Mike George Chat Transcript

QVC: This is your chance to meet the man who leads our team and ask him whatever's on your mind! Whether you've chatted with Mike before or are a first-time participant, Mike's eager to hear from you and answer your questions. The chat is about to begin, so you can start sending your questions now.

Mike: Thank you for joining me today for this live chat. This is a great opportunity for me to get feedback from you about what we're doing well, and what we can do better. Thank you for taking the time to participate. We take your feedback seriously. After our last couple of live chats, we worked on a number of opportunities you raised with me, for example implementing prepaid return labels, a wish list on QVC.com, the ability to change your auto delivery online, and expansion of our Hanukah product line for the holidays, and several changes to the website, to make the home page load faster. So I look forward to hearing from you today and working on the opportunities you highlight.

Luminato: Do you really listen to what we customers have to say re: products and quality? And what is the most effective way to let you know what we like or don't like?

Mike: We do listen to your input. It's very important for us to hear directly from you both about what you like and where you have concerns. The best way to provide the feedback is directly to us, either by calling our customer service line or by committing your input to the webmaster in the Community Forum online. Every week I get a report summarizing products that you have concerns about, and we make sure to review those products to make sure they meet the high standards of quality.

As you know, you also have some mechanisms to share your views on your products with other customers, including the Community Forums on QVC.com and the product ratings and reviews which we launched last year. We monitor these forums and also use the forums as a way to learn what you like and don't like. Every product that receives a low product rating, we take a look at. We often conduct additional surveys with our customers about those products and try to respond to whatever concerns have been raised.

a269: How can we receive the QVC HD in our area?

Mike: We just launched QVC HD a few months ago. We are excited to be able to offer our customers an HD option. We are currently working with our cable and satellite partners to get them to carry our program in High Definition. So I would encourage you to call your television provider and request QVC HD.

Wayne: How are Easy Pay items chosen, and is there a limit to how many different items QVC will air in a day on Easy Pay?

Mike: We try to provide a broad mix of products on Easy Pay. Criteria that we use include the price of the item, so of course higher priced electronics for example would be candidates for 4-6 Easy Payments. We also look at the products that are most popular with customers and we will often add Easy Pay to customer favorites. We don't have a strict goal in terms of the number of items on Easy Pay, but typically we try to devote about 35-45% of our air time to offering items on Easy Pay.

anon: How do you determine shipping and handling charges?

Mike: We base shipping and handling on what it actually costs us to ship the product to the customer. The shipping and handling charges cover about 80% of our true cost, so our goal is not to make money on shipping and handling, but rather to pass on about 80% of the cost we incur. We recognize that shipping and handling is a concern for our customers, especially in this time of rising fuel costs. We are constantly working to find ways to contain these increases in shipping and handling, for example by finding ways to optimize our carrier network. We're not able to hold back all of the increases in fuel costs, but we've generally kept the increases fairly limited. We've increased shipping and handling about 25 cents per item this year to combat rising fuel costs. So you have our commitment to keeping shipping and handling costs to the lowest level that we can.

Sandy: I am coming to PA this week and plan to visit QVC Tuesday. Are there any tips on what to do there?

Mike: Sandy, we are delighted that you're going to be visiting us! I encourage you to take our tour of facilities; tours run all day. The tour will give you a good inside view of how we operate, and you'll be able to see a live show in action.

hopeadope: What do you look for when selecting the hosts?

Mike: We look for a diverse range of personalities, but what they all have in common is that they're able to connect with our customers. And of course, every customer has hosts that they love, and hosts that they can't stand. I think that just reflects the fact that we have wonderfully diverse customers and wonderfully diverse hosts. So we look for interesting people with a genuine passion for shopping who are people-oriented and love to share their discoveries with our customers. Beyond that, we don't have any specific requirements. We hire people with a diverse range of backgrounds. Some have prior television experience and many do not.

Lambikins: What is going on with the poor quality control at the warehouses?

Mike: We strive to maintain a strong focus on quality control at the warehouse. All products are tested to make sure they meet our quality standards. It sounds like you've had some issues with products that you have ordered. If that's the case, please give us that input directly if you haven't already. I would never tell you that we are perfect. We try hard, and we make mistakes. All I can promise you is that Quality is our first name for a reason. I believe we have higher quality control standards than virtually any other retailer, but I can also tell you that occasionally things slip through the cracks. And when we find out about it, we do everything we can to make it right. So I encourage everyone who's participating in this chat today to let us know directly if we've made a mistake, and we will do what we can to address it.

ravenchow: When you buy multiple items, would it be possible to have free shipping on the remainder of items or a heavily discounted shipping rate? Lots of items can be shipped together.

