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J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

Phillip Dampier October 13, 2014 AT&T, CenturyLink, Charter Spectrum, Comcast/Xfinity, Cox, DirecTV, Dish Network, Editorial & Site News, Frontier, Verizon, WOW! Comments Off on J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

jd powerLove can be a fickle thing.

Take Comcast’s affair with J.D. Power & Associates, for example. In Comcast’s filings with regulators, it is very proud that J.D. Power cited Comcast for the most improvement of any cable operator scored by the survey firm. Comcast touted the fact it had managed to increase its TV satisfaction score by a whopping 92 points and Internet satisfaction was up a respectable 77 points. (Comcast didn’t mention the fact J.D. Power rates companies on a 1,000 point scale or that it took the cable company four years to eke out those improvements.)

Last month, J.D. Power issued its latest ranking of telecommunications companies and… well, the love is gone.

If customer alienation was an Olympic event, J.D. Power awarded tie gold medals to both Comcast and Time Warner Cable for their Kafkaesque race to the bottom.

The survey of customer satisfaction largely found only dissatisfaction everywhere in the country J.D. Power looked. While Comcast likes to cite its “customer-oopsies-gone-viral” blunders as “isolated incidents,” J.D. Power finds them epidemic nationwide.

skunkThe highest rating across television and broadband categories achieved by either cable company was ‘Meh.’ J.D. Power diplomatically scored both cable companies on a scale that started with “among the best” as simply “the rest.” Customers in the west were the most charitable, those in the south and eastern U.S. indicated they were worked to their last nerve.

“The ability to provide a high-quality experience with all wireline services is paramount as performance and reliability is the most critical driver of overall satisfaction,” said Kirk Parsons, senior director of telecommunications, in a statement.

Having competition available from a high-scoring provider also demonstrates what is possible when a company actually tries to care about customer service. In the same regions Comcast fared about as popular as hemorrhagic fever, WOW! Cable and Verizon FiOS easily took top honors. Even AT&T U-verse scored far higher than either cable company, primarily because AT&T offers very aggressive promotional packages that include a lot for a comparatively low price.

Other cable and smaller phone companies didn’t do particularly well either. Frontier and CenturyLink both earned dismal scores and Charter Cable only managed modest improvement. The two satellite television companies did fine in customer satisfaction for television service, but it was the two biggest phone companies that managed the best scores for Internet service. Among cable operators, only independents like WOW! (and to a lesser extent Cox) did well in the survey.

If J.D. Power is the arbiter of good service Comcast seems to claim it to be, the ratings company just sent a very clear message that when it comes to merging Comcast and Time Warner Cable, anything multiplied by zero is still zero.

J.D. Power ranking (Image courtesy: Reviewed.com)

J.D. Power ranking (Image courtesy: Reviewed.com)

Comcast Gets the Last Word: Complain Too Much and They’ll Call Your Boss and Get You Fired

firedComcast’s customer relations team apparently is better at ferreting out contacts at their customers’ employers than fixing problems with their service, despite being given multiple chances to make things right. When one customer made a seventh attempt to resolve his problems, Comcast called his boss and got him fired.

The Consumerist details the latest Comcast Customer Service Horror Show. On one side, Conal, who signed up for Comcast after being sold on a 9-month new customer promotion. On the other, Comcast’s billing and customer service department. Almost from the beginning, the two were locked in combat over service and billing issues:

  • Comcast misspelled his last name in their records, which meant some of his bills were allegedly returned to Comcast by the post office;
  • Comcast charged him for set-top boxes that were never activated on his account;
  • After multiple complaints, Comcast reduced his promotional discount, raising his bill $20 while adding new charges for a second cable modem he didn’t have and continuing charges for set-top boxes he never used;
  • Conal tried to cancel his service in October 2013 because of the mishaps, but a representative convinced him to stay after promising to fix his account. Instead, Comcast sent him a dozen pieces of equipment he never ordered and billed his account $1,820 for the unwanted equipment.

Conal returned the unrequested DVRs, cable modems, and everything else Comcast sent, and brought along a spreadsheet detailing his ongoing dispute, including every overcharge he incurred. He’s a professional accountant used to dealing with companies that understand numbers, and was convinced putting everything on paper would finally get through to the cable company.

comcast service cartoonNot a chance.

Comcast was unmoved and unconvinced by Conal’s spreadsheet, denied there was ever a problem with his account, and upon learning he intended to continue contesting the equipment charges, turned his account over to collections despite the fact it was not past due.

