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John Tews
(248) 312-4119 |
Syvetril Perryman
(805) 418-8103 |
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J.D. Power and Associates Reports:
Price Incentives and Promotions Help to Drive Wireless Customers to Retail Stores
Alltel Ranks Highest in Customer Satisfaction with the Wireless Retail Sales Experience
WESTLAKE VILLAGE, Calif.: 2 April 2009 — Nearly one in five wireless customers who recently shopped at a retail wireless store report that their primary reason for doing so was driven by special promotions, low prices, or free or discounted equipment, according to the J.D. Power and Associates 2009 Wireless Retail Sales Satisfaction StudySM–Volume 1 released today.
Now in its sixth year, the semi-annual study analyzes evaluations from customers who recently had an in-store 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 (49%); price and promotion (27%); store facility (14%); and display (10%).
The study finds that the importance of price and promotion on customer satisfaction with the wireless retail sales experience has increased considerably, from 16 percent in 2006 to nearly 30 percent in 2009. While the courtesy, speed of service, and knowledge of products and services exhibited by the sales staff continue to be key drivers of the wireless retail sales experience, overall satisfaction is increasingly influenced by the attractiveness of incentives and the competitiveness of rebates and discounts offered on equipment and services.
“In a highly competitive landscape where wireless carriers are constantly trying to attract new customers, while also retaining existing customers with competitive pricing, the availability of rebates and other promotional offerings is of paramount importance,” says Kirk Parsons, senior director of wireless services at J.D. Power and Associates, “Consumers are scrutinizing their spending now more than in the past, so it is important for wireless carriers to present customers with attractive incentives, rebates and discounts on services and equipment to increase customer satisfaction, particularly as network technology improves and phones become more expensive.”
Alltel ranks highest in customer satisfaction among major wireless carrier-owned retail stores with a score of 716 on a 1,000-point scale, performing well in all four factors that drive satisfaction. T-Mobile (707) and Verizon Wireless (704) follow Alltel in the rankings.
The study finds that overall satisfaction with the retail sales process decreases dramatically when certain key activities are not performed by sales staff. In particular, satisfaction drops an average of 146 points when a salesperson fails to offer to explain how to operate a phone.
“Getting a good deal on a high-quality product is only one part of providing a satisfying retail sales experience and building a loyal customer base,” said Parsons. “It is critical that salespeople fulfill the basic needs of customers during every visit, including ensuring that they leave the facility with the ability to operate their phone, providing them with a comprehensive understanding of their service plan and informing them of new options and features that may be available.”
The study also finds the following key retail wireless sales transaction patterns:- The average wireless retail sales transaction takes 61 minutes to complete from the time the customer enters the store to the time the paperwork is finished and the cell phone is received.
- Customers who say they visited a retail location to change from their previous carrier’s plan report lower monthly bill amounts, compared with customers visiting for other reasons ($82 vs. $86 on average).
- Retail satisfaction is 17 percent lower among customers who report they were pressured during the sales process. The average overall satisfaction score when customers report experiencing no sales pressure is 726, compared with an average of just 603 when customers say they were pressured.
Volume 1 of the 2009 Wireless Retail Sales Satisfaction Study is based on experiences reported by 9,509 wireless customers who completed a retail sales transaction within the past six months. The study was fielded between July and December 2008. Visit JDPower.com to view customer satisfaction ratings for wireless service and carrier performance, call quality, customer care, and mobile phone handsets, as well as for more information, to view wireless retail sales ratings or to read an article.
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, Web intelligence and customer satisfaction. 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
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 2008 were $6.4 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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