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

Contact Center Solutions Week in Review: Interactive Intelligence, BT and Accenture

The future is now, or at least it is coming at us fast in the Contact Center Solutions Community, and there are two great ways to be part of the industry buzz as to what is unlikely to unfold in 2015. The first is to attend ITEXPO East, January 27-30, 2014 at the Miami Beach Convention center. This is a great opportunity to be warm and more to the point, hear, see and discuss contact center issues in person with peers and subject matter experts. [ Read More ]
01/17/2015

Customer Experience: The Last True Differentiator

In Ernst & Young's Global Consumer Banking Survey 2014, customers chose "the way I am treated" as the second most important reason for trusting their banking provider, just behind the understandably important "financial stability" of their bank. Customer experience was also cited as the most common reason for opening and closing accounts, more important than fees, rates, locations or convenience. Approximately 40 percent of customers planned to open or close an account in 2014. This means banks … [ Read More ]
01/16/2015

Digital Is Driving Businesses to Offer Personal and Intuitive Customer Experiences says Accenture Report

The preoccupation with improving the customer experience (CX) by C-levels around the world has been a trend for several years. In fact, the fastest growing C-level position is Customer Experience Management Officer (CEMO) or some variation on the title. And, as CX becomes ever more important as the means to provide differentiated value, delighting existing customers and for obtaining and keeping new ones, the preoccupation will not only grow more intense in 2015, but so will the investments in t… [ Read More ]
01/16/2015

BT Launches New Personalized Video Message Service

When it comes to contact center out-reach there are two trends that everyone needs to literally and figuratively keep an eye on in 2015. They are "personalization" and "video." And, while the first may seem obvious since the goal of marketers is to make customers and prospects feel appreciated with tailored messages uniquely for them, the use of video on the outbound side of things is after many years becoming something more than a novelty. [ Read More ]
01/15/2015
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!