For America’s Internet Service Providers, Customer Service Is Key to Competitive Advantage

Women browsing the internet on her laptop

The latest US census data shows that about 95 percent of US homes have an internet connection. Here, we look at the importance of customer service in a world where digital connectivity has transformed customer expectations and raised the bar for businesses.

Americans go online from home to work, communicate and carry out day to day tasks such as shopping and banking, so it is no exaggeration to say that their internet service providers (ISPs) are just as important as utility providers who deal in electricity and running water.

This presents as much of a challenge for the ISPs as it does for their millions of customers. In the early days of the internet, choices were limited to a handful of providers. Today, there are dozens of ISPs, each of which offers impressive speeds, unlimited data and other benefits. This means the level and quality of customer service is one of the few areas in which an ISP can establish a genuine competitive advantage.

ISP customer service reviews are at everyone’s fingertips

Whether ISPs provide exemplary customer service or they are a disaster area, there is nowhere to hide in today’s connected world. For example, this list of home internet providers does not just compare performance aspects like speed. It also provides immediate access to customer reviews of the ISPs in your area simply by entering your address or zip code.

Human nature is such that people are more likely to leave share negative experiences than positive ones. This means the cost of falling short on customer service can be significant, especially when tools like the one mentioned provide consumers with so many alternative providers.

The power of personalization

Performance metrics like speed and uptime are as important today as they have ever been. But they are minimum requirements, and these alone are no longer sufficient to attract and retain loyal customers.

As internet needs become more diverse – for example from home-based business operators to multi-generational families with different streaming needs – consumers expect personalized solutions as opposed to the “one-size-fits-all” plans of a generation ago. But they also expect that service to be delivered to them in a personal way. A recent survey by McKinsey found that an incredible seven out of 10 consumers consider it a basic expectation.

This was partly driven by the unique events of 2020 and 2021, in which the most digitally flexible providers showed just what could be achieved from a personalized customer service perspective, thereby raising the bar for everyone else.

How can ISPs deliver?

Survey data from McKinsey and others shows that customers are more inclined to give their loyalty to ISPs who deliver better customer service. But what does this mean in practical terms?

  • Focus on personalization – this means gathering and using customer date to understand both usage patterns and pain points, and using these to deliver personalized plans and services.
  • Be proactive – not waiting for customers to come to them with problems but reaching out with helpful recommendations and suggestions.
  • Offer multiple platforms – some customers like to talk to a human while others prefer chatbots, voicebots and other automated systems.
  • Communicate problems – no business is perfect, and occasional problems are an inevitability. But the way a company handles issues like system outages can be turned into a positive if it provides exemplary communication and a fast resolution.
  • Keep billing simple – research from CSG shows that around 50 percent of customer complaints received by enterprise organizations concerned queries over their monthly bills.

ISPs operate in an increasingly saturated and competitive market. But those who place customer service at the top of their priority list will garner more than just goodwill. Do it right and they will also build trust and long-term relationships.

They will also be rewarded with positive reviews and referrals, which are of immense value in an industry where ratings can be reviewed at the click of a mouse and switching ISPs can be done in a matter of minutes.

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