Keeping Customers: Part 1 - Quality of Service

 

Every customer you retain is a customer you don' t has to replace. More important, happy customers send you new customers. Service is key.

 

As an ISP, your middle name is 'service.' Good service is critical to retaining customers—which, in turn, are critical to attracting new ones. It's a fact: Most ISPs report that the largest number of new users comes from referrals—and only happy customers will refer new ones to you.

The term 'Quality of Service' (QoS), has undergone an evolution—from a descriptive phrase, to a quantifiable attribute of what you, as an ISP, sell to your customers. QoS is usually expressed in a percentage of uptime, such as 99.9 percent, or as 'how many 9s'. Many business customers are now looking for Service Level Agreements (SLAs) that commit you to a specified QoS level—and often mandate a monetary refund for your failing to meet that commitment. Do you know what your QoS level is?

Even if your customers don't demand one, you should make a SLA with yourself. That is, commit yourself to providing a certain level of service. It should cover uptime, busy signals, throughput, and many other technical issues.

 

Keep yourself honest

The hardest part of providing technically superior service is in measuring it— a prerequisite to figuring out what needs to be changed.

·         Do you know how many busy signals you have?

·         What is your user-to-modem ratio?

·         Do you know how many dropped calls you have during busy times?

·         Do you know what your uptime is?

·         Do you know what your Internet access capacity usage is?

Once you develop answers to these questions, then you can use them to improve your service. In turn, the improvements become central to your marketing. If you can prove your QoS commitment to yourself, it shouldn't be hard to convince customers to use your service.

 

To outsource or not . . .

Customer services—both technical and on the billing side—is an area that is often overlooked.

If you are considering outsourcing, keep in mind that in doing so you will relinquish something approaching 50 percent control over the quality of your customers' experience. Customers will now have two points of contact, in separate locations and with different organizations. You'll need to make sure that your outsourcing provider represents your company in a way that reflects favorably on you. Check up. Call your outsourcing provider posing as a user. Do it a number of times, at different times of day; see how they handle you. Think about it from a customer's standpoint. Do you want the person answering the telephone to represent your company?

 

Speed matters

If you keep customer service in house keep an eye on average call times and—more importantly—hold times. Users seem to deal pretty well with hold times in the 5-minute range, but as hold times stretch to 10 minutes, they become increasingly upset. Average technical support calls are around 7 minutes. I'd recommend making pretty darned sure you don't exceed this.

 

One customer-service aid well worth implementing is a call tracking system. First of all, compiling a permanent history of all interactions you've had with each customer helps your staff personalize service. Second, keeping comprehensive records of problems that come up helps you proactively improve your operations, resulting in happier customers overall. And—to say it one last time—“happy customers refer new customers to you . . . and you profit.”

 

 

Keeping Customers: Part 2 - Relationship Building

 

A low-key non-relationship with customers may be okay if you're a monopoly like the local telco or power company—but not if you're an ISP.

 

As an ISP, you have to deal with churn. Churn is the number of users that terminate service with you on a monthly basis. Most ISPs admit to a churn rate of 2 to 3 percent per month—or between 25 and 33 percent per year! If your churn rate is typical, then, you've got to bring in more than 2 percent of new business every month just to stay in the same place! To actually grow your business, you need to do significantly more!

 

Special content

One key to lowering your churn is to offer services or content that your users can only get from your ISPs. Many ISPs have taken the first step in this, which is to localize their home page. A number of services, such as Planet Direct(http://www.planetdirect.com), Snap!(http://www.snap.com), and LookSmart (http://www.looksmart.com) make this fairly simple by providing cookie-cutter local content that ISPs can use.

 

A better idea is a 'Members Only' section. This can house local content, plus many other things that users will find useful. Members Only sections can and should include items such as; a member's forum, specials or coupons, a user web ring, a system update page, and any other information you feel you can give to your users. I've seen ISPs post employee bios, employee of the month features, pictures, and many other little items that give the ISP a personal feel. Subscribers love it!

 

Communicate regularly

Another way to maintain a relationship with subscribers—one that's met with a high level of success—is to publish a newsletter, either via e-mail or via postal mail. E-mail is of course cheaper, but you can easily put a print newsletter in with your invoices and have a much better impact with your users.