Sabres showed guts
The Sabres stepped up with what was probably their best game of the series against Carolina to force Game 7. It’s now down to one game to see who gets the right to play for the Stanley Cup against Edmonton.
With the series on the line in the last two games, these two teams have really stepped up and played some awesome hockey! It’s clear that these teams are very evenly matched and it seems to be all about the way the puck bounces. In Game 6, I counted several chances on both sides where the a simple puck bounce prevented a goal. Had the puck bounced differently, the outcome of the game may have been quite different. Both Ryan Miller and Cam Ward were phenomenal.
So, how will the Sabres advance to the Stanely Cup? They need to play Game 7 just like they played the first period of Game 6, but score more. To follow-up on my last post on the Sabres, they need goal production from Afiniganov and Hecht. Briere stepped up once again, but it cannot all rest on his and Miller’s shoulders. In my last post, I should have included JP Dumont on the list of those that needed to score. Well, he did very early in Game 6 and it led to a Sabres victory. Oh, yeah, and Miller needs to stand on his head and either Briere or Drury needs to contribute again.
Kudos to the Sabres defensive corps for playing so well all game with only 5 players, and to Numminen for giving it a shot - he was an inspiration to the team.
Here is to a Game in Buffalo on June 5th and to the continuation of a special season! Go Sabres!
Back to basics - filling the early stage funding gap
An interesting trend is underway in the venture capital industry. Most of us are well aware of the trend to very large funds, which started in the Internet bubble with the first $1 Billion and up venture capital funds appearing. Well, the necessary reaction to that action of large fund formation has finally begun to take shape, and it’s being led my some of the savviest (early stage) investors in the world.
- Alan Patricof leaves Apax, a firm he founded that is managing billions of dollars of capital and was behind such hits as Apple and AOL, to start Greycroft Partners, a $50 Million (yes, million with an "M") fund to focus on early stage opportunities in technology and new media
- Kathryn Gould leaves Foundation Capital, a firm that she co-founded and too was managing over a Billion in capital, to invest her own money $200k or so at a time in promising early stage ventures through her new firm Gould Investments
- Robert Greenhill forms a $80 Million venture fund with Silicon Alley Partners - Greenhill-SAVP - to, yes focus on early stage investments in New York.
These investors are in a league of their own and can personally throw around the kind of capital that make up their total new funds without denting their own new worth. So, why are they messing around with deploying funds worth a total of less than $100 Million?
They sense an opportunity that has been apparent for some time now. That is, a great opportunity exists for outsized returns and the creation of great companies by deploying less capital early on in today’s technology startups. This is the way it was when these VCs were pioneering the industry several decades ago and seized on opportunities like Apple, AOL, Oracle, etc.
Read through Kathryn Gould’s website and she will explain it succinctly and clearly. VCs are sitting on piles of cash and need to invest large sums for big ownership stakes in order to generate a proper risk adjusted return on their funds. Initial investments can be as large as $10 Million and above. On the other side are entrepreneurs. Today, the capital needs to start up companies are smaller. The smartest of the entrepreneurs do not need the large amounts of capital (and associated dilution and loss of control) that today’s huge VCs need to deploy. However, with a small amount of capital and the right strategic assistance from savvy investors, entrepreneurs can focus (1) build great companies, rather than flipping research projects and (2) generate outsized returns for the early investors, themselves, and their shareholders. The VCs will be around for growth capital - priced accordingly - at the right time. They will also increasingly need to compete with other private equity firms, structured debt, and hedge funds for the opportunity to invest in growth opportunities. I image this line of work is less interesting to those VCs that were around in the pioneering days of the industry.
As an entrepreneur that grew up in the bubble, it’s taken some time to wean myself from the capital addiction. The past three years have been my first three as an entrepreneur without venture capital in my projects. I’ve found it to be a very rewarding and educational time, and have found that taking this approach has generated a quick focus on the right things - understanding customer needs and drivers of urgency, ensuring the right things are being built, and finding a quick path to adding value and hence generating revenue. My projects are still alive or just getting started, but are tackling the issues that too much capital would have hid for a long time.
