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J.D. Power and Associates Reports:
Despite Higher Costs for Additional Services, Wireless Customers Report Particularly High
Levels of Satisfaction with Wireless Plan Upgrades
Verizon Wireless Ranks Highest in Wireless Contract Customer Satisfaction in Four Regions;
Alltel and T-Mobile Each Rank Highest in a Region
WESTLAKE VILLAGE, Calif.: 24 April 2008 —Wireless customers who subscribe to plans that offer additional services such as in-network calling and unlimited text and picture messaging are typically more satisfied and exhibit greater loyalty than subscribers without unlimited plans, according to the J.D. Power and Associates 2008 U.S. Wireless Contract Regional Customer Satisfaction Index (CSI) StudySM–Volume 1 released today.
The study finds that more than 25 percent of current wireless customers purchase plan upgrades, which typically offer unlimited use of text messaging, downloads, and picture and video services for a flat rate. Overall customer satisfaction with wireless carriers is notably higher among these customers, compared with those whose plans have usage limits. On average, unlimited messaging plan customers are 33 percent less likely to switch service providers in the next year compared with limited plan customers.
“Considering that these plans seem to boost overall satisfaction as well as lower switching intent, it’s not unexpected that more carriers have expanded their unlimited service plan options to include flat-rate pricing,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “Wireless customers who are high-volume users typically benefit the most, as they are more likely to exceed their monthly plan minutes, and unlimited plans solve that issue.”
Wireless carriers also benefit, as typical customers of unlimited messaging upgrades tend to spend almost twice as much on their monthly service than traditional calling plan customers, on average—$92 versus $57, respectively.
The semiannual study measures customer satisfaction based on six key factors that impact overall wireless carrier performance. In order of importance, they are: call quality (32%); brand image (17%); cost of service (14%); service plan options (14%); billing (12%); and customer service (11%). Carriers are ranked across six regions in the United States: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West.
Verizon Wireless ranks highest in four regions—Northeast, Mid-Atlantic, North Central and West—and performs particularly well in call quality and brand image in each of these regions. T-Mobile ranks highest in the Southwest region, while Alltel ranks highest in the Southeast region.
Study results by region are:
Northeast Region: Verizon Wireless ranks highest for a second consecutive time, performing particularly well in brand image and call quality.
Mid-Atlantic Region: Verizon Wireless ranks highest for a sixth consecutive time, performing well in call quality and brand image.
Southeast Region: Alltel ranks highest in the region for a third consecutive time, performing well in all six factors contributing to satisfaction and performing particularly well in service plan options.
North Central Region: Verizon Wireless ranks highest for a sixth consecutive time, performing particularly well in brand image, call quality and customer service.
Southwest Region: T-Mobile ranks highest for a seventh consecutive time, performing well in all six factors driving overall satisfaction. T-Mobile performs particularly well in cost of service, billing and customer care.
West Region: Verizon Wireless ranks highest, performing particularly well in billing, call quality, customer care and brand image.
Volume 1 of the 2008 U.S. Wireless Contract Regional Customer Satisfaction Index (CSI) Study is based on responses from 22,052 wireless users. The results are based on the two most recent reporting waves, which were conducted in September 2007 and January 2008. For more information on customer satisfaction with wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, please visit JDPower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm 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 boat ratings, 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/.
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. www.jdpower.com/corporate
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What does J.D. Power and Associates do?J.D. Power and Associates' research, consulting, and performance improvement services are used by a variety of industries to improve product quality and customer satisfaction. The firm's research is based solely on responses from millions of consumers and business customers worldwide. Product and service rankings that result from this research reflect the opinions of consumers and business customers-not the opinion of J.D. Power and Associates. Rankings are derived from nationally syndicated studies that serve as industry benchmarks for measuring and tracking quality and customer satisfaction. J.D. Power and Associates conducts the research, publicly announces the results, and then offers analysis based on consumer feedback to product and service providers to help them improve their businesses.
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