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Outcomes
- Enhanced Customer Experience
Using ThousandEyes Connected Devices, Virgin Media O2 is able to provide real-time, dynamic support to customers. - Improved Operational Efficiency
Virgin Media O2 can reduce unnecessary service visits, which not only decreases customer inconvenience but also lowers operational costs. - Market Differentiation and Leadership
By ensuring consistent service delivery and operational efficiency, the company is poised to maintain its market leadership and expand its offerings.
Challenges
- Speed is no longer a major differentiator, as the industry-wide transition to full fibre technology accelerates.
- The emergence of “alt-nets” introduces new providers into the market, intensifying the competitive landscape for Virgin Media O2.
- To differentiate itself, Virgin Media O2 must double-down on enhancing customer experience and developing value-based services.
Virgin Media O2 Focuses on Digital Experience Innovation
Discover the dynamic world of Virgin Media O2, where cutting-edge connectivity meets exceptional service.
Challenge
Amid a fast-changing and highly competitive U.K. telecommunications sector, Virgin Media O2 stands as a major provider with impressive reach, with a fixed network passing more than 18 million homes and around 45 million mobile connections. Historically, Virgin Media O2 distinguished itself with a robust cable broadband service that delivered consistent, high-performance connectivity, outpacing competitors reliant on DSL networks.
But the landscape is shifting. As Gareth Lister, Director of Customer Products at Virgin Media O2, points out, “Now everybody is rolling out fibre-to-the-home broadband.” This transition means all providers will soon offer similar speeds, levelling the playing field and necessitating new strategies for Virgin Media O2 to maintain its edge.
Adding to this challenge is the rise of new market entrants known as “alt-nets.” These alternative networks are rapidly emerging across the U.K., often starting locally but with the potential to grow significantly. Lister notes, “There are more competitors in the market than ever, using broadly the same network types.” This influx of competition directly challenges Virgin Media O2’s market leadership and calls for a bold new approach.
Solution
To maintain its market leadership, Virgin Media O2 is shifting its focus from competing primarily on broadband speed leadership to enhancing the customer experience and offering additional value-based services. Lister emphasizes the importance of this shift, stating, “We can no longer trade only on speed. We have to build more service experiences around that.”
To set itself apart, the company is introducing unique offerings such as Priority, a rewards program for its mobile and fixed customers offering exclusive perks and experiences, and the U.K.’s market-leading Wi-Fi guarantee. Another example of their customer-centric approach is the innovative Smart Support service, which enables Virgin Media O2 to proactively address customer issues before they affect the user experience.
ThousandEyes Connected Devices plays a central role in innovations like Smart Support. These software agents are deployed on customers’ routers and collect critical performance metrics, such as download and upload speeds, latency, jitter, and more. With millions of these agents in place, Virgin Media O2 can harness billions of data points to quickly understand issues at both the customer and broader geographic levels, allowing them to find trends and offer real-time, dynamic support.
Insights from ThousandEyes Connected Devices significantly enhance Virgin Media O2’s customer service capabilities. With instant access to extensive network health data and telemetry on ISP and service provider performance, customer service agents can engage in more informed conversations with customers during calls. They can even initiate Cisco Real Speed tests to quickly determine whether issues are within the home or elsewhere.
Additionally, customers can independently access ThousandEyes Connected Devices data through Virgin Media O2’s Connect app to verify service performance and resolve issues on their own. And when customers enjoy consistently smooth service, Virgin Media O2 proactively shares this positive performance information with these customers, reinforcing their commitment to customer satisfaction.
“As we embark on the journey towards full assurance of the subscriber digital experience, we’re incredibly excited about how ThousandEyes’ data enhances Virgin Media O2’s operations,” said Lister.
Virgin Media O2 employs a wide range of ThousandEyes Connected Devices tests to ensure high-quality experiences. But unlike traditional speed tests, which may overlook routing inefficiencies that affect key services like streaming, ThousandEyes Connected Devices detects these issues in real time, helping to ensure efficient traffic routing and a seamless user experience.
This proactive approach reduces operational costs and customer churn while enhancing service. By using data from ThousandEyes Connected Devices across customer touchpoints, Virgin Media O2 drives operational efficiencies and improves the digital experience. Remote service status assessments minimize unnecessary service visits, reducing customer inconvenience and transforming dissatisfied customers into advocates. As a result, those who complete the digital Smart Support journey often report higher Net Promoter Scores (NPS).
Looking ahead, Virgin Media O2 is exploring the possibility of extending the use of ThousandEyes Connected Devices to their IPTV, home phone, and mobile services, to help provide consistent and high-quality experiences across their entire product portfolio. This integrated approach reflects the company’s commitment to its customers’ experience. By focusing on proactive support, consistent service delivery, and operational efficiency, Virgin Media O2 is poised to differentiate itself and sustain its market leadership.
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