Recently, I was a participant in the pre-market test project for AT&T’s new Microcell 3G product. The Microcell 3G connects to your broadband service and acts as a mini-cell phone tower. During the test we learned that the Microcell 3G device needed to be placed at least one foot from your exiting Wi-Fi device.

Now, the instructions for the AT&T Microcell 3G device clearly state the proper placement for the Microcell 3G device. A simple solution that could have become “Microcellgate” had the instructions not included this needed statement.

So the simple solution for Apple would have been to tell people “don’t cover the antenna area while talking on the phone”. Or you could have been given the reason for purchasing bumpers, which fit around the iPhone and help with the reception issue. Not a big deal. But Apple made it a big deal, by first denying there was a problem. Then, giving a partial-admission of the problem, then a full-admission and then, finally, a resolution. If they had simply admitted the problem and offered a solution immediately, it would not have grown in the PR nightmare we have witnessed. Apple took a simple matter and turned it into a major multi-million dollar disaster that will take years to overcome.

The lesson for companies, candidates, or anyone dealing with the public is to be upfront and honest. Let the public know as quickly as possible what they deserve to know. In Apple’s case, the antenna issue should have been handled in the iPhone 4’s operating instructions.

On a side note, when I ordered my iPhone 4 on the first day, I noticed they were selling bumpers,. In a “Blink” decision, I purchased bumpers for my phone. I’m glad I did. I am perfectly happy with my iPhone 4 and would have bought it even if I did know about the antenna problem. Think about all the money Apple has spent – and will spend – on “Antennagate” when a simple truthful statement about the antenna weakness could have avoided the entire matter.

To witness such great customer service is rare, but those who have purchased items from Zappos were not surprised. During a time where companies try to curb customer service expenses, Zappos embraces it. Their call center is open 24 hours a day, 7 days a week. They offer “surprise” overnight shipping for several lucky customers a day. Their warehouse operates 24 hours a day which increases turnaround time for orders. They don’t list an item for sale that isn’t available in their warehouse, so there’s no chance of being surprised when you discover (post-purchase) that the item you want is out of stock.

Zappos considers excellent customer service to be important to their brand and this extreme example has solidified it. The company will be forever associated with excellent customer service. Though they lost money with their error, they used it as an opportunity to prove that they are consistent with their values. This will ultimately be reflected in their bottom line figures, which are sure to grow along with customer loyalty and confidence.