Thursday, December 20, 2007

The Continuing Struggle to Please Customers

Compared to retailers and credit-card companies, wireless carriers provide a less useful and enjoyable customer experience. This was the information gathered from a study done by Forrester research. Perhaps this information also moved some carriers to promise better programs to increase consumer satisfaction next year.

It certainly seem logical for wireless service providers to pay attention to giving better service because the study ranked them fifth among nine industries. Retailers, investment firms, insurance companies and credit-card providers were all rated as giving better service than wireless networks.

Of course, wireless providers have also scored some points with their customers because they consider Internet service providers, TV service providers and medical insurance providers inferior to wireless carriers in terms of customer satisfaction. However, considering that the wireless phone industry is probably the fastest growing and most lucrative industry in this age, increasing the level of customer satisfaction should be made a priority. After all, a

happy and satisfied customer will be willing to spend more.

Sprint and Nextel brands, Alltel Corp., Virgin Mobile USA and prepaid provider Tracfone Wireless Inc. were included in the Forrester survey. The results showed that Virgin Mobile USA Inc. received the top ranking while the Sprint and Nextel brands received the lowest marks. Alltel ranked second followed by T-Mobile USA Inc. Verizon Wireless came in at No. 4, followed by Tracfone, and AT&T Mobility.

Virgin Mobile USA received “excellent” rating for ease of use. it also garnered the highest rank for its usefulness and whether or not their experience with the company was enjoyable.
This is interesting since Mobile USA’s service runs on Sprint Nextel Corp.’s CDMA network.

It seems that
Sprint Nextel is consistently earning thumbs-down from various consumer surveys. For instance, Consumer Reports’ said that it would not recommend service from Sprint unless a customer specifically wanted push-to-talk service. The company has also ranked near the bottom of customer satisfaction surveys by J.D. Power and Associates.

Fortunately, Sprint has responded to this ratings by hiring several thousand more customer care representatives to improve the customer experience. The company is also planning to increase its focus on retaining subscribers rather than trying to bring in new ones and launch loyalty-based incentive programs. Hopefully, the company will be able to increase it's stature in terms of providing customer care.

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