MagicJack forced to rethink its customer service
MagicJack, maker of the small voice-over IP device made popular by late-night infomercials, today reached a settlement with Florida’s attorney general over allegations that it charged customers for long-distance calling during its advertised 30-day free trial. Without admitting guilt, the company agreed to make changes to its tech support and reimburse the state the $125,000 the investigation cost.
The investigation into MagicJack began last summer when the onslaught of customer complaints reached Florida attorney general, Bill McCollum. According to his office, the investigation found that the company did not properly disclose the VoIP device’s limitations nor did it have enough customer service representatives on hand to deal with the issues with it. MagicJack CEO Dan Borislow said that the company has resolved 500 customer complaints since the investigation began.
As part of the settlement, MagicJack to institute new customer service practices, including a guarantee that all inquiries will be responded to within 24 business hours and a disclaimer on its Web site to clarify the requirements for a free trial.
MagicJack came on to the scene in 2007, promising prices as low as $19.95 a year through an unlimited voice-over IP service. Since then, consumers have developed an acute love-hate relationship with the company – some just plain hate it, others will defend it to the grave and still others love the service, but just hate the customer service. The company has clearly been successful, selling two million devices in the first 11 months of business, but it also has shown that cheap service can’t justify inadequate customer service.
In the past, Borislow has stood by MagicJack’s customer service methodology, which relies only on online, live chat with service techs. His view is that approaching customer service online is the wave of the future. It makes sense in the respect that a tech can immediately know if the person has high-speed Internet or if their computer is working. Last May, he responded to customer criticisms on Telephony:
“MagicJack customer service on a relative basis is amazing already, but certainly not my best work product yet. Where else in this business can you wait just 4 seconds to get help and then have an escalation process to a super rep within minutes (soon to be seconds)?”
Granted, this was nearly a year ago, and the company has been improving its customer service since, but today’s settlement reaffirms that chat can be great for customer service, but if it is not flawless, it shouldn’t be the only method. Borislow also pointed out at the time that consumers are more likely to be honest in their criticism online than over the phone. It’s just a different story when their criticism is about the online chat in the first place.
April 20th, 2009 at 7:40 pm
Most of these complaints were from over 10 months ago.There was not one instance the AG found us to be billing before the thirty day trial was up.
Our customers grade us at the end of a chat session,anywhere from the worst which is a 1 to the best which is a 5.10 months ago,our grades were about one 1 to four 5s,today we are about one 1 to twentytwo 5s.We are on chat 24 hours a day and on average answer within 4 seconds.We have very sophisticated methods to service our customers.We have an A - rating by the Better Business Buruea now,after they identified ways to help our customers.We instituted all there suggestions months ago and it has shown,besides our own improvements.JD Powers has also found out customers are more satisfied using Chat than talking on the phone too.
I think we have the best customer service in the business now and most likely the highest BBB grade.We only started selling magicJacks full scale about 13 months ago.The strides we have made are off the charts,if I must say so myself.If our competition could figure out what we do,they most certainly would copy us.
The company has sold over 3 million magicJacks,has no lawsuits or other AG investigations pending.It’s because we do everything better than the next guy,we do things right and all at the very best cost in the industry bar none.
Our customer’s actually Love the customer service we supply,and anybody who does not beileve us,can see this first hand by looking at statistics supplied by an independant third party,whom is also a Public company with real auditors.
Email me at danborislow@magicjack.com
Dan Borislow Inventor magicJack
April 21st, 2009 at 9:45 pm
Dan I had some problems at first getting MJ working. The tech support people were cooperative but neither they nor I could get it working. After about a week MJ started working correctly for no apparent reason. Until then I had the usual echos, dropped calls and disconnects but suddently everything begin to work . I suspect there were server problems in your network. But all is well now and the 3 mj(s) that my college kids are using and the one I have are performing well. Keep up the good work. Reliability is the key..
April 22nd, 2009 at 10:23 am
MagicJack is certainly well worth the cost.
I do wish that they would have a somewhat better quality, there is always a noticable echo, especially on high volume, though most probably would not notice.
Also, not allowing those who know how, to free themselves from the dongle is a real pain. Those who have Asterisk and other software PBX’s should be able, without playing tricks to get the proper credentials, to integrate within their PBX’s.
If Magicjack doesn’t want to provide support, so be it, but to hide a 20 digit password that can’t easily be known in orderto use the service really makes no sense at all
I would gladly pay twenty or even forty per year and not be forced to use the dongle and have even a minimal XP machine running all the time.
How about it, MagicJack, provide a Green solution for those willing to self support!
