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John Tews
(248) 312-4119 |
Syvetril Perryman
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J.D. Power and Associates Reports:
Cox Communications and Qwest Rank Highest in Satisfying Business Customers
with Telecommunications Data Services
Spending on Data Services Declines among Small and Midsize Domestic Businesses
WESTLAKE VILLAGE, Calif.: 19 June 2008—Cox Communications and Qwest rank highest in satisfying small/midsize and large enterprise business customers with telecommunications data services, respectively, according to the J.D. Power and Associates 2008 Major Provider Business Telecommunications StudySM released today.
The study measures customer satisfaction with providers of telecommunications data services, such as cable modem, DSL, T1, T3/DS3, ethernet and frame relay. Providers are ranked in two segments: small/midsize businesses (companies with 2 to 499 employees) and large enterprise businesses (companies with 500 or more employees). Six key factors are used to measure satisfaction (in order of importance): performance and reliability; sales representatives/account executives; billing; cost of service; offerings and promotions; and customer service.
Cox Communications leads the small/midsize business segment, performing particularly well in five of six factors: performance and reliability; sales representatives/account executives; billing; cost of service; and customer service. Verizon follows Cox Communications in the segment rankings.
In the large enterprise business segment, Qwest ranks highest in customer satisfaction, receiving highest ratings from customers in five of six factors: performance and reliability; sales representatives/account executive; billing; cost of service; and offerings and promotions. Verizon follows Qwest in the segment rankings.
The study finds that more small and midsize businesses are spending less on telecommunications data services than they were in 2007. Approximately 81 percent of small and midsize businesses are spending less than $1,000 per month for data services, compared with 76 percent a year ago. In addition, the number of small/midsize businesses that intend to bundle telecommunication services has increased to 50 percent—up from 48 percent in the 2007 study.
“Some providers have lowered prices in order to maintain their market share, which is good news, especially for small and midsize businesses that are particularly vulnerable to the financial pressures associated with the current economy,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “Data services are increasingly vital to business operations regardless of size, and the ability to receive more services for less money helps these businesses cut costs without reducing headcount.”
The study also finds that the rate of switching providers among small/midsize businesses and large enterprises has declined slightly since 2007. In 2008, 14 percent of large enterprises switched providers, compared with 17 percent in 2007. Among small and midsize businesses, only 8 percent switched providers in 2008, compared with 10 percent in 2007. Additionally, 38 percent of large enterprise customers report that it would be “somewhat difficult” to switch providers, compared with 22 percent in 2007.
“Switching data service providers is not always cost effective for large businesses that have many employees and locations to consider,” said Perazzini. “Unless a business is assured a highly favorable price and superior service, the additional costs and coordination, combined with the current economic struggles, make it more likely that many businesses will wait to change providers until they have a handle on the economic outlook for their company and the major providers in the industry.”
The 2008 Major Provider Business Telecommunications Services Study is based on responses from 2,422 business customers with telecommunications data services at small/midsize and large enterprise businesses in the United States and includes evaluation of their data service providers. The study was fielded in March and April 2008.
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/.
Media Relations Contacts:
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John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive, Suite 300
Troy
, MI
48098
USA
(248) 312-4119
john.tews@jdpa.com
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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
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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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