On Feb. 6 Conal dared to escalate his concerns to Comcast’s Office of the Controller. A subsequent callback from a testy representative began with, “how can I help you.” There was no greeting or mention she worked for Comcast, but there was plenty of attitude. The mysterious rep disputed Conal’s claim that a Comcast technician never showed up for an appointment, but could not tell him which appointment she was referring to. After that debate ended, the only remaining question on her mind was the color of Conal’s house.

Realizing a short time later that call was a waste of time, Conal called back the Controller’s office to let them know Comcast’s latest ambassador of goodwill was unhelpful. At this point, he casually mentioned the unresolved accounting issues with his bill should probably be brought before the Public Company Accounting Oversight Board, a private-sector, nonprofit corporation created by the Sarbanes–Oxley Act of 2002 to end the accounting tricks and executive-ordered embargoes on bad news that fleeced investors in the 1990s. A professional accountant would be familiar with the PCAOB and how to appeal for an independent review, ordinary consumers would be unlikely to know the Board even existed.

nbc comcastThat Conal would raise the matter of the PCAOB to the Controller’s Office apparently piqued the interest of someone at Comcast, who launched a small research project to determine who Conal was and where he worked. When they discovered his employer did work for Comcast, the cable company struck gold in the leverage department.

Comcast called Conal’s employer and spoke with a partner at the firm, who also received e-mail containing a summary of conversations Comcast evidently recorded between Conal and its various representatives. Comcast complained Conal was using the name of his employer to seek an unfair advantage with customer service. Conal told the Consumerist he never mentioned his employer by name, but once the Controller’s Office learned he was an accountant willing to escalate his complaints outside of the company, it would be a simple matter to look him up online and learn where he worked.

Conal’s employer in fact does consulting work for Comcast, so the outcome of a brief ethics investigation predictably led to Conal’s termination. Conal was never allowed to see the transcripts of conversations with the cable company, nor given access to any recordings of those calls. Conal said before he tangled with Comcast, he had received only positive feedback and reviews for his work.

Conal’s lawyer has been in contact with Comcast over the matter and received a pithy reply from Comcast’s senior deputy general counsel, who likely fears a forthcoming lawsuit, admitting Comcast did call Conal’s employer but said Conal “is not in a position to complain that the firm came to learn” about his dispute with Comcast.

“Our customers deserve the best experience every time they interact with us,” reads a statement from Comcast. The company says it has previously apologized to Conal, but adds “we will review his lawyer’s letter and respond as quickly as possible.”

Comcast had no comment about whether the company considers it proper to identify and contact customers’ employers and push its weight around when it feels the need to do some complaining of its own.

Behind the Bulletproof Glass: More Misadventures at Comcast’s Customer Service Center

Marco S. was so frustrated by the line running outside of his local Comcast store, he snapped this photo. At least the weather was nice.

Marco S. was so frustrated by the line running outside his local Comcast store, he snapped this photo. At least the weather was nice.

Comcast customer Timothy Lee made a grave error in judgment. He decided to return his Comcast-owned cable modem to a Comcast customer service center… on a Saturday!

Long-time Comcast customers know only too well a Saturday visit to Comcast represents a major outing, with long lines that often extend outside and up to an hour or more waiting time.

Lee compared his visit to waiting in line at the post office, but that’s not really true except during the holidays — the post office is better organized and usually lacks the heavy-duty bulletproof glass and surly attitudes that separate Comcast’s “customer service agents” from their unhappy customers.

Predictably, Lee waited more than 30 minutes before his number was up.

Lee’s predicament is all too familiar. His only choice for high-speed Internet access is Comcast, and the cable company knows it. So just like your local Department of Motor Vehicles, there is no harm done if Comcast opens a customer service center with 10 available windows staffed by only two employees, one happily munching on pretzels ignoring the concert-length line during his 20-minute break.

Time Warner Cable’s service centers are not much better, although they usually have fewer windows to keep customers from getting their hopes up. Comcast’s bulletproof glass is also not in evidence at TWC locations, although the burly bank-like security guard is very apparent at some centers in sketchy neighborhoods. Time Warner Cable also offers seating, but visit wealthier suburban locations when possible, where comfortable couches replace the nasty hard benches or plastic furniture often found downtown.

Comcast was instantly ready to offer up the usual excuses:

Your recent visit to our Washington D.C. service center is certainly not the experience we want anyone to have. We’ve been working on  a multi-year project to revamp the hundreds of service centers we have around the country to better serve customers.  As part of that project, we will be remodeling the Michigan Avenue location and will open another service center in the District in early 2015.  We’re also introducing more options for customers to manage their accounts, including a new program we’re starting to roll out with The UPS Store to make them an authorized Comcast equipment return location.

It’s always better at Comcast sometime in the yet-to-be-determined future. Until then, suffer.

