Sonos’ app relaunch in May is set to be studied as a cautionary tale in business schools for years to come.
The home audio company made the controversial decision to focus on acquiring new customers instead of catering to its loyal fanbase, coinciding with the launch of its Ace headphones.
This move resulted in a bug-ridden app release that not only caused a significant loss in revenue but also led to layoffs affecting over 100 employees. Further complications arose as subsequent product releases were reportedly delayed.
The fallout from these decisions is still being felt as October begins. However, on Tuesday, the company outlined a strategy aimed at turning things around and rebuilding relationships with its customer base.
Sonos introduced seven “commitments,” which range from broad, aspirational goals like “an unwavering focus on the customer experience” and “demonstrating humility when implementing changes” to more specific actions such as extending product warranties and appointing a “quality ombudsperson.”
The company’s response is somewhat mixed. While certain pledges, such as “relentlessly improving the app experience with regular software upgrades,” are vague and hard to measure, there are more tangible promises as well.
For example, Sonos commits to rolling out mobile software updates every 2-4 weeks to optimize and enhance the user experience, even after the current issues are resolved.
Among the more actionable steps is the appointment of a “quality ombudsperson.” This individual will act as a bridge between Sonos employees and management, relaying employee concerns during the development process.
The ombudsperson will also report directly to the board of directors and produce a semi-annual transparency report.
To regain customer trust, Sonos plans to establish a “Customer Advisory Board” where users can provide feedback on its software and products before they launch.
Additionally, as a goodwill gesture, the company is extending the manufacturer warranty by an extra year for home theater products and speakers that are currently under warranty.
Sonos notes that many of these initiatives are already in progress, while others will be rolled out by the end of the year.
The company also announced the suspension of executive bonuses between October 2024 and September 2025, unless improvements are made in both the app’s quality and customer trust.
According to Sonos, over 80% of the app features that had been removed are now restored, with “almost 100%” expected to return in the coming weeks.
“Our top priority since the release has been — and remains — fixing the app,” said CEO Patrick Spence in a statement. “We made mistakes, and we’ve taken time to deeply understand how we ended up here.
Now, we’re focused on turning those lessons into concrete actions. We’re committed to making the necessary changes to restore Sonos as the brand people love, delivering the best audio system for the home and beyond.”
