A new study from J.D. Power shows the importance of price and promotion on customer satisfaction
with the wireless retail sales experience has increased considerably,
from 16 percent in 2006 to nearly 30 percent in 2009.
One in five wireless
customers who recently shopped at a retail wireless store report that
their primary reason for doing so was driven by special promotions, low
prices, or free or discounted equipment, according to the J.D. Power
and Associates 2009 Wireless Retail Sales Satisfaction Study-Volume 1.
While the
courtesy, speed of service, and knowledge of products and services
exhibited by the sales staff continue to be key drivers of the wireless
retail sales experience, overall satisfaction is increasingly
influenced by the attractiveness of incentives and the competitiveness
of rebates and discounts offered on equipment and services.
Alltel
ranks highest in customer satisfaction among major wireless
carrier-owned retail stores with a score of 716 on a 1,000-point scale,
performing well in all four factors that drive satisfaction. T-Mobile
(707) and Verizon Wireless (704) follow Alltel in the rankings.
The
study finds that overall satisfaction with the retail sales process
decreases dramatically when certain key activities are not performed by
sales staff. In particular, satisfaction drops an average of 146
points when a salesperson fails to offer to explain how to operate a
phone.
The study also finds the following key retail wireless sales transaction patterns:
- The
average wireless retail sales transaction takes 61 minutes to complete
from the time the customer enters the store to the time the paperwork
is finished and the cell phone is received. - Customers who say
they visited a retail location to change from their previous carrier's
plan report lower monthly bill amounts, compared with customers
visiting for other reasons ($82 vs. $86 on average). - Retail
satisfaction is 17 percent lower among customers who report they were
pressured during the sales process. The average overall satisfaction
score when customers report experiencing no sales pressure is 726,
compared with an average of just 603 when customers say they were
pressured.
Now in its sixth year, the semi-annual study analyzes evaluations from customers who recently had an in-store wireless retail sales
experience. Overall customer satisfaction with major wireless
carrier-branded stores is based on four factors. In order of
importance, they are: sales staff (49%); price and promotion (27%);
store facility (14%); and display (10%).
"In
a highly competitive landscape where wireless carriers are constantly
trying to attract new customers, while also retaining existing
customers with competitive pricing, the availability of rebates and
other promotional offerings is of paramount importance," says Kirk
Parsons, senior director of wireless services at J.D. Power and
Associates, "Consumers are scrutinizing their spending now more than in
the past, so it is important for wireless carriers to present customers
with attractive incentives, rebates and discounts on services and
equipment to increase customer satisfaction, particularly as network
technology improves and phones become more expensive."
"Getting
a good deal on a high-quality product is only one part of providing a
satisfying retail sales experience and building a loyal customer base,"
said Parsons. "It is critical that salespeople fulfill the basic needs
of customers during every visit, including ensuring that they leave the
facility with the ability to operate their phone, providing them with a
comprehensive understanding of their service plan and informing them of
new options and features that may be available."
Volume 1 of the 2009 Wireless Retail Sales Satisfaction Study is based on experiences reported by 9,509 wireless customers who completed a retail sales transaction within the past six months. The study was fielded between July and December 2008. Visit JDPower.com to view customer satisfaction ratings for wireless service and carrier performance, call quality, customer care, and mobile phone handsets, as well as for more information, to view wireless retail sales ratings or to read an article.