T-Mobile Ranks Last On Wireless Purchase Experience Survey Says JDPowers

In what can only be described as another bit of disappointing news out of JD Powers, T-Mobile has gone from first to last in the overall purchase experience index ratings. The study evaluates the three channels of contact with a wireless carrier: “phone calls with sales representatives; visits to a retail wireless store; and on the Web. Overall customer satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.”

It was February 17th, 2011, almost one year ago to the date that T-Mobile continued its streak of highest overall ranking for the fourth year in a row so we’re a little saddened to see such a major drop-off year-over-year. Unfortunately, no reasoning was provided as to why T-Mobile had such a dramatic change from last year. The survey is based on responses from 3,375 wireless customers, all of whom are among current subscribers who report having a sale transaction with their current carrier within the past six months.

Let’s be honest before I sit back and listen to the inevitable flow of comments from T-Mobile customers each with their own horror story. The T-Mobile we know from the last 12 months is not the T-Mobile we know from the previous four years, it’s clear that in a AT&T world, T-Mobile lost a lot of it’s magic, or mojo if you will. As T-Mobile faces an admittedly uncertain future as they find their path for LTE, the iPhone and possibly forging spectrum deals with potential partners, we have little doubt they can and will regain their magic.

Let’s not forget that T-Mobile has taken this award 11 out of the last 15 times, the most consistent record in the industry. Unfortunately these surveys don’t reflect changes T-Mobile made in the last few months of 2011 that internally show huge increases in customer survey scores. In fact, T-Mobile saw a 32 point increase in survey scores from their low point in September to the same survey in December. However, the reporting period for these surveys ended before T-Mobile was able to show these increases. Still, no matter what I write, I know that some of you will undoubtedly post your bad experiences and argue that T-Mobile is going down the drain. That’s fine, but I urge you too look at the separation between T-Mobile and first-place leader sprint, just 7 points. Those are not unsurmountable numbers and a spread T-Mobile can easily cover as they work to revamp their customer service both inside their retail stores and through their customer service call centers and return to the T-Mobile of old.

JD Power 

 

Full Press Release:

J.D. Power and Associates Reports:

Satisfaction with the Wireless Purchase Experience Has Declined Among Customers Who Make Sales Transactions by Phone

Sprint Ranks Highest in Wireless Purchase Experience Satisfaction among Full-Service Carriers, While Boost Mobile Ranks Highest among Non-Contract Carriers

WESTLAKE VILLAGE, Calif: 16 February 2012 — Overall satisfaction with the wireless purchase experience has declined from 2011, mainly due to changing customer expectations and the level of service provided within the phone channel, according to the J.D. Power and Associates 2012 U.S. Full-Service Wireless Purchase Experience StudySM—Volume 1 and the 2012 U.S. Wireless Non-Contract Purchase Experience StudySM—Volume 1, both released today.

Now in their ninth year, these semiannual studies evaluate the wireless purchase experience of customers using any of three channels of contact: phone calls with sales representatives; visits to a retail wireless store; and on the Web. Overall customer satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.

The study finds that overall customer satisfaction has declined significantly among full-service wireless customers who conducted a recent sales transaction via the phone channel. In 2012, overall satisfaction among these customers averages 735 (on a 1,000-point scale), compared with 758 in August 2011, when satisfaction was last measured—a decline of 23 points. In contrast, satisfaction remained stable in the other contact channels during the same time frame.

Full-service wireless customers who purchase devices by phone indicate experiencing greater difficulty when speaking with the phone sales representative handling their sales transaction. In particular, satisfaction has declined notably with regard to promptness in initially reaching a sales representative and the timeliness of the complete transaction.

In addition, among full-service wireless customers who purchased a device by phone, hold times and total transaction times have increased considerably. For example, in 2012, the average customer-reported hold time for waiting to speak with a sales representative is 4.6 minutes—an increase of one full minute from August 2011. Once the customer reaches a sales representative, the average customer-reported time for completion of the sales transaction is 16.4 minutes—nearly two minutes longer than in August 2011.

“Within the past year, there have been a number of new product and service plan innovations in which, in most cases, relatively detailed information needs to be provided to customers in a logical and cost-effective manner,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “Customers who make purchases online and in retail stores have the opportunity to view all product offerings and see the pricing associated with each, which is not always possible over the phone. In phone transactions, it is more challenging for sales representatives to describe a service or device and also complete the transaction in a timely manner.”

According to Parsons, there is a potential negative outcome when customers have a poor purchase experience, including higher future switching rates and a reduced likelihood of repeat purchases via the same channel. For example, in conjunction with declining satisfaction among customers who use the phone channel, there has been an 18 percent reduction in the proportion of customers who say they “definitely will” shop at the same carrier channel source in the future (28% in 2012 vs. 34% in August 2011).

For a second consecutive time, Sprint ranks highest in customer satisfaction among major full-service wireless carriers. Sprint achieves a score of 748 and performs well in the offerings and promotions and cost of service factors. Verizon Wireless (746) follows Sprint in the full-service carrier rankings.

Boost Mobile ranks highest for a second consecutive time in overall purchase experience satisfaction among non-contract service carriers. Boost Mobile achieves a score of 776 and performs particularly well in four of the six factors: store sales representative; phone sales representative; offerings and promotions; and cost of service. MetroPCS (768) and Virgin Mobile (755) follow Boost Mobile in the non-contract service carrier rankings.

