Microsoft Should Focus on Innovation

Recent MS Survey Wants to Ask Users How it can Improve Customer Support…

Sorry… I’m not trying to make a mountain out of a molehill, but I really just can’t let this go.

I recently agreed to take a Microsoft survey on TechNET satisfaction. I’m a TechNET Pro subscriber and have been for about three years. It’s a great value, especially if you use MS software and have more than a couple PC’s to install it on.

One of the questions near the end of the survey asked – “To provide a better Customer Support experience, who could Microsoft best learn from, and why?”

My answer is below; but the point is not the first part of the first sentence – “Apple; but MS’ problems aren’t customer support, its relevance in the industry. Surface is a good start, but its WAY overpriced. MS should have taken the financial hit and priced Surface RT & Pro tablets for volume, not margin.”

The question came near the end of the survey; but it really didn’t sit well with me. I give MS high marks for being concerned about customer support; but they have bigger fish to fry than that. They need to figure out how to get back in the game.

Their Surface RT and Surface Pro tablets are significantly over priced. Similar partner products are not going to undercut the base level prices MS has set for both tablets at $499 and $899 respectively; and regardless of how awesome they may or may not be, this is a problem. MS Surface tablets should be priced to compete with 3rd party Android tablets – the Kindle Fires, the Galaxy Tabs/Notes which are low to high end respectively. Surface tablets should top out at $499-$599. Not start there.

Microsoft’s approach is to compete directly with Apple in both feature and price sets. They can’t afford to do that. Not at this late date, not with their late to market products in a market place that’s saturated with better established, competitors with more mature products. They need to come in low priced and fight the volume/low margin battle before stepping it up a notch. By pricing things where they are, I’m afraid that Microsoft has priced themselves right out of the market, and possibly, right out of business.

Windows 8 is likely the company’s last big (relevant) hurrah if it doesn’t take. While many enterprise customers will likely stick with Windows XP and Widnows 7 for a number of years to come, once support for both finally sunsets, moving business users to Windows 8 may be problematic.

In my opinion, the best thing that MS can do is push Windows 8 with all of the tools they have. This includes both Surface RT and Surface Pro tablets, and having them available at a much more attractive price point could have been huge for them. They chose to hit their margin targets on individual units rather than via volume.

It was a choice to make. I think it’s the wrong choice, but honestly, only time will really tell there. We’ll have to wait and see.

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