J.D. Power and Associates Reports: Customer Service Support Initiatives Help to Drive Industry-Wide Satisfaction Gains among Residential Telephone Customers

WESTLAKE VILLAGE, Calif., Sept. 15 /PRNewswire/ -- Customer satisfaction with residential telephone service has increased for a second consecutive time, largely due to gains in satisfaction with the customer service experience, according to the J.D. Power and Associates 2010 U.S. Residential Telephone Customer Satisfaction Study(SM) released today.

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Overall satisfaction averages 657 on a 1,000-point scale, an increase of four index points from 2009. Combined with the gains experienced in 2008, overall satisfaction has increased by 22 points from 2008—the largest two-year improvement in the 15-year history of the study.

The study measures customer satisfaction with both local and long distance telephone service in four regions throughout the United States. Five factors are examined in determining overall satisfaction. In order of importance, they are: performance and reliability; cost of service; billing; offerings and promotions; and customer service.

Among the five factors driving satisfaction, customer service achieves the largest increase in satisfaction compared with 2009, improving by eight points. This increase is primarily attributable to improvements in customer support systems and processes.

The study finds that interactive voice response (IVR) first-call resolution scores have improved considerably from 6.46 in 2009 to 6.57 in 2010, with corresponding IVR improvements in the ability to provide clear information and the length of time needed to resolve issues/problems using the system.

"Issues with IVR menus have been a thorn in the side of service providers for years," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "The ongoing efforts of providers to streamline IVR options for customers has led to improved satisfaction with the ease of navigating phone menus and speed of reaching a customer service representative."

The study also finds that among those customers who have contacted customer service during the past 12 months, 31 percent of their overall satisfaction can be attributed to the quality of that customer care interaction. Furthermore, highly satisfied customers, those who rate their experience eight points or higher (on a 10-point scale), have significantly higher overall satisfaction (783 points, on average), compared to both respondents rating their experience seven points or lower (547), and those who had not contacted customer service during the past year (674).

"The quality of the contact can pay dividends through decreased intention to switch providers," said Perazzini. "The stated likelihood of customers to switch providers within the next year declines from 13 percent overall to 7 percent among those who are highly satisfied with their customer service experience."

Provider results by region are:

East Region: Optimum Voice by Cablevision ranks highest with a score of 689, performing particularly well in customer service, cost of service, billing, and offerings and promotions. Cox Communications follows in the region with 677, and Windstream ranks third with 671.

South Region: Bright House Networks ranks highest in the region with a score of 724 and performs well in customer service, cost of service, billing, and offerings and promotions. Following Bright House Networks in the rankings are Cox Communications (701) and Verizon (673).

North Central Region: WideOpenWest (WOW!) ranks highest with 742, performing well in customer service, cost of service, billing, and offerings and promotions. Cincinnati Bell follows in the region with 696, and TDS Telecom ranks third with 694.

West Region: Cox Communications ranks highest in the region with a score of 693, performing well across all five factors. Time Warner Cable (661) and Qwest (653) follow in the regional rankings.

The 2010 U.S. Residential Telephone Customer Satisfaction Study is based on responses from 24,146 customers nationwide who receive their local and long distance telephone service from one provider. The study was fielded in four waves: November 2009 and January 2010, April 2010 and July 2010.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. 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 (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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/corporate

SOURCE J.D. Power and Associates