Customer Care Ratings

T-Mobile Tops JD Power’s 2005 Customer Care Study --
People Prefer Real Live Customer Service

For the second year in a row, T-Mobile has been ranked highest for wireless-customer-care performance by J.D. Power and Associates. The 2005 Wireless Customer Care Performance Study is based on responses from more than 8,300 wireless customers. Interviews were conducted in March and April

The study released on June 9 reveals that that customer service issues handled by live service representatives either over the phone or in person generated significantly higher customer-care ratings than non-human, computer-generated interaction. Customers didn't like the inflexibility of automated systems

The study found that customers that speak with a service rep over the phone had an average satisfaction index score of 109. The average index score for in-store help was 102. The average index score was 85 for automated response systems and 75 for those who sought help online, the company said.

"As more companies encourage customers to contact Internet and computer-based customer service programs to save operating costs, they run the risk of increasing churn (when a customer switches carriers) as the number of contacts needed to resolve a customer complaint or issue rises," Kirk Parsons, senior director of wireless services at J.D. Power and Associates, said in a statement.

<J.D. Power and Associates 2005 Wireless Customer Care Performance Study(SM) Results>

T-Mobile USA recorded an index score of 108 in the study, which noted the carrier performed "particularly well across all factors, especially hold-time duration and problem-resolution efficiency." The study also found that T-Mobile USA customers reported average hold times of 2.27 minutes before speaking with service representatives, which was 34-percent less than the 3.44-minute industry average.

"While other carriers tout their larger subscriber numbers as a consumer benefit, T-Mobile focuses on the individual service experience for each and every customer," T-Mobile USA said in a statement.

Verizon Wireless posted the 2005 Customer Care Performance Study's second-highest index score of 104, followed by Nextel Communications Inc.'s index score of 103 and Alltel Corp.'s index score of 100. All three carriers scored at or above the industry average of 100.

The study also finds several key wireless customer care patterns:

• More than one-half (54%) of wireless users have contacted the customer service department for assistance within the past year, a slight increase from 2004 (52%).
• Among those who contact their carriers, 71% do so via telephone and 26% through the carriers' retail stores. E-mail/Internet contacts account for only 3%.
• The average initial reported hold time on calls to the customer service department is 3.44 minutes, compared to just over 9 minutes before speaking to a representative at a retail store.