USER-FRIENDLY WINS THE RACE Providing easy Net access pays big for MindSpring When MindSpring Enterprises Inc. (MSPG) launched its Internet access service with eight modems and two computers four years ago, no one would have pegged it as most likely to succeed. After all, most of the services for getting onto the Net were notoriously difficult to use and far from profitable. But MindSpring has beaten the odds. The company was created because these services were so tricky. In 1994, Charles Brewer, MindSpring's founder, spent three frustrating months trying to sign up and use the Net. That convinced him of the need for a stress-free service. ''Computers aren't perfect,'' says Brewer. MindSpring's efforts at smoothing over the imperfections are paying off. It turned a $498,000 profit in the fourth quarter last year and has become the fifth-largest ISP by signing up 455,000 customers. Its stock has zoomed 476% for the year ended Sept. 30, making it No. 1 in shareholder return on BUSINESS WEEK's Info Tech 100. Credit the Atlanta-based company's laser focus on customers. Of its 700 employees, 60% are dedicated to taking care of customers' needs. Rather than emphasize the number of calls its support staff handles each week, the company sends surveys out to assess service quality. And those who call in for help wait less than five minutes, vs. six to eight minutes with some rivals. The result: Less than 3% of its subscribers ditch the service, well below the average industry rate of 7% to 8%, says analyst Jeff Sadler of Robinson-Humphrey Co. And about 50% of MindSpring's new customers sign up based on word of mouth, keeping marketing costs down. Still, as of Oct. 21, MindSpring's shares lost 18% of their value since the beginning of the month. Blame that on general concern about tech stocks and on the company's Oct. 6 announcement that Chief Financial Officer Michael Misikoff is leaving. Misikoff says he wants a post with a startup--something MindSpring no longer is. ''I'm leaving the company on solid footing,'' he says. So it's full customer service ahead. By Heather Green in New York RELATED ITEMS THE IT 100: INTRODUCTION COVER IMAGE: The Info Tech 100 TABLE: The Top Ten TABLE: The Top Ten in Size...Growth...Shareholder Return...and Profits WHAT DOES NO. 1 DO FOR AN ENCORE? CHART: Dell's Dynamics CELL-PHONE SENSATION USER-FRIENDLY WINS THE RACE ONLINE ORIGINAL: WHY EMC'S INVESTORS EXPECT THE GOOD TIMES TO ROLL [WEB] TABLE: The Information Technology 100 TABLE: Alphabetical Index of Companies Return to main story

Updated Oct. 22, 1998 by bwwebmaster
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