J.D. Power and Associates Reports: The Average Number of Contacts Needed to Resolve a Wireless Customer Care Issue Over the Phone Continues to Rise

J.D. Power and Associates Reports: The Average Number of Contacts Needed to Resolve a Wireless Customer Care Issue Over the Phone Continues to Rise

T-Mobile Ranks Highest in Wireless Customer Care Performance for Third Consecutive Time

WESTLAKE VILLAGE, Calif., Jan. 25 /PRNewswire/ -- Wireless users who have problems or issues with service need to contact their current provider more often than in the past in order to resolve the inquiry, according to the J.D. Power and Associates 2006 Wireless Customer Care Performance Study(SM) - Volume 1 released today.

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The study, in its fourth year, now provides a detailed report card on a semi-annual basis of wireless provider customer care performance based on customer experiences with three point-of-contact methods: telephone with a service representative and/or automated response system (ARS); walk-in at a retail store; and online Internet connection. Within each contact method, processing issues such as problem resolution efficiency and hold-time duration are also measured.

The study finds that wireless customers contact their provider an average of 1.94 times by phone to resolve an issue or problem -- the highest level since measurement began in 2000. Since that time, the average problem resolution frequency (PRF) rate has steadily climbed. In 2000, the average PRF rate was 1.36 -- a yearly increase of 14 percent. The main factors contributing to this increase in resolution frequency are not only the rise of new wireless services and products that are available, but also the complexity of using those products. Now customers can capture still pictures or video, download ring tones, play MP3 files, and even watch TV clips. This, in turn, puts pressure on the carrier's service representative to understand the issue or problem and try and get the inquiry resolved in a timely manner.

"As more wireless companies encourage customers to try new services, it has become more difficult for the customer service representatives to be fully trained and kept apprised on the latest products being introduced. The downside is the carrier runs the risk of decreasing customer satisfaction and losing customers to other carriers," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Since future switching levels are three times as high among customers who need to re-contact the carrier two or more times to get the inquiry resolved, the challenge for wireless providers is to provide contact channels that can offer an informative and efficient experience for their customers."

For the third consecutive reporting period, T-Mobile ranks highest among the five largest wireless service providers in creating a positive experience for customers who contact their providers for service or assistance. With an index score of 108, T-Mobile performs particularly well across all factors, especially among the contact channels of customer service representatives, ARS and walk-in retail experience. ALLTEL and Verizon Wireless follow T-Mobile in the rankings in a tie, performing significantly above the industry average (104).

The study also finds several key wireless customer care patterns:

* More than one-half (52%) of wireless users have contacted the customer
service department for assistance within the past year, a slight
decrease from 2005 (54%).

* Among those who contact their carriers, 71 percent do so via telephone
and 25 percent through their carrier's retail stores. E-mail/Internet
contacts account for only 4 percent.

* The average initial reported hold time on calls to the customer service
department is 3.57 minutes -- an increase from 3.44 in 2005. In
comparison, it takes, on average, more than 9 minutes before speaking to
a representative at a retail store.

* More than four in 10 users (42%) contact their carrier with a service
inquiry that is billing related, one-half of which are due to incorrect
charges. An additional one-third of all customer care inquiries are
call quality related.

The 2006 Wireless Customer Care Performance Study - Volume 1 is based on responses from more than 11,490 wireless users who contacted customer care within the past year. The results are from the past two reporting waves, conducted in July and October 2005. The 2006 Volume 2 report will be issued in July 2006.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contacts:
John Tews Peter Dadlani
Director, Media Relations Supervisor, Media Relations
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.competer.dadlani@jdpa.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

Multimedia Available: To view and download supplementary charts, photos, video, audio, text, and graphics please visit J.D. Power and Associates' Enhanced News Release at http://www.prnewswire.com/mnr/jdpower/23625

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Source: J.D. Power and Associates

CONTACT: John Tews, Director, Media Relations, +1-248-312-4119,
john.tews@jdpa.com, or Peter Dadlani, Supervisor, Media Relations,
+1-805-418-8103, peter.dadlani@jdpa.com, both of J.D. Power and Associates

Web site: http://www.jdpa.com/
http://www.mcgraw-hill.com/
http://www.prnewswire.com/mnr/jdpower/23625

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