J.D. Power do Brasil Reports: More Than One-Fourth of Wireless Customers in Brazil Are Likely to Switch Carriers Within the Next Year

SAO PAULO, Feb. 10, 2011 /PRNewswire/ -- More than one-fourth of wireless customers in Brazil indicate they are likely to switch carriers in the next 12 months, according to the J.D. Power do Brasil 2011 Wireless Satisfaction Study(SM)—Volume 1 released today.

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The inaugural study is a detailed assessment of customer experiences with and perceptions of their current wireless service carriers. Customer satisfaction with the ownership experience is measured in seven factors. In order of importance, they are: network quality (27%); account management (14%); cost of service (14%); customer service (14%); offerings and promotions (13%); device (11%); and sales experience (7%).

The study finds that 28 percent of wireless customers in Brazil say they "definitely will" or "probably will" switch their wireless carrier within the next year—compared with just 17 percent and 13 percent of prepaid wireless customers in the U.S. and U.K., respectively, who say the same. An additional 17% of Brazilian customers say they "definitely will not" switch carriers in the next year.

The study also finds that, among those customers who are loyal to their carrier, satisfaction averages 262 points higher (on a 1,000-point scale), compared with customers who say they "definitely will" switch.

"With the intense competition and high market penetration in Brazil, carriers must retain existing customers, rather than just acquire new customers," said Celia Bastos, research director at J.D. Power do Brasil. "Because highly satisfied customers are more likely to remain with a carrier—and also are more likely to recommend that carrier to others—improving customer satisfaction may have a substantial positive financial impact for carriers."

TIM ranks highest in customer satisfaction with the wireless ownership experience with a score of 670. TIM performs particularly well in the cost of service and account management factors. Vivo follows TIM in the rankings with a score of 665 and performs well in network quality and customer care. Across the industry, overall satisfaction averages 663.

The study also finds that more than one-half of customers indicate contacting their wireless carrier for customer service within the past six months. On average, wireless customers in Brazil spend 10.2 minutes on hold when contacting their carrier. More than one-fourth (28%) of customer service contacts pertain to customers experiencing connection issues, while an additional 24 percent involve poor/bad reception. On average, wireless customers experience 20 network quality problems per 100 calls (PP100).

"In terms of network quality and customer service, there is a clear opportunity for wireless carriers to differentiate themselves by providing superior service," said Bastos. "Improving customer satisfaction with these areas may go a long way in increasing satisfaction with the overall wireless experience."

The 2011 Brazil Wireless Satisfaction Study—Volume 1 is based on experiences reported by nearly 4,000 wireless customers. The study was fielded between October and December 2010.

The study represents the first study for the telecommunications industry conducted by J.D. Power in Brazil. For the past 19 years, J.D. Power and Associates has conducted numerous syndicated and proprietary research studies covering wireline and wireless telephone, residential television and Internet in the United States, the U.K. and in Asia. The 2011 Brazil Wireless Satisfaction Study—Volume 2 will be released in September.

The Brazil Wireless Satisfaction Study is one of three consumer-based studies that J.D. Power conducts in Brazil.  The 2011 Brazil Retail Banking Study, which measures satisfaction with banks, will be released in June. The 2011 Brazil Vehicle Ownership Satisfaction Study, which measures customer satisfaction with their vehicle and dealer service, will be released in July.

Customer Satisfaction Index Ranking

(Based on a 1,000-point scale)

Included in the study but not ranked due to small sample size is Nextel.

About J.D. Power do Brasil

Established in Sao Paulo in 2010, J.D. Power do Brasil conducts customer satisfaction research and provides market intelligence and performance analytics services in the automotive, wireless telecommunications and finance industries. Plans include expansion into the travel, energy and technology sectors in the Brazil market. Information regarding J.D. Power do Brasil and its products can be accessed through the Internet at www.jdpowerdobrasil.com.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:

Celia Bastos; Sao Paulo, Brazil; +55-11-3039-9776; [email protected]

Syvetril Perryman; Westlake Village, Calif., USA; +1-805-418-8103; [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