Wednesday, December 19, 2007
Sprint Nextel Moves To Fix Customer Service Issues
Sprint Nextel (NYSE: S) tapped former AT&T Wireless executive Daniel Hesse for the second time to help manage the company. Hesse spent most of his career with AT&T before joining Sprint and spinning off the company's Embarq subsidiary over a year ago.
Hesse is joining Sprint Nextel as CEO after the company's bets on Wimax technology and a reputation for customer service problems have halved the company's stock price from the low $20 range to well under $10 now.
Nextel, before merging with Sprint, went through a similar dry spell before its then new push-to-talk technology and merger buttressed the company's fortunes. Sprint Nextel received more complaints in 2007 than any other wireless carrier, said Consumer Help Web President Joan Bounacos, who praised the company for being "responsive" when contacted by the company's complaint letter writing service.
Labels: customer satisfaction, Hesse, SprintNextel, wireless
Monday, December 17, 2007
Like Twitter? Like T-Mobile? They May Not Be Good Together
We have always thought T-Mobile an outstanding wireless company. They are consistently
responsive to us when we send complaint letters, and they get far fewer than any other wireless carrier.
We're not so sure about Twitter. One of us is a big fan, one keeps trying to be and the rest of the folks want to know about their content areas. Still, learning about T-Mobile's stance today regarding Twitter was a dash of cold water in the face reminiscent of that brief horrible period when Intuit turned its back on special service and almost killed Quicken.
Irreverent but usually darn accurate Silicon Valley site
Valleywag wrote yesterday about T-Mobile refusing to allow text messages to Twitter's service. A blogger apparently tried a net neutrality argument, but that was quashed by the executive response team. Instead, it appears that the tech contingent (the gang who first made the Sidekick go viral and sell big) will do the company's reputation more harm than any philosophical argument.
Why is this seemingly tech-oriented battle important for consumers?
The answer lies in what we told a client today. There will be millions of new cell phones with web capabilities unwrapped around Christmas trees next week. T-Mobile's representative wrote in response to Twitter:
"... some Services are not available on third-party networks or while roaming. We may impose credit, usage, or other limits to Service, cancel or suspend Service, or block certain types of calls, messages, or sessions (such as international, 900, or 976 calls) at our discretion."
Knowing what your carrier provides is one of the keys to making that new wireless purchase a winner. Read the fine print before you wrap the present.
Labels: T-Mobile, Twitter, Valleywag, wireless
Friday, August 31, 2007
Dialing 911 On Your Cell Phone? Not So Fast
Several wireless companies remain non-compliant with a federal government requirement that consumers using their phones can reach appropriate emergency services when dialing 911.
The Federal Communications Commission had issued a rule stating that 95% of consumer phones be equipped to make 911 calls. The agency says that three companies -- Sprint Nextel, Alltel and United States Cellular -- have failed to do so and will be fined.
In a decision published yesterday, the FCC said it would send Notices of Apparent Liability for Forfeiture (“NALs”) to the companies. The companies have 30 days to submit statements regarding their non-compliance. The Commission then has the opportunity to enforce fines ranging from $500,000 to more than one million dollars against the companies.
An FCC statement said that Alltel and US Cellular were now compliant, but had missed the deadline.
Labels: Alltel, FCC, Sprint Nextel, US Cellular, wireless
Sunday, July 15, 2007
Press 1 For Customer Service If You Dare
SprintNextel, long a laggard in multiple service quality studies including an analysis of Consumer Help Web's records, has pushed the envelope for treating customers with contempt again.
The Virginia-based wireless giant announced that customers who had called the company's customer service department dozens of times in a month would have their account terminated. Consumer advocates throughout the country were quick to criticize the company's action.
"The cost of doing business is that most of your customers never call you, but the ones who do should be treated like kings and queens because of the valuable intelligence they give you about your company," said Consumer Help Web president Joan
Bounacos.
The consumer advocate said that her company had compelled recent settlements from the company, one for a Maryland consumer for $1,817 several months ago and another for $591 for a Virginia consumer at the end of last year.
Bounacos said the consumer resolution specialists had not yet been contacted about joining others in demanding that
SprintNextel compensate consumers for canceling their accounts.
"The irony is that
SprintNextel is quick enough to trap a consumer who wants to leave by pointing out their contract hasn't expired. They clearly don't subscribe to the
first call resolution mantra most organizations practice, and their financial metrics and loss of federal opportunities show that other communities beyond consumer advocates are not happy with the company's action," she added.
Labels: customer satisfaction, SprintNextel, wireless
Tuesday, June 19, 2007
We're Keeping Cell Phones Longer. Motorola, Sanyo Top List As Prices Drop; JD Power Study
The average reported length of time a customer owns their cell phone has increased by 5 percent since fall 2006, according to the J.D. Power and Associates 2007 U.S. Wireless Mobile Phone Evaluation Study.
The study finds that customers are keeping their mobile handsets for an average of 17.5 months—an increase from 16.6 months since the last reporting period (November 2006).
