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Pride Really Means Something in Toledo

Buckeye CableSystem prides itself on meeting or beating customer service standards. But unlike companies that rely solely on call center stats, this one can gauge its performance based on the number of calls to the chairman's home. Every year Buckeye's customers get a report from the top brass - and an invitation to call their private numbers. That includes its chairman Allan Block, who heads the subsidiary of family-owned Block Communications. In fact, it was his idea.

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The custom began in 1990 after the Toledo MSO revamped its customer service operations. "It took us about three years to convert," recalls David Huey, GM of Buckeye at the time and now president of Block. "We went to same-day service, two-hour appointment windows and phone answering that was among the best in the industry. That was a major change. Allan said if we really do feel we have improved customer service operations, you and I shouldn't have a problem sending out a letter to all of our customers." Then Block added a twist. "Allan said if we really believe in this we would be willing to put our home phone numbers on it."

The latest version has contact info for Block, Huey and W.H. "Chip" Carstensen, Huey's successor as president and GM of Buckeye. The letter concludes with a guarantee of customer service and a reminder to contact them personally "should you encounter a problem not handled properly through normal channels."

At some MSOs that might lead to nonstop calls. Not so at Buckeye. Huey estimates he received a dozen calls just after the first letter went out - including one from a woman who thought her service was out but who'd actually pulled the plug by mistake - and has been tracked down on the golf course, but the calls have since slowed.

"It helps you focus on what kind of roadblocks you have," Huey says. "Any back office problems or anything you're doing wrong surfaces quickly."

Says Carstensen, "I get calls on my cell phone all the time. I get as many complimentary calls as I do complaints. And I really don't get that many complaints."

Block says the number of calls continues to dwindle each year. "They usually have a billing problem," he says. "Many of them are from people...with a credit history about to be turned off. I'm usually pretty generous. I'm willing to listen and give them one more chance.

"The customer's always right - even if we're not wrong."

That attitude stems from being a hometown system. "We're long-term owners," says Block. "We want to provide service, not just have an investment. Our employees have never...had to be worried about negative feelings because they work for the cable company."

Carstensen agrees. "We're local people serving our neighbors as opposed to Comcast or Adelphia or other large operators who serve many communities and phone calls go to a large community somewhere else. That's a great strength. Our people live here, our taxes go here, our franchise fees help out communities we serve."

Block's family founded Buckeye in 1965. Block Communications, which can be traced back to 1900, also owns The Blade in Toledo, The Pittsburgh Post-Gazette and five TV stations. Between cable, high-speed and dial-up Internet access, the newspaper, commercial telephony and other enterprises, Block estimates the company touches 90% of Toledo's residents. Buckeye is the only division the company built from scratch.

"It represents a very significant part of our company's value, of our company's operating profits," says Block, who declined to provide financials. "We originated it and we built it. And we think it still has a bright future. It isn't a mature business yet. Cable is still a business that is reaching toward the future, that still has more potential."

Buckeye is intent on mining that potential, but it isn't about to load itself down with too much debt. "We can't lead every marketing trend in cable here," explains Block. "We'll reflect whatever others prove works."

Not that Buckeye is far behind the curve. It's more than 95% finished with an upgrade to 870 MHz. Plans are underway to roll out Motorola high-definition set-tops during the first half of this year; subscription VOD could be in place by the end of the year.

Details of the HD offering are still being finalized although they've decided not to try a retail play, as EVP and CTO Joe Jensen puts it. The system hopes to show four or five local affiliates and is looking at several cable networks, including Discovery and HBO. The set-tops are in alpha testing now.

"If we had an idea of how many HD sets are in our area we'd know better how to project it," says Jensen. "It could be 500, could be 4,000. I think the service is going to be very compelling. I'm very impressed with the quality of the signal. It will certainly address high-end customers' desire for quality programming."

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Pride Really Means Something in Toledo

Cable World, Feb 24, 2003

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