Meriem Chida
This
is a case study about the Midwest Wireless company, conducted in November and
December 2003. This study focuses on the company’s specific uses of the
Internet and subsequent results. To this end, I researched the company’s
background and web site, and interviewed Dennis Miller, President and CEO of
Midwest Wireless.
Midwest
Wireless is based in
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Dennis Miller President and Chef Executive OfficerHas been in Telecommunication field
for 21 years 13 years in wireless 7 years with |
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Midwest
Wireless offers wireless services to rural areas that would have otherwise gone
without access to the Internet, cell phones, and the like. In 2003, the
Department of Employment and Economic Development (DEED) honored Dennis Miller
for his leadership. Additionally, they recognized Midwest Wireless for its
success in bringing high speed Internet access to rural
In
an effort to give back to the community, Midwest Wireless engages in
philanthropic activities and raises funds for local charities. An example of
these charitable activities is how in 2002, the company had “Phones for Funds,”
where they collected used phones and accessories that were later sold to
generate $68.000 for charity. Another example of community involvement is shown
in the advertisement (fig-1) below, where Midwest Wireless waved the activation
fee, and gave a free phone and three months of their mail-IT text messaging
service to any new subscriber that donates either a new wrapped toy to a child
or makes a money contribution.
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Miller
states: We
have done that for the past 12 years the Christmas promotion to benefit the
children. I strongly believe that it is a moral responsibility to give back
to the community. It is simple we need to help the community to prosper, in
order for any business to prosper within that community. |
The Internet at Midwest
Wireless
The Web Site—An Ongoing Development
Midwest
Wireless develops and maintains the web site in house by an IT full time staff.
The evolution of the web site for Midwest Wireless is unique, ‘the web site was
a learning experience in itself,’ stated Dennis Miller. According to Miller,
the Company takes great pride in its unique way it develops and updates its
site so as to reflect the specific needs of its customers. For instance, in 2002,
on behalf of Midwest Wireless, First Marketing had 2223 customers take a web
survey via the company’s web site. The purpose of the survey was to collect
data regarding the importance of wireless phones and home computers to their
customers as compared to television, radio and CD players. The results indicate
that home computers and wireless phones are seen as highly important to their
customers.
The
Midwest Wireless company addressed the need indicated by the survey by
investing in software that allows the company to update the web site based on
their customers ‘perspective and feedback’ quickly. The process is the
following: the company continuously collects data about their customers and
their changing needs; this data is calculated by the software; a report is
electronically created for Midwest Wireless; and the needed adjustments and
changes are implemented. As a result, they are able to respond in a timely
efficient manner to the changing consumers’ needs. This way Miller states, “we can make sure that the site is answering to our customers
needs in a prompt manner. We ask them about the challenges they encounter using
our site, about things they would like to see us do. See we like to talk to our
customers!”
Communication
Tool
In
Midwest Wireless the Internet is used on a regular basis for several tasks and
activities. For instance, Email is used to communicate within several
operations of the company such as between Marketing and IT, or between accounting
and sales. It is also used as a communication tool between the company and the
customers. The latter allows the company to respond within a short period of
time to their customers’ inquiries. Miller stated that ”…the
Internet is a tool for me to communicate within the company, with customers and
it primarily helps me get the information I need. It is incredible how much you
get done and fast with email nowadays. It is instantaneous information. I am
anxious to see what the next step after email would be!”
Customer
Service Tool
Midwest
Wireless utilizes the Internet as a tool to allow its customers to access
information regarding products and services directly from the web site. Figure
3 is a graphic example, from Midwest Wireless’ web site, of options available
to the customers. It is a means for the consumer to contact customer service
directly if they have any questions, without having to go through an 800
number, hence decreasing the response time. Other options available on the web
site’s menu are ‘Plans & Tools’, ‘About US’, ‘Newsroom’, and ‘My Account’.
Customers can access their account, check their remaining minutes, pay their bill on line 24 hours a day.
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Fig-3 |
Midwest
Wireless strives to assist its customers in making the best decision for their
specific needs. For instance, the company accesses the consumers needs either
by helping them select the right wireless plan or ease technological challenges
they might encounter while choosing a specific phone.
Research Tool
Besides
Email, and customer service, Midwest Wireless utilizes the Internet to research
information related to competition, current news related to the wireless
industry and to research market analysis. The Internet allows them to access
information quickly, hence be efficient in acquiring the latest available
information be efficient and avoid loosing ground to
competition. In addition, Miller added that the “Internet has eased the access
of information that has evolved so much.”
Sales
and Marketing Tool
Since
Midwest Wireless has invested in a very interactive web site, and is very keen
on market analysis and research, it has managed through the years to maximize
the usage of their web site to attract new business and increase their sales.
