MDU Sales

Bulk Customer Experience

Overview
November, 2015
Executive Summary

Bulk Customer Experience

Potential Risk

Overview

2
 Current Bulk Owner/Resident experience

Bulk residents suffer poor customer care experience

346,000 bulk residents · estimated 30%* call in monthly · repeat calls · low buy-through

Residents escalate complaints to Property Owners

2,958 bulk property owners · estimated 16%* call in monthly · becoming residents’ buffer to Cox · high frustration level

Irate Owners speed dial MDU Team

Crippling MDU team w/call volume· GoAD multiplies call volume by 3x**· high employee burn out · BAU unattended

*estimated PRE GOAD owner call volume. Some owner/resident calls are repeat calls.
** MSOs & Cox GoAD locations report higher call volumes – approx 3x greater. More equipment, more calls.
 Bulk Customer Journey mapping is confirming a poor
customer & employee experience

Customer feedback examples Employee feedback examples

• Call Center has a lack of awareness of how bulk • Call agents are hit-or-miss in ability to deal with bulk
accounts work accounts; lack of account knowledge

• Customer is transferred around several times • Customer experiences inconsistent

before an experienced agent is located information/directions on account resolution

• Cox is confused with how to handle bulk questions • Customer is asked for account information that does
not exist/unrealistic; ping ponged between
• Residents call property manager for help with Cox departments & agents
billing, service & care needs
• Property Managers/Owners are having residents call
• Property Owners/Managers rely heavily on Cox MDU account managers directly to avoid call center
MDU Account Executives and MDU Account experience
Managers for problem resolution
• GAD is adding another layer of bulk account complexity
to call agents (equipment ownership, billing, resident
responsibility, etc…)

“I have to intervene in buy process to get resident to proper person in Cox” “I get instructions from a Cox rep and pass on to resident”
“I want a person at Cox help desk that can help with our bulk account” “Some CSRs don’t understand bulk accounts so I am transferred around”
“Support from Cox is difficult because we’re on a bulk billing plan” “I have to figure out bills and explain to residents”
 Bulk customer experience, risks & reality

• Suffering Owner relationships

– Bulk accounts are lucrative & competitively desirable
– Renewing bulk accounts is becoming more and more
difficult due to poor customer experience
– $200M annual revenue in jeopardy
• A 10% - 15% bulk revenue decrease results in a $20M- $30M
annual revenue loss (a $12M OCF loss)

• Already an exceptionally poor Owner & resident

experience , layering on GoAD era is adding to the
experience/account/care complexity.
– BULK is more challenging now and will continue to be challenging as
we operate in a post-GoAD enviroment

• MDU sales/support overwhelmed with customer service

calls and cannot focus on selling or support duties.

• Comcast experienced similar findings.

Solution: They established a dedicated bulk call team

A 10% - 15% bulk revenue decrease will result in a $20M- $30M revenue loss annually (a $12M OCF loss)
 Comcast Overview (North East bulk call center)
• Bulk call center responsible for 5k properties and 680k residents
• In comparison, Cox has 3k properties and 361k residents

• Dedicated line published to MDU bulk properties

• Number is broadcasted out to bulk properties through MDU team
• Magnets, collateral and leasing office presence through MDU team

• 120 Universal representatives that:

• Handle calls from Owners, Property Managers & all bulk residents
• Handle all 3 products for trouble, sales, billing & retention needs
Retention, 10%
• Take 60k to 80k calls per month(pending seasonality)
• Est 10% of bulk customers calling on a monthly basis
• Average of 583 calls per rep
• Average call time is 8 to 10 minutes *Sales, 15%
Repair, 50%

Billing, 25%

* Sales % changes based on seasonality

MDU Sales

Appendix
MDU Sales

Bulk Customer Experience Data

(Feedback from Owners/Properties)
Most frequent Bulk calls…
Property Owners & Residents call in for:

• Billing needs
• Equipment needs
• Product needs
• Provision equipment/receivers issues
• Billing questions/issues/errors
• Bulk account mishandled (disconnected in error, etc)
• Equipment issues (remotes unpairing, missing, etc…)
• Becomes resident advocate
• Wiring issues/clean-up
• Installation issues (missed tech appointments/reinstallation needed)
• Drop Ship/install equipment
• Schedule Trouble Call
• Lost signal
• Line issues, new lines/repair, add outlets

Most frequent issues are pre, during, and post GAD.

