1. Measuring What Matters: Our Net Promoter Program

2. Agenda Improving Customer Loyalty Using Net Promoter Scores
Atlantic Broadband Net Promoter Program Overview & Results
What’s Next
Q &A

4. Why should we care about loyalty?
Loyal customers:
Repurchase, or subscribe longer
Buy additional products/services
Provide referrals
Provide constructive feedback

5. Enterprise Rent-A-Car’s Perspective
“The only way to grow is to treat customers so well they come back for more, and tell their friends about us. That’s how we’d all like to be treated as customers.”
“Golden Rule behavior is the basis for loyalty. And loyalty is the key to profitable growth.”
Andy Taylor,
CEO Enterprise Rent A Car

6. Fostering Loyalty is Hard
Easier to generate ‘bad’ profits than good profits
Easier to ‘buy’ growth, but only for the short term
Systems focused on financial performance, not quality of customer relationships
Ultimate problem:
Loyalty is hard to define and even harder to measure and manage

7. “Bad Profits” Produce Detractors

8. “Good Profits” Lead To Loyalty
Vanguard (mutual funds) cut prices by 1/3 for its largest customers – and Vanguard’s growth skyrocketed
Amazon.com gives free shipping for big orders ($50 or more)
Southwest Air doesn’t charge change fees, but provides a credit that can be used over 12 months
Intuit simplified its rebate process and increased market share

9. What Is The Ultimate Question?

10. Using The Ultimate Question To Calculate A Net Promoter Score (NPS)
How Likely Would You Be To Recommend
Us To A Friend Or Colleague?

11. NPS Leaders Grow at 2.5X Their Industry Average

12. NPS Scores For Loyalty Leaders

13. Cable TV & Satellite Provider Scores
How Likely Would You Be To Recommend your Cable TV Or Satellite Provider To A Friend?
NPS 20 -3 -8
-34
-45
Source: SatMetrix, Q Telecommunications NPS Report

14. How Do We Improve? Begin to measure and report NPS regularly
Identify the key customer segments that are most important and profitable
These become our ‘core customers’
Tailor operations and product as necessary to improve experience for core customers
Eliminate sources of ‘bad profits’
Implement, measure, refine…Implement, measure, refine
Requires ownership from the field & support from corporate

15. Agenda
Improving Customer Loyalty Using The Ultimate Question and Net Promoter Scores
Atlantic Broadband Net Promoter Program Overview & Results
What’s Next
Q &A

16. Atlantic Broadband – Net Promoter Score Program Timeline
Early 2006: Initial quarterly surveys to phone customers
Fall 2006: Net Promoter introduced as a 2007 initiative @ annual Senior Managers Meeting
1st Qtr 2007: SkyCreek automated calling pilot program launched in PA region
2nd Half 2007: SkyCreek program rolled out company-wide
1st Half 2008: Reporting and VIP Program implementation

17. Service Interaction Monitoring Process
Day 1
Day 2
Day 3
Day 4
Install or Service
Call Completed;
Followup
Service Calls
In Home
Service
Sky Creek
Automated
Calling
Customer Calls Made
4 Contact Attempts
Followup Resolution
Calls Begin
Uniontown
Save Team

18. Survey questions
How satisfied were you with the quality of service the customer service agent provided you when calling?
How satisfied were you with the quality of service the technician provided?
How satisfied are you with the current service you are receiving from Atlantic Broadband?
How likely would you be to recommend Atlantic Broadband to a friend or family member?
May we contact you for any score below a 3?

19. % Promoters - % Detractors = Net Promoter Score
Our Grading Scale
5 = Promoters
4 = Neutral 3
2 Detractors 1
% Promoters - % Detractors = Net Promoter Score

20. Typical ‘Feedback Funnel’
5500 Service Interactions
~40% Response Rate
2200 Feedback Points
$.75/Call:
$1500
20-30% Dissatisfied Request Followup
500 Followup Requests
~50% Contact Rate
250 Resolution
Discussions
$5/Call:
$1250
15%
Require
Service Call
$50/truck roll:
$2000
40 Truck
Rolls

21. NPS Performance Vs. Basic Churn
NPS Up 50%; Churn Down 30%

22. Differences By Type Of Transaction
NPS Scores By Transaction Type
166%
Drop
51%
Central PA
Overall
Install
Service
Delmar

23. Sensitivity To Customer Disruption
Delmar Region
Likelihood to Recommend NPS Scores: August 2007
DVR
Upgrade
DCT
Upgrade

24. NPS Scores By Spending Level
Likelihood To Recommend
Q3 2007
Last Bill Amount
Overall
NPS
Promoter %
Detractor %
More Than $125 22 52 30
$75 To $125 27 53 26
$25 To $75 32 58
Less Than $25 56

25. Key Findings To Date
The data are both sensitive to actual customer experience and timely
Improved NPS performance appears to be correlated with reduced churn
Customers who have a service issue are 2-3x more likely to be a detractor
Our highest spending customers have the lowest NPS – exactly the opposite of what it should be:
Our highest scores come from customers who spend between just $25 - $75/month

26. Agenda
Improving Customer Loyalty Using The Ultimate Question and Net Promoter Scores
Atlantic Broadband Net Promoter Program Overview & Results
What’s Next
Q &A

27. The VIP Program What is it?
A loyalty effort that targets all customers in good standing that have video, internet and phone services.
How does a customer become a member of the VIP program?
Existing triple play customers with no collection history will automatically be enrolled.
New customers who subscribe to all three services will be enrolled 30 days after installation.

28. What does a VIP Get? A VIP customer gets Priority Service:
Priority routing to the head of the call queue (tier 1 and tier 2)
Priority routing for same day service and installation appointments if calling before 3pm. (Next day appointments if after 3pm)
We do not miss these appointments!
VIP customers who call hear:
“Thank you for being an Atlantic Broadband VIP customer. Your call is being priority routed to the next available customer service representative.”
Additional potential benefits focused around priority:
Prioritizing HSI traffic for VIP customers in times of peak usage
First access to day and date titles on VOD
Others TBD

29. VIP Activity 1st 60 Days:
Less than 10% of total call volume is VIP related
Priority routing to Tier 2 is very much appreciated
Averaging 40 priority service calls per week

30. NPS Measurement and Tracking Evolution
Expand to measure ‘relationship’ NPS in addition to ‘transactional’ NPS
Drive more granular response tracking
Track customer descriptors to segment and trend better
Track NPS scores down to the individual level
Focus on back office functions to optimize visibility and management
Integrating daily/weekly/monthly data into our standard reports
Simple trouble ticketing system to track and manage NPS driven follow-up tasks, actions and reasons

31. Starting Your Own Program: 3 Keys
Start simple and evolve
Think about who your best customers are and how to improve value for them
You MUST understand and follow-up on detractor problems – or you’re wasting your time

34. Concept Overview Summary
Increasing customer loyalty leads to growth
Net Promoter Scores are the single best measure of loyalty and highly correlated with growth
Start