Mike: We continue to look for ways to economize our shipping costs and we would like to increase the number of items that ship together. As you may know, when you buy multiple quantities of the same or related items, we can ship them together and we charge half of the shipping cost on the incremental items. The reason that we don't do more of this is because we have several distribution centers and each distribution center specializes in a certain type of product. For example, many jewelry items ship out of our distribution center here in West Chester, and many of our beauty items ship out of our distribution center in Lancaster PA. Many of our home items might ship out of distribution centers in North Carolina or Virginia. So this makes it harder for us to put multiple items in the same package. We are looking at a number of ways to increase the number of items we can get in the same package, and we hope in coming years to be able to offer more of that service.

LisaOzzie: I know that QVC is currently on the air in the UK, Japan and Germany, which is terrific. Do you foresee QVC expanding to more international countries in the near future?

Mike: We are looking at expanding to additional countries. We're very proud of our teams in the UK, Germany and Japan and we'd like to expand into other markets in the coming years. We have no immediate plans to do so, but we are exploring several options and I hope in the next year or so to have some good news on that front.

Lisa: A long time back auto-delivery was an exceptional deal because you only paid S&H for the first shipment. Now it appears that we pay S&H for all subsequent shipments. Is it possible to go back to the way it used to be?

Mike: Lisa, thanks for your question. I don't recall us providing free shipping on the back end shipments as a general rule. Having said that, we are actually trying some creative ways to give customers a break on their shipping costs on auto delivery programs. In the last 2 months, we have done a number of auto-delivery programs including NutriSystem, Bare Escentuals, and Philosophy where we've had a one-time setup charge followed by a discount on the shipping and handling charges on the back end deliveries. We do think this is a great way to add more value to our customers and we're committed to doing more of this.

a269: Could you send out the prepaid labels with the invoices so you can just peel, stick and send?

Mike: Yes! We are working on that as the next phase of our prepaid label program and I believe we will be doing that starting this fall.

Merle: What are the plans for QVC going "green" in their shipping products. Too often boxes/bags are much to big for the item and the foolish packaging "peanuts" should be eliminated. It is time for QVC to be significantly more "green."

Mike: Merle, you and I both hate peanuts! We are very focused as a company on embracing green approaches that are good for the environment and good for our customers. For example, we have been working to convert our distribution centers to a no-peanuts environment. We have managed to remove peanuts from the majority of our packages in the last several months, but we have not yet been able to remove them from all packages. It depends on the kind of product and the way our process is built. We believe we have found some new processes that will allow us to eliminate peanuts altogether, but we may still be several months away from achieving that. In general, we're going to continue to look for ways to eliminate unnecessary packaging. We are also committed to making our materials recyclable, as our current packaging is.

Two: I have a small family-owned company and constantly get told our products should be on QVC. How do I show them to your company?

Mike: We would love to see your products. The best way to reach us if you have a product idea is to go to QVC.com and scroll down to the bottom of the home page. You'll see a link to Vendor Relations. If you click on that link, it will give you information on how to contact us about your product. You can also go to QVCproductsearch.com.

Tassie: Are you looking to broaden your vendors in beauty items?

Mike: We're always looking to expand our product range. We find that our best customers are always challenging us to add new brands and assortments. We've introduced a number of new beauty lines in the last several months, including Clinique, Bobbi Brown, and a fun line called 100% Pure. We certainly welcome your ideas if there are beauty brands you'd like to see on QVC. Please send us a note through the Community Forums.

Annie: I'd like to suggest a show that focuses on accessories the models wear

Mike: Annie, that's a great idea. Let me suggest that to our programming team.

Becky: How about a loyalty system? After spending so much you get a reward!

Mike: Becky, thanks for the suggestion. We have not used traditional loyalty programs because we try hard to offer the lowest price possible on the initial product. We have found in other companies that they will try to cover the costs of the loyalty programs by increasing the price of the items. Our philosophy is to try to bring the products at the best value rather than have a number of additional marketing programs. Having said that, we continue to survey customers to see what is of most interest to them. We'll keep our ears and minds open to a loyalty program if there is a strong interest in that.

Annie: Will the 50-50 tour be brought back?

Mike: There is a lot of interest in bringing back a 50-50 tour. We don't have immediate plans to do that, but it is something we will continue to look at. 3 years from today, we'll be celebrating our 25th anniversary and we're already starting to plan something very exciting for our customers.

weetski: Why can't I bookmark or send a link to your products? I love to share with friends and family but can't.

Mike: We do have an "email a friend" link on every product that you can use. In terms of bookmarking, that's a good suggestion and I'll take it back to our online team.

Becky: Why does the QCard have such a high interest rate?

