Business News
J.D. Power and Associates Reports: Flat-Rate Service Plans With Unlimited Minutes Generate Dramatically Higher Satisfaction Levels Among Prepaid Wireless Customers
2008-07-24 08:00:00
J.D. Power and Associates Reports: Flat-Rate Service Plans With Unlimited Minutes Generate Dramatically Higher Satisfaction Levels Among Prepaid Wireless Customers
MetroPCS Ranks Highest in Customer Satisfaction among Prepaid Wireless
Users
WESTLAKE VILLAGE, Calif., July 24 /EMWNews/ -- Overall satisfaction
among prepaid wireless customers who subscribe to flat-rate plans with
unlimited minutes is considerably higher than that of customers who
subscribe to per-minute price plans, primarily due to cost advantages
associated with flat-rate plans, according to the J.D. Power and Associates
2008 U.S. Wireless Prepaid Customer Satisfaction Study(SM) released today.
Now in its third year, the study measures customer satisfaction with
current prepaid wireless service across seven key factors. In order of
importance, they are: call quality (24%); company image (19%); cost of
service (17%); account management (15%); initial activation (11%); service
plan options (8%); and customer service (6%).
The study finds that overall satisfaction among prepaid wireless
customers that subscribe to flat-rate pricing plans with unlimited minutes
is 764 on a 1,000-point scale, which is considerably higher than that of
subscribers of traditional per-minute pricing plans (717, on average). This
gap in satisfaction is primarily driven by differences in the cost of
service, as well as by the benefit of unlimited minutes available in
flat-rate plans. In particular, unlimited-plan customers report higher
satisfaction levels with the amount of airtime minutes offered for the
price paid, the overall cost-per-minute charges and the cost per
transaction to refill minutes in their account.
"Prepaid customers are clearly responding favorably to these unique
service plan options, as they provide a cost-effective alternative to
traditional price-per-minute plans that are typically offered and allow
customers freedom from worrying about being charged extra fees for making
too many calls within a given time period," said Kirk Parsons, senior
director of wireless services at J.D. Power and Associates. "Although plans
with unlimited minutes typically have geographic restrictions for placing
and receiving wireless calls, they still fulfill customer expectations and
tend to meet a specific service need better than other wireless plans. In
fact, 46 percent of unlimited plan customers have completely replaced their
traditional landline phone with wireless service, compared with only 13
percent of traditional pay-as-you-go customers."
The study also finds that satisfaction ratings for the initial
activation process also vary greatly between customers that subscribe to,
flat-rate prepaid plans with unlimited minutes and subscribers of
traditional, per-minute plans. Specifically, customer satisfaction scores
with plans that have unlimited minutes average 862, compared with only 756
among traditional prepaid calling plans. The ease of initially subscribing
to the plan and activating the phone are the two areas driving the gap in
satisfaction.
MetroPCS ranks highest in prepaid wireless satisfaction for the first
time since the inception of the study and performs particularly well in
five out of seven factors that drive overall satisfaction: cost of service,
account management, initial activation, brand image, and service plan
options. Also ranking above the industry average are TracFone, Cricket,
Virgin Mobile and T-Mobile To Go, respectively.
"In particular, MetroPCS differentiates itself from the competition in
areas related to the cost of service, account management and service
functions," said Parsons. "From initial account setup and activation to
account management tools and variety of pricing plans available, MetroPCS
provides its customers with important elements that positively impact their
daily service experiences."
The study also finds the following key prepaid wireless usage patterns:
-- Prepaid users spend $40 on average when purchasing additional
airtime -- an increase of $2 from 2007. In comparison, the average monthly
service cost for postpaid customers in 2008 is $76.
-- Prepaid customers report using 233 minutes per month. Conversely,
postpaid customers average 543 minutes per month.
-- Approximately 63 percent of prepaid phones that are prepackaged with
minutes are purchased from retail stores, while an additional 20 percent of
customers report purchasing a prepackaged phone via the Internet.
Approximately 17 percent of customers purchase activated minute cards
separately from their cell phones.
-- Twenty-six percent of prepaid customers refill minutes approximately
once per month, marking a decrease from 29 percent in 2007. An additional
14 percent refill their plan minutes at least twice a month.
The 2008 Wireless Prepaid Customer Satisfaction Study is based on
responses from 3,316 wireless customers who currently subscribe to prepaid
service plans. Findings are based on a continuous fielding period between
February and May 2008. For more information on customer satisfaction with
wireless service, cell phone call quality, wireless retail sales, cell
phone handsets, and business wireless service, please visit JDPower.com.
Overall Wireless Mobile Phone Index Rankings
(Based on a 1,000-point scale)
Provider Overall Satisfaction Score Power Circle Rating
MetroPCS 791 5
TracFone 739 4
Cricket 738 4
Virgin Mobile 732 4
T-Mobile To Go 724 3
Industry Average 719 3
Boost Mobile 717 3
Alltel 700 2
Verizon Wireless 693 2
AT&T GoPhone 689 2
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,
training 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 leading
global information services provider meeting worldwide needs in the
financial services, education and business information markets through
leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than
280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional
information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Media Contacts:
John Tews Syvetril Perryman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
[email protected] [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. http://www.jdpower.com/corporate
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