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That Knock You Hear Is Cable Opportunity

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By RICHARD MULLINS | The Tampa Tribune

Published: December 1, 2006

TAMPA - The battle between archrivals Bright House Networks and Verizon for cable TV, phone and Internet customers is reaching a new level in the Tampa Bay area.

The street level.

Both companies are deploying teams of peppy workers to knock on thousands of customer doors across the area to fix technical glitches, tempt customers into upgrading services and, most importantly, prevent them from defecting to the competition.

This door-to-door fight between the companies has put the Bay area on the map as among the first U.S. markets to see such intense competition between what were once traditional cable and telephone companies - each hoping to dominate the lucrative market.

"The stakes are holding on to each and every customer," said Kevin Hyman, president of Bright House Networks Tampa Bay division.

Even a slight shift in retention rates can translate to millions of dollars a year, he said. "Both Bright House and Verizon have spent billions to put state-of-the-art networks into the ground, and how we conduct ourselves will determine what kind of return we get on that investment."

No issue or glitch is too small for the companies' attention - broken remote controls, a fuzzy TV picture or spotty Internet service, Hyman said. Seemingly minor issues are the kind that customers tend to put off, and make them receptive to a rival looking to lure them away.

Verizon spokesman Bob Elek said: "Going door to door is our most effective method, dollar for dollar, and it has largely been a forgotten method."

Strategies Diverge

Mike Arden, an analyst who follows cable and Internet for ABI Research, said: "On both sides, they want subscribers and are willing to do whatever they can to get them, and they're willing to spend a lot of money to do it."

With Verizon, the street-level approach makes sense because customers need to learn about the capabilities of the company's fiber-optic system - and to simply hear how a traditional phone company now can offer TV, Arden said.

With Bright House, he said, the approach makes sense because the company needs to retain as many customers as possible.

The companies declined to disclose the exact success rates of their street teams, though they say the investment is paying off. Some street team members say they each sign up 80 customers in two weeks.

The strategies of Verizon and Bright House resemble each other to a point. Both have armies of people out sporting company shirts and ID badges and knocking on doors with a smile. But the strategies of Bright House and Verizon diverge once the doorbell is rung.

Bright House is working primarily to retain customers, recognize them for loyalty. The company has about 50 full-time, salaried employees going door to door to visit current customers.

Take, for example, a visit to Carrollwood, north of downtown Tampa, last week by Bright House representative Al Lugo. After a quick ding on one doorbell, customer Chris Melli opened the door and Lugo began his pitch.

"Hi, I'm Al Lugo from Bright House Networks. We're just making sure everything is all right with your service. How's your Road Runner Internet been?"

With a quizzical look, Melli said, "Fine. Well - actually it's been slow, and my home page isn't working."

Without skipping a beat, Lugo said, "Oh dear, let me set up a repair appointment. Do mornings or evenings work best for you?"

Lugo scheduled a repair call, mentioned a few special offers and answered a string of Melli's questions. No, Bright House doesn't require contracts. No, it doesn't carry the "NFL Ticket" package like Direct TV, but it may soon. Lugo handed over a laminated channel listing and Bright House pen, then moved on to the next house on his list. In one eight-hour day, he may knock at 40 houses and talk to 10 customers.

But hitting a high number of houses each day is not Lugo's goal. A former mortgage broker accustomed to dealing with the public, Lugo says his most important goal is quality customer contact. He may spend two hours at a customer's house fixing problems and talking about service. There is no overt or aggressive sales pitch, and if Lugo does sign customers up for new phone, Internet or cable TV service, he receives a small commission.

After leaving Melli's house, Lugo said, "A lot of times, when you knock, you see a look on people's faces that says, 'Oh, why did I open the door?' But then you start helping fix something, like a remote with dead batteries, and they start asking about a new service, and by the time you leave, you're their hero."

The Big Sell

In its drive to compete, Verizon has different goals for its street teams. The company hired a Fort Worth, Texas, company that specializes in door-to-door sales, 20/20 Companies. The staff of about 100 employees in the Bay area has a primary goal of upgrading customer service and taking others from Bright House and satellite-TV providers.

They work on 100 percent commission, meaning they're paid only when they sign up new customers. Commissions depend on what services the contractor sells.

For example, in a Riverview neighborhood last week, Neal Littlejohn wore a smile and a bright-red Verizon shirt and caught customer Steve Maravillas in the garage. After a quick pitch about upgraded cable TV service, Maravillas signed up.

"I've been meaning to call and switch to Verizon TV, but I've just been too busy," Maravillas said.

With combined Verizon telephone, superfast 15 mps broadband Internet service, cable for two TVs and HBO, Maravillas will pay about $114 per month. Littlejohn did some quick math on a calculator and figured he will make a one-time $85 commission off the sale.

In about three hours, Littlejohn and a partner sign up five customers on two streets. In two weeks, he may sign up 80, he said.

"Going right to someone's door is so much better," Littlejohn said. "Better than having a customer talking to some anonymous person on the phone."

Florida is a strong market for door-to-door sales because the weather allows time for knocking on doors through winter.

Retro Approach

Going door to door is a return to a storied strategy in the sales playbook that decades ago saw tens of thousands of traveling salesmen hawking everything from Electrolux vacuum cleaners to Fuller paintbrushes.

The teams wear official company shirts, display company ID badges and don't enter a home if only an unaccompanied minor answers the door.

The strategy requires thick-skinned salespeople willing to work outside and suffer many slammed doors. Verizon and Bright House staff will scour crime rate statistics before entering a new neighborhood, and salespeople will team up if streets seem dangerous.

And customers with complaints are eager to jump at the chance to pressure salespeople for a fix.

Last week, Littlejohn of Verizon met one current customer whose service was cut off a week before and who demanded a fix that afternoon - not the next day. The second and third rejected the offer. The fourth demanded a half-year of free cable TV.

Lugo of Bright House found half the customers on his list weren't home, and one customer who had a snowy picture on several channels. The best fix would require an upgrade from analog to digital cable, which the customer balked at.

That's fine with Bright House division President Hyman.

"If there's something people aren't happy with, but they're not compelled enough to take time to call, we still want to help," Hyman said. "When you make it easy for customers, they appreciate it."

Reporter Richard Mullins can be reached at or (813) 259-7919 or rmullins@tampatrib.com.

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