Consumers are noticing the change too. The latest quarterly figures from the University of Michigan's customer satisfaction index show that Dell is at the top of the rankings again for Windows PC makers, as rivals HP (HPQ, Fortune 500) and Gateway sink. According to a study Dell commissioned from measurement firm Visible Technologies, negative sentiment toward the Dell brand has dropped from 48% in 2006 to 23% today. Even some of Dell's harshest critics are softening a bit after the company's recent online moves. Ben Popken, editor of the Consumerist blog, says, "They've been downgraded from evil to bumbling."
The real question is whether customer-friendly operations like IdeaStorm translate to better financials. The jury's still out on that. (Dell's gross margins have increased to 19.1%, up from 16.6% last year, thanks mostly to cost cutting. Staying at that level won't be easy - Dell has been lowering prices, which helped cause a 17% fall in profits last quarter.) The jury's also out on whether IdeaStorm reflects the opinions of the average Dell buyer. Many of the sites' most popular ideas involve adding the open-source Linux operating system instead of Windows. If IdeaStorm votes were a true gauge of customers, Linux PCs should be flying off the shelves. They're not. "How much better is this as a way to measure customer demand?" wonders Mike Gotta, analyst at Burton Group, a consulting firm. "It's not proven yet."
Michael Dell 'Friends' his customers - Jon Fortt
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