This marks the first increase in the reported ownership cycle since 2002, when the average was 18.4 months. The increase in ownership tenure is roughly equal across major handset brands.
“One possible reason for this significant increase in the length of handset ownership is that more customers are initiating or renewing their service contracts for a longer period—typically for two years, as opposed to just one year, which was customary a few years ago,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “While these longer contracts help wireless carriers recover the costs associated with offering subsidized cell phones, customers tend to hold on to their current cell phones longer to avoid termination fees when switching service, which may ultimately lead to lower renewal rates.”
The study also finds that
the price a customer pays for their wireless mobile phone has dropped from an average of $103 in 2002 to $93 in 2007. The decline is primarily due to discounts given by handset providers and wireless service carriers to incentivize sales. Currently, 36 percent of customers report receiving a free mobile phone when subscribing to a wireless service—up considerably from 28 percent in the 2002 study.
“It’s clear that wireless service carriers are using mobile phones as bait to increase consumer traffic, applying discounts either through rebates or free limited-time offers,” said Parsons. “The problem with this strategy is that, in most cases, the discounted handsets being offered are older models, which typically lack the latest technological advancements or desired design features.”
The study measures customer satisfaction with wireless handsets by examining five key factors. In order of importance, they are: physical design (24%); operation (22%); features (20%); handset durability (19%); and battery function (15%).
Motorola and SANYO tie to rank highest in overall customer satisfaction with wireless cell phones. Motorola performs particularly well in the physical design, operation and features factors, while SANYO receives high ratings in operation and battery functionality. Following Motorola and SANYO in the rankings and performing above the industry average are Samsung and LG, respectively.
The study also finds several key wireless handset usage patterns:
* Sixty-nine percent of all cell phones owned are a clamshell design—an increase of 19 percent from 2006. This compares to 29 percent for the candy-bar style, and 2 percent for the slide-cover design.
* Handset features that are used most frequently include: speakerphone (51%); camera capabilities (35%); services to send/receive short messages (22%); and gaming (16%).
* More than one-half of all current wireless users compared other handset brands before selecting their current wireless phone. Those customers who compare phones during the selection process are more likely to be satisfied overall with their current handset than those who do not.
Labels: J.D. Power, Motorola, Sanyo, wireless
Thursday, February 08, 2007
Live Customer Service Scores Better Finds Power Study
Customer service issues that are handled by a computer automated response system (ARS) on the telephone generate significantly lower customer care ratings when compared with issues handled by a live representative, according to the J.D. Power and Associates 2007 Wireless Customer Care Performance StudySM —Volume 1.
Now in its fifth year, the semi-annual study provides a detailed report card on wireless provider customer care performance based on customer experiences with 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.
Overall, customers who speak with a service representative on the telephone provide an average index score of 127 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 92 index points. The index score drops even further (to 73 points) for contacts made over the Internet.
"One of the main factors contributing to this performance disparity is the quality of the response that is given," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "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."
In addition, scores for the ARS contact method have decreased 5 percent to 92 index points in overall performance when compared to the most previous reporting period six months ago (97 points). The largest declines were reported for customers experiencing too many prompts before getting to the desired menu and the lack of relevant menu options available to address the customer's inquiry.
"As more companies strive to save operating costs by encouraging customers to contact Internet- and computer-based customer service programs, they run 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. "Since future churn levels are four times as high among those who rate their wireless carrier below average in customer care, the challenge for wireless providers is to offer an easy and efficient customer care transaction experience."
For a fifth consecutive reporting period, T-Mobile ranks highest among the five largest wireless service providers by creating a positive experience among customers who contact the carrier for service or assistance. With an index score of 107 points, T-Mobile performs well across all factors that determine overall satisfaction, particularly in the ARS and retail contact channels, and in the overall hold-time duration on the phone. Verizon Wireless (101) and Alltel (99), respectively, follow T-Mobile in the rankings.
The study also finds several key wireless customer care patterns:
* More than one-half (55%) of wireless users have contacted the customer service department for assistance within the past year, marking a nearly 7 percent decline from the most recent reporting period (July 2006).
* The average number of contacts necessary to resolve an inquiry by phone is 1.87—up from 1.76 in the previous reporting period.
* Among customers who contact their provider, 73 percent do so by telephone and 24 percent do so through their provider’s retail store. E-mail/Internet accounts for only 3 percent of customer contacts.
* The average initial reported hold time on calls to the customer service department is 3.58 minutes. In comparison, it takes an average of 8 minutes before speaking in-person to a representative at one of the provider’s retail stores.
* More than four in 10 customers (42%) contact their provider with a billing-related service inquiry, with 55 percent of these contacts attributed to inaccurate charges. Additionally, 30 percent of all customer care inquiries are call-quality related.
The 2007 Wireless Customer Care Performance Study—Volume 1 is based on responses from more than 13,970 wireless customers who contacted customer care within the past year. The results are from the past two reporting waves, conducted in June and September 2006. The 2007 Volume 2 report will be issued in July 2007.
Labels: customer satisfaction, J.D. Power, wireless
