Customers are cablecos' core assets and provide key leverage for growth. But the industry has rarely been able to fully realize this potential. In the future, it is unlikely to maintain its current momentum unless it learns to interact with customers in a fundamentally different way.
Although
cablecos has improved its customer satisfaction metrics in recent years, it
still ranks consistently among the least popular companies in consumer surveys.
Cable customers, especially younger ones, demand the same kind of seamless
digital experiences they have come to expect from financial institutions,
streaming services, and all kinds of online merchants.
Consumers
used to digital services with precise delivery times have little patience for
cableco's six-hour window for a home visit; typically, less than 30% of
customers can get an appointment the same day. Billing errors are another
consumer pain point, with about 10% of the base calling each month for such
issues. Finally, true end-to-end self-service is even more the exception than
the rule. Less than half of customers who attempt automatic installation
succeed without having to call customer support for help.
Enabling
a digital-first customer experience means integrating digital into all aspects
of the organization, from back office and customer service to omnichannel sales
and seamless self-installation. This will help address customer irritants,
improve retention, and unlock growth opportunities to deliver new products and
services, including personalization and targeted advertising, to a more loyal
customer base. Becoming a digital-first business will be critical to making the
transition from a family-centered organization to a customer-centered
organization.
In
our experience, the top executives in the cable industry understand and support
the "all digital" case. Too often, however, the execution crashes.
Digital goals rarely connect clearly to financial metrics, subscriber metrics,
incentives, and budgets. Additionally, only relatively small parts of an
organization (typically, IT) quickly adopt an agile operating model, leaving
many front-end and back-end teams still following a more traditional, slow, and
hierarchical model. Finally, legacy back-end IT systems often act as
constraints, a problem that can be overcome in part by embracing a
microservices strategy and layered architecture with APIs.
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