AllConnect (Atlanta, GA)
Moving Home Services from Complexity to Efficiency
According to AllConnect Chairman and CEO Mark Miller, the company - the
largest aggregator of home services like phone, cable, satellite and
broadband - runs on a model that is "pretty simple, and maddeningly
complex." It applies a technology solution to a common problem shared
by more than 20 million consumers annually.
Problem: Information Overload
Relocating is one of life's most stressful events, made more so by the time consumers must spend establishing service with cable, satellite, phone and broadband providers - often a confusing and challenging process. When they move, consumers must comb through myriad websites or navigate complex service provider phone trees to make purchasing decisions on home services, on which an average household spends about $200 per month.
Solution: One-Stop Shop
AllConnect simplifies the process by providing consumers with the best way to compare, select and order essential home services. The company maintains relationships with more than 200 providers, whose services are passed on to consumers via AllConnect's proprietary technology platform. "No matter where you live, we can tell you down to your local street address exactly what is happening, and what is about to happen as Verizon brings in FiOS, or AT&T brings in U-verse," said Miller.
Because most people first contact power companies before a move, AllConnect's customers - which totaled 3 million last year - are primarily referred to the service by the nation's leading energy companies. Customers are not charged a fee for the AllConnect service - it is covered by the service providers - which makes it a win-win for the energy companies. "It's very simple: We move the needle on customer satisfaction for them," says Miller. "Customers are happier when [the energy companies] provide this free service to them to help simplify their lives." The relationship also benefits the referred home service providers, who can connect with consumers before they make purchasing decisions. Because they reach potential customers at the decision point, providers realize high redemption and retention rates through the partnership.
Once referred to AllConnect, customers have the option of a voice consultation with one of the company's 325 highly trained home services specialists or using a self-serve option on AllConnect's website. In addition to saving customers time, AllConnect offers a cost-effective alternative channel, where customers can optimize purchasing power within their budget parameters and save money. Other applications include direct marketing capabilities, which allow retailers such as home improvement stores to reach a target audience that typically spends about $9,000 within 90 days of a relocation event; and user-generated content, allowing customers to share information on the best services in their area.
The technology behind AllConnect drives its competitive advantage. VoIP provides flexibility for its call centers, and a complex back office allows for real-time integration with service providers. "We have a shop floor-like monitoring capability - if something is going wrong, we know about it immediately,- said Neil Singer, Executive Vice President and Chief Information Officer. This infrastructure will allow the company to expand its serviceable market to 110 million households, to include those reexamining existing services.
"Our entire business is enabled by technology," said Miller.
Relocating is one of life's most stressful events, made more so by the time consumers must spend establishing service with cable, satellite, phone and broadband providers - often a confusing and challenging process. When they move, consumers must comb through myriad websites or navigate complex service provider phone trees to make purchasing decisions on home services, on which an average household spends about $200 per month.
Solution: One-Stop Shop
AllConnect simplifies the process by providing consumers with the best way to compare, select and order essential home services. The company maintains relationships with more than 200 providers, whose services are passed on to consumers via AllConnect's proprietary technology platform. "No matter where you live, we can tell you down to your local street address exactly what is happening, and what is about to happen as Verizon brings in FiOS, or AT&T brings in U-verse," said Miller.
Because most people first contact power companies before a move, AllConnect's customers - which totaled 3 million last year - are primarily referred to the service by the nation's leading energy companies. Customers are not charged a fee for the AllConnect service - it is covered by the service providers - which makes it a win-win for the energy companies. "It's very simple: We move the needle on customer satisfaction for them," says Miller. "Customers are happier when [the energy companies] provide this free service to them to help simplify their lives." The relationship also benefits the referred home service providers, who can connect with consumers before they make purchasing decisions. Because they reach potential customers at the decision point, providers realize high redemption and retention rates through the partnership.
Once referred to AllConnect, customers have the option of a voice consultation with one of the company's 325 highly trained home services specialists or using a self-serve option on AllConnect's website. In addition to saving customers time, AllConnect offers a cost-effective alternative channel, where customers can optimize purchasing power within their budget parameters and save money. Other applications include direct marketing capabilities, which allow retailers such as home improvement stores to reach a target audience that typically spends about $9,000 within 90 days of a relocation event; and user-generated content, allowing customers to share information on the best services in their area.
The technology behind AllConnect drives its competitive advantage. VoIP provides flexibility for its call centers, and a complex back office allows for real-time integration with service providers. "We have a shop floor-like monitoring capability - if something is going wrong, we know about it immediately,- said Neil Singer, Executive Vice President and Chief Information Officer. This infrastructure will allow the company to expand its serviceable market to 110 million households, to include those reexamining existing services.
"Our entire business is enabled by technology," said Miller.
Q&A with Mark Miller, Chairman and CEO, and Neil Singer, EVP and CIO, AllConnect
Q: Given all the changes that happen in that marketplace, now that you capture the data for the customer, do you have an opportunity to go back and tell the customer, hey, six months ago you had a great opportunity. Now you have a different opportunity. Do you reinforce that?
