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Report: Buying Wireless Becoming More of a Hassle

Service plans, extended warranties, model comparisons, salespeople trying to “upsell” you to higher-priced models have all conspired to make buying a wireless phone at retail an increasingly onerous chore, according to a report released this week by J.D. Power and Associates (JDPA). While many of these factors aren’t new, perhaps the most surprising result is […]

Written By
thumbnail David Needle
David Needle
Oct 28, 2007
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Service plans, extended warranties, model comparisons, salespeople trying to
“upsell” you to higher-priced models have all conspired
to make buying a wireless phone at retail an increasingly onerous chore,
according to a report released this week by J.D. Power and Associates (JDPA).

While many of these factors aren’t new, perhaps the most surprising result is that they’re getting worse. JDPA surveyed more than 6,000 consumers for its semi-annual wireless retail report. It based its overall customer satisfaction with major wireless
carrier-branded stores on four factors: sales staff; store display; store facility; and price and promotion.

The sales staff issue as the biggest
factor responsible for a decline in customer satisfaction it said has been
going on since 2006, according to JDPA. Customers at so-called “big box” or large retail outlets reported particularly low satisfaction levels with the sales process, according to
JDPA.

But there are also problems across the board. For example, the JDPA study
states the average wireless retail sales transaction takes approximately one
hour to complete from the time the customer enters the store to the time the
final paperwork is finished and the cell phone is received. That’s an increase of nearly four minutes from the last reporting period.

Also, retail satisfaction is 18 percent lower among customers who report
they were pressured during the sales process. The average overall
satisfaction rating among customers who report experiencing no sales
pressure is 736 on a 1,000-point scale, compared with just 607 among those
who say they were pressured.

“Since the study’s inception, overall wireless performance has generally
trended downward based on a number of industry changes, such as the increase
in new products and services, and the expansion of competitive retail sale
channels,” said Kirk Parsons, senior director of wireless services at JDPA
in a statement.

“These forces have made it difficult for carriers to meet
customer expectations as wireless service gains mass
appeal.”

The study finds that overall satisfaction with the wireless retail sales
experience has dropped to 709 points based on a 1,000-point scale. This is down seven points since May and down 12 points from a year ago. Two companies, Verizon Wireless (726) and T-Mobile (725)
came in above the average; AT&T (708), Alltel (695) and Sprint Nextel (679)
were below.

Analyst Roger Kay said one of the main issues leading to a poor consumer
experience are structural.

“The U.S. wireless market is so fragmented and these different carriers do
all they can to lock in customers,” Kay, president of Endpoint Technology
Associates, told InternetNews.com. “My own personal experience at the
retail level is that they just don’t act like they really want your
business. You have to sign long-term contracts and it’s all take it or leave
it.”

Kay credits Apple with improving the phone using experience with the
iPhone, but the buying experience still hasn’t been improved: “It’s still a
lock-in with AT&T, their contract and their network,” he said.

This article was first published on InternetNews.com.

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thumbnail David Needle

David Needle is a veteran technology reporter based in Silicon Valley. He covers mobile, big data, customer experience, and social media, among other topics. He was formerly news editor at Infoworld, editor of Computer Currents and TabTimes, and West Coast bureau chief for both InformationWeek and Internet.com.

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