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The Broadstripe Service Guarantee

In: Business and Management

Submitted By akonti
Words 2890
Pages 12
C AS E

20
The Broadstripe Service Guarantee
Jochen Wirtz and Sven Tuzovic

Cable companies traditionally focused on discounts for bundles of TV, Internet, and phone plans to win new customers instead of delivering great customer service. Broadstripe, a small cable company, launched a service guarantee with the aim of becoming the best-in-class service provider. Twenty months after the launch, Broadstripe’s management was reviewing the performance of the guarantee and had to decide what changes should be made, if any.

B

roadstripe, a small provider of cable, Internet, and phone services in four States (Michigan, Oregon, Maryland, and Washington) faced a difficult situation. Tony Lent, Chief Commercial Officer at Broadstripe, was convinced that the company had to dramatically improve its customer service. However, how does a small cable company differentiate itself from better-known industry giants and establish a best-in-class customer experience? Should a company at the edge of bankruptcy invest in customer service altogether?

retailers, 75 for banks, and 65 for airlines. Importantly, the cable industry was also lagging behind their satellite TV or telecommunication competitors with DIRECT TV and DISH Network scoring an average of 68. As competition from satellite TV and phone companies intensified, an increasing number of consumers disconnected their subscription TV services in favor of online video services such as Netflix and Hulu. Responding to these competitive pressures, cable companies turned to customer service to try and improve their negative reputation. Several cable companies began to develop customer-oriented policies. For example, Time Warner Cable offered an on-time guarantee that promised that a service representative showed up on time for installations and service appointments. The company claimed that it was the first company in the

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