April 22nd, 2009 at 10:43 am
I’ve been using several MagicJacks (including some with a business PBX) since last summer. They work great, even on inexpensive Netbook PC’s with an Atom processor (Asus Eee). In the beginning, I tried using some older, retired Centrino-based 2.0 GHz laptops, but that was too unstable - echo, delay, dropped call.
Just be sure to plug the MagicJack directly into a powered USB port. If you don’t get dial-tone, try a different USB port. BTW, USB hubs are iffy at best.
Overall, untouchable savings, and service that is worth much more than the price.
April 29th, 2009 at 6:57 pm
Dear Dan et al:
I just bought a magic jack yesterday at my son’s insistence. (He informs me that Skype wants $15/mo for unlimited US.) I had no problems setting it up on both my PC and his Mac. I am sorry to hear you have had CS and legal problems. I have no idea how you assign real phone numbers for $20/year — my hat is off to you!
However, I do have some comments. First, I had a hell of a time finding my account settings. Do you think you think it would detract from your sales efforts on your main page to have a link “Already a customer, click here” and have that take you to my.magicjack.com? (Yes, I finally figured out how to get to the account settings.) Second, you have 600 postings at RipoffReport.com so you clearly still have pretty serious CS problems. I think you need a better plan to deal with this problem. As the man suggests above, letting people who want more service pay for it sounds like a good idea. Third, both my son and I left your sales page running for a long time while we were trying to figure out how to get to other locations on your website. For what you are paying Akamai (or whoever) for the bandwidth that is being wasted while people puzzle at the sales page, you could implement these improvement suggests.
BTW, your daughter and the dogs are extremely cute and having them on the homepage IS a great idea!
Sincerely,
TD
July 27th, 2009 at 9:16 am
can’t access this phone. window pops up stating my system isn’t compatable with your product. Was when first purchased. (windows2002-sp-3) can’t access me account w/o password can’t remember. Original order #DT00275390
reference#2146605 (dated 4/25/2008)
please reply! need this phone
Thanks, Brian Gillespie (7/27/2009)
I thought this is a lifetime deal for the money spent- correct me if i’m wrong.
August 6th, 2009 at 7:20 pm
Hi,
Love the product and concept…..only if it would work! For me, at least, since most of my colleagues have been using it without any trouble. I picked up a MJ yesterday and had it up and running (so I thought) in several hours. Today, I cannot use the service at all. Voicemail is non-operative, call quality is very poor, the list goes on. I have now been online with Tech Chat for over 3 HOURS. No joke. I have lost most of my workday and that is really too bad. I am hoping to get my business phone back online, as I rely on it to well….do business. The Tech Chat idea is great, of course as long as it works efficiently and successfully. Maybe I just have a lemon MJ unit??? I can’t waste any more time troubleshooting this thing…
August 6th, 2009 at 8:07 pm
Um make that 4 HOURS…and I’m on my 5th Rep, this is so much fun! Never before did I think I could buy phone service at such a bargain! The catch is…it doesn’t work! lol. It’s a good thing they have live phone support standing by. Wait, no, they don’t. I have them confused with every other tech-based company on the planet.
August 10th, 2009 at 3:40 pm
PLEASE LINK ME UP WITH BAD/GOOD USE YOUR PRODUCTS FOR “WE HAVE ALL MACS” DOES IT WORK BY CONNECTING TO USB SPARE ON OUR KEYBOARD’S ?
THANKS
August 11th, 2009 at 11:03 pm
Wait a minute, you’re telling me a company in the business of selling you a device to make telephone calls doesn’t have telephone support? The inventor says that telephone support is no good and the way to go is through online chat? If everybody thought that way, there wouldn’t be a need for a Magic Jack. Sorry mom, I only take chat requests now.
August 13th, 2009 at 8:39 am
As a only slightly interested third party who may soon be a MJ subscriber, the customer service scheme seems to be at least an order of magnitude better than what I’ve routinely experienced with certain other communications providers, especially in the video services business, where there’s a much larger revenue (expense to me) stream involved.
August 18th, 2009 at 3:03 pm
Hello Dan,
Firstly thanks a lot for your invention. It has revolutionalized VoIP. I am myself a VoIP engineer and have worked in the field of Telecommunications for a few years now.
Also, travel a lot and use your device for personal communications. This has really made a lot of different in my connectivity and mobility.
I cannot thank you enough.
I believe I have used your service for around 20months to 2 years. And I signed a 5 year deal at the end of my first year. However, as good as your invention has been, off late I have seen a sharp dive in the service. I guess with the hype magic jack has created, there has been a flood of customers may be a couple of dozens thanks to me. I am guessing you are in the process of upgrading your systems fair enough, I hope you soon fix your audio quality issues. Past few months I have not be able to use the device because of a broken storage error, rest assured a lot of people have seen this already.
