Retaining Subscribers Is a Team Sport

Cable World, July 15, 2002

Byline: STACI D. KRAMER

It's not enough to recruit new customers. You've got to love the ones you're with and let them know - preferably before they even think of walking out the door. And if the door is slamming in your face you've got to make one last, credible try. That's where one of the most recent trends in cable customer retention comes in: the save team, specially trained service reps dedicated to saving customers through better communication, education and an occasional free month of service. Comcast Cable and Cox Communications are committed to the concept; Charter Communications rolled out a ten-region trial six weeks ago.

"We've done a lot of research. Fundamentally, it always comes back to price value," says Comcast VP of marketing and new products Andy Addis. "When you talk to people about the product and why they didn't see value in it what consistently gets played back is they didn't understand it." Until recently, Comcast save teams addressed total disconnects; now the teams also respond to downgrades.

Charter has implemented regional save teams - seven in house and three outsourced - following a model the Ft. Worth region started 18 months ago. Director of retention Thomas Brockhaus came to Charter with save team experience at Ameritech, American Express and EDS.

Warren Jones, Cox director of competitive intelligence and customer retention, says that "if properly trained and functioning, a save team should be able to save 30 to 35 percent."

How it works: A customer intent on disconnecting or downgrading calls in. The CSR who answers the phone listens, then transfers them to a save team member. That person's task is to find the real reason the service is being disconnected - service or education - and attempts to solve the problem by working with the customer. For instance, simply explaining how to find a person's favorite channels using the on-screen guide or the remote might be enough to save the relationship. If they think it's necessary, they can offer an incentive like a month of free service. The teams are measured not just on save percentages but on average cost per save. Incentive compensation is based on maximizing the retention and minimizing the cost per save.

New Orleans, Phoenix and Omaha were the first Cox systems with save teams. The results were used to create a pilot program with Hampton Roads, Va.; Las Vegas; and West Texas. Cox operations sales manager Madeline Kimmich says the pilot's save rates average in the high 30s to low 40s percent range. As a plus, the highest percentage of those is what Cox calls "value saves" or saves that don't require a service discount. "The customer education problem is very common. That's what makes the value save a pretty big number," Kimmich explains. Cox plans to train a save team in every system affected by a high amount of voluntary churn.

When all else fails Cox's "auto save" program kicks in. Departing customers automatically receive a letter acknowledging the order, reminding them of the service's value and making them a standard save offer. The program was in trials last year, and a national rollout is due by August. "The offer was one month free service based on the level they were getting," says Jones. "We were very pleased not only with overall response rate but also with retention at 90 and 180 days."

Of course, it's even better if the save team doesn't have to swing into action. Comcast offers incentives for the customer and the technician to interact during installation. In the middle of the MSO's compact but slick welcome kit is a combination customer service survey and $1,000 sweepstakes entry that grades the installation process. It's attached to a "Quick Tip" card that explains how to use the on-screen guide and has a detailed graphic of the remote control on the back.

At CTAM this week Charter will deliver the results of a campaign aimed at educating new digital customers in the first four months of service. A case study will compare sending a welcome kit, calling the customer, doing both and doing nothing. "We saw a churn reduction of 24% from the welcome letter, 35% reduction from the calls and from both, 53% reduction," says Brockhaus, adding that retention efforts at Charter are only getting more intense.