Surveys: Why Survey & How to Use the Data

We all know customer satisfaction is important in today’s highly competitive environment. It may be as important to gauge our customers’ interest in advanced services such as IPTV, computer security, data storage, VoIP, and more. Learn how surveying your customers will give you the confidence and foresight to venture into new service areas, develop new product offerings, or just make your core business even better. You’ll leave this session with Alpine’s approach to measuring customer satisfaction and turning those results into revenue.

We all know customer satisfaction is important in today’s highly competitive environment. It may be as important to gauge our customers’ interest in advanced services such as IPTV, computer security, data storage, VoIP, and more.

Learn how surveying your customers will give you the confidence and foresight to venture into new service areas, develop new product offerings, or just make your core business even better.

You’ll leave this session with Alpine’s approach to measuring customer satisfaction and turning those results into revenue.

Who is Alpine Communications? Independent telecommunications company located in Elkader Serve 6000 access lines 19 employees Offer voice, high speed Internet, advanced calling features, computer security, wireless high speed Internet, cable TV Currently constructing a Fiber-To-The-Home network in Elkader and Guttenberg

Independent telecommunications

company located in Elkader

Serve 6000 access lines

19 employees

Offer voice, high speed Internet,

advanced calling features, computer security, wireless high speed Internet, cable TV

Currently constructing a Fiber-To-The-Home network in Elkader and Guttenberg

Alpine’s Survey History We conducted our first telephone survey in 2004 using GVNW. Since then we have used Pivot Group as our research firm Some data existed prior to 2004 from a written survey conducted in 1999 Since 2004 we have conducted a number of surveys Employee surveys Quarterly tracking surveys Video and Internet service surveys The goal of the research was to measure customer satisfaction, understand customer perceptions, identify ways to improve product penetration and revenue, and explore customer demand relative to new products and services

We conducted our first telephone survey in 2004 using GVNW. Since then we have used Pivot Group as our research firm

Some data existed prior to 2004 from a written survey conducted in 1999

Since 2004 we have conducted a number of surveys

Employee surveys

Quarterly tracking surveys

Video and Internet service surveys

The goal of the research was to measure customer satisfaction, understand customer perceptions, identify ways to improve product penetration and revenue, and explore customer demand relative to new products and services

Why Survey Your Customers? Establish baseline for customer satisfaction How to improve performance Market potential Brand recognition Product and service awareness State of competition Marketing planning

Establish baseline for customer satisfaction

How to improve performance

Market potential

Brand recognition

Product and service awareness

State of competition

Marketing planning

Questions Addressed in Research What do customers think of us? How tough is the competition? What do customers want? How can we be successful with our offerings?

What do customers think of us?

How tough is the competition?

What do customers want?

How can we be successful with our offerings?

Steps in a Research Project Define the unknown / define the problem Decide on methodology Collect the data Analyze and answer the problem Use the data

Define the unknown / define the problem

Decide on methodology

Collect the data

Analyze and answer the problem

Use the data

Define Your Objectives Define the unknown / define the problem Set goals and objectives for each survey. What information and data will help you improve your business, launch a new service, or understand competitive risks? These were our specific objectives for our first survey: Overall satisfaction with local service Satisfaction with other services (Internet, video, and cellular) Performance of customer service reps, field techs, and tech support Interest in specific bundled offerings and various new online offerings Interest in video and cellular service Feedback on effective ways to advertise/communicate

Define the unknown / define the problem

Set goals and objectives for each survey. What information and data will help you improve your business, launch a new service, or understand competitive risks?