I also see quite clearly the gap in the market between a bootstrapped startup and a full institutional round of capital from today’s venture funds. There is a need entrepreneurs have today for early stage capital, but not of the size and type of today’s Series A rounds, and the associated responsibilities that ensue. It seems that Gould, Patricof and Greenhill all sense this need and the opportunity. I would take capital today, but it does not exist in the right doses and from the right investors.
It would be great for any entrepreneur to have the opportunity to work with these individuals with their new funds. I have had the honor of meeting both Greenhill and Gould, and they are among the absolute best in their respective professions. Also, my apprehension about being a venture capitalist would totally go away if there was an opportunity to work with any of these investors on their new, small, early-stage funds. What a training ground that would be, and what a lot of fun it would be to work on several projects and make an impact at that early of a stage!
I for one will be keeping a close eye on the investments that these pioneers are making over the next several years.
– bkm
More difficult than it needed to be for Buffalo
Let’s forget about the Game 4 melt-down, it really was not that important. Tonight’s Game 5 overtime loss was a tough one. Before complaints about the penalty call or anything else come up, it was easy to summarize the loss tonight. Two factors came into play, a difference in either of which would have led to a Buffalo victory: (1) power play apathy and (2) lack of scoring diversity - read, Hecht and Afiniganov. Even with a 3-1 lead early in the second period, it was clear to me that at least 4 goals would be needed to win; I even thought 5. This is the new NHL and both of these teams are explosive.
Game 5 was big and winning it would have really killed Carolina off. Having to then win in Buffalo and again at home if they would be lucky enough to get there would have been nearly impossible. I think Carolina really needed to win Game 5. The Sabres didn’t have to, but I do belive winning it would have meant the Series.
Ruff was right that the Game 4 loss was really not about the defense. Nobody on the Sabres scored! In Game 5, the Sabres looked great. They just needed 1 power play goal or for Afiniganov or Hecht to finally score one. The Sabres won all year round by having production from across the team. Briere and Drury are key scorers and playmakers to be sure, but they need production from others to keep on winning the big games. Both Afiniganov and Hecht came up empty again, and if they continue to do so, I believe we will see Carolina move on.
Cam Ward was great. Miller was solid. But too much should not be read into Laviolette making yet another goaltender change and then having that new netminder blank the Sabres. It’s not the goalie as much as it is the lack of diversity of offensive production that was so prevalent all year round, and the pathetic power play that is now 0 for 8 in the last 2 games.
The onus is clearly on the Sabres here - nobody else is to blame. And, while the injuries are unfortunate, it’s not about that either. The team played a great game without some of its key players.
The finish just isn’t there. They need to find it otherwise the finish will truly be there for this otherwise remarkable season.
This series is still very much in reach for the Sabres. Carolina has the upper hand now, but a breakthrough from Afiniganov, Hecht or others and/or a renewal of their power play prowress will have the Sabres advancing to the Stanley Cup. Even Lydman scored today - they need more of that! The Sabres just need to find themselves …. soon.
– bkm
MacBook Pro problems (I’m not alone Apple!)
Alex Castro posted about similar issues on his blog and I’m here to echo the complaints he made about the new MacBook Pro 15" that I own. Readers of my blog know that I am working on a new company called Kalivo that is focused on enabling companies to listen to the user-generated content on the web and engage in a dialog with these influencers (many of which are customers or prospects for the company).
So, part of my mission on this blog is to articulate or amplify problems I have with comapnies and their products or services, as well as praises. I’m going to figure out a tagging taxonomy for this as well soon. I want to generate awareness among companies that the web is full of information that will help them serve their customers and other constituent communities better and profit from doing so. I’m also curious to see how many are listenting today to this vital medium.
Regarding Alex’s post on the MacBook Pro - this is an amplification. With feedback blogs, every post (i.e. vote) counts even if saying some or all of the same thing. I own three Apple laptops - a G4 15" that my wife uses, a G4 17" on my desktop and a MacBook Pro for mobile and on the road. I love the Apple laptops - incredible machines.
