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Wireless Users Frown on Automated Customer Care

T-Mobile Ranks Highest, Followed by Verizon, Alltel

February 2, 2007

Wireless Satisfaction • Wireless Users Frown on Automated Customer Care • Wireless Satisfaction Slumps • Customer Churn Increasing, Study Warns • Cell Phone Users Unhappy, Survey Finds • Cell Phone Carriers Agree to Ground Rules in 32 States --- • More about Cell Phones ...

Customers who phone in their problems don't like having them handled by an automated response system, according to the J.D. Power and Associates 2007 Wireless Customer Care Performance Study.

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 with 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.

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.

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