Cable Scores Low in Customer Satisfaction: Report
70% of Respondents Say They're Angry Enough to Jump Ship
By Linda Haugsted -- Multichannel News, 9/29/2008 6:01:00 PM MT
Cable's customer satisfaction score is an "abysmal" 60 on a 100 point scale, with 70% of those polled stating they're dissatisfied enough about the rates they pay to jump to a competitor, according to the second annual Telecom-Cable Industry Satisfaction Report by the Michigan-based CFI Group.
The survey ranked cable video providers; only 2% of those in the sample were Verizon FiOS or AT&T U-verse video customers. CFI group said Cox Communications, with a score of 66, was the best-ranked incumbent video provider, but added the industry average was was weighed down by the scores of Comcast Corp. (58) and Charter Communications Inc. (51).
Consumers are a bit more satisfied with cable modem service, giving that a satisfaction score of 65, but those with digital-subscriber line service are a bit more pleased, giving that product a 66 score. Cox had the highest cable modem satisfaction score (70); Verizon's 67 DSL satisfaction scored edged out AT&T by one point.
Phil Doriot, a partner in CFI Group, said the study shows that customers feel they put up with poor customer service because they want speed and a variety of content. But a "huge shoe" will drop on the cable industry when consumers have another access point to bundled services, he said.
The survey polled 1,318 households between June 19 and June 30. The majority, 60% of respondents, said they buy bundled services. That rate is an increase of 13% from 2007.
In addition to dissatisfaction with rates, 40% of respondents said they would dump cable, given the chance, because of poor customer service. Also, 40% in the poll said when they switched providers, they did so for more advantageous rates and plans. Long-term consumers resent the lack of recognition of their loyalty by providers: they resent it when they see low rates offered to new customers while they pay full freight, according to the study.
The poll also asked consumers about other products. For instance, consumers were asked if they were interested in Internet Protocol television if that product was priced at $40 to $50 a month to deliver 100+ channels. Forty-seven percent of respondents said they were interested; 53% said they were not at all interested.
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