Analyst talks to...Gavin Patterson

Gavin Patterson was appointed chief executive of BT Retail on June 1, 2008. He joined BT in 2004 as managing director of BT Retail's consumer division.

Hi Gavin, what’s the more critical factor for BT to succeed in the consumer market - delivering great customer service or being able to innovate?

We need a combination of both. This is especially so in a market that's being driven by convergence and shaped by consolidation. My view is that the two can feed off of each other. An example lies with BT’s 'number one for customer service' programme. It’s about simplicity, scale and service experience. Making it happen requires innovation in our thinking, our development and our implementation.

What have you learnt about providing mobility solutions for consumers and SMEs?

We’ve learnt that what it takes to succeed in these markets is varied. SMEs, for example, look for bundles of converged fixed and mobile type propositions. They are happy to buy from us and this is an area of continued growth for BT.

Consumers are different in their purchasing behaviour. They like the idea of extending their broadband access outside of the home. This is evident in the attraction of consumers to the BT ToGo product.

Now I’m not suggesting that BT will become the number one mobility provider overnight, but extending broadband so it becomes a mobility offering creates value for our customers and our shareholders without us taking on the pure mobile operators head to head.

Do you expect to sustain BT’s successful momentum with the SME market?

I’m very bullish about our capabilities in the SME market place. I see it as a great opportunity for BT and there’s no reason why we shouldn’t continue to succeed in the way we’ve been doing for the last couple of years.

I really think we’re close to becoming the brand for business but there are a couple of things that are key.

Firstly, we must ensure that we leverage our experience in delivering effective IT solutions to enterprises and larger corporates when providing solutions.

Secondly, we need to keep in our minds the fact that SMEs need to focus on their own core business activities. They are looking for a trusted and expert partner to look after all of the critical communications in their back office and that partner is us.

Were you surprised by the success of BT Tradespace?

No I wasn’t. When the idea was mooted I found it to be a very easy concept to understand and it was clear how small businesses could enjoy the many, many benefits of participation. It’s been a runaway success boasting more than 100,000 members although our ambition is to take that number to more than a million.

What challenges lie ahead for BT Vision?

BT Vision is making good progress and now has over 300,000 customers. It’s definitely on the right trajectory. What will continue to be crucial is content. This means we need to keep adding compelling content to our customer access portfolio.

Then there is also interactivity. My view is that interactivity is key to long term profitability in TV services. I also think these services work particularly well over broadband – giving us a strategic advantage over satellite providers.

Can BT Retail continue to be the UK’s number one broadband provider?

We are committed to remaining in the top spot because broadband is at the heart of our business. It’s a very competitive market and customers are benefiting from this. To stay number one means we must continue to offer the best value in the market including range of services, quality of service and service experience. This all adds up to more good news for our customers.

Is customer service as important to you as it is to Ian Livingston and it was to Ben Verwaayen?

Yes and it’s the company’s number one priority. The analogy I use is that to date, BT has been a good house in a poor neighbourhood. We do have the best service in the sector, but the sector is disappointing in terms of its performance. Especially when compared to other brands in other markets.

BT is determined to become number one for service. That’s why we are investing substantially in systems to allow us to do this. It really is the biggest and most important programme for the company this year.

At the end of it all I expect us to be in a position to offer a customer service experience that not only stands out in our industry, but can go shoulder to shoulder with the major brands in other markets.