More Lessons from Customer Engagement Leaders

For several weeks now, CX Solutions and Voice Crafter have been sharing results of our2016 Benchmark Study of Customer Engagement.  We have offered a definition of Customer Engagement, tried to demonstrate why it matters, revealed some of the brands that are CE leaders, and discussed why/how they have achieved such leadership.

In a recent post, we revealed how market share leader Chick-fil-A surpasses KFC – its nearest competitor – with respect to customer engagement.  We also showed that Chick-fil-A’s CE advantage primarily is attributable to superior customer service, and to the way employees treat and engage with customers.

But is excellence at customer service and “customer care” unique to Chick-fil-A?   Do CE leaders in other industries outperform competitors in these same areas?

To answer the above questions, we looked at two companies in another industry. Specifically, we compared two Internet service providers – Verizon and Comcast – with respect to customer engagement, and also in relation to specific performance and customer experience elements.

As Figure 1 illustrates, Verizon outstrips Comcast by a wide margin with respect to customer engagement.  Verizon’s average CE score is significantly higher than Comcast’s, and as we shared in an earlier post, the number of “highly engaged” customers (23%) is significantly greater for Verizon than Comcast (10%) as well.

more-lessons-figure-1

What explains Verizon’s CE advantage?

Interestingly, when we compare Verizon and Comcast on basic performance elements, we see little or no difference between the two brands.  Based on customer ratings, Verizon and Comcast are essentially the same when it comes to things like value for price paid, product quality and availability, or convenience

On the other hand, when it comes to the customer service and “high touch” elements of the customer experience, Verizon comes out on top.   Specifically, Verizon receives significantly more favorable ratings than Comcast with respect to CX elements such as:

  1. Customer service
  2. Caring about customers
  3. Always being there when the customer needs them
  4. Being trustworthy and transparent
  5. Effectively handling customer problems and complaints

Furthermore, when asked “what one aspect of your experience with (Verizon or Comcast) stands out the most, and why?” 81% of Verizon customers mention something positive about customer service and/or customer care, compared to only 19% of Comcast customers.   

A closer look at some of the comments themselves provide further insight into Verizon’s CE advantage:

“Great customer service — always very helpful and they solve any problem;”

“If I have a complaint with my Internet, or the phone or TV isn’t working, they help me and fix the problem.”

“On the few occasions I’ve had a problem with my TV or Internet service, I have found their customer service to be very helpful, and great customer service is very important to me.”

“They are reliable, and I know I will get great service and can trust them.”

“They have fabulous customer service.”

“They follow up to make sure everything is working properly.”

“Their customer service is better than Comcast.”

The lesson here is fairly straightforward:  Customers engage with companies that provide great service, and that consistently demonstrate they care about those customers. Most Internet service providers compete on the basis of connectivity, pricing, programming, and speed/reliability.  Failure to do so sends customers looking for an alternative provider.

Verizon has to compete with other providers with respect to all of the above. However, the brand achieves Customer Engagement leadership largely because of service quality and customer care.   By excelling in these areas, Verizon builds customer confidence, trust, and ultimately, engagement.

There was a time when customers had few choices when it came to Internet service and programming providers.  However, that era is rapidly giving way to one in which customers have more options available to them.  We believe that companies committed to achieving CE leadership will thrive in this emerging milieu.  

We will continue to share lessons learned from Customer Engagement leaders in the next installment of our series.  So, please stay tuned!