Also, if I may I would like to take this opportunity to ask you about your investment strategy and future road map for magicJack. What do you really do with all that money? An investment advice please :).
I am guessing some may go back into probably buying a great yatch? Some into real estate? And I am guessing you invest some back in the business. I am sure you have invested into upgrading the systems. However, if I may, I would like to suggest investing some in training the support staff.
They are lovely folks and I am sure they have pleasured a lot. However, I have been they whipping boy.
Below is the excerpt from todays chat session with one of those. I would also like to invite you to log into your systems and check my earlier logs phone number xxxxxxxxxx.
Hoping to a better world. All I want is WORLD PEACE!!!
Thanks,
ronnie
Your Issue ID for this chat is LTK419073382473X
Desmond: Hello, how may I help you?
ronnie: Hi Desmond
Desmond: Hello ronnie
ronnie: In the mrning I was chatting with another agent
ronnie: and I got DC…
ronnie: I am going to copy paste our conversation
ronnie: and I would like you to look into the account, check my logs and take it from there
ronnie: is taht ok ?
Desmond: Thank you for bringing your concern to us.
Desmond: Please allow me to assist you with that.
Desmond: Your account information?
ronnie: xxxxxxxxxx
ronnie: Steph: Hello, how may I help you? ronnie: hi Steph Steph: Hello ronnie: my magic jack is broken ronnie: i need to exchange it ronnie: i have had a long chat with you guys last month and i never get time to do this ronnie: if you can look up my logs Steph: Are you still on the 30 day trial? ronnie: it would be a great help ronnie: no i have ben your customer for 2 years ronnie: and i have purchased a 5 year plan\ ronnie: but 3 months back the magic jack stopped working ronnie: gives some broken error ronnie: broken storage ronnie: we have done all trouble shooting ronnie: could you please look into my logs Steph: Sure Steph: let me read through your previous chats Steph: One moment please… Steph: Thank you for waiting Steph: I think this issue needs to be resolved by our Upper level tech who will be able to help you more regarding your problem Steph: Would that be okay? Steph: *Would that be okay if I transfer you now? Steph: Are you still there, ronnie? Steph: I have not heard from you in a while. Do you wish to continue this chat session?
Desmond: Thank you.
Desmond: Please wait while I check that for you
ronnie: thanks
Desmond: One moment please…
Desmond: Thank you for patiently waiting.
Desmond: License Expires: 04/21/2014
Desmond: So your magicjack is still IN-Service.
Desmond: Is your magicJack plugged in right now?
ronnie: hey … we have done all this troble shooting
ronnie: have spent hours on it
ronnie: dont want to do it again
Desmond: Thank you for your patience. I will transfer you to a higher level of support. Please hold while I transfer you.
ronnie: last i spoke i was supposed to get it exchanged
Please wait while I transfer the chat to the best suited site operator.
You are now chatting with ‘Evert’
Your Issue ID for this chat is LTK419073382473X
Evert: Hi, this is Evert, from higher level support and I will be assisting you
ronnie: thank Evert
ronnie: Would you mind looking into my logs from a month back
ronnie: or may be 2 months back?
ronnie: i went over all this
ronnie: i never get time
ronnie: thats y i am contacting you guys after a month or more
ronnie: it would be a great help
Evert: May I know the exact nature of your problem with full details please?
Evert: May I know the exact nature of your problem with full details please?
ronnie: for that reason I am asking you to look into the logs
ronnie: I do not really have time to explain this all over again
ronnie: I need to get my magic jack replaced
Evert: is the bluelight on?
ronnie: Evert… plesae understand
ronnie: i do not have time to trouble shoot this
ronnie: i have spent hours on this
Evert: Alright, I understand
Evert: would you like to get a replacement?
ronnie: yes pleace
ronnie: please
ronnie: however not right now
ronnie: I would like to first request
Evert: Oh
Evert: Yes?
ronnie: to get atlest a month to return the old one
ronnie: i keep travelling and i dont get time
ronnie: if you can send it to be my august 25 I can return it to you by sept 25
Evert: I am sorry but you will be only given 10 business days to return the defective jack upon receiving the new device
ronnie: as i said
ronnie: i keep travelling and this is not possible
ronnie: i have been your customer for some time
Evert: I am sorry but that is not possible
ronnie: and i have signed 5 year deal
ronnie: i would guess this is just one thing you could do for me
Evert: No, it is not possible, You will be charged if you will not return the defective jack after 10 business days
ronnie: ok then would you guys refund me the days of service i have missed?
ronnie: or would you guys extend my last date?
ronnie: by 3-4 months
ronnie: ?
Evert: No
Evert: That is not possible as well
ronnie: great
ronnie: what is your inventors email address?
ronnie: i want to write to him….