The study also finds the following key wireless retail sales transaction patterns:

  • While 62 percent of full-service customers indicate that their most recent purchase experience occurred in a retail store location, 19 percent say that their most recent sales transaction occurred via phone, and an additional 19 percent occurred via the online channel. This differs considerably from non-contract customers—27 percent say their most recent purchase transaction occurred online, and only 11 percent indicate that it was via phone.
  • The average total time customers spent in the full-service retail store to complete the sales transaction is approximately 55 minutes—an increase of approximately 2 minutes from six months ago. In comparison, customers making purchases from non-contract carriers indicate spending just 45 minutes in the retail store.
  • Satisfaction with the overall purchase experience among other retailers, such as Apple, Best Buy, Costco, RadioShack and Wal-Mart, averages 741 index points—which is 19 points lower than among stores owned by full-service wireless carriers.

The 2012 Wireless Full-Service Purchase Experience Study—Volume 1 is based on responses from 10,271 wireless customers. The 2012 Wireless Non-Contract Purchase Experience Study—Volume 1 is based on responses from 3,375 wireless customers. Both studies are among current subscribers who report having a sales transaction with their current carrier within the past six months. The study was fielded from July through December 2011.

For more information on customer satisfaction with wireless service, wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, please visitJDPower.com.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance,cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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  • salzmn23

    I think it mostly has to do with the calling on customers phones..i work at a t-mobile exclusive dealer and i have customers telling me they cant get through to “actual people to talk too” only machine and i myself have experience that problem.NOW why they would implement such a feature might be to save money, cutting down on live representatives is  just my speculation on part. good customer service is not a hard thing to provide its just a matter of advertisement i know the idea is to get the customer in the store it works but somehow its displeasing to explain to customer the “details”.Miss management is a simple thing to fix here are some ideas T-MOBILE
    *Remove the automated answering service (611) * Reestablish live operators * Provide better customer service for existing customers   * Hire more relatively experienced  sales representatives (which will cut down on upset future customers)these are just  some suggestions 

    • ROB

       i dont mind  if it is outsourced or not but they need to be able to speak english fluently , i don’t care much about the accents.
      i called yesterday. asked for supervisor,  the rep says” YOU WAIT OK, I AM TRANSFER TO TALK  SUPERVISOR”

  • Joe

    Had a bad experience at a T-M0bile store in Tampa Fl at the University Mall. Was not told of the real equipment cost and it took @ 3 months to get it straightened out. Will never go back there and will encourage family and friends to go elsewhere. I have also experienced long  wait time (MORE THAN 60 minutes)  to speak to a representative . This has happened more than once. 

  • http://twitter.com/joshavon Joshua Avondoglio

    If the index is on a 1,000 point scale, is there really that much of a difference between 748 and 741 in real world terms???

    • Kalel

       The same as it was when T-mobile was number one for all those years and nobody questioned it.  Why is the numbers questioned now, now that they are last?

      • Skeptic

        Very good point :)

  • Brianb4

    Tmobile was laying off executives, putting all effort into being absorbed by AT&T.  Why are they shocked they slipped to bottom of customer experience?  People knew the German’s wanted to sell the company and didn’t care about the customers or their American employees anymore.

    NOW, they care because the FCC and Justice department said they could not be bought by AT&T.

    • Vim

      After the acquisition T-Mobile was probably going to be either dissolved or converted into a low-end prepaid label for AT&T.    T-Mobile’s management thus likely felt they had little reason to care about T-Mobile’s long term reputation, particularly among its post-paid customers who were soon going to be absorbed by AT&T. 

      • http://tmonews.com David

        Yeah, T-Mobile was going to be folded into AT&T. Not set up as a low-cost anything, I thought this was perfectly clear right from the get-go?

        • Vim

          Based on T-Mobile’s recent infatuation with the less lucrative prepaid market seemingly at the expense of the more valuable postpaid market, there was some idle speculation that  AT&T might have been planning to keep some of T-Mobile’s upper level management around to run the prepaid division, either combined with AT&T’s own Go Phones, or perhaps as a separate low-end label headquartered somewhere deep inside the “death star” to fend off losses from Boost and Cricket. 

  • Guest

    Does anyone else simply question the data? On a 1000-pt scale, all four companies had total scores that only ranged from 748 to 741 … so the best and worst were separated by 7 out of 1000?  Who cares?

    • Nick

       I don’t question the data, but a 7 pt spread is no big deal

  • T-MOBILE SALESMAN

    T-Mobile’s customer service is HORRIBLE! I should know becouse I work for a authorized T-Mobile dealer. Whos to blame? Customer service/loyalty department. I used to be able to waive activation fees and upgrade fees by calling up as the customer and dispute it but NOT ANYMORE! why? becouse there nickle and diming and if you ask me, i geuss they figured they were all loosing there jobs so they didnt give a F**K and they got the habit of not giving a F**K.

    • Brian Hoole

      bleh

    • 123TmoRocks

      Wow! Moron

    • Rainymonday

      We loose millions of dollars when you all make false promises like that..and we In customer care are fighting with you all..at the end of the day you are making things worse when you knowingly know Activation charges and upgrades fees are part of the business. You should be ashamed of yourself. Why do you think we lost JD Powers no surprise we stopped applying credits to Minute overages / upgrade fees/ activation fees/ roaming/ ..yes Tmobile did spoil it’s customers we give and give.. when nobody else cared about their customers. We have a new CEO and things have changed. At the end of the day we are a business.

  • guest

    The reason they drop is simple. They quit caring thinking they were going to be At&t.  They even dropped purchase options such as the ability to install in payments. I only found this out when I needed to replace a dead device. So I decided to get a used device.  Also, go look at phone options. T-mobile is far behind.  All the major carriers have tons more options.  T-mobile is still trying to sell the galaxy s 4g which is a vibrant v2.  as  long time customer, I am extremely frustrated with them right now.

  • Ethanthorn

    I could care less if t-mobile was first or last but what i want to know and care about is how the bloody hell did sprint come in number one they dont fix there towers when they need to be and blame the problem on the customers device if anyone should be last in this its sprint.