The MacBook Pro is great too. But it does have some non-trivial issues that need to be addressed. I’ll comment on Alex’s list below and add my own:
- Too Hot - yes it is!! way too hot.
- WiFi Problems / Wifi Fails to Connect - yes, Alex hits this on the head here. wifi sees networks and just does not connect without a reboot. furthermore, sometimes it just drops the connection (while I’m in the middle of a blog post online @ TypePad)
- Too Loud - yes, but I’m not too bothered by it
- TrackPad problems - haven’t experienced any myself yet.
- Sleep Mode Problems - this is endemic to all Apple Laptops. happens quite randomly
- LCD brightness - haven’t seen it on mine
The Powerbooks have some issues as well to be sure. However, none are mission critical. The WiFi Failing to Connect is mission critical. With the world moving to web applications on Ajax, the connectivity is critical. Losing it can be the equivalent of having Windows crash while using Word and not backing up every 2 minutes : )
– brian
End to Conspiracy Theories in Buffalo
I’m glad somebody said it. Thank you Bucky Gleason. I was not happy with the officiating in Game 4 or Game 5 of the Ottawa series, and do think the Sabres ended up with the short end of the stick in those games. The refs missed calls on both sides, but more so with the Sabres. It happens though, even in the "new NHL."
However, Gleason is right - the NHL has already won this year and the champion will produce a great story and a lot of excitement. The officials have not changed their approach from the regular season and they are letting teams skate according to the new rules. The result is a win for the NHL.
Buffalo has a long history of not winning major sports championships. Hindsight and replays can point to a lot of incidents. The fact remains that the teams just never played well enough to win the big game. Look at the Bills vs. Giants in 1990. That game should not have come down to Norwood kicking a 47 yarder. Yet it did and Buffalo lost. You could probably point to a bad call somewhere in that game that may have turned it around, but the fact is the Bills lost.
The good news here for Buffalo fans is that this Sabres team is a team of winners. Have confidence in them and forget the past. I’m not saying they will win, but in my lifetime, this is the first Buffalo team that looks, acts, and plays like champions, from the front-office right down to the last player on the bench. It may not be this year, but they will bring Buffalo a major sports championship soon. I’m betting it will be this year, and if it’s possible these guys will find a way.
Forget about the officials and focus on the guys who can actually control the outcome of the game - the Sabres themselves.
– bkm
What a Start for the Sabres!
Wow! Another Game 1 win on the road against one of the top two teams in the eastern conference. Another star performance by Ryan Miller. So far, it’s Miller 1, Cam Ward 0, and as a result the Sabres have a 1-0 lead. A great and well-deserved win.
It pained me to read this article from the Hurricanes’ home newspaper, the News Observer. Below is an excerpt:
The long layoff was one of two X-factors that worked against the
Canes but weren’t their fault. The playoffs shouldn’t have five days
between series. When teams are on a roll, let them roll.
The
other was the RBC Center crowd. The rising prices of playoff tickets
drove away some regular Canes fans. It opened the door to an influx of
Buffalo fans who took some of the edge off what is supposed to be the
NHL’s loudest house.
Really now? Someone needs to tell Ned Barnett that the Sabres were off just as long (in fact, one day longer) than the Hurricanes. Also, I’m going to bet that the per capita income in Buffalo is less than that of the Raligh Research Triangle area of Raligh-Durham-Chapel Hill. If the Sabres fans are willing to fly or drive to Raleigh and buy a ticket with today’s fuel prices, and the Carolina fans won’t even buy a ticket, then the Sabres deserve all of the cheers they get from the audience when playing in Raleigh.
Anyway, enough sour grapes. The Hurricanes did look good in Game 1, and I do believe they will learn how to play against Buffalo and win some games. However, two big factors give the Sabres the advantage in this series (and in any series for that matter):
1. I’ve never seen a team better at capitalizing on mistakes made by the opposing team than Buffalo. It’s quite remarkable how many of the opposing team’s mistakes the Sabres convert into goals. Just ask Ottawa.