These were our specific objectives for our first survey:

Overall satisfaction with local service

Satisfaction with other services (Internet, video, and cellular)

Performance of customer service reps, field techs, and tech support

Interest in specific bundled offerings and various new online offerings

Interest in video and cellular service

Feedback on effective ways to advertise/communicate

Decide on the Method Surveys Telephone Online Focus groups Mystery shoppers

Surveys

Telephone

Online

Focus groups

Mystery shoppers

Conducting TeleSurveys How to conduct: Acquire business / residential calling records Identify and select data collection process Telesurvey firm (estimate $30+ per hour plus set-up costs) Develop script Questions need to be understandable, clear to respondents and written to ensure results are relevant and statistically valid Call statistically relevant sample of customers

How to conduct:

Acquire business / residential calling records

Identify and select data collection process

Telesurvey firm (estimate $30+ per hour plus set-up costs)

Develop script

Questions need to be understandable, clear to respondents and written to ensure results are relevant and statistically valid

Call statistically relevant sample of customers

Survey Scripts & Incentives I would encourage you to work with a research firm/consultant to develop your survey script and analyze the data for you. Do you want to provide an incentive for your customers to participate in your survey? An incentive increase your response rate when conducting a longer, more in-depth survey. Incentive examples – credit on phone bill, drawing for cash or prizes, prepaid calling card

I would encourage you to work with a research firm/consultant to develop your survey script and analyze the data for you.

Do you want to provide an incentive for your customers to participate in your survey?

An incentive increase your response rate when conducting a longer, more in-depth survey.

Incentive examples – credit on phone bill, drawing for cash or prizes, prepaid calling card

Call Opening Introduction: Hello, I’m ___________, and I’m calling on behalf of Alpine Communications. I work for XYZ, a national research firm and we’re conducting an important survey on behalf of Alpine. As a thank-you, you will receive a $1 credit and four respondents will win $50 in cash. The survey is short and we are not trying to sell anything…we simply want your opinions. Do you have five minutes to answer a few questions?

Introduction: Hello, I’m ___________, and I’m calling on behalf of Alpine Communications. I work for XYZ, a national research firm and we’re conducting an important survey on behalf of Alpine. As a thank-you, you will receive a $1 credit and four respondents will win $50 in cash. The survey is short and we are not trying to sell anything…we simply want your opinions. Do you have five minutes to answer a few questions?

Survey Says! When the survey is complete, ask the research firm to present you with a full report including data cross-tabulations and recommendations for putting the data into action Reports will include visuals to help you compare and contrast the data

When the survey is complete, ask the research firm to present you with a full report including data cross-tabulations and recommendations for putting the data into action

Reports will include visuals to help you compare and contrast the data

Customer Satisfaction Satisfaction with local service overall is extremely high with 90% of respondents providing a positive satisfaction rating.

Customer Satisfaction

Satisfaction with local service overall is extremely high with 90% of respondents providing a positive satisfaction rating.

How Effective is Our Advertising? To maximize our marketing efforts and to achieve a better ROI we needed to find out which advertising tools were the most effective The highest rated communications tool was “letters in the mail.” This was followed by “phone” and “e-mail.”

To maximize our marketing efforts and to achieve a better ROI we needed to find out which advertising tools were the most effective

The highest rated communications tool was “letters in the mail.” This was followed by “phone” and “e-mail.”

What Do Our Customers Think? “ If someone was new to the community and asked you about the local phone company, how would you describe Alpine Communications?” “ Delightfully surprised, best in the last 14 companies” “ Alpine is the best I’ve had.” “ Like Alpine, wouldn’t use anyone else.” “ They are there when you need them.” “ They are respected in the community.” “ Fine, prices could be cheaper.” “ Good quality phone service. Some added features are high.”

“ If someone was new to the community and asked you about the local phone company, how would you describe Alpine Communications?”

“ Delightfully surprised, best in the last 14 companies”

“ Alpine is the best I’ve had.”

“ Like Alpine, wouldn’t use anyone else.”

“ They are there when you need them.”

“ They are respected in the community.”

“ Fine, prices could be cheaper.”

“ Good quality phone service. Some added features are high.”

