In an article in the Wednesday, August 16, New York Times titled, "At Netflix, Victory for Voices Over Keystrokes," Katie Hafner tells us that Netflix is attempting to use better service as a competitive edge against rival Blockbuster. It's making a daring and expensive move.

"Netflix took an unusual step for a Web-based company: it eliminated e-mail-based customer service inquiries. Now all questions, complaints and suggestions go to the Hillsboro call center, which is open 24 hours a day. The company’s toll-free number, previously buried on the Web site, is now prominently displayed. "

Not only is there going to be a real live call center with real live people twenty-four hours a day. Those people will be in Oregon, not in India or the Philippines or Africa. That means higher labor costs.

It's a bold move. In part it's banking on the fact that many Americans hate email and web based service. They also hate Byzantine phone trees. Many hate them more quickly if the person who answers after six days on hold has a foreign accent.

For me though, it depends on the issue. Sometimes I'd rather get my answer from an impersonal source like a web site or email. As long as my question gets answered, that is. There's no technological system or site that can possibly answer every possible question or concern about a product or service and do it in clear, unambiguous language.

Sometimes that means a person is better. But I don't want to be on hold until I'm eligible for a pension and I want to wind up with a competent and congenial person. That doesn't always happen.

So Netflix has a big challenge. It will have to figure out what the right size and staffing for their call center is. It will have to decide about using home-based agents, especially if it wants to staff with only Americans and put its call center in Oregon.

It will have to train its agents well because a rude or incompetent agent is worse than a confusing web site. And it will have to supervise those agents effectively.

Will it work? The best thing that Netflix has going for it right now is Blockbuster's attitude. Here's another quote from the article.

"In contrast, Blockbuster outsources a portion of its customer service, and when people do call, they are encouraged to use the Web site instead. Its call center is open only during business hours, said Shane Evangelist, senior vice president and general manager for Blockbuster Online, because the majority of customers prefer e-mail support, which is available 24 hours a day."

Sounds to me like Blockbuster thinks it knows best what's good for their customers. We'll see.

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