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AT&T VS. VERIZON
AT&T
                                  Largest 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        Weaknesses
• Coverage                    •   Customer Service
• Brand Recognition           •   High Termination Fees
• Share of Market & Market    •   Variety of Phones
  Position                    •   High Overhead Cost
• Resources &Assets           •   U.S. Coverage only
• Convenience (# of Stores)   •   Corporate Culture
• Number of Employees
• $30 Unlimited Data
• Contracted Customers
Verizon
                  SWOT
    Opportunities                Threats
• Iphone                   • Economy
• Technology               • Legal: Regulations
• LTE 4G                     and Laws
• Growing need for         • Major Competition:
  communication in           AT&T
  business
                           • Smaller Competition:
• Big business contracts     Metro PCS (Price)
AT&T
                         SWOT
      Strengths                   Weaknesses
• Brand Recognition           • Wireless Network (dropped
• Largest Wireless Carrier      calls)
 (Revenue & Customers)        • Largely focused around
• Variety of Products           Iphone
• Contracted Customers        • High Debt
• Competitive Advertising     • Customer Service
• Largest Broadband Service   • Losing Landline Customers
   provided in U.S.           • Towers
• Largest Landline Usage
AT&T
                  SWOT
  Opportunities                Threats
                        • Economy
• Large International
                        • Iphone no longer
  Market                  Exclusive
                        • Competitors
• 4G Network            • Prices need to be
• Emerging T.V.           lowered
                        • Rapidly moving market
  Service (Uverse)        and need for customers
                        • Legal: Regulations and
                          Law
Two Wireless Titans
 VERIZON           AT&T
Strength &     Strength &
Opportunity    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 prices
    Cons: customer service

•   Verizon has the worst customer service
    Pros: None
    Cons: 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 problems
    Cons: 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 Plan
                    Customer Relationship Management




•   Intense hiring & retraining phase
•   Restructuring of billing invoices
•   Customer satisfaction surveys
•   Employee incentive programs
Advertising
                              A 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                     Verizon and AT&T
• Recognized in 2011 as    • 2011 Customer
  one of J.D. Power and      Service Rankings:
  Associates’ Customer       Verizon and AT&T
  Service Champions
  (only 40 companies are
                             are on the bottom
  selected in total)         half of 143
                             companies evaluated
Customer Service
Verizon’s Future

• New Customer Service Policy?

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ATT vs. Verizon

  • 2. AT&T Largest provider • As of January 2011, AT&T had over 95.5 million wireless customers, just ahead of Verizon Wireless' 93.2 million customers.
  • 3. 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.
  • 4.
  • 5. Sharing Problems • Both AT&T and Verizon have their fair share of problems, mostly due to external forces.
  • 6. Key Issue • Customer Service Policy: *Forget about it.*
  • 7. Verizon SWOT Strengths Weaknesses • Coverage • Customer Service • Brand Recognition • High Termination Fees • Share of Market & Market • Variety of Phones Position • High Overhead Cost • Resources &Assets • U.S. Coverage only • Convenience (# of Stores) • Corporate Culture • Number of Employees • $30 Unlimited Data • Contracted Customers
  • 8. Verizon SWOT Opportunities Threats • Iphone • Economy • Technology • Legal: Regulations • LTE 4G and Laws • Growing need for • Major Competition: communication in AT&T business • Smaller Competition: • Big business contracts Metro PCS (Price)
  • 9. AT&T SWOT Strengths Weaknesses • Brand Recognition • Wireless Network (dropped • Largest Wireless Carrier calls) (Revenue & Customers) • Largely focused around • Variety of Products Iphone • Contracted Customers • High Debt • Competitive Advertising • Customer Service • Largest Broadband Service • Losing Landline Customers provided in U.S. • Towers • Largest Landline Usage
  • 10. AT&T SWOT Opportunities Threats • Economy • Large International • Iphone no longer Market Exclusive • Competitors • 4G Network • Prices need to be • Emerging T.V. lowered • Rapidly moving market Service (Uverse) and need for customers • Legal: Regulations and Law
  • 11. Two Wireless Titans VERIZON AT&T Strength & Strength & Opportunity Opportunity
  • 12. Verizon: New Focus on Customer Service
  • 13. 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)
  • 14. Losing Customers = $$$ • Retaining or satisfying an unhappy customer can cost as little as $15 • Winning a new customer can cost up to $600
  • 15. 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 prices Cons: customer service • Verizon has the worst customer service Pros: None Cons: 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 problems Cons: 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.
  • 16. Mystery Charges? • - Investigation from Federal Communications Commission has forced Verizon to a $25 million settlement • -$52 million in refunds to approximately 15 million customers
  • 17. The Plan Customer Relationship Management • Intense hiring & retraining phase • Restructuring of billing invoices • Customer satisfaction surveys • Employee incentive programs
  • 18. Advertising A new focus • Aggressive promotional marketing campaign • Letters & emails to customers- about promos
  • 19. Sprint • Lost $30,000,000,000 and 1 million customers in 2007 and 2008.
  • 20. Making Telecommunications Simple • Cutting down the service: – More Affordable – Less Confusing – Easier to Solve Problems
  • 21. 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*
  • 22. Customer Service Champion Sprint Verizon and AT&T • Recognized in 2011 as • 2011 Customer one of J.D. Power and Service Rankings: Associates’ Customer Verizon and AT&T Service Champions (only 40 companies are are on the bottom selected in total) half of 143 companies evaluated
  • 24. Verizon’s Future • New Customer Service Policy?