For a seventh consecutive reporting period, T-Mobile
ranked highest among the five largest wireless carriers in customer service performance, according to the
J.D. Power and Associates 2008 Wireless Customer Care Performance Study Volume 1.
Now in its sixth year, the semi-annual study provides a detailed report card on how well wireless providers
service their customers in three point-of-contact methods: telephone calls with a service representative and/or
automated response system (ARS); visits to a retail wireless store; and online Internet connection. Within each
contact method, processing issues such as problem resolution efficiency and hold-time duration are also measured.
With an index score of 105, T-Mobile ranks highest in wireless customer care performance, followed by Verizon
Wireless (101), Alltel, (99) and AT&T (99).
In particular, customers report that T-Mobile displays strong
performance in resolving problems in one contact and in its ARS point-of-contact method.
“The fact that T-Mobile performs well in handling issues with regard to the ARS channel is particularly
noteworthy,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates.
J.D. Power Ratings of Carriers
T-Mobile - Award Recipient 5 out of 5
Alltel - 3 out of 5
AT&T - 3 out of 5
Sprint Nextel - 2 out of 5
Verizon Wireless - 4 out of 5
The study also finds several key wireless customer care patterns:
- Forty-seven percent of wireless customers have contacted the customer care
service center for assistance within the past year. Additionally, among
customers who contacted the service department, 42 percent had a
billing-related service inquiry and 57 percent of these contacts were
attributed to inaccurate charges. - Among customers who contact their carrier, 73 percent do so by telephone
while 23 percent do so through their carrier’s retail store. E-mail/Internet
interactions account for only 4 percent of customer contacts. - The average initial reported hold time on calls to the customer care service
center is 3.89 minutes—up from 3.17 minutes in the last reporting period (July
2007). Additionally, customers who visit the carrier’sretail store report.
The study finds that overall, customers who speak with a service representative on the telephone provide an
average index score of 126 points, which is significantly higher than the industry average of 98 points. However,
customers contacting their carrier with a problem or inquiring through an ARS system rate their experiences
significantly lower, averaging 75 index points.
Additionally, performance of the ARS contact method has consistently declined over the past four reporting
periods, decreasing 11 percent since Vol. 2 of the 2006 study.
Customer service issues that are handled by a computer automated
response system generate significantly lower customer care ratings when
compared with issues handled by a live phone representative. This is
largely due to the fact that a service representative—either over the
phone or in person—has the ability to answer customer questions and
clarify answers. This flexibility is very limited in both ARS and
Internet contact methods.
The most significant declines were reported among
customers experiencing too many prompts before getting to the desired menu and ease of navigating around the
telephone menu system.
“Companies are continuously striving to save operating costs by implementing Internet- and computer-based
customer service programs, yet they are running the risk of increasing the rate of customers who will switch
carriers, especially as the number of contacts needed to resolve issues rises,” said Parsons. “Future churn levels
are almost four times as high among those who rate their wireless carrier below average in customer care. Thus,
the challenge for wireless providers is to offer an easy and efficient customer care transaction experience.”