No matter what they’re shopping for—a new car, big-screen TV, car insurance or airfare to Las Vegas—consumers love deals. And quite often, the lure of low-priced or even free products or services can be just the thing to make an indecisive consumer go ahead and make the purchase, for no other reason than they don’t want to miss out on a great deal. This is especially true in the wireless retail market, where nearly one in five customers report that their primary reason for shopping at a particular store was driven by special promotions, low prices, or free or discounted equipment.
To measure consumer sentiments on today’s wireless retail shopping experience and to find out which retailers are doing the best job of meeting consumer expectations, J.D. Power and Associates surveyed over 9,500 customers who visited a wireless retail store between the months of July and December 2008 and asked them to rate their sales experience. Consumers were asked to rate their retailer in four areas: sales staff; price and promotion; store facility; and display. The survey found 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 satisfaction with 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,” said 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.”
Other highlights of the study include:
- 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.
- 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.
- 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.
For more information:
- View Wireless Retail Sales Satisfaction Ratings
- View other Telecom Ratings
- Read the press release
- Read more Telecom articles
