Customer retention is a top priority for wireless carriers, according to J.D. Power and Associates’ new 2003 U.S. Wireless Regional CSI Study.
Slowing penetration and upcoming wireless local number portability are making customer retention more important than ever according to the study. J.D. Power said the wireless growth rate between 2002 and 2003 was 5.3 percent, down from 7.6 percent a year earlier. In addition, 26 percent of subscribers said they have switched carriers during the past 12 months, an action that will likely become more attractive with WLNP.
“With the cost of acquiring each new customer ranging between $300 and $425, wireless providers must make a serious effort to retain customers with superior service and loyalty programs,” said Kirk Parsons, senior director of wireless services at J.D. Power.
The firm’s customer satisfaction rankings of top wireless carriers show Verizon Wireless, Nextel, Cingular Wireless, T-Mobile USA Inc. and AT&T Wireless Services Inc. ranked highest in at least one of the six regions studied, with Verizon ranking highest in five of the six regions.
Customer satisfaction measurements were based on six areas that impact overall carrier performance: call performance and reliability (26 percent); customer service (17 percent); service plan options (17 percent); brand image (14 percent); cost of service (14 percent); and billing (12 percent).
