J.D. Power: Customer service is critical for carriers as unprecedented contract expirations loom

An unprecedented number of wireless contracts are set to expire in June 2015 which means that millions of Canadians will be shopping around for the best deals as well as considering the best customer service from competing carriers.

Because of the result of changes introduced by the 2013 Canadian Radio-television and Telecommunications Commission’s (CRTC) Wireless Code—it is a critical time for wireless carriers to have a comprehensive customer service strategy in place, according to the J.D. Power 2015 Canadian Wireless Customer Care Study released today. Hit jump for more details.

The study examines wireless customer perceptions of carriers’ performances across customer service-related activities. Satisfaction is measured across four factors (listed in order of importance): phone customer service representative (CSR); in-store service; online service; and phone automated response system (ARS). Overall wireless customer care satisfaction is 715 on a 1,000-point scale.

As wireless carriers look for a competitive advantage beyond promoting devices, plans and network performance, customer service is a clear way carriers can differentiate themselves and retain customers. In June 2015, wireless carriers are expected to face heightened competition as they brace for a surge of two-year and three-year contract expirations. While carriers will likely be ready with attractive plans and product offerings, service differentiation is a critical mechanism toward building a relationship with a customer, which can lead to long-term loyalty. Developing a comprehensive customer service strategy focused on such key elements as problem prevention and first-contact resolution across the phone, in-store and online channels is essential.

“Customer service needs to excel at every touch point,” said Adrian Chung, account director at J.D. Power. “Carriers need to focus on timeliness and accessibility with every customer interaction, which can help differentiate carriers from their competition, satisfy customers and ultimately drive loyalty and advocacy. While the online channel is not a complete solution, it should be a key component of a carrier’s overall customer service strategy as it can facilitate quicker problem resolution than other channels.” 

Self-service tools are convenient and easy to use—especially those available through the online customer care channel as they can empower customers to resolve their problems quickly via a mobile device. A higher percentage of Gen Y (born 1977-1994) customers use the online customer care channel for service than industry average (35 per cent vs. 28 per cent, respectively). Additionally, satisfaction is higher among Gen Y customers who use the online service channel, compared with industry average (709 vs. 696, respectively), and online contacts related to billing are also higher among those customers than average (37 per cent vs. 30 per cent, respectively).

KEY FINDINGS 

• Overall satisfaction scores influence customer loyalty and advocacy. On average, 48 per cent of delighted customers (overall satisfaction scores of 900 or higher) say they "definitely will not" switch to another carrier, while just 8 per cent of displeased customers (scores of 549 or lower) say the same. Furthermore, 69 per cent of delighted customers say they "definitely will" recommend their carrier, compared with just 7 per cent of displeased customers.
• High-ranking carriers differentiate their brand by performing well with respect to clarity of information provided and timeliness of care contacts. These brands have below-average customer service contact rates^[2] (42 per cent); below-average phone transfer rates (38 per cent); above-average first-contact resolution rates in all three channels—phone (63 per cent), in-store (58 per cent) and online (56 per cent)—and a below-average percentage of customers indicating they experience difficulty understanding phone representatives (32 per cent).
• “Delighted” customers provide an average of 5.4 positive comments about their carrier, compared with an average of 1.2 positive comments among displeased customers. 

Wireless Carrier Rankings

SaskTel ranks highest in customer care satisfaction with a score of 787. SaskTel performs particularly well in the phone customer service representative (CSR) factor. Virgin Mobile (773) ranks second, followed by Koodo Mobile (764). 

The 2015 Canadian Wireless Customer Care Study is based on responses from more than 5,000 wireless customers. The study was fielded in October-November 2014 (Wave 1) and March 2015 (Wave 2).

Overall Customer Satisfaction Index Ranking                        J.D. Power.com Power Circle Ratings^TM

(Based on a 1,000-point scale)                                                                For Consumers

SaskTel                                787                                                                                        5

Virgin Mobile                    773                                                                                        4

Koodo Mobile                   764                                                                                        4

TELUS Mobility               745                                                                                        4

Fido                                       731                                                                                        4

WIND Mobile                    716                                                                                        3

Industry Average            715                                                                                        3

Bell Mobility                     690                                                                                        2

Rogers Wireless               675                                                                                        2

Note: Included in the study but not ranked due to market share are MTS Mobility and Videotron.

Power Circle Ratings Legend

5 – Among the best

4 – Better than most

3 – About average

2 – The rest