
High customer satisfaction with low reliability (is reliability still important?)
Most customers aren’t happy with products that break down a lot.
Product unreliability has been behind a lot of losses, cancellations and bankruptcies. A great example is the Yugo – a small, inexpensive car from the former Yugoslavia that gained notoriety in the 1980s and 1990s. It was about half as expensive as similar cars when it hit the US market. And despite a lot of initial ‘excited’ purchasers, it simply stopped selling when people realized how comically unreliable and unsafe it was.
Now there is Rivian. When Rivian burst onto the electric vehicle (EV) scene, it quickly gained a devoted following. The Rivian R1T truck and R1S SUV were praised for their funky designs and innovative features. Owners and enthusiasts love the company’s approach to off-road lifestyles, reinforced by early partnerships with Amazon and promises of building a nationwide ‘outdoor-centric’ charging network.
[Read more…]