: Ruining an almost perfect experience

Rebates are a major angioplasty candidate as I have written before here and here

So, I thought AT&T Wireless had it nailed. I mailed in a rebate form on Feb 5. They SMS me confirmation of receipt on Feb 22.  On Mar 18, they text me again saying it had been mailed. I still do not have the rebate. So I go to their site and it is well documented and even has an internal tracking number. It is rare to see a rebate workflow so digitized and so transparent.

Here's where the process breaks down. I enter a form to initiate a query. They already have the trail documented but the form makes you enter all the gory details again including the 15 digit IMEI serial number. Strikingly, no place for their tracking number. And when you press enter - "We are unable to process your request at this time. Please try again later." 3 times over an hour get the same error.

So I try the toll free number. Voice confirms details and tells me payment mailed, and hangs up. No human being to talk to to say the payment has not been received.

So, I try the 611 - customer service on my PDA...call centers are all closed! I have nothing against Sunday closures like Chick-fil-a does for spiritual reasons. But AT&T is happy to sell you stuff in their stores on Sundays - but with over 60 million customers, it is mind-boggling they do not have a single customer service rep available today.

Then I happen to check with my wife if she got two rebates last Fall and had used them. No clue what I am talking about. I go check on those and the AT&T site shows mailed in August and September.

AT&T usually sends out debit cards as its rebates. So there should be an electronic trail if they were abused. 3 rebates supposedly mailed but not received.

What a way to ruin what looked like - finally - a streamlined rebate process.

Update: 4/21 - after 4 handoffs over an hour, I finally got to a supervisor in their rebate processing center in Milwaukee. They are going to reissue 2 out of the 3 cards and assured me there were no mailing issues at their end. We will see in a couple of weeks.

Update 4/22 - Guess what? The query form I entered on-line must have gone through, not rejected as the error message said. This morning I get an email back - it has yet another tracking number and is even signed by a Katherine. Sadly, all it does is tell me to call the toll free number which I did yesterday.

Process Angioplasty - Medication Error

Medication error is awfully high - as high as 1 in 10 patients, often with fatal consequences.

Readers may find interesting how an old concept from accounts payable - three way matching, along with new technology is helping reduce errors in healthcare

- on the New Florence blog

Weekend stuff: Utilities and payment UI

Funny that Jeff Nolan experienced problems this afternoon trying to set up credit card auto-pay on his PG&E account. I did with Verizon.

The legacy GTE part of Verizon which provides local phone service, till 6 months ago, did not allow credit card payments on-line. You had to go into one of their stores to pay by card. Then they only allowed you to pay one month on-line at a time. Today, I notice they allow recurring pays. So 3 tries later I finally get in and it takes about 6 screens (including your agreement to forego paper bills) to get to the card set up. Finally it takes, but message reads - may take up 60 days, so keep paying as usual. The email confirmation contradicts that and says it may take 30-45 days. This is a technology company?

In meantime, my electric utility Tampa Electric, wants you to pay $ 4.95 each time you use a credit card.

You think with their bulk, they could negotiate their credit card fees down to be cheaper than the paper and labor and real estate cost of receiving checks in mail or at a payment location. And when they do start accepting cards on-line, there is a whole ecosystem of charge processors and payment software and SaaS they could leverage. So the user experience could be better.

Can you imagine how much worse it likely is, when they have to pay you?

Update on Rebates Processing

So I get a text message from AT&T Wireless acknowledging they have received my rebate request.  And I go - progress!  I wrote earlier about Rebate processing as an angioplasty opportunity. Good to see rebate processing become more automated. More retail stores are printing the rebate forms at point-of-sale. Buy.com links your on-line receipt to a PDF copy of the rebate form to facilitate the printing.  Many manufacturers also acknowledge receipt of your rebate form by email.

But the back-end process is still way too manual. Too many rebates are rejected because supposedly there is no proof-of-purchase, there is insufficient personal information on the rebate form, or they are not received in the narrow rebate time frame.  Once that happens, the chances of a buyer winning an appeal are pretty slim.

Then there is processing time. The AT&T text message above says the rebate will take 8 weeks to process. 8 weeks to do what?

Finally, rebate checks have all kinds of poorly spelled names and addresses. So even if the rebate arrives, the bank may balk at cashing a check addressed to someone who kinda, sorta sounds like you. Others are sending rebate debit cards, which you have to  call in to validate. Another potential point of failure.

Overall, some progress, but still a process with plenty of plaque.

Process Angioplasty - Southwest Airlines

I am a loyal (and very frequent) SW customer, an investor and a big fan on this blog - see here, here, here and more.

