Rogers announces new direction to combat customer flight

Rogers Communications Inc. on Friday released a “comprehensive” plan to overhaul its customer service and restructure its corporate hierarchy. CEO Guy Laurence, who took over the job in December, said in a Friday news release that under a new “multi-year plan” to improve customer loyalty, the business will be reorganized into enterprise- and consumer-focused arms, with the exception of its media unit, which remains intact. “We've neglected our customers, and we've let our legacy of growth and innovation slip,” Laurence said in the release. “The plan I've laid out will significantly improve the experience for our customers and re-establish our growth by better leveraging our assets and consistently executing as One Rogers.” The company’s call centres, retail outlets, websites and other customer-facing units will all be brought under the control of a single team that will report directly to the CEO, according to the release. Rogers’ wireless service was the target of the most consumer complaints to the Commission for Complaints for Telecommunications Services (CCTS) in 2011-2012, and came second in 2012-2013, the most recent year for which statistics are available. In an April research note on Rogers’ wireless customer attrition, BMO Capital Markets analyst Tim Casey said the company’s churn rate was the highest in the industry and that its operating metrics, including revenue per user, were “underwhelming.” “Combined, they translate to deteriorating customer lifetime revenues and value at Rogers,” Casey wrote. “We expect new CEO Guy Laurence will have a primary focus on improving these critical operating metrics.” Casey said Rogers’ issues with customer service reflect “deeply ingrained business practices and cultural issues within the company,” and that there will be no “easy or quick fixes.” In a research note released Friday after the Rogers plan was announced, RBC analyst Drew McReynolds said the company appears to be switching from customer growth at all costs to building long-term value. “Although improvements in customer service and renewed revenue growth will be a multi-year process, we are encouraged by the board's and management's appetite to embrace change and believe a ‘One Rogers’ strategy should begin to better unlock value from what we continue to believe is the most attractive asset mix in the Canadian telecom sector,” he wrote. Scotia Capital analyst Jeff Fan said in a research note Friday of Rogers’ new direction: “We believe the changes were necessary to drive positive cultural change in the organization. We believe this is the first step of a multi-year turnaround plan.” As part of the reorganization, several executives have been reshuffled. John Boynton, chief marketing officer, and Shelagh Stoneham, senior vice-president of brands and marketing communications, left the company, Rogers told The Wire Report on Thursday. Rob Bruce will run the new consumer-focused arm of Rogers until the end of the year, while Larry Baldachin will run the enterprise unit on an interim basis, the company said in the release. Keith Pelley will remain in place as the president of the media unit. "This structure will help streamline the organization, clarify accountabilities and make us more agile," Laurence said in the release. Other changes are afoot that include the family of late founder and CEO Ted Rogers. His son, Edward Rogers, will no longer be involved in “active management,” according to a report in the Globe and Mail, but will remain deputy chairman. The founder’s daughter, Melinda Rogers, is also leaving her job as senior vice-president of strategy, the Globe report said, and appears to have been replaced by Frank Boulben. Boulben, who was chief marketing officer at BlackBerry Ltd. until late last year, has been brought in as interim chief strategy officer, Rogers said in its release. “An internal and external search has begun for all interim appointments,” the company said. — With reporting by Peter Henderson at phenderson@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

Rogers announces new direction to combat customer flight

News | May 23, 2014

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Rogers announces new direction to combat customer flight

News | May 23, 2014

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