AT&T VS. VERIZON
AT&TLargest provider
• As of January 2011, AT&T had over 95.5 million wireless customers, just ahead of Verizon Wireless' 93.2 million customers.
Verizon Global broadband & telecommunications company
• Owns and operates the second largest mobile telecommunications network in the United States
• In January 2009, Verizon Wireless acquired Alltel Wireless in a deal valued at $28.1 billion.
Sharing Problems
• Both AT&T and Verizon have their fair share of problems, mostly due to external forces.
Key Issue
• Customer Service Policy:
* Forget about it.*
Verizon SWOT
Strengths • Coverage
• Brand Recognition• Share of Market & Market
Position• Resources &Assets• Convenience (# of Stores)• Number of Employees • $30 Unlimited Data• Contracted Customers
Weaknesses • Customer Service• High Termination Fees• Variety of Phones• High Overhead Cost• U.S. Coverage only• Corporate Culture
VerizonSWOT
Opportunities • Iphone• Technology• LTE 4G• Growing need for
communication in business
• Big business contracts
Threats • Economy • Legal: Regulations
and Laws• Major Competition:
AT&T• Smaller Competition:
Metro PCS (Price)
AT&TSWOT
Strengths • Brand Recognition• Largest Wireless Carrier (Revenue & Customers)• Variety of Products• Contracted Customers• Competitive Advertising• Largest Broadband Service
provided in U.S.• Largest Landline Usage
Weaknesses• Wireless Network (dropped
calls)• Largely focused around
Iphone• High Debt• Customer Service• Losing Landline Customers• Towers
AT&TSWOT
Opportunities • Large International
Market• 4G Network• Emerging T.V.
Service (Uverse)
Threats• Economy• Iphone no longer
Exclusive• Competitors• Prices need to be lowered• Rapidly moving market
and need for customers• Legal: Regulations and
Law
Two Wireless Titans
VERIZON
Strength & Opportunity
AT&TStrength & Opportunity
Verizon: New Focus on Customer Service
Customer Service Matters!
• National Federation of Independent Business: Customer Service First, Pricing and Product Second
• 1/5 of Consumers: Customer Service is #1 for building trust in any organization
• Harvard University: 80% of customers will be repeat customers if problems are remedied quickly and to that customers satisfaction
• 86% of consumers have left companies due to bad Customer Service experience(s)
Losing Customers = $$$
• Retaining or satisfying an unhappy customer can cost as little as $15
• Winning a new customer can cost up to $600
Verizon Customer Reviews• Nope, Sorry. We can't do that.
Pros: I hate to admit it, but they have great coverage.Cons: CS reps are rude, untrustworthy, and pathetic.
• Verizon isn't THAT bad, but the customer service is horrible.
Pros: service area, plans, nice phones offered at comparable pricesCons: customer service
• Verizon has the worst customer service
Pros: NoneCons: Horrible customer service Bad information Disgraceful policies
• It Seems Their Intent is to Drive You Crazy.
Pros: service is reliable, products are durable, relatively few technical problemsCons: customer service, customer service, billing issues, customer service, and customer service
• Not worth the hassle.
Pros: Decent phone and internet connections.Cons: Terrible customer service.
Mystery Charges?
• - Investigation from Federal Communications Commission has forced Verizon to a $25 million settlement
• -$52 million in refunds
to approximately 15 million customers
The PlanCustomer Relationship Management
• Intense hiring & retraining phase • Restructuring of billing invoices • Customer satisfaction surveys • Employee incentive programs
AdvertisingA new focus
• Aggressive promotional marketing campaign
• Letters & emails to customers-about promos
Sprint
• Lost $30,000,000,000 and 1 million customers in 2007 and 2008.
Making Telecommunications Simple
• Cutting down the service:– More Affordable– Less Confusing– Easier to Solve Problems
Ready Now Program
• A personal, scheduled appointment for:– Buying a new phone– Changing plans– Questions on billing– Any other questions/concerns
*Undivided Attention from Sprint Representatives*
Customer Service Champion
Sprint• Recognized in 2011 as
one of J.D. Power and Associates’ Customer Service Champions (only 40 companies are selected in total)
Verizon and AT&T
• 2011 Customer Service Rankings: Verizon and AT&T are on the bottom half of 143 companies evaluated
Customer Service
Verizon’s Future
• New Customer Service Policy?