Press Release

Managing Expectations for Service Restoration Becomes Critical as Outage-Related Issues Take a Toll on Performance and Reliability Satisfaction with Residential Telephone Service

Verizon Ranks Highest in Customer Satisfaction in the East, West and South Regions, while WOW! (Wide Open West) Ranks Highest in the North Central Region

WESTLAKE VILLAGE, Calif.: 26 September 2013 — Service outages due to severe weather or technical blackouts have a notably negative impact on satisfaction with telephone service performance and reliability among residential customers, according to the JD Power 2013 U.S. Residential Telephone Service Provider Satisfaction StudySM released today.

KEY FINDINGS

  • Overall customer satisfaction among telephone service customers is 710 on a 1,000-point scale.
  • Satisfaction is 727 among customers who do not experience a service outage–85 points higher than among those who do experience at least one service outage (642).
  • Nearly one-fourth (21%) of customers indicate experiencing a service outage during the past year. 
  • Performance and reliability is the most critical factor in driving overall satisfaction and meeting customer expectations.
  • The incidence of customers who indicate they plan to drop their current telephone service during the next 12 months increases by 46 percent among those who have experienced a service outage, compared with those who have not experienced an outage (15% vs. 8%, respectively). 
  • The average monthly bill for telephone service is $45.
“Given that performance and reliability is the most influential factor contributing to overall satisfaction, outages have an adverse negative impact on customer loyalty that cannot be ignored,” said Kirk Parsons, senior director of telecommunications at JD Power. “Reducing the number of outages may go a long way in retaining customers and growing the number of services purchased in the future.”
The 2013 U.S. Residential Telephone Service Provider Satisfaction Study is based on responses from 19,432 customers nationwide who receive their local and long distance telephone service from one provider. The study was fielded in four waves: November 2012, January 2013, April 2013 and July 2013. Now in its 18th year, the study measures customer satisfaction with telephone service based on five factors: performance and reliability; cost of service; billing; communication; and customer service.
 

About JD Power

JD Power 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. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.


About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

Media Relations Contacts:

John Tews; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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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 JD Power. www.jdpower.com/corporate

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