The call volume has increased due to the additional equipment needs on bulk accounts.
 Key Findings

Information provided to residents regarding service options & upgrades is highly variable
• Some residents receive Cox material
• Some residents receive Management Office material
• Some learn from very involved local Cox rep
• Some receive no material

Residents are uncomfortable with not knowing how much is being provided by HOA or complex
• They know services are being subsidized, but can’t put a value on it
• Customers value transparency

Customer Service Reps aren’t as educated on bulk properties, leads to frustration on the manager & customer side
• Complaints from managers on the issue (CSR’s transfer them around)
• CSRs argue with me and tell me they can’t help me. I call back until I get someone who can help me
• Complaints from residents, have stopped personally calling and are asking their property managers for help
• Also getting a lot of negative reaction to the 3rd party vendors and their lack of help/expertise

Customers & Managers love the store experience

• Customers & Managers use the store to help troubleshoot or obtain/replace equipment
• Cox store makes the customer feel like more than a number, they have a personal relationship with the store

Customers are generally happy with the services that are provided to them
• Complaints related to the initial pain of service setup
• Complaints on internet connectivity and speed, especially during peak usage times
• Most Customers rated their service as a ‘4’ or ‘5’ and have been long time customers

Customer Service is highly dependent on Local Reps

• Great rep = great service
 Potential Opportunities

• Inconsistent knowledge of service provider and what services are provided by complex or HOA
• Inconsistent knowledge about MDU discount for each service and what customer pays
• Lack of awareness of how MDU accounts work
• Traditional bundling model is not an incentive, as most customers do not have a landline phone
• Younger demographic values Internet/WiFi over cable TV
• Lack of awareness of impending increases in billing when promo ends
• In no-bill situation—little to no incentive to upgrade services
• In no-bill situation—no way to add pay-per-view
• Analog TV causes confusion because there is no onscreen programming guide and channel numbers are
different from cable TV
• Managers have to handle many problems for residents
• Managers rely heavily on Cox regional reps: good relations produce solutions; bad relations result in irritation and
frustration
• Residents experience high frustration when Cox customer service rep does not understand bulk account
MDU Sales

E2E Data
(Feedback from MDU team members)
 Bulk MDU E2E Findings

Grouping Issues Category

1 Multiple people may call from property Authentication
1 Authentication & account ownership Authentication
If customer doesn't have PIN (nor name on account), care rep will NOT assist
1 customer Authentication
Sometimes customers are hung up on (disconnected during call) if they don't
1 have their PIN Authentication
1 Multiple transfers to get issues resolved Identification
Differentiating between CB & MDU (e.g. Rep sees business name (parent
1 acct) & thinks it's a business account) Identification

1 Difficult to id account as a bulked account (or customer as a bulk customer) Identification

Customer (end customer or property manager) calls AM or AE because 1)
they don't know who else to call 2) cannot get resolution on the "regular"
2 channels 3) it's easier (quick) Bypassing BAU Care Process
2 Property managers giving out AE/AM phone number for "support" Bypassing BAU Care Process
AE/AM/Support fielding (quarterbacking) support calls instead of doing
2 normal selling or support duties Bypassing BAU Care Process
2 AE/AM not able to troubleshoot Bypassing BAU Care Process
2 not 24-7 if calling AM/AE Bypassing BAU Care Process