Mike: We've actually tried to keep interest rates down on our QCard. We did not raise QCard rates for several years and so traditionally our QCard has had one of the lowest interest rates of any retail credit card. We did this month increase the interest rates by a few percentage points. This is something we did reluctantly, after having held off on increases for a number of years. Our goal was to keep the interest rates, even after the increase, below the average interest rate of other retailers. I have heard from many great QVC customers who are very disappointed with us that we raised our interest rates. I understand their concern and disappointment. Unfortunately, having gone 6 or 7 years without raising rates, we felt it was necessary to get the rates back in line with the marketplace.

Rita: Occasionally, the "Insider" focuses on the models, but more often on hosts. QVC has some many more models now. Why not feature them on your website just like your "Meet the Hosts" feature?

Mike: Thanks for your suggestion. I think it's a great idea, and we can certainly look at featuring some models on the website as we do the hosts. Also, for your information, we are going to be launching later this year an online version of the Insider. with an expanded inventory of products available. This is something that our customers have been asking for and I'm very excited that we're able to bring this service to you later this year.

Karen: Why isn't who will be hosting the shows listed on-line. I've noticed it's listed on QVC Germany and QVC UK

Mike: We used to list our show host schedules online several years ago. Unfortunately we had some security issues and we felt as a safety precaution we should stop listing the hosts' schedules. It's unfortunate, because we know our customers would like to know these schedules. It's a sad reflection on the world we live in, but for security reasons we are not comfortable providing that information.

Annie: Do you personally read any of the letters that come from customers?

Mike: I read every letter that is addressed to me. I follow up on every letter and make sure it's resolved. Many of the letters highlight opportunities for us to do better, and so in addition to following up on the specific issues raised in the letter, I make sure we're taking action on the broader opportunities that those letters raise. It's one of the more rewarding parts of my job - to be able to both read the many positive letters people send us about their experiences, as well as to be able to fix problems that our customers are experiencing.

Heather: Would there be a possibility of increasing the size range of your clothing items slightly? There are many "regular" sizes, although only three plus sizes. Could there perchance be 4x added?

Mike: Heather, thanks for your suggestion. Over the years we have tried to extend the size range, adding plus sizes as well as petite and tall sizes. Your suggestion about 4X is a good one, and I will take it back to the team to review.

Leigh: I was told you are having an event with Kelly Ripa. when is it and what is the event exactly

Mike: We are hosting our second annual Super Saturday in the Hamptons. This is a great event where we sell designer merchandise for half price with all the proceeds going to ovarian cancer research. We had an overwhelming customer response to our first show last year, and we are excited to partner this year once again with the Ovarian Cancer Research Foundation to broadcast live from their event in the Hamptons. Kelly Ripa and Molly Simms are featured in our TV commercial promoting the event. and they will be helping us make Super Saturday a success. We are grateful to both of them for donating their time to this important cause. The program will be broadcast on July 26 at 2 pm ET.

Carolynn: What is your favorite aspect of leading QVC?

Mike: I think my favorite aspect is working with the QVC team. It's hard for me to describe to you how passionate this team is and how devoted they are to providing a great customer experience. As a side note, I read every community forum thread and occasionally you'll see a thread from customers who questioned how much QVC cares about the customer. When you see those threads, that means we probably let that customer down in some way. But I wish there was some way I could convey to you how much this team loves what they do, and how proud they are to serve each of you. As you know, our business is 24/7. We never go off the air. We take phone calls day, night, and holidays, and ship our products around the clock. I've never seen a team work as hard and try as hard as this team does.

anon: Are the hosts paid on commission?

Mike: The hosts are not paid on commission. We really want our hosts to engage in a conversation with our customers, and share what they like about the product, tell the story of the product. But we really don't want them trying to sell too hard. We talk about the backyard fence at QVC. That simply means that when we do our job well, it should feel like you're participating in a conversation over the backyard fence with your friend and neighbor about the products you love. We feel that if we used commission, this would send the wrong message to our hosts and our customers.

Wayne: Are you ever going to carry children's and teens' clothing and accessories?

Mike: Wayne, at this point we don't have any plans to extend our assortment into children's and teen clothing. We have just found over the years that there is not enough interest from our customers in those product lines. We may from time to time test some products in those categories to see if customer interest has changed, but I don't anticipate doing a lot more in those categories.

mamaof4: I know that I and others grew fond of some former hosts; are there any plans for return visits from past hosts?

Mike: As you may know, we have recently had a visit by one of our original hosts and one of our most popular hosts, Kathy Levine. There was great interest from our customers in seeing Kathy come back on air after she made a surprise visit on Bob Bowersox's anniversary. And so she has returned to QVC with a wonderful jewelry collection called La Vintage that she loves. We don't have any immediate plans to bring back other hosts, but stay tuned!

