NEW YORK-Cellular subscribers said they are most satisfied with customer service from AT&T Wireless Services Inc., according to J.D. Power and Associates’ second annual survey of customer satisfaction in the cellular telecommunications sector.
AT&T’s move to market services as AT&T Wireless contributed to its higher satisfaction rankings in four of its top markets-Dallas/Fort Worth, Miami/West Palm Beach, Minneapolis and New York.
“This year’s study reflected a significant change from the 1995 results when the local Bell (companies) achieved higher rankings in almost all markets covered,” J.D. Power said.
“Corporate image” received a top priority rating from consumers surveyed this year, with “cost of service,” “call quality” and “customer communications” [services offered] ranking second through fourth respectively. Last year, cost of service received top billing by consumers surveyed, with “call quality” in second place, followed immediately by “customer communication” [services offered] and company “reputation.”
“AT&T, with its strong national brand, achieved higher satisfaction ratings,” J.D. Power said. “Additionally, some local telephone companies with a strong corporate image continued to perform well, including: Ameritech Corp. in Chicago and Detroit; BellSouth Mobility in Atlanta/Athens; GTE Mobilnet in Houston, Texas; U S West Cellular/AirTouch Communications Inc. in Seattle; and Bell Atlantic Nynex Mobile in Boston and Washington/Baltimore.”
Sprint Spectrum, a new personal communications service provider “achieved the second highest ranking … in the Washington/Baltimore market, closely following the leading carrier, Bell Atlantic Nynex Mobile,” the Power announcement said. Respondents in Sprint Spectrum’s coverage area cited the new carrier’s call quality, cost of service and services offered as key reasons for their satisfaction with it.
Since most PCS systems are just now moving into commercial operation, Sprint Spectrum was the only PCS provider covered by the survey.
Last year, J.D. Power’s “Wireless Customer Satisfaction Study” surveyed 3,400 subscribers in households with annual incomes of at least $30,000 in eight of the top 15 markets. This year, the study was based on interviews with 5,400 wireless communications customers in the same income bracket in 13 of the 15 major markets.
Consumers evaluated their wireless carrier on 27 attributes that were grouped into six major factors. In order of importance, those factors are: corporate image, 25 percent; cost of service, 23 percent; call quality, 21 percent; customer communications [services offered], 16 percent; billing, 9 percent; roaming, 6 percent.
According to survey results, three in 10 households earning more than $30,000 a year now subscribe to wireless services, compared with one in four last year. But churn is likely to continue, with one in four of these households indicating they are likely to switch carriers or terminate service altogether within the next 12 months. This indicator is virtually unchanged from results last year.
“The bad news is that churn isn’t going down. The good news is that churn isn’t going up,” said Zaiba Nanji, director of telecommunications services at J.D. Power, Westport, Conn.
Of those surveyed, seven in 10 have acquired wireless services for personal use-slightly higher than the two out of three reported last year.
This year, as last, customers in Minneapolis were most satisfied with their service and those in San Francisco least satisfied.
The highest usage occurred in Atlanta, whereas last year it was Chicago, although Chicagoans usage was a close second to Atlantans’. As it was last year, usage in San Francisco was lowest, with usage also comparatively low in San Diego and New York.
“The results of this year’s study offer a realistic glimpse of the future of the wireless industry,” Nanji said. “Consumers indicate they are receptive to embracing new services such as PCS. In addition, they are responding to the credibility represented by strong corporate images. Ultimately, the pressure on incumbent cellular carriers will mean a much greater focus on exceeding customer expectations to retain and attract customers.”