2. Miller looks very sharp. Watching him closely, I notice two critical factors that make it extremely difficult for the opposing team to score: (1) He sees the puck at all times; did you see him spin and swat at the second Carolina goal? He almost got it despite how many redirections it took on a screen. (2) He is in the right position at all times. When he doesn’t see the puck, it hits him if it’s on net. The result of this is most goals scored are going to be flukes, and with the Sabres offensive strength, an opposing team will need more than fluke goals to win 4 times out of 6.
Finally, I’m happy to be playing against Carolina for the right to go to the Cup. So far, they are not taking the cheap shots that we saw against Ottawa and Philadelphia. Game 1 was mostly very clean and fast hockey. It was a pleasure to watch.
Go Sabres!
– bkm
Equity for Advisors
This is a post that really should be a comment on Brad Feld’s blog entry on How Much Equity Should I Give An Advisor? The reason it’s on my blog and is a trackback is that I tried and failed twice to post a comment to Brad’s blog. I’m blaming co-comment right now for that mishap. It’s the first time I had to add more information in a form to post a comment - c’mon guys, this is supposed to be make it easier. Anyway, on to the topic at hand.
**UPDATE** See comment #2 below. Plus, apparently Co-comment did get my comment (actually both tries) but the comment was never posted to Brad’s blog. Comment threading and tracking really needs to get better /**
Read Brad’s post if you’re interested in the broad topic. It’s a good post. My addition is on how much I’ve comped advisors in the past.
I typically provide about 0.2% per advisor in fully-diluted post Series A stock. Sometimes I’ll do more - like 0.3% - if the advisor has exceptional experience and/or network related to the business/market opportunity. Sometimes I do less if the advisor is serving in a niche capacity. These are non-qual options (again see Brad’s post) and vest over 3 years - providing the advisor the benefit of the low early strike price.
The other thing I do - recently - is construct a one-page letter outlining expectations on the relationship. This states what the advisor will provide and their time commitment expected. It also states how to work with them so that we respect their time and relationships. I review this letter prior to finalizing any deal. It’s one of the best control mechanisms that I’ve used on ad boards. It makes conflicts easy to broach and it also sets expectations for results from the get-go.
My ad board size has varied from 2 to 5 members from startup to startup.
– bkm
A must read for entrepreneurs seeking venture funding
Rick Segal at Post Money Value has a recent post dealing with the topic of liquidation preferences and double or triple dipping in venture rounds - i.e. participating preferred . Rick makes excellent points in this post and entrepreneurs seeking venture funding should heed his advice.
His suggestions at the end are right on the money. I’ve always felt that the VCs should have a right to get their money back in full first before the entrepreneurs can cash out. However, this should be a choice and not an ability to have their cake and eat it too.
Rick’s suggestion of a non-participating preference is what I have gone with in the past and it works. The VC can choose to get their money back and then the remaining common shareholders can divvy up the remaining proceeds on a pro rata basis, or the VC can convert to common and take their pro rata share of the outcome.
In Rick’s example, say the company that raised $5mm at $5mm premoney sold the company for $9mm for some reason. In this case the VC would choose to get their $5mm back. The remaining common shareholders would split the $4mm that is left on a pro rata basis.
Worst case, use the forced conversion feature at a set price that Rick suggests at the end.
The big point being made here is there is way more to a venture round than just the valuation. The VCs know this game and there are many ways to a deal that works. As an entrepreneur, you cannot be obsessed with valuation alone. You may get the price you want, but the strings that come along with that are more painful in the long run.
– brian
The difference in winning and losing
Confidence. You have to believe you can do it. This applies in sports and all other aspects of competitive situations and in life itself.
From a recent AP article below, I though Jay McKee of the Buffalo Sabres captured this well when speaking about the difference between the Sabres’ 1999 Stanley Cup run (which ended in a loss to Dallas in the Cup finals) and this year’s team.
Jay McKee was with the Buffalo Sabres during their unexpected trip to the 1999 Stanley Cup final.
The current run with the Sabres feels even better to the veteran defenceman, and it’s not even June yet.