Evert: No, please read our Terms Of Service to answer all your questions
ronnie: perfect…..
ronnie: perfect…..
Evert: Okay Bye
Chat session has been terminated by the site operator.
September 20th, 2009 at 3:06 pm
bought New Magicjack ! Old one Broke….Have Existing Phone No. on
thousands Of Flyers & Business cards as 508-499-6303 !!!!
I DO NOT WANT A NEW NUMBER !!!!
PLEASE CHANGE NEW NO. (508-699-6083) TO OLD NUMBER AS LISTED ABOVE
OLD NUMBER = 508-499=6303 OR PLEASE TELL ME HOW TO DO THIS .
OH BY THE WAY IT WOULD BE NICE TO HAVE MAGIC JACK E_MAIL OR
PHONE NUMBER FOR CUSTOMERS TO GET QUESTIONS OR PROBLEMS RESOLVED !
December 2nd, 2009 at 7:26 pm
Just want to say MagicJack is great, just make sure you have your computer in order since it relies on it to work correctly. If possible use a spare computer with MagicJack. MagicJack uses bandwidth so if you ain’t got allot of it don’t tie up your computer with programs like Frostwire, etc. These will hog all your bandwidth and cause problems for your MagicJack. I suggest if you can do a clean sweep of your computer and give it a fresh start as I did before using MagicJack.
December 8th, 2009 at 2:40 am
I spent quite a bit of time with a chat tech today trying to understand why I was charged on my credit card after the infomercial had clearly promised a 30-day free trial. I had ordered a phone for myself and then at the end of the order was given the opportunity to purchase up to 5 more. I decided they would make good Christmas gifts for my sons and ordered 3 more. I don’t recall anything being said that this would negate the free trial offer, but according to the tech chatter, it did. I explained that I could not afford the extra expense right now and wanted to cancel the second year, which I don’t remember requesting, but I must have agreed to it, as it was charged to my account. I was told a sales rep would have to handle it. I asked how long it would be before my credit card would be credited. No exact time frame could be given. I had asked what recourse I would have, if I found the phone unsatisfactory, since they had already billed my credit card. Initially, the question was not answered. I repeated the question and was told “You’ll just have to wait. You’ll be notified through email.” This struck me as an extremely rude way to speak to a customer and it certainly didn’t address my concern. When I asked to speak with a manager, I was told that they don’t chat. I persevered, asking how I might communicate with a manager. “They do not handle customer support.” was the response. I certainly do hope the product is as good as it sounds and worth all the media hype, which did influence me to purchase it in the first place. As far as customer service goes, there’s a lot of room for improvement!
December 9th, 2009 at 1:08 am
I’d like to know why Magic Jack now blocks ALL calls to free teleconference telephone numbers (in the U.S.)
I’m in California, and at the beginning of my Magic Jack service, I was able to dial U.S. based telephone number, but since the summer of 2009, MJ has BLOCKED ALL CALLS to any and all free teleconference numbers. So, when I receive invitation from a speaker who is promoting his/her business with a free teleconference number, I cannot call using my Magic Jack service.
So, people, be warned!!!!! MAGIC JACK does BLOCK calls!!!!!!!!!!
December 29th, 2009 at 1:08 am
This is the text of an exchange I just had with a customer service rep. I’ve just had several rounds of explaining my problems, that MJ froze my computer every time I used it for a year. I said I wasnt looking for a refund, but I was looking to get compensated for the year of service I lost on the 5 year contract:
*** 12-28-09
CK: We are not asking for a refund. You delivered a product and we paid for it. But we should be given back the lost year of the contract when technical issues couldnt be resolved after several rounds of trying.
Junrex: Is your magicJack working fine now?
CK: As of 15 minutes ago, yes
Junrex: Good
Junrex: Since it has been activated
Junrex:
Junrex: Is there anything else I may help you with today?
CK: How about my request for compensation as discussed with Marcus earlier. Please dont run me in circles like this.
Junrex: If he submitted it then probably he will w ork with it.
Carol Kay: How will I know the result. I’ll wait if you need to go check on it.
Junrex: No need Carol
CK: I realize you dont want to continue chatting with me over this. Its clear in your tone. I hope you’re having fun at a customer’s expense, but please answer my question.
Junrex: Just wait for the result Carol since Marcus escalated your request
CK: Can you connect me to him? How will he get in touch with me?
Junrex: you can end this chat and look for Marcus
CK: Ha ha I’ll be sure to copy the text of this conversation
***
A polite “No” or at least an answer to the question would have been nice. It works great now, but the customer service end is lame. I want to see you guys do well, I really am a fan, but this type of snarky exchange is over the top rude.
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