Can Verizon Consumer Group CEO Sowmyanarayan Sampath improve customer care?
Verizon could be onto something important. They are said to be shifting their focus back to improving customer care and customer service. Sowmyanarayan Sampath, CEO of their consumer unit recently sent an email to customers saying he is raising the bar on solving this growing, industry-wide problem. That sounds great. What are the details?
As an Industry Analyst and columnist for decades, I have watched some good ideas bloom and other not-so-good ideas struggle. I have been writing my opinion in this column on how poor customer service in the wireless and telecom industry will negatively impact the companies bottom line.
Apparently, the wireless industry has slowed enough that CEOs are looking for new ways to show growth. This reminds me of the time when the iPhone, Android and wireless data entered the marketplace almost 20 years ago.
If Sampath can pull this off it will be great news for Verizon and in fact, the entire industry.
How competition between wireless carriers will change
Watching this industry grow and change over decades, I know when something like this is announced, it means several different things at the same time.
Lets take a look at how success in this area could impact Verizon, their customers, workers, investors, the wireless industry, the entire communications industry and in fact other industries as well.
If successful, this move will help Verizon improve customer care. That could give Verizon a competitive advantage, initially. It could also trigger competitors to follow suit. Bottom line, customer care could improve industry-wide, and quickly.
AT&T, T-Mobile, and Verizon are major US wireless networks
AT&T, T-Mobile, and Verizon are the U.S.’s three major national wireless networks. The country’s wireless industry has gone through decades of competition, consolidation and change. Countless smaller wireless providers act as resellers of one of these three.
That is why this news not only impacts Verizon, not only the other major networks, not only all the MVNO resellers, but quite possibly countless companies in other industries as well.
Every company and industry also needs to improve poor customer care
Once again, customer care is becoming increasingly important for competitors to focus on and improve. It is a commonplace problem the industry has been dealing with for decades.
In fact, if we pull the camera back, this is the same problem faced by every company in every industry. In recent decades, companies have chosen advanced technology vs. customized interactive care.
They do this because it is more economical for the company. Many times this is fine. However many customers want and often need to speak to a live rep. And that can be nearly impossible.
Just think about how often you hear about your friends and relatives struggling to get issues resolved.
Adding AI to wireless will transform the industry
The telecommunications industry has been with us for quite a long time. Wireless has been with us for roughly 50 years. The telephone has been with us since the 1870s. These technologies have all grown and changed over time. So has customer care.
Today, wireless is one of the most important connectivity technologies we have ever seen. And when we add AI to the mix, it will get even more important to the industry and in fact, every other industry as well.
In fact, could Artificial Intelligence be used to improve the customer relationship and experience?
Is this what Sampath is talking about? What is his plan? Is he talking about technology like AI, or more human contact?
Apple customer care, tech support, and customer service is among the best
Most average customers I speak with say they are not taken care of by the companies they do business with. They say there is plenty of room for improvement. They say it does not have to be this way.
Apple is an example of a company that provides premier customer care online, by phone, or in-store. They are perhaps the best.
So, if Apple can do it, what can’t every other competitor do it as well? Why the mad rush away from these basics in recent decades?
It is a choice. Now, Verizon says it will be focused on this choice going forward. If they are successful, it could be very good news for customers and users.
Verizon Consumer CEO Sowmyanarayan Sampath sent an email to customers
If successful, this could even spread to the competition. That will be even better for the wireless marketplace. The reason for this shift may be that growth in traditional wireless and telecom is slowing. That means carriers need to find new ways to stand out so customers will choose them.
Over time, I have chronicled the move away from top-level customer care. Don’t get me wrong, adding new technologies and new ways for customers to serve themselves is good. The more options, the better.
Will changes to customer care be backwards-compatible?
There is a term Microsoft always used as they upgraded between Windows versions. They called it backwards-compatible. What worked yesterday will continue to work tomorrow, plus all the new additions.
Some customers like new technology. Others prefer live representatives. It depends on the problem being addressed or the person who needs help.
A Navy Admiral friend of mine is one of the smartest people I know, however he doesn’t understand how to solve problems with his iPhone or MacBook. This problem is more common than most people realize.
Sampath of the Verizon Consumer Group says he, too, has noticed this problem and is going to fix it.
Can Sampath fix poor customer care?
While that thought sounds like music to my ears, what is the actual plan?
Understanding there is a problem is the first step. After all, you can’t solve a problem until you admit there is one. The next steps are to fix these problems. There are always many different ways. That is what we need to hear more about. While we do not know the details yet, the mere fact that such an important company executive is on it matters.
Good customer care could give Verizon a competitive advantage
Now that traditional wireless growth has slowed, carriers need to be seen as better than their competition in order to hang onto market share or to grow. If that’s the case, and if Verizon is successful, I predict other carriers will follow their lead.
Could that mean the industry will now, finally turn around with customer care and head in a better direction? Rather than an arm’s length distance from their customers, I hope and expect every carrier to get better and more connected.
Could Sampath lead as CEO?
Sampath has led a variety of areas at Verizon, including consumer, business, global enterprise, and more. He has learned their strengths and weaknesses.
Could this mean Verizon is buffing the Sampath image for public consumption. Is he being groomed to ultimately lead the entire company?
Improving the customer relations dilemma would be a big win for him and for them as a company. So, now we wait. We wait and see what will change and how things will get better.
Verizon, AT&T, T-Mobile, Xfinity, Spectrum, Altice, CenturyLink, and others
As an Industry Analyst, I have consulted with Verizon and others. My view is this move could indeed help Verizon solidify their customer base and competitive position. This is also a potential growth opportunity for competitors like AT&T, T-Mobile, Century Link, Comcast Xfinity, Spectrum, Altice, Cox, and others to do the same thing. I will keep a close eye on Sampath, Verizon, and this effort to refocus on the customer.