"In 1999, I felt like we kept surprising ourselves. Each time we won a
round, we were kind of like, ‘Wow, we won again,"’ McKee said Sunday,
referring to the Dominik Hasek-led team that eventually lost in the
final to Dallas. "This year, we believe we can beat any team in a
seven-game series. "It’s not cockiness, it’s just humble confidence."
For the Sabres, I hope he is right and do believe they can beat any team in the league over 7 games this year. Doing it is the challenge now. For the rest of us, it is a good reminder that having confidence in succeeding at what your doing is a key ingredient to actually succeeding.
– bkm
Crunch time in the NHL
Ryan Miller answered the call in a compelling manner against both Philadelphia and Ottawa. After a somewhat shaky start in the playoffs, Miller settled in to his normal playing style and was simply outstanding in leading Buffalo to both series wins. It was no small feat to stop 129 out of 136 shots in the last four games against Ottawa - a 95% save percentage is tough enough, but to do it against a team like Ottawa is amazing.
Miller also proved the theory posited in a recent post of mine that goaltending is key to winning in the playoffs and to winning the Cup. Despite all of the predictions to the contrary, Ottawa simply was not going to win the Cup this year. The primary reason was their goaltending was mediocre at best. All it took was one hot goaltender on the other side and they were going to be finished. This is not trivializing the effort of all of the other Sabres - the entire team played a phenomenal series. But I do think it is safe to say that if the Sabres goaltending was average or even above average, they would have lost the series.
Now on to Carolina. The Sabres - Carolina series shapes up to be the crunch match of the entire playoffs for the NHL. With Detroit and Dallas gone from the West, I think the Sabres-Carolina series is the real Stanley Cup finals this year. Assuming these two teams don’t run each other into the gutter over a seven-game series with multiple overtimes (entirely possible), the team that emerges as the winner should be able to take the Cup with relatively little pain. The Western conference champion will likely be lulled into a false sense of security and it will be several lost games against either Carolina or Buffalo before they know what hit them.
The best part of the Carolina - Buffalo series will be the match-up between Cam Ward and Ryan Miller. Both goalies are rookies and both are at the top of their games right now. We will now see who’s nerves are stronger and can lead their team to a series victory in the highest of high pressure situations. For whomever emerges victorious, it will be one hell of a way to kick off their professional hockey career.
Looking forward to Game 1.
– bkm
Disruption of Marketing
A recent conversations continued to validate the trend that marketing is being disrupted by the user-generated content wave happening as a part of the Web 2.0 movement. While only a signle datapoint, I found this story to be highly interesting and representative of a trend that appears to be well underway. I firmly believe the value that will be created for consumers & customers of businesses that embrace this new wave of marketing and and for those businesses themselves will be enormous.
The vignette was told to me by a friend who runs a nicely profitable and growing software consulting firm in Boston. I was explaining Kalivo’s mission to him and he told me about a friend of his who is at the Harvard Business School and was interviewing for a marketing role with the specialty retailer Coach. The interviewer asked the inerviewee to describe what methods she would use to promote a new product line from Coach The interviewee, being a good MBA, proceeded through the traditional marketing mix , with a focus on the promotion side of things, including tradeshows, etc. After exhausting the traditional marketing playbook, it turns out that the answer Coach was looking for was to focus on blogging and online communities to drive awareness, leads, and dialog to enhance the brand.
Amazing! This is only a single datapoint, but it seems consistent with the trend of companies embracing Web 2.0 in the marketing arena. Having been at HBS myself in the mid to late nineties, I’m pretty sure that blogs and other forms of social media are now included within the curriculum - as seperate classes themselves as well as embedded in traditional classes such as first-year marketing. However, even with exposure to Web 2.0 in the class work, I bet the students never expected leveraging Web 2.0 to be a primary focus of an interview from a major traditional retailer!
Exciting times are upon us for marketing professionals and customer & consumers.
– bkm
A simple suggestion for Continental
A former business partner of mine referred me to the following blog posting, which I found to be intersting and apropos to my new business Kalivo.
