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Wireless Providers Making Modest Progress in Improving Customer Service
Posted: 01-Dec-2005 [Source: In-Stat]

[In-Stat finds wireless providers are making some progress in reducing customer churn and complaint rates.]

Scottsdale, AZ -- Wireless service providers are having some success in reducing customer service churn and complaint rates, but they still have significant challenges ahead, reports In-Stat. About one in eight wireless customers considered their wireless carrier's customer service "excellent," although the results for individual U.S. carriers ranged from a low of 7% to a high near 21%. The high-tech research firm found several customer service topics that received praise and complaint for each wireless carrier regarding hold times, service policies, first-call problem resolution, and customer service representative attitude. These findings are the result of an In-Stat survey of U.S. wireless subscribers and of extensive interviews with key wireless industry insiders.

"Customer service efforts appear to be contributing both to churn rate reduction, a key factor in company financial performance, and in the reduction of the relative complaint rate," said David Chamberlain, In-Stat analyst. "Nevertheless, a substantial number of subscribers are, or could soon become, defectors."

A recent report by In-Stat found the following:

* In most cases, satisfaction with customer service nearly mirrors subscribers' overall attitude toward the carrier.

* Efficient handling of billing problems is now considered one of the best parts of the customer service experience. Lengthy hold times and one-call resolution are the worst.

* Customers are indifferent about Web-based or voice-response self-care initiatives.

* Both the newest and longest-term customers are the least likely to churn. However, among those in the middle -- customers who have been with the carrier from one to two years -- more than 25% indicate they probably or definitely will switch to another carrier.

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