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Cox Communications Inc. probably has been the most aggressive cable company in targeting the business market. Cox Business Services serves more than 65,000 business customers. The company's business efforts have grown in the past three years from less than 1 percent of Cox's overall revenue to just more than 5 percent of Cox's consolidated revenue. "That is remarkable," says Coby Sillers, vice president and acting general manager for Cox Business Services. "We are no longer a dot on the radar screen, the company is focused on it." Those numbers don't include video-only business customers. xchange Editor in Chief Paula Bernier recently spoke with Sillers about the company's business effort. Below is an excerpt of that interview.
X: How does Cox Business Services fit in with the overall strategy at Cox?
Sillers: There was an integration of CBS into Cox at the end of 2003. That means more resources for the business unit. In Phoenix, for example, we have the entire Phoenix residential group now focused on business in addition to residential. It's like now the corporation has really embraced commercial in addition to residential service.
X: How does Cox differentiate its business services in the marketplace?
Sillers: Within Cox we have a saying 'it's the bundle, baby.' And we do it on both the business side and the residential side. The one thing we can provide that no one else can provide is video added to our bundle. Especially since the events of Sept. 11, there's been increased interest -- and that's only accelerated with the war -- in watching TV to keep up on compelling events. One of the strategies we have is lobby sessions with buildings with a large display screen TV and we offer a discounted approach to the bundle. The business manager understands how to buy voice, understands how to buy data, but doesn't really understand how to buy video. So one of our strategies is to offer video for free. Cox also is a leader in customer care in the industry.
X: Does Cox do anything special to appeal to small and medium businesses?
Sillers: We have quarterly campaigns and other promotions throughout the year. Somebody that has our data service is more than likely to try our voice service. So, we do mailings to try to upsell those customers. Other campaigns might include an offer that if you take the bundle maybe there's one month free of a certain service.
X: Who are the company's biggest business customers?
Sillers: Broadcom, Motorola, Norfolk International Airport, every school in Santa Barbara. There are many more.
X: What's next for Cox Business Services?
Sillers: The integration of Cox Business Services directly into Cox Communications, I think, will mean greater success in our integration strategy and will create increased growth, driving deeper penetration in servable areas. We'll also do select network expansion through buildouts. We will expand our existing product portfolio with DOCSIS 1.1, which supports QoS and bandwidth shaping and rating. It means being able to guarantee businesses the bandwidth they will ask for. That will put us in direct competition with the telcos. We're also looking to accelerate deployment of voice across Cox markets through VoIP.
"There was an integration of CBS into Cox at the end of 2003.... It's like now the corporation has really embraced commercial in addition to residential service."
