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?

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Using The Ultimate Question To Calculate A Net Promoter Score (NPS)

How Likely Would You Be To Recommend Us To A Friend Or Colleague?

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NPS Leaders Grow at 2.5X Their Industry Average

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NPS Scores For Loyalty Leaders

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Cable TV & Satellite Provider Scores

How Likely Would You Be To Recommend your Cable TV Or Satellite Provider To A Friend? NPS

20

-3

-8

-34

-45

Source: SatMetrix, Q4 2007 Telecommunications NPS Report

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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

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Service Interaction Monitoring Process

In HomeIn HomeServiceService

Sky CreekSky CreekAutomatedAutomated

CallingCalling

UniontownUniontownSave TeamSave Team

Day 1Day 1 Day 2Day 2 Day 3Day 3 Day 4Day 4

Install or Service

Call Completed;

Customer Calls Made4 Contact Attempts

Followup Resolution Calls Begin

Followup Service Calls

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Survey questions

1. How satisfied were you with the quality of service the customer service agent provided you when calling?

2. How satisfied were you with the quality of service the technician provided?

3. How satisfied are you with the current service you are receiving from Atlantic Broadband?

4. How likely would you be to recommend Atlantic Broadband to a friend or family member?

5. May we contact you for any score below a 3?

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Our Grading Scale

5 = Promoters

4 = Neutral

3

2 Detractors

1

% Promoters - % Detractors = Net Promoter Score

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Typical ‘Feedback Funnel’

5500 Service Interactions

~40% Response Rate

2200 Feedback Points20-30% Dissatisfied Request Followup

500 Followup Requests~50% Contact Rate

250 ResolutionDiscussions

15% Require

Service Call

40 Truck Rolls

$5/Call:$1250

$50/truck roll: $2000

$.75/Call:$1500

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NPS Performance Vs. Basic Churn

Central PA, NPS and Basic Churn Trends

1.90%

1.70%

1.30%

0%

10%

20%

30%

40%

50%

60%

June July August Sep Oct Nov Dec Jan Feb Mar Apr

Ne

t P

rom

ote

r P

erc

en

tag

e

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Av

g B

as

ic C

hu

rn

NPS Up 50%; Churn Down 30%

22

24

0.2

-12

Differences By Type Of Transaction

47

23

35

Overall Install Service

CentralPA

Delmar

NPS Scores By Transaction Type

166%Drop

51%Drop

23

1614

9

0.3

-5.4

-10

-5

0

5

10

15

20

Wk 1 Wk 2 Wk 3 Wk 4 Wk 5

Sensitivity To Customer Disruption

Delmar RegionLikelihood to Recommend NPS Scores: August 2007

DCTUpgrade

DVRUpgrade

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NPS Scores By Spending Level

Last Bill Amount

OverallNPS

Promoter %

Detractor%

More Than $125

22 52 30

$75 To $125 27 53 26

$25 To $75 32 58 26

Less Than $25 30 56 26

Likelihood To RecommendQ3 2007

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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.

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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

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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

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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

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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

33

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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