Through direct interaction with their customer, Miller states that the Internet
gives them “the ability to communicate with our customers and helps us expose
our products.”
Midwest Wireless utilizes the Internet
to market and promote goods and services, and attract new business
opportunities efficiently, while keeping promotion costs low. “The site is a selling point for our company,” states
Dennis Miller, “and the ability to directly communicate with our customers
helps us introduce and promote our products.”
The
Internet: A case for an Efficient Time Allocation
According
to Dennis Miller, the Internet has helped Midwest Wireless be extremely time
efficient regarding all aspects of the daily business operations. For instance,
the company’s operational center deals with customer service on a daily basis,
and has become efficient at answering their inquiries and providing support.
The Internet allows a customer service representative to directly answer
questions customers have regarding a variety of areas, such as the features of
their wireless phone, or the aspects of the services in their area, or their
current minute consumption, or their wireless billing period. Miller thinks
that “the Internet is a marvelous tool because it allows the customer service
department to reply to their inquiries in a timely efficient manner.”
Similarly,
as a result of having a web site, the Midwest Wireless company’s customer
service was able to handle more claims per hour as compared to when they used
to handle claims via means, such as telephones (800 numbers), faxes and direct
mail. At the same time, it allowed Midwest Wireless customers to access their
account online, look at their minute used and remaining, without having to call
in the center and go through several steps for identification. Miller argues, “the Internet has helped create and emphasize customer
satisfaction.”
The
Internet: Online Sales
Sales
made online are two folds: Customers buying service for the first time from
Midwest Wireless, and customers returning to buy additional items, such as
accessories. As for accessories, sales have increased throughout the years.
However, Miller noticed that the percent increase in total initial sales has
increased but at a slower rate. He argues that it was not due to a lack of trust
in the usage of the Internet by the customers, but rather due “ to the level of complexity involved in finalizing the
purchase. Because making a complete sale online is dependent on the complexity
level of the operation itself.”
In
addition, Miller continued by stating:
When customers are about to buy a
wireless service for the first time, they are faced with a myriad of choices.
They need information about which handset to buy, or have general questions
about rate plans. Usually they have in-depth questions that they feel the
Internet is impersonal, they need the human interaction.
Furthermore,
Miller suggested that the Midwest Wireless company is seeking to control the
level of complexity of the purchase process by simplifying the steps taken by
the consumer. As a result, he expects that by employing a simplified purchasing
process that the share of total sales for first time buyers online will
increase in the future.
The
Internet: Added Value and Contribution to the Business Success
The Internet has overall contributed to the success of the
Midwest Wireless company on all aspects of the business. According to Miller,
the Internet is the most efficient communication tool that currently exists. It
facilitates communications within different departments of the company, which
makes internal adaptation for change quick and easy. For example, if the
marketing department has an upcoming promotion, after an email exchange with administration, and approval for the promotion is received.
The same day the marketing department can go online and set up their own entries for the promotion.
The idea behind is that marketing promotions are best
handled by the marketing department rather than by the people in IT who are not
an expert in the subject matter. Miller suggested that the Internet allows the
people in marketing, who know what and how they think about a given product, to
promote and sell that product in a specific way online.
The
Internet: Challenges and Solutions
for the Web Site
The Internet is a multi-dimensional storefront for Midwest
Wireless company, which sells both products and
services. Their web site operates as a promotional system, a sales system, a
communication system, an accounting system, a marketing system, a customer
service system, etc.
Still, the Midwest Wireless company faces challenges using
the Internet to integrate all the systems mentioned above, while keeping a
fairly user-friendly web site. To this end, Miller comments, “we are bound to
present to the customer a service or a product in an expedite manner.”
Overcoming
these challenges would mean that Midwest Wireless would need to create a
balance between simplifying their products and services with the purchase
online, without loosing market share. In other words, stated Miller, “ it is challenging and difficult to present not too many
choices to keep a fairly low level of complexity and integration. Because
presenting a few items might give the wrong idea and perception about product
availability within the stores.” Miller also stated:
Customers might think you don’t have
what they need, and the company would end up loosing a share of the market. And
at the other side of the spectrum, if the site is however too complicated,
customers might drop their cart and decide to either call the 800 number or
just walk into a store.
According
to Miller, this is one of the most important challenges facing Midwest
Wireless. But he also notes that the company has advanced a great deal in
solving it and is confident that they will overcome it.
Recommendations
and Conclusion
The
Midwest Wireless company is the largest single wireless network in the
Midwest
Wireless sees the Internet as frontline technology, which helps support the
infrastructure within the company, with inventory, communication, sales, and
promotion. For small business owners, who are considering using the Internet,
Miller highly encouraged them by stating, “use it [the
Internet] to the utmost, to think outside the box!”