Contact Center Solutions Featured Article

Study Shows Perceived Customer Service Driving Market Share

August 09, 2007

For those companies that are keeping customer service as a top priority to drive profitability, many are finding their efforts to be well focused. According to a study released by CFI Group, telephone companies are better positioned than cable providers to attract customers taking advantage of bundled-services offers over the next 12 months.

This positioning is being driven by phone providers’ ability to deliver better customer service. At least that is what customers perceive in the call center customer service deliverables of telephone companies.

The CFI study was compiled from a panel of 1,200 respondents, selected to reflect national demographics. The study, the Telecom-Cable Industry Report, found that 20 percent of respondents were highly likely to purchase a bundle of services in the next 12 months and 54 percent revealed that they would seek those products from the local telephone provider, while 44 percent would look to cable.

The results of this survey indicate that cable companies will be losing customers to telephone companies. Of those polled, 50 percent already buy bundled services and cable currently has the majority of package customers at 68 percent, versus 32 percent for telephone companies.

Although customer service via the call center is a key element of consideration, the number one reason to switch providers from cable is that the current operator costs too much, according to survey results from 69 percent of those polled. Another 43 percent cited poor customer service.

The American Customer Satisfaction Index, compiled by the University of Michigan Ross School of Business, revealed that telephone companies outrank cable providers in all service categories. As competitive as this industry is, the service performance of each will likely drive their performance.

Survey respondents were asked about their current service provider and Bright House Networks customers indicated that they were the least likely to switch at only 15 percent. Cablevision Systems (News - Alert) appeared to be the most vulnerable as 25 percent of its customers revealed that they might switch.

Verizon (News - Alert) Communications is presenting Cablevision with stiff competition throughout the New York-New Jersey market. Verizon is deploying FiOS high-speed Internet and television services. Telco customers were 11 percent to 19 percent likely to switch, depending on the provider.

Rates for service also contribute to the desire to switch among broadband customers, although this challenge applies to both major providers. What these providers often fail to realize is that customers aren’t as likely to switch providers if they feel the service is of an exceptional level.

If these providers were to put a customer-centric focus in their call and contact centers, they will be much better positioned to protect their customer base and take customers away from the competition. Until this focus is a priority, rates will continue to drive purchase decisions for the customer.
 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
Want to learn more about contact centers? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. The papers are authored by industry leaders, who, in turn, receive qualified sales leads from interested parties. Check here for the latest in CRM information.

Article comments powered by Disqus

Related Contact Center Solutions Articles

Appeals Court OKs Redbox's Customer Info Disclosure to Third Parties

The U.S. Court of Appeals for the Seventh Circuit, based in Chicago, has given its approval of Redbox's practices for disclosing customer information to a third party regarding customer service issues. [ Read More ]
10/31/2014

On How to Avoid Challenges and Added Costs of Open Enrollment Period for 'Obamacare'

If you live in the U.S., consider this a type of public service announcement. We are about to enter the open enrollment period for 2015 as part of the continuing rollout of the Patient Protection and Affordable Care Act (PPACA), which has become better known as "Obamacare." As we are all aware, the initial rollout of Obamacare was problematic-to put it politely. However, the good news is that, thanks to some great work by the IT industry experts called in to fix it, healthcare.gov is working bet… [ Read More ]
10/31/2014

Getting Ready for the Holiday Rush-The Role of Customer Experience Transformation

It should be no surprise to anyone that the holiday season is fast-approaching, which means "all hands on deck" in the contact centers of retailers. And, as we move into what can best be characterized as the "Omni-channel Era" when it comes to providing a compelling customer experience, retailers are busy transforming virtually every aspect of how to provide such experiences. [ Read More ]
10/31/2014

When it comes to Contact Center Agents 'Mind the Gap'

As content curator and contributor to the Contact Center Solutions Community, part of my function is to review information and insights from around the Web and illuminate them to our readers. In this regard, I would like to recommend an insightful posting from IT-Online titled, "How to differentiate customer experience." [ Read More ]
10/30/2014
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!