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Wireless Satisfaction in the USA
T-Mobile ranks highest in overall retail sales customer satisfaction among the top seven wireless providers in the US, according to J.D. Power and Associates. The 2004 Wireless Retail Sales Satisfaction StudySM was released last week.
The study measured customer satisfaction among 4,462 wireless users buying in the past six months, for the major wireless carrier-branded stores. The overall rating is based on four factors (listed in order of the importance respondents attach to them): sales staff (44%); price/promotion (28%); store display (14%); and store facility (14%).
T-Mobile leads by a distance with an overall retail satisfaction index score of 109. It scores above average on all four factors, but with particularly high ratings for sales staff.
There is a clear inverse correlation between satisfaction with the sales process and likelihood to switch. Those who report a below-average retail sales experience are not only four times more likely to switch from their current carrier in the next year (13% vs. 3% for those satisfied with the transaction), but also spend $4 more on average for their monthly wireless service ($64 vs. $60).
One significant reason for dissatisfaction is over-selling. According to Kirk Parsons, Senior Director of Wireless Services at the agency, '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. 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 average wireless retail sales transaction takes approximately one hour to complete from the time the customer enters the store to the time final paperwork is completed and the cell phone is received - tand the process is key in many people's decisions regarding the choice of network. Forty-three percent of customers said the decision on which carrier to use was made during the sales process; another 29% said they decided up-front on the basis of price, 11% on the type/brand of cell phone and 7% based on store location.
National retail outlets such as Radio Shack and Best Buy are not included in the ranking but perform slightly above the industry average, and particularly well in the areas of price/promotion and store facility.
J.D. Power and Associates are on the web at www.jdpower.com
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