Don't expect love or loyalty from Silicon Valley's corporate customers,
a new nationwide survey warns.
Half of the customers polled showed dissatisfaction with the companies that
sell them software, computers and networking equipment. Twenty-one percent
polled said they were looking to change suppliers. Another 29 percent grumbled
but likely would not switch, in part because of the difficulty and expense.
"Just because they're buying your stuff doesn't mean they want to," said
Marc Drizin, vice president of Walker Information.
The Indianapolis research firm surveyed 2,259 people involved in high-tech
purchases at American companies, nonprofits and government agencies. It found
that while most -- 68 percent -- expressed satisfaction with the quality of
the products they bought, only 47 percent were loyal customers eager to stick
with the same suppliers.
One possible reason: spotty customer service. Half of the people polled
gave positive ratings to the technical support from their suppliers.
Nontechnical customer service rated lower, with 45 percent saying they were
satisfied.
That needs to change, said Drizin, whose firm has a long history in market
research and also consults with businesses on building customer loyalty. With
many high-tech companies now selling comparable products, emphasizing customer
service may offer a competitive edge, he said.
"Companies aren't doing a very good job of it today, and if they did, they
could really differentiate themselves from their competition," Drizin said.
The survey, which included the customers of many Silicon Valley firms, did
not provide satisfaction ratings for individual companies.
The finding that many customers feel trapped by their current technology
suppliers is not exactly new. Throughout the tech industry's short life, many
companies have banked on selling products that can't easily be combined or
replaced with competitors' gear, making it harder for customers to leave.
For a modern corporation whose employees work on computers linked across
buildings, states or even separate countries, changing technology suppliers
can prove costly and complex.
"It's very difficult to move to a new architecture because that means new
systems, new software," said Bob Foster, adjunct associate professor of
technology management at UCLA's Anderson School of Management.
Technology buyers even feel hesitant to switch relatively simple programs
they've grown used to. Foster likened it to consumers who keep typing their
documents with Microsoft Word even though many perfectly good alternatives
exist.
"We've all learned it, we all know it, and we don't want to go try to find
something else," he said.
Still, the simmering dissatisfaction spotted by the survey may provide an
opening for upstart companies. Technology history is filled with young
businesses that were able to address customer needs better than an aging
incumbent, said Laura Roden, president of the Silicon Valley Association of
Startup Entrepreneurs.
"That's an opportunity," she said. "That's typically where startups come
from."
SATISFACTION SURVEY
A survey of tech companies' corporate customers found that many aren't
loyal to the brands they buy. Customers fall into four categories:
-- Truly Loyal (47 percent) -- Want to stick with current suppliers.
-- Accessible (3 percent) -- Generally pleased with their suppliers, but
would consider switching.
-- Trapped (29 percent): Unhappy with current suppliers but unlikely to
switch due to difficulty or expense.
-- High Risk (21 percent) -- Displeased with current suppliers and looking
to switch.
Source: Walker Information
E-mail David R. Baker at dbaker@sfchronicle.com.
