Measuring What Matters: Our Net Promoter Program

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. How Likely Would You Be To Recommend your Cable TV Or Satellite Provider To A Friend? NPS 20 -3 -8 -34 -45 Cable TV & Satellite Provider Scores Source: SatMetrix, Q4 2007 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 email 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. Followup Resolution Calls Begin 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 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. 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. 166% Drop 51% Drop Differences By Type Of Transaction NPS Scores By Transaction Type 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

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