Subject: [NEXTEL-1] J.D. Power and Associates Reports: Wireless Customer Switching Intent Is Nearly Four Times Higher Among Users Who Rate Their Services Provider Below Average in Customer Care

From: [email-masked]
Date: Thu, 28 Aug 2003 10:09:14 -0400

August 28, 2003 09:30 AM US Eastern Timezone
J.D. Power and Associates Reports: Wireless Customer Switching Intent Is Nearly
Four Times Higher Among
Users Who Rate Their Services Provider Below Average in Customer Care

NOTE TO MEDIA: Multimedia assets available
A chart is available at URL:
http://www.newstream.com/public_story.html?10439

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Aug. 28, 2003--

Nextel and Verizon Wireless Rank Highest in Customer Care Performance

The percentage of wireless users who say they will switch service providers nearly
quadruples among those who rate their carrier below average in customer care,
according to the J.D. Power and Associates 2003 Wireless Customer Care Performance
Study(SM) released today.

The inaugural study provides a detailed report card of wireless customer care
performance, based on customer experiences with both the service representative
and automated response system (ARS).

The study indicates that among those whose satisfaction with the most recent
customer care transaction is below average, 26 percent report they are
"definitely" or "probably" likely to switch from their current carrier in the next
year -- almost four times higher than for those who rate their customer care
experience above average (7%).

Minimizing the number of contacts needed to resolve an issue and reducing the
amount of time on hold prior to speaking with a service representative are keys to
a successful customer care transaction.  About one-third of those who said they
waited 20 minutes or more on hold indicate they will "definitely" or "probably"
switch providers. Switching probability drops to 12 percent for those who waited
less than 2 minutes.

"It currently costs wireless providers between $300 and $425 to acquire each new
customer, so the
ability to retain existing subscribers is increasingly crucial in this industry,"
said Kirk Parsons, senior
director of wireless services at J.D. Power and Associates. "Wireless providers
shouldn't
underestimate the influence the customer care experience can have on retaining
customers. In most
cases, this is the only time carriers have an opportunity for personal contact
with customers, and a good customer care experience can actually raise
satisfaction levels and increase future loyalty above the level it was before the
call to customer service."

The study utilizes a customer care index based on four key areas that impact
overall carrier performance. These are (in order of
importance): service representative interaction (44%); resolution contact
frequency (31%); ARS processing/navigation (13%); and hold time duration (12%).

Nextel and Verizon Wireless rank highest in a tie in customer care performance
among the seven largest wireless service providers. Nextel performs particularly
well in the ARS area, specifically in navigation as it relates to
instructions/prompts, while Verizon Wireless consistently performs above the
industry average in all areas, particularly in having service representatives who
understand customer issues and in shorter hold times.

T-Mobile, Cingular and AT&T Wireless also perform above the industry average.
The study finds several key wireless customer care patterns:

-- More than one-half (55%) of wireless users have contacted customer care within
the past year.
-- Among those who contact their carrier, 76 percent do so via phone; 21 percent
through the carrier's retail store; and 3 percent by e-mail/Internet.

-- The average reported hold time before customers are able to reach speak with a
service representative is 5:36 minutes.

The 2003 Wireless Customer Care Study is based on experiences reported by 16,800
wireless users.
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. Media e-mail contact:
[email-masked] or [email-masked]

J.D. Power and Associates. www.jdpower.com
Note: A chart is available at URL:
http://www.newstream.com/public_story.html?10439

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