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Summary:

RIM responded to its worst outage ever by giving away $100 worth of apps. And it’s throwing in a month of free tech support. It’s an unsatisfactory gesture and another case of RIM not communicating well enough with consumers who need more reasons to stick around.

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Research in Motion just got through its worst outage ever last week and responded by giving away $100 worth of apps, mostly a bunch of games. Oh, and it’s throwing in a month free of tech support for enterprise customers and a free trial of customer support for people who don’t have it. We still don’t know if more compensation is on its way, but this seems like an unsatisfactory and incomplete way to address such a big outage.

RIM is taking a big downtime in service and trying to smooth things over by pointing people to apps in a store that many people don’t care for. If users wanted apps above all else, they’d be on another platform already. It’s like a car dealer apologizing for a faulty auto part by offering you free coke from their vending machine. Throwing on tech support also seems hollow, considering it wouldn’t have been helpful in this case and it won’t prevent this issue next time or speed up a solution. Now, there could be more compensation going on with carriers, though it’s unclear if anything will trickle down to end users.

RIM’s corporate messaging needs work

It seems like the handling of RIM’s worst network failure is another case of tone deaf communication in the face of a tough situation from the smartphone maker. RIM has been struggling through a rough year with declining market share and sales and it hasn’t managed the turmoil well. Co-CEO Mike Laziridis walked out of a TV interview in April after encountering some unwelcome questions from an interviewer. At the launch of the PlayBook tablet, Laziridis and co-CEO Jim Balsillie pulled out of formal comments at the last second and instead worked the room, which again made people wonder what was going on. The CEOs have dismissed most concerns about their co-CEO working arrangement, even a very pointed letter from an anonymous executive, though the company has conceded a little by launching a committee to explore splitting the roles of co-chair and co-CEOS.

The company has struggled internally with how to handle the marketing around the PlayBook, and whether it was a consumer or business device. That lack of clarity has not been dispelled over time and it’s likely that has helped contribute to lackluster sales of the device. The Wall Street Journal had a great look at the inside struggles over the PlayBook marketin, quoting an executive who said: “There’s an internal war going on around the marketing message. Even the guys at the top don’t agree.”

An apology with more oomph

This latest outage has also exposed more problems in the way RIM communicates. As my colleague Bobbie Johnson pointed out, the initial communication out of RIM was more of a slow trickle of information, and it took the CEOs too long to address the issue before Laziridis issued a video apology. Today’s apology is of course helpful but it seems like overall, a better, more targeted address of the issues or at least something more substantial in the way of a giveaway could trigger more confidence from users and investors. The stock slid 6.5 percent Monday following the apology.

So what could RIM have done? I think it could have offered up something more valuable to users like real compensation. Or as Roger Cheng at CNET suggests, RIM could work with retail and carrier partners to get customers early upgrades to new BlackBerrys or hand out some free BlackBerry devices or accessories to the best customers. For people who lost productivity and real money, even that may not temper their anger, but it would surely seem more meaningful and relevant than providing a narrow list of apps, even if they are popular.

Monetary compensation may still be in the cards, but I think the first big act of contrition can set the tone and it seems like RIM’s initial attempt is disjointed. Better to issue an initial apology and put together a more thoughtful package, even if takes a little longer, than to put out something that seems whipped together. Apple took its time before offering free bumpers following the “antennagate” issue and while it was faulted for taking a while to respond, Apple seemed to do enough in the eyes of most people to allow them to move on. Steve Jobs made a point of prizing the company’s relationship with users even when it seemed like he wasn’t convinced he needed to go to the lengths Apple did.

Time is running out 

This is a critical time for RIM to learn from its mistakes. It needs to figure out how to communicate to its audience of prospective and existing users their importance to the company. Right now, there’s little reason for many consumers to look at a BlackBerry, and now with email service recovering from a big outage, RIM has to ensure that its message is clear. More than at any time in the past, BlackBerry users need some reason and assurance for why it makes sense to choose RIM.

RIM still has a daunting task in terms of providing the actual devices people want and creating a platform that works well on tablets and smartphones. But that just means it shouldn’t be stumbling on something more basic like communicating goodwill to users. I’ll be interested to see what else RIM demonstrates at its developer conference this week. Let’s hope it’s something with more clarity and ‘oomph’ because right now, RIM not only needs some great hardware and software, it needs to know how to better communicate and connect with customers.

  1. RIM’s dead, and with this fake apology they appear to have acknowledged it. Everyone will understand that they’ve negotiated a steep discount on a bunch of zero-marginal-cost product that weren’t selling anyway in their crippled apps market – yet another marketing program disguised as contrition.

    I used to root for RIM. They did an incredible job with a very difficult launch of their initial BlackBerry, then pulled off the tricky conversion to phones and built a killer world-wide distribution network quickly.

    How did they fail to see that nobody cared about their OS, only their messaging services? Had they figured this out, their conversion to tablets would have been easy and fast, and they could have kept most of their margins.

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    1. I still want RIM to compete well but it just makes the job tougher when you’re not retaining your users and I don’t think this gesture does enough for them.

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  2. Sorry – their conversion to tablet PHONES.

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  3. Wholeheartedly agree with Ryan. We were rooting for BB in the past; built apps for their platform and have found that their attention to their devs is no better… I was perhaps one of the last folks in the valley with a BB; now switching as soon as I get some time to stop by at at&t store ;-)

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  4. As soon as a company comes up with an enterprise piece of software, that allows you to connect Android phones, iPhones, etc, to their corporate email, including many of the options that the BES offers, it will be the final death nail into RIM’s coffin. – And really…. those with Microsoft Exchange can already connect iPhones and Androids (and Windows phones of course) without expensive licensing for a BES type software (but obviously also without some BES features, such as killing a device on the road that was stolen/lost).

    A hundred dollars worth of apps isn’t going to save the company. Three days of outage in Europe, and 1 day of outage in North America (more or less), is going to make hundreds, thousands of companies reconsider their service. They should have gotten a months worth of free service on all of their phones, because ultimately: The accountants make the final decissions when it comes to spending money on a new bunch of phones, and having just saved one month’s bill really goes a long way.

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  5. Those apps don’t work well when the network is down…

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  6. It just goes to show you how cluesless you people are. First, RIM Doesn’t deal directly with end users money. That is all handled by the service prividers. In an outage, RIM pays compensation to the service providers to compensate people for the downtine. Do the carriers return this to the subscribers? Imagine that! No they don’t.

    Secondly, you compare this to antennagate where Apple handed out bumpers for 2 months and *Never* actually fixed the problem. RIM is no doubt doing rigourous network testing and archetecting to make their network even more robust so this Doesn’t happen in the future. The software that they are providing free of charge is on top of what the carriers should be paying back to the end users as actually fixing the issue with their network.

    And in a final point, the BlackBerry app store has some really outstanding apps. It is not a dump site saturated with 100 versions of every app and 200,000 fart apps.

    But hey, iPhone plays angry birds… Who cares.

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  7. If people lost money because they couldn’t send an email, why didn’t they just get on their computer? Their fault for losing money. Pure laziness.

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    1. Or get them through a hotspot, damn :-)

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  8. I guess “Blackberry boys” would be really happy if they were gifted with iPhone4S(s) or Androids instead of 100$ worth of cr’apps’. Doesn’t RIM know that their users don’t play games on Blackberry’s tiny screens

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  9. Still dont think its going to make much odds, I cant see them competing with Google and Apple

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  10. Agree #BB is strong w/ mob security but its reliability is in question.
    Damage control: Free Apps? Value delivered?
    Clear & strong msg exptd

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