A: The answer is, yes if they opt in for remarketing, if you will. So what we may do to that consumer is to say, Mr. Singer, you're moving in. Would you like for us to send you special offers from Lowe's when it comes time for you to buy energy-efficient appliances? As we look at marketing to that consumer, we look at advertising as a service. That means special offers. And we also may offer a product called an annual essential home services review, where we'll come back to you proactively and tell you, hey, here are the changes that have occurred. Here are special deals. How do you feel about your current service providers? That's just the world we live in, going back to a point that was made earlier. Our service providers would like to think that they'd capture that consumer's attention and keep them for life, and if they do a great job, they will. But we want to make sure that we're giving them unfettered information. So the answer to that is, yes, but it's an opt-in for us, not just a random call or anything like that.
Q: How do you maintain an agnostic relationship? You mentioned earlier that you were funded by Verizon. What would be the incentive for you, for them not to say, hey, you've got to direct business to Verizon versus Comcast?
A: We understand where our bread is buttered, and - I stole this from one of our early investors, Howard Schultz at Starbucks - the consumer experience is our product, and so we understand that, and that is cultural to the core. We try to level the playing field in terms of the bounties that we get from different categories of service providers, but the determining factor is choice for the consumer. We give them objective consultation, and if you come to our contact center, and you ask our people, our top performers, what is the most important thing that you do, I think two years ago they may have said, "I work hard to build the trust of the consumer," or maybe "I refuse to take no for an answer." But now what they would tell you is, they listen. They listen, and then they match the right service to that consumer based on their specific parameters.
Q: I'm curious if the "green" dimension is becoming a more significant factor for the consumer base that you deal with.
A: The answer is, there's not that much focus on it. It's something you have to proactively help them with. Even though they're coming to us from our Duke Energy Connections, they may not have green energy at the forefront, so we like our positioning in terms of being a proactive messenger to help them save money, potentially, by adopting green energy. One of the reasons consumers don't opt into green energy more frequently is it costs them more to do it, and while they may be very good citizens and want to do what's right for the planet, they can't afford the extra $5 a month. That's playing out now, and ultimately what we're trying to do with these three pilots that we're launching - and this is just emerging - is driving adoption rates by giving them an ROI for that decision. Our power company partners care very deeply about this, and so we care about it, and so it's a natural evolution for us.
Q: Given all the changes that happen in that marketplace, now that you capture the data for the customer, do you have an opportunity to go back and tell the customer, hey, six months ago you had a great opportunity. Now you have a different opportunity. Do you reinforce that?
A: The answer is, yes if they opt in for remarketing, if you will. So what we may do to that consumer is to say, Mr. Singer, you're moving in. Would you like for us to send you special offers from Lowe's when it comes time for you to buy energy-efficient appliances? As we look at marketing to that consumer, we look at advertising as a service. That means special offers. And we also may offer a product called an annual essential home services review, where we'll come back to you proactively and tell you, hey, here are the changes that have occurred. Here are special deals. How do you feel about your current service providers? That's just the world we live in, going back to a point that was made earlier. Our service providers would like to think that they'd capture that consumer's attention and keep them for life, and if they do a great job, they will. But we want to make sure that we're giving them unfettered information. So the answer to that is, yes, but it's an opt-in for us, not just a random call or anything like that.
Q: How do you maintain an agnostic relationship? You mentioned earlier that you were funded by Verizon. What would be the incentive for you, for them not to say, hey, you've got to direct business to Verizon versus Comcast?
A: We understand where our bread is buttered, and - I stole this from one of our early investors, Howard Schultz at Starbucks - the consumer experience is our product, and so we understand that, and that is cultural to the core. We try to level the playing field in terms of the bounties that we get from different categories of service providers, but the determining factor is choice for the consumer. We give them objective consultation, and if you come to our contact center, and you ask our people, our top performers, what is the most important thing that you do, I think two years ago they may have said, "I work hard to build the trust of the consumer," or maybe "I refuse to take no for an answer." But now what they would tell you is, they listen. They listen, and then they match the right service to that consumer based on their specific parameters.
Q: I'm curious if the "green" dimension is becoming a more significant factor for the consumer base that you deal with.
A: The answer is, there's not that much focus on it. It's something you have to proactively help them with. Even though they're coming to us from our Duke Energy Connections, they may not have green energy at the forefront, so we like our positioning in terms of being a proactive messenger to help them save money, potentially, by adopting green energy. One of the reasons consumers don't opt into green energy more frequently is it costs them more to do it, and while they may be very good citizens and want to do what's right for the planet, they can't afford the extra $5 a month. That's playing out now, and ultimately what we're trying to do with these three pilots that we're launching - and this is just emerging - is driving adoption rates by giving them an ROI for that decision. Our power company partners care very deeply about this, and so we care about it, and so it's a natural evolution for us.