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Business Customers Are Highly Likely to Switch Providers to Get All Telecommunications Services From One Company
added: 2007-05-20

Telecommunication service providers that offer a full suite of products such as voice, data, Internet and wireless mobility services stand a better chance of increasing their market share and financial outlook compared to providers that offer only one service, according to the J.D. Power and Associates 2007 Business Wireless Satisfaction Study(SM).

Now in its third year, the study measures customer satisfaction of small businesses (fewer than 100 employees) and large enterprises (100 employees or more) with their wireless voice and data services across eight key factors. In order of importance, they are: call quality (18%); sales representatives/account executives (14%); customer service (14%); billing (12%); offerings and promotions (11%); performance and reliability (11%); company image (11%); and cost of service (9%).

If given the opportunity to switch all current communications services to one provider, 40 percent of business decision-makers report they would likely do so. The desire to bundle is equally strong in both business segments, with 40 percent of small businesses and 42 percent of large enterprises indicating interest in the option. Additionally, among businesses using wireless voice and data services, 9 percent indicate using one company for all their communication needs - a 33 percent increase from 2006.

Customers who currently bundle their services also have significantly higher satisfaction levels (averaging 722 points on a 1,000-point scale). Regarding loyalty, businesses that have all their services bundled with one provider are four times less likely to switch in the near future compared to those using multiple providers.

"It is clear from both a revenue and customer loyalty perspective that providers offering multiple services to meet client communication needs can almost immediately experience a positive financial impact," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Given the recent run of mergers in the telecommunications industry, it's evident that providers are increasingly bundling communications options to provide a single-solution service platform for business customers, both domestically and internationally."

T-Mobile ranks highest among the five largest wireless providers serving small and large enterprise businesses, receiving particularly high ratings from business customers for service representatives/account executives; customer service; offerings and promotions; billing; and cost of service. Verizon Wireless follows T-Mobile in the rankings with high ratings from customers in performance and reliability, call quality and company image.

The study also finds the following key business wireless usage patterns:

- Nearly 88 percent of businesses subscribe to a voice-calling plan, while 49 percent subscribe to a data plan, which includes the ability to e-mail, text message and browse the Web. Other service-related plans include international roaming access (17%), wireless modem access via phone (16%), push-to-talk (15%) and packet services using a PC card (6%), which is used in conjunction with a laptop for wireless access.

- On average, businesses have subscribed to their wireless service carrier for four years.

- Overall, 50 percent of corporate decision-makers report choosing the brand of wireless handset purchased for their employees - a decrease from 55 percent in 2006. Additionally, 26 percent of decision-makers allow their employees to select the brand of cell phone and reimburse them 100 percent for the cost - an increase from 22 percent in 2006.

- Sixty-two percent of business wireless customers contacted a customer service representative with a question or problem within the past year. Among these customers, 60 percent report having their problem or inquiry resolved on the first contact - up from 51 percent in 2006.


Source: PR Newswire

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