Customers still want expert advice.

• Author: Motley, L. Biff
• Position: Customer Satisfaction

In mid-1999 during the height of the dot-corn mania, all the experts were telling CDW Computer Centers Inc. management to change its business model or Buy.com, the direct Internet seller, would "eat their lunch." Today, CDW is feasting on the remains of dot-corn direct sellers and gloating over its success in growing market share and revenues.

CDW is a successful reseller of computer hardware and software, While the rest of the industry has been going through hard times over the past two years, CDW continues to take market share from its competitors. Its number of customers served rose by 15 percent last year to over 350,000. Its secret, says CEO John Edwardson, is customer service and word of mouth referrals.

Clients buy results, not computers

CDWs approach is very high touch; and its target market--small to midsize businesses--appreciates the service. Each customer works directly with an account manager who is dedicated to finding the best mix of technology for that client. Account managers go through intensive and continuing education to ensure that they are conversant with current technology and products. CDW knows that technology is in a constant state of advancement and that in the end what clients are buying are the "results" that automation will bring them--not "computers." This laser-beam focus on putting clients in the hands of well-prepared experts has proven to be a better strategy than pumping low-cost products through the Internet delivery channel.

Interestingly, CDW is not at all "Web-deaf." Its website is designed to reinforce its customer service-centric business strategy. Go to www.cdw.com and you'll see how they have integrated their personal service channel with their Web channel. It is well articulated with this caption, taken from the site, describing their corporate "value proposition":

"CDW's business model focuses on small- and medium-sized businesses with 96 percent of sales derived from commercial accounts. CDW has built strong relationships within the technology sector and we are a leading direct source for Cisco, Compaq, Hewlett-Packard, IBM, Intel, Microsoft, Sony, Toshiba and other top name brands. Our success is due to our...