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In-Stat Survey Reveals Wireless Providers Making Modest Progress in Improving Customer Service
11/30/2005 8:01:01 AM

SCOTTSDALE, Ariz., Nov 30, 2005 (BUSINESS WIRE) -- Wireless service providers are having some success in reducing customer service churn and complaint rates, but they still have significant challenges ahead, reports In-Stat (http://www.in-stat.com). About one in eight wireless customers considered their wireless carrier's customer service "excellent," although the results for individual U.S. carriers ranged from a low of 7% to a high near 21%. The high-tech research firm found several customer service topics that received praise and complaint for each wireless carrier regarding hold times, service policies, first-call problem resolution, and customer service representative attitude. These findings are the result of an In-Stat survey of U.S. wireless subscribers and of extensive interviews with key wireless industry insiders.

"Customer service efforts appear to be contributing both to churn rate reduction, a key factor in company financial performance, and in the reduction of the relative complaint rate," said David Chamberlain, In-Stat analyst. "Nevertheless, a substantial number of subscribers are, or could soon become, defectors."

A recent report by In-Stat found the following:

-- In most cases, satisfaction with customer service nearly mirrors subscribers' overall attitude toward the carrier.

-- Efficient handling of billing problems is now considered one of the best parts of the customer service experience. Lengthy hold times and one-call resolution are the worst.

-- Customers are indifferent about Web-based or voice-response self-care initiatives.

-- Both the newest and longest-term customers are the least likely to churn. However, among those in the middle -- customers who have been with the carrier from one to two years -- more than 25% indicate they probably or definitely will switch to another carrier.

The report, "Wireless Customer Service: Not Over the Hump Yet" (#IN0502093MCM), covers the results of a survey of more than 1,100 U.S. wireless customers and extensive interviews with key wireless industry insiders. The report answers the questions: "Is the quality of customer service important in reducing churn?" and, "Are the latest customer service initiatives undertaken by U.S. wireless carriers working?" Wireless carriers covered in depth include Sprint PCS, Nextel, Verizon Wireless, T-Mobile and Cingular/AT&T Wireless. This report is intended for customer service executives in all wireless companies, worldwide.

For more information on this report, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=231 or contact Erin McKeighan at 480-609-4551 or [e-mail]. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.

SOURCE: In-Stat

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