But in December after a series of one after another irritating incidents, I sent Colleen Barrett, COO a note describing the incidents and with a comment I feared the "experiences..make me dread, it is not just holiday fatigue for your employees, but the sign of a new, less enjoyable airline."

So, I get a card in the mail...."Thank you for your recent correspondence. Because Southwest Airlines receives a large amount of mail, we have assigned an internal tracking number to your file....it may take as long as six weeks before you hear from us"

And it has already been 4 weeks.

Perhaps they are inundated with letters about their new boarding process...their blog received over 250 comments on it.

Or may be the IT team which developed that boarding functionality also delivered a bonus - a customer comment boarding process -)

Sure enough my tracking number starts with C...the last group...

Update: March 5 - I received a well researched 3 page letter from a SW rep J.P. Feller. While it did not completely please me I appreciate the time and effort.

Process Angioplasty - Warranties

As we become more and more dependent on our electronics, it is a bit surprising how warranties and repair do not appear to have evolved much in the last few years.

Take laptop or PC repairs. If our family's experience is any indication, if you have to take an item in to an authorized dealer, it is at least a week you are without it. If it is a warranty to support at your business or home, it often takes even longer to schedule the visit, and quite often the technician does not have the appropriate part. With all our remote diagnostics capabilities, the practice of supporting corporate clients with buffer "loaner" units, you think the spare part and technician supply chain could be much more streamlined.

I recently had an unpleasant warranty experience with a store called BuyGPSNow.com. I had a back up Bluetooth GPS receiver in my wife's car, and one day lost while driving it I tried to turn it on. Dead as a dodo. Under warranty, it took a few emails with the store. They authorized a return, at my expense, and sent me another unit. Elapsed time from first contact - 4 weeks. It arrived on December 24 while we were away for holidays, and when we came back the original warranty was almost finished. You can guess what's coming.

I tried the new unit, 3 days after the original warranty expired and could not make it work. I contacted them and they go now its off warranty, but since it's only a few days past they offered to go through another exchange process. I tell them I have lost faith in this particular product/manufacturer. Can I please get a partial credit towards something else in their store? Nope.  "No exchange or refund after 30-day. This policy cannot be changed and we cannot grant you any exception." Yes, let's go through this endless cycle of trying, returning when I would happily have tried something new at the store.

In contrast, I had a similar exchange with overstock.com and they agreed a unlocked mobile phone which was not picking up a signal in many locations was only a few days past the warranty date and sent me a prepaid UPS return label and credited the amount back.

One of the more pleasant experiences when it comes to warranties is with an Amex feature called Buyer's Assurance. They extend your original warranty and either repair the item or credit the original amount to your card. I have used them 3 times now  - and recently got an AT&T Tilt paid for as a result of my 8125 not working past the original warranty.

But even with Amex the repair or return process does takes weeks. We should be able to do better as an industry.

Process Angioplasty - US Citizenship Process

Probably a bad time, given our mood over illegal immigration, to bring up the topic.

But why are we penalizing legal immigrants and delaying their right to vote, as this USA Today article points out?

Most Americans do not realize to become a US citizen, immigrants have a 2 step process. First you become a permanent resident (green card holder). To do so you go through a series of security and other checks over a 1 to 10 year process.

Then after another 5 years (3 if you are a spouse of a US citizen) - you qualify to apply for citizenship. Key word is qualify. As the USA Today article points out, it can take another 18 months for the INS. FBI, other agencies to then process your application.

Why is this unfair? Because these immigrants have already gone through a long "probation" period. If there is a low-risk category of people in the country, it is them. They went through a battery of tests to qualify as residents. Then they have to be at their best behavior during their "probation." They have all the obligations of a citizen - pay taxes, be subject to draft. But we do not let them vote or carry a US passport during the "probation". As foreign-borns they can never become President or VP.

Major steps in the citizen application literally take minutes.The immigration English and constitution test takes roughly 30 minutes. The FBI can run background checks for guns in as little as 5 minutes but averages 2 working days.  The mass court swearing in about 30 minutes. There are other steps, but few take more than a few minutes each. And the government is collecting $ 650 for each application, so it's not a lack of budget issue.

Then why does it take 18 months? Check out this typical experience as reported by a UK immigrant to the US. Weeks and months of inactivity. Talk about a process angioplasty opportunity!

And remember it has nothing to do with Lou Dobbs or illegal immigrants. These folks have paid their dues. For years. They deserve to vote this November.

The General's Revenge

Charles de Gaulle, a giant of a man, was also infuriatingly impossible. So it is only fitting his namesake airport in Paris resembles him. Architecturally stunning in so many ways, it finds ways to drive you to drink or worse. There has not been a single visit, transit which has not meant missed flights, lost bags, club lounge staff who find ways to refuse entry....

