Verizon Wireless and T-Mobile USA Inc. provide the highest retail sales satisfaction among the wireless industry’s six largest operators, according to the J.D. Power and Associates 2005 Wireless Retail Sales Satisfaction Study.
The study was based on the experiences reported by 6,144 wireless users who completed retail sales transactions within the past six months and measured overall customer satisfaction performance of the major wireless carrier-branded stores based on a handful of factors, including sales staff, price/promotion, store display and store facility.
Verizon Wireless and T-Mobile USA both posted index ratings of 100 in the study, which was well above the industry average of 94 and received particularly high ratings relative to the competition in the price/promotional dimension of the study. Nextel Communications Inc. and Alltel Corp. were tied at a distant third in the study with an index score of 93, followed closely by Cingular Wireless L.L.C. with an index score of 92 and Sprint Corp. with an index score of 90.
Overall, the study found that the likelihood of consumers dissatisfied with their retail purchasing experiences who expressed interest in switching providers increased 46 percent compared with the 2004 study. The study also noted that 20 percent of subscribers who were not satisfied with the overall retail purchase experience said they will “definitely” or “probably” switch from their current carriers within the next 12 months, compared with 13 percent in 2004. Dissatisfied customers also are 25 percent less likely to visit the same carrier store again to purchase wireless services and 35 percent less likely to recommend the carrier service to family and friends in the future.
“With fewer new customers entering the market, the wireless industry is becoming fiercely competitive for retailers,” noted Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “The retail stores of wireless carriers face strong competition in the areas of price and promotions from national electronic retail outlets such as Best Buy and RadioShack, which offer wireless service. It’s imperative that wireless service providers concentrate on retention strategies, as the ability to expand the customer base becomes more difficult.”
The study also found that the average retail sales transaction increased eight minutes from 2004 to about 70 minutes this year, and consumers were more likely to express a positive sales experience if they felt less pressured during the sales experience.
