CUSTOMER LOYALTY

For an industry facing a challenge in core revenue, local telecom providers are doing little to endear themselves to the enterprise customers that form their revenue base. According to the recent Walker Loyalty Report for Communications Services, only 34% of local telcos' enterprise customers are truly loyal to a brand; roughly the same percentage will jump at the chance to switch carriers. For long-distance, the numbers are similar, though Verizon and BellSouth both score well in that category. That there is no loyalty to telecom providers shouldn't be a surprise. Both local and long-distance voice service have been commodities for some time. But that's no excuse: Other industries have commoditized, with customer loyalty intact. Also, considering what large telcos have invested to shape and maintain their brands, it should offend carrier executives that they haven't built fidelity among their biggest customers. Consolidation may have played an unwitting part. As carriers merge, those responsible for delivering customer satisfaction can't be expected to lose the impulse to protect their jobs in favor of blindly providing top-notch service for an employer that may not need them two months later. At the same time, leadership in the newly merged entities should take a long look at these numbers and start asking why customers feel no devotion to their brands.