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Wednesday, 05/19/2010 2:00:38 PM

Wednesday, May 19, 2010 2:00:38 PM

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Sprint closes gap in customer satisfaction, survey finds [The Kansas City Star, Mo.]
BY Knight Ridder/Tribune
— 11:18 AM ET 05/19/2010

May 19--Sprint Nextel Corp. (S) still lags behind much of the competition in customer satisfaction, but a survey released Tuesday suggested the difference was all but gone.

The American Consumer Satisfaction Index showed Sprint just a few points behind industry crowd pleasers Verizon and T-Mobile. The poll also found that the Overland Park-based company had notched its second consecutive year of double-digit percentage gains in its rating.

"No doubt, they're making people happier," said David VanAmburg, the index's managing director.

The survey drew from some 16,000 phone interviews over the first three months of the year. In reviewing cell service, it whittled that number down to about 250 customers of each company. VanAmburg said that gave the survey a margin of error of plus or minus three points on its 100-point scale.

When the survey began tracking satisfaction with wireless companies, the industry average stood at 65 on the index scale, and Sprint scored 59. Since then, the industry and Sprint have climbed slowly. But Sprint's (S

S SPRINT NEXTEL CORP 4.585
Change -0.110 (-2.34%) AS OF 1:57 PM ET 05/19/10.
Chart for S

) improvement has come at a slightly better clip.

This year, the industry norm is 72 on the index scale. Verizon and T-Mobile scored 73 and Sprint 70.

A "two-year advance has pushed Sprint from considerably below to very close to the industry average," said a report accompanying the index. It cited Sprint pricing, typically below its competitors, as a reason for its rising score.

At Consumer Reports magazine, electronics editor Mike Gikas said Sprint seemed to be improving on many counts with his publication's readers, while AT&T has faltered. Still, he said, Verizon regularly gets the strongest reviews in almost all markets.

Sprint also continues to stumble, Gikas said, in customer support.

"The (cell phone signal) service isn't bad and they carry some of the best phones," he said. "When it came to questions of staff knowledge and getting issues resolved, that's where Sprint runs into problems."

Sprint spokeswoman Roni Singleton said the company had made steady improvement in customer service, noting that the number of calls per subscriber to customer service had declined -- evidence that problems were solved more efficiently.

"We're making huge progress," she said. "That's pretty evident in what we're seeing in the ACSI survey and other third-party research. It's consistently been going up."

Improvement noted

Sprint Nextel (S

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) is through with the worst of the revenue declines, according to Robert Brust, the company's financial chief.

The company is entering a period of more stable operations, Brust told analysts Monday during an investor conference.

The Overland Park carrier, despite continued subscriber losses, has narrowed those declines and showed steady improvement over the past few years, including an improved handset selection, less expensive plans, and more effective customer service.

Brust previously said he expected Sprint to return to revenue growth by year's end.

To reach Scott Canon, call 816-234-4754 or send e-mail to scanon@kcstar.com. The New York Times

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com.

Copyright (c) 2010, The Kansas City Star, Mo.

Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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