...so I land this morning at CDG from the US and have 90 minutes for my connection. From previous trips, I expected a bus tour of  the airport.  Did not disappoint. I clear immigration - not sure why since I am leaving the country right away. Then walk, take escalators, moving walkways, steps - for 25 minutes to terminal 2D. Not sure why the bus tour did not stop there. Go through security again. Get to gate as the flight is boarding. Start to relax when they - get this - they put us on more buses. One airport rep tells me to wait for next bus since the previous one is full. 5 minutes later another rep comes along and chides me for not getting on the bus. I get on the full bus. We drive for another 10 minutes and park near the tarmac. Driver turns the engine off. 10 minutes in a full bus. Everyone's sweating and looking around, but no one complains (must have been all tourists...the locals would have revolted). Finally the driver starts ignition, only to open the doors and we have to walk back up to our gate. I notice it is in terminal 2B - I had passed that on my long walk earlier. I silently thank God I am not physically disabled. How do they manage through this airport? I must admit my mental state was pretty disabled as I slumped into my seat on the plane.

On my way over I had asked Delta what my upgrade looks like on way back. They said my flight back via Amsterdam did not look good. However, the one from Paris looked better. I called them today and said - no thanks. I will fly economy - no more CDG for me for another year, at least.

The only good thing about CDG - they allowed me to take 2 carry ons that I had from my US flight through to my connection. The icing on the cake would have been if they had like at London forced me to check the second bag...and then lost it ...

Dear Mr. Bezos:

My wife and I are frequent shoppers at amazon.com. I have also written flattering stuff about your technology, EC3 etc on this blog.  I have always thought you were a smart organization till this experience below.

On August 20, I ordered an extra battery for my laptop. I have an international trip next week and thought that was plenty of time for the order to arrive. 16 days later no shipment.

So I emailed customer service . I got a response from a Karthik M saying "I have investigated your order and determined that the estimated shipment and delivery dates displayed in your order confirmation e-mail and Your Account were incorrect.  Please accept our sincere apologies for this error.  In actuality, you can expect your order to be delivered by September 17, 2007 - September 19, 2007"

So I email back right away saying that's too late I have to leave the country before then.

I get a response from Dave N which ignores what his colleague says above and my request for expediting and says

"We should be able to ship your package in advance of the date estimated on our web site (which was incorrect in first place), so we expect your order will arrive within 5-7 business days from the date it is shipped."

I happen to see it at 6 am eastern this morning and send a message back titled URGENT - PLEASE ESCALATE with the hope someone could change the shipment to 2 days.

The request gets ignored. At 1.20 pm I get a shipment confirmation email saying estimated delivery date September 17. I go to the USPS site to see if there is a chance I can get it before my flight. The site says "The U.S. Postal Service was electronically notified by the shipper on September 8, 2007 to expect your package for mailing. This does not indicate receipt by the USPS or the actual mailing date." Really reassuring!

So I go enough emails, let me call customer service. First time, the call drops after a few minutes of conversation. But lady goes "don't worry you will have it before 12th." How if she so confident? Trust us...and line drops

In meantime, on-line customer service responds to my ESCALATE request. It is Karthik M again. "Unfortunately replacing the order does not guarantee a delivery before September 12, 2007. In this case please wait till Sept 12,2007 for your order to arrive. If your order does not arrive by the dates, Please write back to us and as a onetime exception to our standard policy we will be happy to issue a full refund for the total order cost. We hope this is a satisfactory solution. "

I call customer service again. It is Brandi at the PSC call center in Washington. More of the "trust us it will be there". Don't worry, the USPS site is unreliable. Then she suggests the only way I can be assured it will be here by 12th is to go order another copy. Why can amazon not ship me a replacement  and I will return the other package when I am back from my trip? Not allowed to do that. Her "lead"  Tammy confirms her information. For pete's sake they have my credit card on file and we do plenty of business with them. Where's the lack of trust? 

So I hang up - and go to the amazon site and order another copy with 2 day delivery. 

But Brandi does send out a form email "We always strive to provide a high level of service, and we would appreciate your feedback.  Please let us know if we resolved your inquiry."

Jeff, I hope you tell Brandi.... it is just plain bad business to make a customer start a whole new transaction and return/refund the previous one when a couple of keystrokes on the part of her colleagues over the last 2 days could have resolved it.

Update: What Brandi said they could not do...another of her colleagues proactively did. He ordered me another battery for one day delivery. Since 2 are already en route I had to cancel his one. This is turning in to a real comedy.