Barbara: Is there any way to send payments electronically instead of waiting totally on the US Mail etc

Mike: We would like to provide customers with that service. A number of customers have requested it. We are working with our credit card processing partner to see if we can make that happen. So at this point, we don't have any immediate plans for further electronic payment options, but we will continue to investigate those options.

Vicki: Can you address what has happened with the Tova Signature fragrance. Many, many customers feel it is a different product than the original and are very vocal about wanting a chance to purchase the product they loved for years.

Mike: Thanks for your question Vicki. We know there are many loyal Tova fans who are very disappointed with the fragrance. Let me give you the background on what happened and what we are doing about it: Last year, the manufacturer of the Tova fragrance made a very slight change in the formulation. They did not think at the time that that change would have any impact on the scent. However, we heard from many customers that they felt the scent had changed. So we and Tova went back and took apart the formulation and concluded that, indeed, we had made a mistake and had inadvertently changed the scent.
We believe this affected her signature product starting around May 2007. We believe we completely corrected the formulation in fall 2007, and at that time notified all the affected customers that they could get a new version of the corrected product on our nickel. Since then, we have continued to receive complaints from customers who fee that the product is not back to its original standard.

We continue to monitor the Tova threads, as we do all threads. There is talk on the forums of a Tova-gate, and underhanded attempts on our part to trick our customers. All I can do is tell you the truth, which is we believe that we have been able to restore the formulation to its original version. This was never done in an attempt to lower the cost. In fact, the cost to make the product has not decreased at all.

We are at somewhat of a loss to understand why some customers feel it has changed. I believe they are totally sincere in their beliefs; we just cant find anything to indicate the product is not back to its original standard, In fact, the majority of customers are satisfied with it. I have had several discussions with Tova over the last year, and I can report to you how upset and disappointed she has been because she loves her customers and is so proud of her 25 year history with this fragrance. So please continue to give us information if you feel the product has changed. We will continue to monitor the situation. But again, all I can tell you is that we are totally committed to the original Tova fragrance and to the best abilities of Tova and the manufacturer, we believe the current fragrance is the same as the original formulation.

Sammycat1: What will QVC do in the future to distinguish itself from other electronic retailers?

Mike: In many words, we're going to stay true to what has distinguished us in the past. While we by no means get it right every day, our goal is to stand out from the other electronic retailers by having a consistent focus on high quality standards, fun and friendly on-air conversations, great customer service, and the best possible value on the initial product price.

As you know with QVC, rather than wait for a product to go on clearance, we try to start with the lower price rather than start with a higher one and reduce it over time. So those principles will remain at the core of what we do, and every day we strive to live up to those principles.

Beyond that, you will see us continue to expand our product line. We're very proud of the world class brands that we now bring to our customers, like Tacori jewelry, and Bobbi Brown cosmetics. We have a number of exciting new brand launches coming this fall. If I told you what they were, the team would kill me! But I think you'll be very excited when you see them launch.

We also want to take advantage of new technologies to make your shopping experience easier. We've been doing a lot of work to improve our website, based on concerns that many customers had about the redesigned site which we launched last fall. Our goal is to continue to make the site faster to use, and add new features to improve your shopping experience. We are also testing a new mobile phone service that will let you order QVC products over your mobile phone. We hope to roll that out later this year. It's just one example of trying to take advantage of the technology that you use in our life today to make it easier to interact with QVC. You'll see a number of new technologies like that on QVC over the next 1-2 years.

Finally, our goal is to keep finding new ways to make our programming fun and engaging. We take customer feedback and are trying to add more diversity and entertainment in our programming. I think if you watch us over the next months, you'll see a number of new and interesting programs launched.

Millie: Can you give us a peek into the Easy Eay anniversary on 6/20. Will everything be on Easy Pay like last year?

Mike: I could give you a peek, but then the team really WOULD kill me :-)
The one thing I will tell you is that we're premiering a wish list favorites program on that day. This was an idea that came from our customers to highlight those products that most frequently show up on your wish lists.

QVC: Thank you for being here today to answer so many questions! Is there anything you'd like to add, before the chat closes?

Mike: I'd just like to close by thanking all of you for your loyalty to QVC. As I mentioned a moment ago, all of us are in this business because we love serving customers. The most rewarding part of our job is getting feedback from customers that are long-time members of the QVC family. I encourage you to please let us know directly whenever we let you down, and we will do whatever we can to improve the experience.

QVC: Thanks for chatting with us! It's always great to hear from our customers. Enjoy the rest of your day! Also, if you haven't already, check out Today's Special Value®

A production of LiveWorld, Inc.
Copyright 2008. All rights reserved.