Seth Godin points out in his blog post on Continental what the airline thinks of its customers that are less than elite. Of course, we must all be "non-elite" and apparently Continental is not afraid to let us know that fact.
This blog post is a wonderful example of how a simple posting can make a company aware of an issue that may impact their brand image and customer satisfaction levels. I’m sure nobody wants to be called "non-elite" by any company with which they are spending their hard earned dollars for a product or service.
In all liklihood this is a simple case of a decision that was made by a web developer inside Continental or an outsourced service provider, and escaped any management review of the Continental website. That is, it was not an intentional decision to tell customers that they are "non elite", even if they are classified that way internally.
However, without the posting by Seth Godin, Continental may never notice this problem. Even if someone takes the time to call this in to customer service, it may never get through the organization to be rectified.
Now, the big question is will Continental notice Seth’s post? It is my belief and our bet at Kalivo that it is vital that they do. And it is vital that they respond in an appropriate manner with a comment and perhaps a blog post of their own. Doing so will not only rectify most of the negative emotions generated among their "non-elite" customers, but will also serve to boost their awareness and brand image if done appropriately.
A potentially effective response could include: (1) removing the "non elite" label and replacing it with a clever title for those customers that are not in the elite group, (2) an explanation of why this may have happened, (3) some frequent flier miles or a flight voucher or a year of Elite status for the guy that pointed this out to Seth - this may encourage others to bring interesting points to Continental’s attention and shows their serious about responding to credible issues, and is really a negligible expense to Continental (4) some clever contest for the ‘formerly non-elite’ members where the winner gets a year of elite status - the contest should be geared toward having the contenstants blog about some type of positive experience they had while traveling with contential that serves to reinforce their brand. For example, if it was Southwest, the contest could be for the best customer service story from a customer while traveling on Southwest. Turn this situation into a positive.
As an aside, I never liked the moniker "elite" for the Continental program. No matter what you do with those that are not elite, if you’re not an Elite member it is very easily understood that you’re "non-elite" just by the very nature of the name. It seems easier to swallow not being a Platinum member than to know you’re "non elite".
So, Continental …. are you listening to the blogosphere??
East vs. West Paradox in NHL Playoffs
Wow! With Calgary’s loss tonight the NHL conferences went in opposite directions in the conference quarterfinals.
In the East, all of the top 4 seeded teams advanced: Ottawa, Carolina, New Jersey and Buffalo.
In the West, it was the opposite, the last 4 seeds advanced: San Jose, Anaheim, Colorado and Edmonton.
Had one of the top 4 seeds advanced in the West they may have had an advantage in the Cup finals against the East, which seems slated to beat each other up. Ottawa vs. Buffalo and Carolina vs. NJ should both be incredible series. But, the West still has parity and it will be competitive there too.
I hope the opposite happens in the East in the conference semifinals, which would have Buffalo advancing the the conference finals.
Go Sabres!
– bkm
15 Rules for Entrepreneurs
I have had the pleasure of getting to know Jeff Parker , co-founder and CEO of CCBN, Technical Data Corp, Business Research Corp., and First Call. Jeff is a highly active Cornell alumnus and benefactor, and serves as the co-Chariman of the Entrepreneurship@Cornell advisory council, of which I am a member.
After reading Paul Kedrosky’s posting on Rules for Bootstrappers , referring to an excellent presentation by Greg Gianforte of RightNow , I was inspired to pass on a list from Jeff Parker. This isn’t just for bootstrappers, but entrepreneurs in general.
Jeff presented this list at the last Cornell Entrepreneur Network (CEN) event in Ithaca, NY. These are from Jeff’s experience 15 things every entrepreneur should know. He states it’s not exhaustive, but it is in my opinion a great list. It’s much more compelling coming directly from Jeff, but you’ll get the meaning of each item regardless. It’s a list all entrepreneurs should keep close by.
In fact, #7 is one that seems obvious but many miss. In my experience it is exactly true. My other reason for being inspired to write this, is rule #7 and the fact that may entrepreneurs that I speak with do not get this one. Quite simpy, if your business does not generate revenue it will fail regardless of the amount of money you have raised.