How We Used the Data Introduced sales training for all employees Created bundles based on customer preferences in surveys Rolled out SecureIT and SecureIT Plus Doubled DSL speeds Continued to build the case for video and unlimited long distance Reinforced our gut-instincts about customer perception of recent changes/additions Alpine Charitable Giving Program Moving customer service and management operations from Des Moines to Elkader

Introduced sales training for all employees

Created bundles based on customer preferences in surveys

Rolled out SecureIT and SecureIT Plus

Doubled DSL speeds

Continued to build the case for video and unlimited long distance

Reinforced our gut-instincts about customer perception of recent changes/additions

Alpine Charitable Giving Program

Moving customer service and management operations from Des Moines to Elkader

Quarterly Surveys Enables us to dig deeper into the customer psyche and ask our customers about topics that are timely Each quarter we focused on a different market Help us understand how the perceptions differ in our exchanges Called troubles, new installs, and existing customers Smaller calling scope – only 120-130 completes

Enables us to dig deeper into the customer psyche and ask our customers about topics that are timely

Each quarter we focused on a different market

Help us understand how the perceptions differ in our exchanges

Called troubles, new installs, and existing customers

Smaller calling scope – only 120-130 completes

Consistent Questioning Asked customers to rate Alpine on a scale of 1-5 in each survey: Alpine Communications provides excellent customer service. Alpine keeps up with the latest technologies to better service my needs. Alpine contributes positively to the community. Alpine’s services are as good as any other provider I’m aware of. Alpine offers the best Internet service in the area. Alpine provides a good value with its service offerings.

Asked customers to rate Alpine on a scale of 1-5 in each survey:

Alpine Communications provides excellent customer service.

Alpine keeps up with the latest technologies to better service my needs.

Alpine contributes positively to the community.

Alpine’s services are as good as any other provider I’m aware of.

Alpine offers the best Internet service in the area.

Alpine provides a good value with its service offerings.

Key Findings & How We Used The Data Customers very satisfied with the service they receive from Alpine – from both the CSRs and our Field Techs Overall Rating of CSRs and Field Technicians

Customers very satisfied with the service they receive from Alpine – from both the CSRs and our Field Techs

Overall Rating of CSRs and Field Technicians

Customer satisfaction higher with high speed Internet than with dial-up service Adjusted Marketing Messages Increased customer education on services that fell below 70% awareness Businesses are interested in hearing more about Alpine offerings Targeted business with mailings and offered on-site visits and service analysis Launched a business bundle

Customer satisfaction higher with high speed Internet than with dial-up service

Adjusted Marketing Messages

Increased customer education on services that fell below 70% awareness

Businesses are interested in hearing more about Alpine offerings

Targeted business with mailings and offered on-site visits and service analysis

Launched a business bundle

What influenced Peak Savings Pak buying decision 100% gave positive rating to the process of signing up for a bundle 70% specifically mentioned cost savings as the primary reason for subscribing to a package Other reasons cited included access to key desirable features including DSL and wanting to get all services from a single company, as opposed to multiples ones Influencing Peak Savings Pak Buying Decisions

What influenced Peak Savings Pak buying decision

100% gave positive rating to the process of signing up for a bundle

70% specifically mentioned cost savings as the primary reason for subscribing to a package

Other reasons cited included access to key desirable features including DSL and wanting to get all services from a single company, as opposed to multiples ones

Influencing Peak Savings Pak Buying Decisions

Online Surveys Less expensive than telephone survey Larger sample size About 30% of Alpine’s Internet customers participated in the survey Allowed customers to enter comments We could increase survey length Incentives were offered to increase participation: 1. $50 cash (three winners) 2. $25 credit towards your next Alpine bill (ten winners)

Less expensive than telephone survey

Larger sample size

About 30% of Alpine’s Internet customers participated in the survey

Allowed customers to enter comments

We could increase survey length

Incentives were offered to increase participation:

1. $50 cash (three winners)

2. $25 credit towards your next Alpine bill (ten winners)

Customer Segmentation Dissecting our customers into segments helped us gain a better understand of what type of customer is interested in certain new services Age Telephone Exchange Residential Farm Small Business/Org. Medium to Large Business/Org. Other

Dissecting our customers into segments helped us gain a better understand of what type of customer is interested in certain new services

Age

Telephone Exchange

Residential

Farm

Small Business/Org.

Medium to Large Business/Org.

