“It’s all about the service.” Service is Key to Wireless Customer Satisfaction: Study

By Allan Pulga

Providing good service and plenty of information leads to higher levels of customer satisfaction. Makes sense. This simple philosophy just became a lot more relevant for wireless retailers.

A recent Consumer Electronics Association (CEA) survey of consumer wireless purchasing trends has found that overall, consumers buying wireless phones are very satisfied with their purchasing experience.

The survey asked over 1,000 respondents from throughout the U.S. about their cell-phone-buying process, either for in-person and online purchases. The experts were surprised with the results: an 86 per cent satisfaction rate for both in-person and online purchases.

“There was a pre-existing belief that people were generally dissatisfied,” says Steve Koenig, Senior Analyst for CEA’s Market Research Department, referring to a 2003 CEA study that found wireless purchasing satisfaction to be around 50 per cent.

Such a huge leap in customer satisfaction begs the question: What is driving this change? “It’s all about service,” answers Koenig.

“This shows that the channel has done a good job of emphasizing service. This market is so competitive that price, plans, features and even handsets themselves are pretty much the same. It’s just how you’re treated as a customer (that makes the difference). And when it comes down to the purchasing experience, there are a lot of (service) choices.”

Koenig says that with so little variability between wireless plans goods, the retail players are really competing in the service sector – providing good service and information before and after the sale.

The study pinned in-person shoppers versus online shoppers, as well as independent stores versus carrier stores, generating interesting results on both fronts.

For instance, shoppers who bought cell phones from independent stores were three times more likely to research ad circulars or newspaper ads before buying. But Koenig speculates that although independent shoppers appear to be keener pre-purchase researchers, carrier stores have an advantage in keeping their customers informed.

“The carriers – since they are the ‘service providers’ – ostensibly have ‘first dibs’ on any and all collateral materials and they’re going to be the first to know any changes or anything like that,” he says.

Koenig concedes that the law of averages plays a part in this disparity. However, he notes that number of locations had no impact on customer satisfaction. Apparently store hours, location and availability aren’t the big drivers of overall satisfaction.

“It was really about the information and the service. And these are areas where the independents can compete and can continue to gain more sales from the carrier buyers.”

Meanwhile, comparing in-person wireless purchasing (70 per cent) with online purchasing (20 per cent; the last 10 per cent made through phone or mail orders), showed differing levels of customer satisfaction: 39 per cent very satisfied with in-person purchasing, 50 per cent very satisfied with online purchasing.

Why are online buyers more often very satisfied?

“Probably one of the biggest reasons is convenience,” explains Koenig. He says most of these buyers are more often replacement buys that already know what they want. They can quickly narrow down their choices head to the e-checkout. “It’s so easy.”

Beyond convenience, lies the foundation of the online experience: information, information, information. The more information available, the higher the level of customer satisfaction – for both carrier and independent customers, says Koenig.