Case Study: PAETEC's Customer-Focused Strategy Captures US SMBs

PAETEC, a US communications solution provider, often flies under the radar screen when compared with better-known wireline operators like AT&T and Verizon. This may be about to change — PAETEC recently acquired US LEC, Allworx, and McLeodUSA to expand its communications solutions and geographic reach throughout the US. PAETEC is among the top 10 US telecom companies, with more than 45,000 small and medium-size business (SMB) customers in 41 states. The company differentiates itself by providing communication solutions and superior customer service to SMB customers, relying primarily on word-of-mouth recommendations to generate new leads. PAETEC's intense customer service focus resonates throughout the company beginning with the CEO and extending to all levels of the organization. To reinforce the importance of customer service, 20% of employee bonuses are based on results from a customer service survey. PAETEC's success in the SMB market provides insight for other service providers and vendors seeking to address the needs of this increasingly important business segment.