Time Warner Cable Can Raise Pricing on 2-Year Promotions; Customer Sees $15 Surprise Rate Hike

Phillip Dampier September 15, 2014 Comcast/Xfinity, Competition, Consumer News, Editorial & Site News Comments Off on Time Warner Cable Can Raise Pricing on 2-Year Promotions; Customer Sees $15 Surprise Rate Hike

fine printTime Warner Cable customers believing they can “lock in” prices for up to two years with one of the company’s service promotions might be surprised to learn the fine print allows the cable company to adjust prices after just one year of service, as this reddit user just discovered:

My bill went up $15. They tell me it’s ok because I’m still on the same promotion, it just went up in price. That I’m still saving over full retail price so it’s ok. The phrase “it’s only $15” was used by the service rep.

This is complete bulls***.

edit: I really wish I thought ahead to record the call. Now that I’m off the phone he offered me a one time $15 credit to make next month better. Like that changes anything.

How can the term two-year promotion be used if it’s only good for 1 year you ask? Well Time Warner’s answer is that it’s still the same promotion, it just goes up after a year.

edit again: The one time $15 just posted to my account. They don’t even call it a customer service adjustment or anything, they call it a “Save a Sub adjustment.” Not even trying to hide it.

09/06/2014 Save a Sub Adj -15.00

This and many other Time Warner Cable customers probably missed the fine print, which reveals pricing for the promotion can, and often does, adjust after the first 6-12 months. Comcast, the potential new owner of Time Warner Cable, also runs promotions the same way. Here are examples from both companies:

Time Warner Cablecomcast twc: Three-product offers valid for new residential and existing customers. After 12 months, regular rates apply. Offers expire 10/19/14. Standard TV for $39.99 available for 12 months; in months 13-24, price will go up to $44.99; after month 24, price will go to retail.

Comcast: After first 6 months, monthly service charge increases to $109.99 for months 7-12. After 12 months, or if any service is cancelled or downgraded, regular charges apply. After 6 months, the monthly charge for HBO is $15 for 12 months and thereafter, regular rates apply.

Some cable operators bill promotions by charging the customer the regular price for service and then apply a fixed promotional credit for the length of the promotional offer. If rates increase during the promotion, the customer will see the rate increase on their bill and will end up paying more because the service credit they receive does not change to offset the increase.

Why are they allowed to do this? Because cable companies like Time Warner Cable have gradually moved away from term-length service contracts, especially where they do not face a new competitor like U-verse or FiOS entering their service area for the first time. With both competitors well-established, cable operators have moved away from two-year “contracts” to two-year “promotions,” but customers often do not know the difference.

This customer can switch providers at any time without a penalty. Instead he called and complained and received a one-time service credit. Chances are if he calls and threatens to cancel service, the retention agent will put him back on the original promotion or one offering a similar promotional price. The key word is “cancel,” which works like nothing else to motivate representatives to keep your business.

Time Warner Cable Executives Getting Huge Retention Bonuses; Layoffs Likely at the Bottom

Phillip Dampier September 8, 2014 Comcast/Xfinity, Consumer News 3 Comments
Money for some

Money for some

Time Warner Cable will pay $416 million in retention bonuses to the company’s top and middle management to entice them to stay with the cable company as its merger deal with Comcast is scrutinized by regulators.

The bulk of the bonuses will be paid to the company’s top executives in New York, but an additional 1,800 middle management employees would also receive twice their regularly scheduled annual equity award to compensate for canceled awards in 2015 and 2016. About 15,000 rank and file employees eligible to participate in Time Warner’s supplemental bonus program will receive a much smaller bonus — averaging less than $70 per employee.

While upper level management will gorge on cash and stock, middle management will receive stock only. Rank and file employees will receive a token payout amounting to 50 percent of their target bonus for 2014. Recipients may want to save the money. As part of Comcast’s plans to realize cost savings from the merger, many employees of Time Warner Cable’s call centers and technical staff may not have a future paycheck at all if the merger is approved. Comcast relies heavily on existing offshore call centers for customer service and subcontracts a significant percentage of engineering and service call work to third-party subcontractors.

Among the top recipients of the largesse:

  • Time Warner Cable CEO Rob Marcus, who will receive a golden parachute package worth $81.8 million in cash, restricted stock and stock options. Because his compensation package is so large, Time Warner Cable has also agreed to pay an extra $300,000 to allow Marcus to hire his own financial planning firm to manage the enormous sums involved;
  • The other top five executives of Time Warner Cable in New York will share more than $136 million in golden parachute compensation. They will have to figure out how to spend the money on their own.

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