J.D. Power and Associates Reports: While Any Type of Sales Pressure Negatively Impacts Satisfaction With the Wireless Retail Sales Experience, Poor Treatment by Sales Staff is Particularly Dissatisfying for Customers

WESTLAKE VILLAGE, Calif., Aug. 12 /PRNewswire/ -- While overall satisfaction declines considerably when customers experience pressure during the wireless retail transaction, the degree to which satisfaction is impacted varies greatly depending on the reason for sales pressure, according to the J.D. Power and Associates 2010 U.S. Wireless Retail Sales Satisfaction Study(SM)–Volume 2 released today.

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Now in its seventh year, the semiannual study analyzes evaluations from customers who recently had an in-store wireless retail sales experience. Overall customer satisfaction with major wireless carrier-branded stores is based on four factors. In order of importance, they are sales staff (49%); price and promotion (27%); store facility (14%); and store display (10%).

The study finds that satisfaction among customers who indicate having experienced pressure during the sales process averages 125 points lower (632 on a 1,000-point scale) than among customers who indicate not having experienced pressure (757 points).

More importantly, satisfaction levels vary greatly based on the cause of the sales pressure. For example, issues related to crowded stores (average satisfaction score of 642) or an insufficient number of salespeople (623) have less of an impact on the overall sales experience than how the salesperson treats the customer, such as being in a hurry to get to other customers (599) or not spending enough time to understand the customer's wireless needs (507).

"While only 16 percent of wireless customers report experiencing pressure during the sales transaction process, the financial impact may be considerable," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Customers who are pressured in some way are more than twice as likely to switch to another wireless provider, compared with customers who are not subject to any unnecessary sales pressure."

The study also finds that overall satisfaction with the retail sales process decreases dramatically when salespeople do not perform certain key activities. For instance, satisfaction averages 143 points lower among customers who indicate that a salesperson failed to offer to explain how to operate a phone than among customers who received explanations. There is also a 116-point difference when such service plan options as data plans are not explained, which is particularly important among smartphone owners and customers who purchase feature-rich handsets.

"It is critical that salespeople fulfill the basic needs of customers during every visit, but it is increasingly important for representatives to add value to the retail experience," said Parsons. "If the representative can optimize the customer's time in the store by informing them of new options or available features, the customer will leave with greater loyalty to the retailer and be more likely to return."

T-Mobile ranks highest in customer satisfaction among major wireless carrier-owned retail stores for a third consecutive time with a score of 744, performing particularly well in price and promotions and store facility, such as layout and convenient operating hours. Sprint Nextel (743) closely follows T-Mobile in the rankings and performs well in price and promotions.

The study also finds the following key retail wireless sales transaction patterns:

• Nearly three-fourths of customers indicate that a salesperson offered to explain how to operate the phone during their most recent visit—an increase of 4 percentage points, compared with six months ago. In addition, nearly two-thirds of customers indicate having discussed possible extra charges that may apply to the bill—an increase of 3 percentage points during the same time period.
• The average total reported time spent in the retail store to complete the sales transaction is approximately 56 minutes—a decrease of nearly three minutes, compared with just six months ago.
• Advertising has proven to be a key element in the wireless carrier selection process. Overall, 60 percent of wireless customers find advertising "extremely/very important" in choosing their current carrier.
• Nearly one-half (46%) of wireless customers visit their retailer to upgrade or replace a phone from their current carrier. Renewing or changing an existing wireless plan (31%) and inquiring about phone repair (25%) round out the top reasons customers cite for visiting a retail store within the past six months.

The 2010 U.S. Wireless Retail Sales Satisfaction Study—Volume 2 is based on experiences reported by 7,972 wireless customers who completed a retail sales transaction within the past six months. The study was fielded between January and June 2010.

For more information, to read an article or view wireless retail ratings, please visit JDPower.com.

Overall Retail Sales Index Rankings

(Based on a 1,000-point scale)

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