J.D. Power and Associates reported that T-Mobile USA Inc. ranked highest in overall retail sales customer satisfaction among the nation’s seven largest wireless operators, according to the firm’s 2004 Wireless Retail Sales Satisfaction Study.
The study, which included responses from 4,462 wireless users who have completed a retail transaction within the past six months, measured overall customer satisfaction performance based on four factors, including sales staff, price/promotion, store display and store facility.
T-Mobile USA received an overall retail satisfaction index score of 109, beating out above-average scores from Nextel Communications Inc. (103), AT&T Wireless Services Inc. (102) and Verizon Wireless (101). Below-average scores were reported for Cingular Wireless L.L.C. (97), Alltel Corp. (96) and Sprint PCS (92).
J.D. Power and Associates added that T-Mobile performed “significantly above the industry average in all four factors, with particularly high ratings in sales staff.”
T-Mobile USA received the highest ranking among national carriers earlier this year in J.D. Power and Associates 2004 Customer Care Performance Study released in July. The carrier also received top rankings in call quality in the Southeast and Southwest regions as part of the 2004 Wireless Call Quality Performance Study released in August, and top rankings in all six regions in the 2004 U.S. Wireless Regional Customer Satisfaction Index Study released in September.
The latest Retail Sales Satisfaction Study also noted that customers reporting a below-average retail sales experience are four times more likely to switch from their current carrier in the next year than those with a successful transaction as well as spend an average of $4 more per month on their wireless service.
“Retail outlets that set the proper expectations and do not oversell the product or service generate significantly higher ratings and, more importantly, increase the likelihood of repeat purchases,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “With an increasingly competitive environment and changing industry landscape, carriers that provide a consistent and positive retail shopping experience are not only more profitable, but also provide a solid base from which brand loyalty can be fostered.”
The study also found that national retail outlets offering wireless service, such as Radio Shack Corp. and Best Buy, perform slightly above the industry average in customer satisfaction and perform particularly well in the areas of price/promotion and store facility.
In addition, customers reported that the average retail sales transaction takes approximately one hour to complete from the time they enter the store to the time final paperwork is completed and the phone is received, and that 43 percent of customers report that they first decided which service carrier to choose during the initial sales process compared with 29 percent who said price, 11 percent for type/brand of cell phone and 7 percent for store location.
