Frontier Saved Customers a Collective 50 Years of Time on the Phone in 2023
Frontier (NASDAQ: FYBR) reduced over 2 million customer service calls and became the industry leader in fiber broadband customer satisfaction in 2023. This achievement resulted in a more satisfied customer base and allowed the company to focus on improving other aspects of its service.
Improvements in operational efficiency, as indicated by the reduction of over 2 million customer service calls, can be a strong signal of enhanced customer experience and streamlined internal processes. This efficiency often translates into reduced operational costs and can improve profit margins. Furthermore, the expansion of Frontier's customer base while achieving high customer satisfaction, particularly in the competitive fiber broadband market, could lead to increased market share and stronger brand loyalty.
From an investor's perspective, the reported industry leadership in customer satisfaction may suggest a sustainable competitive advantage. High Net Promoter Score (NPS) data is commonly associated with higher customer retention rates and can often predict future revenue growth. However, it is crucial to monitor whether these improvements are reflected in the company's financials in subsequent quarters to validate the long-term economic impact of these operational enhancements.
Frontier's strategic move to launch new digital, self-service tools is a cost-effective measure that can significantly reduce the volume of customer service interactions, a major expense for service providers. The reduction of customer service calls can be a leading indicator of operational leverage, where the company can serve more customers without a proportional increase in support costs. This operational leverage can be a positive driver for Frontier's earnings before interest, taxes, depreciation and amortization (EBITDA) margins.
Investors should examine the upcoming earnings reports to assess the financial impact of these operational improvements. It will be important to compare the cost savings from reduced customer service calls against the investments made in digital tools and the costs of acquiring new customers. Additionally, the company's ability to maintain high customer satisfaction while managing growth will be critical for assessing the sustainability of its business model.
The deployment of digital, self-service tools represents a shift in customer service strategy that aligns with current consumer preferences for autonomy and efficiency. By tracking the reasons behind customer calls and addressing them proactively, Frontier is likely enhancing the overall customer experience. This proactive approach not only reduces call volumes but also empowers customers by providing them with immediate solutions and control over their service experience.
It is essential to consider the long-term customer relationship management implications of these changes. While reduced call volumes and improved self-service tools are beneficial, they must be balanced with the availability of personalized support when needed. Companies that effectively combine digital efficiency with human touchpoints tend to achieve higher customer loyalty and can command a premium in the market. The true test will be in customer retention rates and whether the company can continue to attract new customers at a lower cost of acquisition.
02/01/2024 - 08:00 AM
Reduced customer service calls by over 2 million while expanding its customer base
DALLAS --(BUSINESS WIRE)--
Frontier (NASDAQ: FYBR):
What we did: Frontier (NASDAQ: FYBR) reduced more than 2 million customer service phone calls by improving operations and launching new digital, self-service tools. We did this while expanding our customer base, and in the process became the industry leader in fiber broadband customer satisfaction during 2023, as measured by published NPS data.
What it means: Frontier customers now have a collective 50 years of extra time to do things they’d rather be doing and are overall more satisfied with our customer service. As a result, we’re spending less time talking to people on the phone and spending more time improving other aspects of our service.
How we did it: We tracked why people were calling us, then created better, faster ways to get answers and assistance. This meant working across every department in the organization and picking off the issues one by one.
What people were calling about: We analyzed hundreds of thousands of calls to understand why people were calling and used that information to improve our customer service. A few examples:
Question:
Solution:
“Where’s my tech?”
Launched “Where’s my tech” tracker on website and mobile app.
“Why did my bill change?”
Added conversational AI-chatbot to assist with billing questions.
“Hey, there’s an outage.”
Sent text alerts that automatically let customers know when service will be restored.
Handy quote: “Nobody wakes up in the morning wanting to call their telecom provider. If you want customers to be happy, it’s important to understand why people are calling,” said Charlon McIntosh, Chief Customer Operations Officer. “Every day, we analyze our customer calls, identify routine issues and eliminate reasons people have to call altogether. Our progress is reflected in last year’s results – calls down by 2 million and huge gains in customer satisfaction. We have carried this momentum into 2024.”
About Frontier
Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America® , we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information, visit www.frontier.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201669543/en/
Chrissy Murray
chrissy.murray@ftr.com
Source: Frontier Communications Parent, Inc.
How many customer service calls did Frontier (NASDAQ: FYBR) reduce?
Frontier (NASDAQ: FYBR) reduced over 2 million customer service calls.
What industry did Frontier (NASDAQ: FYBR) lead in customer satisfaction?
Frontier (NASDAQ: FYBR) became the industry leader in fiber broadband customer satisfaction in 2023.
How did Frontier (NASDAQ: FYBR) improve its customer service?
Frontier (NASDAQ: FYBR) tracked customer calls, then created better, faster ways to provide answers and assistance.
What was the result of reducing customer service calls for Frontier (NASDAQ: FYBR)?
The reduction in customer service calls resulted in a more satisfied customer base and allowed the company to focus on improving other aspects of its service.