2 when AE/AM leaves, their email/phone are shut off with no forwarding Bypassing BAU Care Process
3 GAD best practices Business Needs
3 GAD training manual Business Needs
CB needs to know what to do with transferred customers (to understand Bulk
3 customers) Business Needs
3 KIQ - Bulk MDU Articles need to be cleaned up Business Needs
3 Need standardized processes for Bulk customers Business Needs
Bulk MDU E2E Findings

Grouping Issues Category

3 Prop managers want special care because "they are bulked with us" Customer Want
Prop managers dissatisfied because their maintenance people have to spend
3 time servicing Cox products Customer Want
3 Fear of changing anything on Bulk Account Knowledge
3 Infrequent "practice" dealing with Bulk accounts Knowledge
3 Lead/referral program - lack thereof Knowledge

Post-transformation Bulk MDU organization has less visibility in the field (less
3 relationships for reps in field to know whom to contact, send leads to). Knowledge
4 Disconnecting Bulked Services & Not following Back in Bulk process Disconnect
4 Physically disconnecting at the tap Disconnect
Credit & collections - when equipment not handled properly, it may cause
customer to go into collections (due to lack of clarity around equipment
4 ownership) Disconnect
4 Breach of contract sometimes when we disconnect at tap Disconnect
4 Rework in finding accounts to back in bulk Disconnect
4 Unreturned equipment bills to tenant for GAD Disconnect

4 Transfers (equipment isn't being transferred over from previous residents) Disconnect
4 Equipment ownership Equipment
4 Customer unclear who owns it or what to do with it upon move-out Equipment
4 Remotes becoming unpaired Equipment
4 Wall mounts with GAD not properly identified Equipment
MDU Sales

Comcast Overview
 Start with a foundation to build on

6-9 months pre-planning Year One of COE Year Two of COE

• Clean existing bulk database • Continue to clean database • Addition of Corporate Accounts
• All bulks set up correctly • No equipment accounts • Resource called CONA-email
• CSG coding • Non-upgradeable properties service where Owners/Managers
• Upgradeable/Non-upgradeable use MDTA’s(commercial type) can send spreadsheets for in and
• Senior out of corporate accounts
• Dorms(common areas) • Unique ticket numbers
• Hours of Operations
• Retail rates-level of
• 8am-9pm
• 6 days a week
• Hours of Operations service creates worth
• 8am-9pm
• Staffing
• 7 days a week • Upgrades for Students
• Upgradeable Apps
• SME’s from all call centers
• Equip care agents with contract • Events • Cloud DVR’s
knowledge, bulk products • Seasonal-high volume move in’s
• Hours of Operations
• Soft Launch • Sharepoint (created by COE) • 24/7
• • Contract product information • 11pm-6am (vendor)
Fold properties in slowly
• Regionally • Special property instructions
• Upgradeable/Not upgradeable • Staffing
• Manager to Supervisor-6:1
• Agent to Supervisor- 12:1 ratio
• Leaders(36% 10+ year exp.)
(36% 5+ year exp.)
• Agents (37% 3+ year exp.)
Focus on items that create success

MDU Call Center Call Volume

Contractual Bulk
Retention
Agreements 10%
Initial bulk set up by
MDU
Standardize bulk coding
Standardize bulk processes
Seasoned, skilled reps
CAR’s for Bulk Accounts
SME’s in Bulk *Sales, 15%
CAR 1-
Higher starting salaries
Farmer(Maintain)
CAR 2-Hunter(Grow)
No sales quotas Repair
Focus on customer 50%
Enhanced Billers
experience(8 to 10 min
Bulk information on
calls)
bills
Calls from Bulk Owners,
Bill message instead
of rate increase
Properties and residents Billing
letter
Headcount billed back to 25%
call centers
Simple, standard
bulk offers
MDU portfolio
technicians

*Sales % increased based on seasonality of move in’s.

Results

Bulk COE

Decrease in
AE’s focus
escalations in on sales funnel
other call centers

Deeper Relationships
with Bulk Owners, Advantage over
Properties and Competition
Residents

Increased PSU’s Better customer

and penetrations experience
Bulk Journey Mapping