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| Excerpt: As cable operators in the United States evolve into end-to-end communications service providers, the success with which they handle the accompanying operational challenges of network complexity and assuring unvarying service quality, will determine competitive differentiation and marketshare growth. Today US cable companies offer a vast array of products- from highly targeted digital content to voice, interactive, and mobile services. To build capabilities, providers have already made the necessary technology investments. However, little attention has been paid to customer satisfaction-an important measure of actual service delivery efficacy. The gap between product promise and the actual service rendered shows up most compellingly in the video services market, which faces close to 40 percent customer churn. The most common reasons are cost and quality of service, with churn milestones occurring at identified stages of the customer life cycle like end of promotional pricing and contract renewal. Providers regard this as a zero sum game, as gain in share is always at the cost of another player within the same segment- an inevitable fallout of being in a controlled market that is fiercely competitive. |
