T-Mobile Ranks Highest in Wireless Retail Sales Satisfaction
WESTLAKE VILLAGE, Calif., May 8 /PRNewswire/ -- Overall customer
satisfaction with the wireless retail sales experience has steadily
decreased since 2006, driven in large part by dissatisfaction with product
information and promotional incentives, according to the J.D. Power and
Associates 2008 Wireless Retail Sales Satisfaction Study(SM)-Volume 1
released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
Now in its fifth year, the semi-annual study analyzes evaluations from
customers who recently had a wireless retail sales experience. Overall
customer satisfaction with major wireless carrier-branded stores is based
on four factors. In order of importance, they are: sales staff (51%); store
display (17%); store facility (16%); and price/promotion (16%).
The study finds that overall satisfaction with the wireless retail
sales experience has reached its lowest level since 2005, and has declined
to 699 points on a 1,000-point scale in 2008 -- down 10 points from the
last reporting period (Volume 2 released in October 2007) and down 17
points since May 2007.
"Changes in the wireless service industry, such as an increase in the
number of new products and services, have made it difficult for carriers to
maintain the same level of customer satisfaction since the inaugural study
in 2004," said Kirk Parsons, senior director of wireless services at J.D.
Power and Associates. "Overall customer satisfaction with retail service
has steadily declined as wireless service becomes increasingly widespread,
and as products and services have evolved in complexity."
The study also finds that while scores have declined in all four
factors driving overall satisfaction, the most notable decreases occur in
the store display and price/promotion factors. Customers are particularly
dissatisfied with the rebates offered on phones and accessories, and with
the availability of product and service information.
"Within the past year, there have been a number of new product and
service plan innovations where, in most cases, consumers need to be
re-educated in terms of usage and price plan information," said Parsons.
"The information and materials used to explain these new services need to
be readily available and easy to understand in order for wireless carriers
to meet and exceed customer expectations. Additionally, as providers match
each other on price, they are using rebates and promotional offers to build
traffic to their retail outlets. In doing so, it's important that rebates
are received quickly and without any surprises."
T-Mobile ranks highest in customer satisfaction among major wireless
carrier-owned retail stores with a score of 716, performing particularly
well in the sales staff and store display factors. Alltel (714) and Verizon
Wireless (706), respectively, follow T-Mobile in the rankings.
The study also finds the following key retail wireless sales
transaction patterns:
-- The average wireless retail sales transaction takes approximately 56
minutes to complete from the time the customer enters the store to the
time the final paperwork is finished and the cell phone is received --
down nearly four minutes from the last reporting period.
-- Among customers who visited a retail store in the past six months,
more than 60 percent did so to purchase a new cell phone, while 65
percent upgraded or replaced an existing phone. Additionally, 11
percent of customers visited a wireless retail store to sign up for
new service for the first time, marking a 4 percent decline from six
months ago.
-- Retail satisfaction is 15 percent lower among customers who report
they were pressured during the sales process. The average overall
satisfaction rating among customers who report experiencing no sales
pressure is 721, compared with an average of just 610 among those who
say they were pressured.
Volume 1 of the 2008 Wireless Retail Sales Satisfaction Study is based
on experiences reported by 6,634 wireless customers who completed a retail
sales transaction within the past six months. The results are from the two
most recent reporting waves, which were conducted in September 2007 and
January 2008. Visit JDPower.com to view customer satisfaction ratings for
wireless service and carrier performance, call quality, customer care,
retail sales and mobile phone handsets.
Overall Retail Sales Index Rankings
(Based on a 1,000-point scale)
Carrier Index J.D. Power.com Power Circle Ratings
Score For Consumers
T-Mobile 716 5
Alltel 714 5
Verizon Wireless 706 4
Industry Average 699 3
AT&T 693 3
Sprint Nextel 654 2
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
a global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
For more information on car reviews and ratings, car insurance, health
insurance, cell phone ratings, and more, please visit JDPower.com. J.D.
Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the
financial services, education and business information markets through
leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than
280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional
information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Media Contacts:
John Tews Karla Tucker
Troy, Mich. Troy, Mich.
(248) 312-4119 (248) 312-4344
john.tews@jdpa.com karla.tucker@jdpa.com
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates
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http://www.jdpower.com
http://www.mcgraw-hill.com
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CONTACT:
John Tews, +1-248-312-4119,
john.tews@jdpa.com, or Karla Tucker, +1-248-312-4344,
karla.tucker@jdpa.com, both of J.D. Power and Associates
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