Comcast Investors Need To Care About Customer Service

In the BusinessWeek blog called Management IQ, Jena McGregor put up the following post yesterday: Comcast’s Customer Service Woes: Do Investors Care? It discussed a story in the Wall Street Journal about Chieftain Capital Management’s Glenn Greenberg, who is calling for Comcast CEO Brian Roberts. In her blog, Jena makes the following comment:

But what the article doesn’t address is whether Comcast’s issues may be brought on, at least in part, by its customers’ widely aired complaints about its customer service.

My take: Great insight Jena; and my answer is a loud and resounding “YES!” There’s no question that Comcast’s issues are at least in part brought on by how it treats its customers. In Forrester’s Customer Experience Index, which ranked how consumers felt about 112 large US firms, Comcast’s ISP business was rated 95th and its TV business was rated 101st. While those industries did not fair well in the eyes of consumers, Comcast was still rated relatively low compared to its competitors. Comcast came in 9th out of 10 ISPs (only beating out Charter Communications) and 6th out of 8 TV service providers (only beating out Cablevision and Charter Communications).

The bottom line: Investors should ABSOLUTELY care about how a company treats its customers. It doesn’t take a lot of fancy valuation algorithms to figure out that happy customers are more valuable than unhappy ones.

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I'm an experience (XM) management catalyst; helping organizations improve results by engaging the hearts and minds of their employees, customers, and partners. I enjoy researching and speaking about leading-edge XM topics. I lead the Qualtrics XM Institute, which is the world's best job. We're igniting a global community of XM Professionals who are inspired and empowered to radically improve the human experience. To achieve this goal, my team focuses on thought leadership, training, and community building. My work is driven by a set of fundamental beliefs: 1) Everything starts and ends with human beings, so you need to understand how people think, feel, and behave; 2) XM is a discipline that needs to be woven throughout an organization's entire operating fabric; and 3) Building the XM discipline requires a combination of culture, competency, and technology.

2 thoughts on “Comcast Investors Need To Care About Customer Service”

  1. Abosolutely.

    Investors need to understand that differentiation in a commodity market is only possible through brand loyalty. Brand loyalty only comes from customer experience, better yet, it comes from customer that receive more than they expected. If you believe this, and I believe we should, then market valuation is not only tied to customer experience, but is, infact, dependent on it.

    Here you can see the direct effects of customer satisfaction on Stock valuation.

    Best regards
    Rudy Vidal

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