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Please direct all media inquiries to J.D. Power and Associates Corporate Communications Department:


J.D. Power and Associates
Corporate Communications
2625 Townsgate Road
Westlake Village, CA 91361
Toll Free: (800) 274-5372
Phone: (805) 418-8000
Fax: (805) 418-8900
media.relations@jdpa.com


John Tews
Director, Media Relations
Troy, MI
(248) 680-6200


Syvetril Perryman
Media Relations Supervisor
Westlake Village, CA
(805) 418-8103


Andrew Teachout
Media Relations Specialist
Troy, MI
(248) 680-6200

 

Press Release
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Contact:
Syvetril Perryman
(805) 418-8103
John Tews
(248) 680-6218
 

J.D. Power and Associates Reports:
Satisfaction with the Wireless Purchase Experience Has Declined Among Customers Who Make Sales Transactions by Phone 

Sprint Ranks Highest in Wireless Purchase Experience Satisfaction among Full-Service Carriers, While Boost Mobile Ranks Highest among Non-Contract Carriers

WESTLAKE VILLAGE, Calif: 16 February 2012 — Overall satisfaction with the wireless purchase experience has declined from 2011, mainly due to changing customer expectations and the level of service provided within the phone channel, according to the J.D. Power and Associates 2012 U.S. Full-Service Wireless Purchase Experience StudySM—Volume 1 and the 2012 U.S. Wireless Non-Contract Purchase Experience StudySM—Volume 1, both released today.

Now in their ninth year, these semiannual studies evaluate the wireless purchase experience of customers using any of three channels of contact: phone calls with sales representatives; visits to a retail wireless store; and on the Web. Overall customer satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.

The study finds that overall customer satisfaction has declined significantly among full-service wireless customers who conducted a recent sales transaction via the phone channel. In 2012, overall satisfaction among these customers averages 735 (on a 1,000-point scale), compared with 758 in August 2011, when satisfaction was last measured—a decline of 23 points. In contrast, satisfaction remained stable in the other contact channels during the same time frame. 

Full-service wireless customers who purchase devices by phone indicate experiencing greater difficulty when speaking with the phone sales representative handling their sales transaction. In particular, satisfaction has declined notably with regard to promptness in initially reaching a sales representative and the timeliness of the complete transaction. 

In addition, among full-service wireless customers who purchased a device by phone, hold times and total transaction times have increased considerably. For example, in 2012, the average customer-reported hold time for waiting to speak with a sales representative is 4.6 minutes—an increase of one full minute from August 2011. Once the customer reaches a sales representative, the average customer-reported time for completion of the sales transaction is 16.4 minutes—nearly two minutes longer than in August 2011. 

“Within the past year, there have been a number of new product and service plan innovations in which, in most cases, relatively detailed information needs to be provided to customers in a logical and cost-effective manner,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “Customers who make purchases online and in retail stores have the opportunity to view all product offerings and see the pricing associated with each, which is not always possible over the phone. In phone transactions, it is more challenging for sales representatives to describe a service or device and also complete the transaction in a timely manner.” 

According to Parsons, there is a potential negative outcome when customers have a poor purchase experience, including higher future switching rates and a reduced likelihood of repeat purchases via the same channel. For example, in conjunction with declining satisfaction among customers who use the phone channel, there has been an 18 percent reduction in the proportion of customers who say they “definitely will” shop at the same carrier channel source in the future (28% in 2012 vs. 34% in August 2011). 

For a second consecutive time, Sprint ranks highest in customer satisfaction among major full-service wireless carriers. Sprint achieves a score of 748 and performs well in the offerings and promotions and cost of service factors. Verizon Wireless (746) follows Sprint in the full-service carrier rankings. 

Boost Mobile ranks highest for a second consecutive time in overall purchase experience satisfaction among non-contract service carriers. Boost Mobile achieves a score of 776 and performs particularly well in four of the six factors: store sales representative; phone sales representative; offerings and promotions; and cost of service. MetroPCS (768) and Virgin Mobile (755) follow Boost Mobile in the non-contract service carrier rankings. 

The study also finds the following key wireless retail sales transaction patterns: 

  • While 62 percent of full-service customers indicate that their most recent purchase experience occurred in a retail store location, 19 percent say that their most recent sales transaction occurred via phone, and an additional 19 percent occurred via the online channel. This differs considerably from non-contract customers—27 percent say their most recent purchase transaction occurred online, and only 11 percent indicate that it was via phone.
  • The average total time customers spent in the full-service retail store to complete the sales transaction is approximately 55 minutes—an increase of approximately 2 minutes from six months ago. In comparison, customers making purchases from non-contract carriers indicate spending just 45 minutes in the retail store.
  • Satisfaction with the overall purchase experience among other retailers, such as Apple, Best Buy, Costco, RadioShack and Wal-Mart, averages 741 index points—which is 19 points lower than among stores owned by full-service wireless carriers. 

The 2012 Wireless Full-Service Purchase Experience Study—Volume 1 is based on responses from 10,271 wireless customers. The 2012 Wireless Non-Contract Purchase Experience Study—Volume 1 is based on responses from 3,375 wireless customers. Both studies are among current subscribers who report having a sales transaction with their current carrier within the past six months. The study was fielded from July through December 2011. 

For more information on customer satisfaction with wireless service, 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 company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’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
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

 

Media Relations Contacts:

Syvetril Perryman
J.D. Power and Associates
Specialist, Media Relations
2625 Townsgate Road, Suite 100
Westlake Village , CA 91361
USA
(805) 418-8103
syvetril.perryman@jdpa.com

John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive
Suite 300
Troy , Mich. 48098
USA
(248) 680-6218
john.tews@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. www.jdpower.com/corporate

 

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About J.D. Power and Associates:
The Voice of the Customer

J.D. Power and Associates is a global marketing information services company operating in key business sectors across a variety of industries, providing customer satisfaction research, market research, automotive forecasting, social media research, and performance improvement programs. Established in 1968, the company has been listening to consumers and business customers; analyzing their opinions and perceptions; and refining research techniques and study methodologies to offer some of the most advanced product quality, customer satisfaction, and tracking research available today. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.