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?