Could customers defect from BT to Virgin Media Business?

Virgin Media has launched Virgin Media Business in an effort to "shake up the UK business telecoms market".

The company was formerly known as ntl:Telewest Business and is set to launch an extensive customer marketing campaign to promote itself as a "clear alternative to BT".

It stated that it will offer a highly personalized service to its mid-market enterprise and public sector customers. By using customer analytics software, businesses in the telecommunications sector could discover exactly what service to offer to each consumer and tailor it accordingly.

The marketing campaign may also promote the fact that each business customer will benefit from their own regionally based account team.

Commenting on the move, chief executive officer of Virgin Media Neil Berkett said: "There is now a significant opportunity to leverage the full power of our fiber optic network in the business telecoms market. Virgin Media Business will take our strong customer-centric approach to a growing and under-served market in which there is a need for a compelling and distinctive alternative to BT."

In response to such comments, BT may want to minimize the risk of customer defection to Virgin Media Business by improving customer loyalty and offering advantages which could convince companies to keep using their service, rather than moving elsewhere.

Virgin Money recently advanced its marketing campaign to present it as a trustworthy alternative to other banks and building societies by suggesting it would be interested in purchasing Northern Rock premises.

Banks and building societies have had their reputation knocked during the economic downturn, something Virgin Money wants to take advantage of.