1. Focus on something you know
2. Gain some experience before you jump
3. Operate with a sense of urgency and laser focus
4. Entrepreneurship is 24×7
5. Success primarily depends upon excellent execution
6. Don’t run out of cash (know your burn rate and fume date)
7. Most businesses fail from lack of revenue, not poor expense controls
8. Do everything you possibly can to stay on plan
9. Do not overvalue your company
10. Raise extra money when you have the opportunity
11. Be sure you understand how to get your product out to market
12. Provide clear goals and responsibilities to your team
13. Let people know how they’re doing and make them feel part of the team.
14. As CEO you are captain of the ship
15. Marry the right spouse.
Incidentally, if you want to see Jeff present on some of these topics, check out a great service and technology from Cornell called e-clips. It is a great offering founded and run by Deborah Streeter on the Cornell Entrepreneurship faculty, and I will write more about it in a future posting.
Click here to see Jeff’s e-clips or just go to e-clips and search on parker. It’s well worth the time.
Enjoy and best of luck with your ventures.
– bkm
May 2nd and Turbo Tax still won’t submit my tax return
I’m on hold with Intuit customer support for my Turbo Tax filing problem. Just was greeted by an offshore support person who was not "technically qualified" to solve my problem. I’m being put on hold to get a "technically qualified" person.
Now I’m told by the automated phone line that it too is experiencing technical problems. Just passed menu #1, and now passed menu #2 …. each time had to defer to "wait for a representative".
Ah, got someone …. however this person is only qualified to handle Quickbooks. He is going to put me in touch with the TurboTax people. And, he gave me the same phone number that I started this call with just in case I get cut off. Let him know that, but it didn’t matter.
So, why are my taxes not filed yet? Good question.
I submitted them "successfully" as told by the Turbo Tax service on April 16th - one day before the filing deadline. Automated everything - direct withdrawal from checking and e-file. So, when no money was withdrawn from my checking account at the end of a week of travel, I checked my TurboTax account again.
TurboTax informed me that they had an internal error and I should look at the customer support page for more info (BTW - no link to the customer support page). Also, despite providing my email address, I was never notified that there was an error on my filing.
So, I called customer service and was told that it may be my fault due to my ISP (assumed I was using AOL and it may have blocked something). When I explained that my ISP was not AOL and that I am running behind my own firewall and am very familiar with web based services, since I’m in the business, they told me to file it again with a different computer.
I did that and ended up with the same result, for which I am now on the phone. Again, no email notification of the problem.
Finally, I am to someone that seems like can help me. They inform me that my return was rejected again for an unexplained "internal error". They suggest that I file again with a different computer. When told that I already did that, I am then told that I should just print the return and file it.
Great! I could have done that on April 16th and not have the IRS hunting for me.
So, now it’s time to test Intuit’s customer service recovery. I express my utter frustration with the service and that this is the first (and last) time that my taxes will be filed late.
To Intuit’s credit, there was no debate and I was offered an instant refund of the $106 that I spent on TurboTax. Now is the real rub - I have no idea what my penalty is going to be for filing late. Of course I expect that Intuit will reimburse me for this as well. Again, no debate from the representative, but I will have to see what the fee is going to be to see if they will actually pay it.
I will follow-up to this post on Intuit’s response to my late fee, and will also post the letter that I send to Intuit describing my dissatisfaction with their service and the personal cost to me. This letter will also outline my value to Intuit as a customer - from a lifetime value perspective - which should make it more than obvious to reimburse me for the fee. Whatever it is, if I’m satisfied with the service and response, they will get more out of me and any referrals I make in my lifetime.
Intuit has a good reputation as a customer-focused company. I hope they demonstrate why they have that reputation with this customer satisfaction recovery effort. If they respond properly, they will go a long way to capturing future purchases from me, and from others whom I refer to Intuit for their customer service efforts. If they do not respond properly, I surely will not think well of my experience with them and will be sure to warn others not to fall in the same trap.
My expectations are high, but as the beginning of this note illustrates, Intuit has some issues in handling customer responses.
– bkm
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