Sonos outlines turnaround plan following app disaster
Reading Time: 2 minutesSonos’ May app relaunch will be studied as a business school cautionary tale for years to launch. The home audio firm prioritized netting new customers over its existing loyal fanbase as it added the Ace headphones to its product portfolio. The result was a bug-filled release that has led to missed revenues and a layoff round of 100+. Subsequent product releases have reportedly also been delayed.
Repercussions are still being felt as October dawns. On Tuesday, however, the company laid out a plan it hopes will go a long way toward reversing fortunes and repairing relationships. Sonos laid following seven ‘commitments,’ ranging from business platitudes like ‘unwavering focus on the customer experience’ and ‘demonstrate humility when introducing changes’ to more concrete solutions like extending warranties and the appointment of a ‘quality ombudsperson.’
All told, the response is a mixed bag. Some things like ‘relentlessly improve the app experience with regular software upgrades’ are difficult — if not impossible — to quantify. If you drill down a bit further, however, you begin seeing actual metrics like, ‘We will roll out updated mobile software versions every 2-4 weeks to optimize and enhance the software experience, even once this issue is resolved.’
Three actionable items jump out from the list. The first is the appointment of an ‘ombudsperson.’ This individual will effectively serve as a liaison between fellow employees and management. They will take employee concerns to executives during the development process, present to the board of directors, and product a twice-yearly transparency report.
As for re-earning trust, Sonos says it is working to establish a ‘Customer Advisory Board,’ wherein its user base can provide feedback to ‘help shape and improve our software and products before they are launched.’ As a token of good faith, the company is extending the manufacturer warranty on home theater products and speakers currently under warranty by an additional year.
Of its progress, Sonos writes, ‘Many of these initiatives are already underway and others will be implemented through the remainder of the year.’ The company adds that it has axed executive bonus payouts between October 2024 and September 2025, ‘unless the company succeeds in improving the quality of the app experience and rebuilding customer trust.’ Sonos states that more than 80% of the features removed from the app have been restored, with ‘almost 100%’ arriving in coming weeks.
‘Our priority since its release has been — and continues to be — fixing the app,’ CEO Patrick Spence notes in a statement. ‘There were missteps, and we first went deep to understand how we got here, and then moved to convert those learnings into action. We are committed to making changes to get us back to being the brand people love by offering the best audio system for the home and beyond.’
Reference: https://techcrunch.com/2024/10/01/sonos-outlines-turnaround-plan-following-app-disaster/
Ref: techcrunch
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