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.
"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.
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