Other

How We Used the Data Launched Alpine eBill Seeking partner for remote back-up service Aggressively promote networking and adjusted pricing Related service offerings are slated for the future Improved communication with tech support

Launched Alpine eBill

Seeking partner for remote back-up service

Aggressively promote networking and adjusted pricing

Related service offerings are slated for the future

Improved communication with tech support

Customer Feedback We received 466 written comments. Here are a few: I have had good luck with my hi-speed internet connection. I also appreciate the customer service. I have recently subscribed to Secure IT and think it is a good service. As many customers, I would use long distance more if I didn't feel I have to use up all the time I have on my cell phone service. In order to have the type of cell phone service I need, I have to pay for several hundred minutes I seldom can use. Enjoy your newsy news letter. Simply put: Keep It Up. You have earned the respect of your customers - and competitors!

We received 466 written comments. Here are a few:

I have had good luck with my hi-speed internet connection. I also appreciate the customer service. I have recently subscribed to Secure IT and think it is a good service.

As many customers, I would use long distance more if I didn't feel I have to use up all the time I have on my cell phone service. In order to have the type of cell phone service I need, I have to pay for several hundred minutes I seldom can use.

Enjoy your newsy news letter.

Simply put: Keep It Up. You have earned the respect of your customers - and competitors!

Thanks for the Call waiting ID! WOO HOO Tech support staff is always courteous and knowledgeable. My DSL is very reliable. My friends in (XYZ) have been envious for 5 years now. They say (XYZ) can’t even spell DSL. You need to have your billing so I can pay online, This is about the only bill I cannot pay online, and it pays for the internet (Go Figure) We are pleased to have Alpine here in Elkader and Clayton County. You have raised us up from the days of antiquity that we experienced with XYZ. You have been offering and providing quality service and products and we want to thank you for that!!! The SecureIT Plus service has been exceptional - if I hadn't had this assistance, I would no longer have internet/e-mail service

Thanks for the Call waiting ID! WOO HOO

Tech support staff is always courteous and knowledgeable. My DSL is very reliable. My friends in (XYZ) have been envious for 5 years now. They say (XYZ) can’t even spell DSL.

You need to have your billing so I can pay online, This is about the only bill I cannot pay online, and it pays for the internet (Go Figure)

We are pleased to have Alpine here in Elkader and Clayton County. You have raised us up from the days of antiquity that we experienced with XYZ. You have been offering and providing quality service and products and we want to thank you for that!!!

The SecureIT Plus service has been exceptional - if I hadn't had this assistance, I would no longer have internet/e-mail service

Evolution of Customer Perception Surveyed new installs, trouble calls, and FTTH installs in April 2008 2008 results compared to 2006 results Actionable items

Surveyed new installs, trouble calls, and FTTH installs in April 2008

2008 results compared to 2006 results

Actionable items

Spread The News Communicate your high customer satisfaction ratings to your customers Press releases Newsletter articles Economic development Don’t forget your internal customer Employees The Board Marketing plan

Communicate your high customer satisfaction ratings to your customers

Press releases

Newsletter articles

Economic development

Don’t forget your internal customer

Employees

The Board

Marketing plan

Launch with Confidence Alpine successfully launched the following services with penetration estimates based on survey results SecureIT and SecureIT Plus Bundles 300Kbps DSL Unlimited Long Distance eLearning eBill Fiber To the Home

Alpine successfully launched the following services with penetration estimates based on survey results

SecureIT and SecureIT Plus

Bundles

300Kbps DSL

Unlimited Long Distance

eLearning

eBill

Fiber To the Home

Summary The value of research: Links the consumer and marketer through information Probes consumers and the marketplace When research is needed: Define marketing opportunities - product launch Monitor marketing performance Develop and refine current campaigns/programs Solve problems and/or provide direction when unclear The goal of research: To make sound business decisions

The value of research:

Links the consumer and marketer through information

Probes consumers and the marketplace

When research is needed:

Define marketing opportunities - product launch

Monitor marketing performance

Develop and refine current campaigns/programs

Solve problems and/or provide direction when unclear

The goal of research:

To make sound business decisions

Questions? Thank you for your time!

Thank you for your time!