Smartphones Become Preferred Channel for Buying New Wireless Devices, J.D. Power Finds

COSTA MESA, Calif., Feb. 15, 2018 /PRNewswire/ -- Smartphones have emerged as the purchase channel of choice for new wireless purchases, topping in-store, telephone and all other online channels in driving the highest levels of overall customer satisfaction with the new device purchase experience. That's the key finding of the J.D. Power 2018 U.S. Wireless Purchase Experience Full-Service Performance Study(SM)--Volume 1 and the J.D. Power 2018 U.S. Wireless Purchase Experience Non-Contract Performance Study(SM)--Volume 1, both released today.

"The wireless market is rapidly evolving into a self-contained ecosystem in which all aspects of the ownership experience, from buying the device to engaging with customer support, is done entirely on a mobile device," said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at J.D. Power. "While in-store customer service is still key for things like explaining data usage and demonstrating device operations, the speed and consistency of the experience delivered via mobile is clearly resonating with mobile customers."

Following are key findings of the 2018 studies:

    --  Satisfaction highest when making wireless device purchase online via
        smartphone: Overall satisfaction with the wireless device purchase
        experience is highest among customers who accessed an online sales
        channel via smartphone. Overall satisfaction among customers making new
        wireless device purchases online via smartphone is 857 points (on a
        1,000-point scale) vs. 823 among customers who used the online channel
        via computer or tablet; 842 among those who used the in-store channel;
        and 836 among those who used the telephone.
    --  Wireless purchase experience optimized for small screen: Customers
        making a new device purchase online via a smartphone spend an average of
        10.6 minutes completing their online purchase, compared with 13.7
        minutes among those using a computer or tablet. Customers purchasing via
        smartphone also provide higher ratings for website attributes, such as
        ease of navigation; appearance of website; and ease of making an order.
    --  Stores still important: Among customers using the in-store channel to
        buy a new wireless device, the key drivers of satisfaction are
        explanation of how to manage data usage; explanation of the latest
        technology; and demonstration of device operations and features. Even
        when customers make the wireless purchase online, overall satisfaction
        scores are higher when they visit a store prior to making the purchase.
    --  Unlimited data still wields influence: When it comes to cost of service,
        satisfaction is 12 points higher among customers with unlimited data
        plans than among those with data limits (768 vs. 756, respectively).
        Combining individual and family plans, the average price paid for a
        wireless phone increases to $364 from $308 in the 2017 Volume 2 study,
        and the average monthly service bill increases to $157 from $149.

Study Rankings

T-Mobile ranks highest in overall satisfaction among wireless full-service carriers, with a score of 855. MetroPCS ranks highest among non-contract full-service carriers, with a score of 858. Consumer Cellular ranks highest among wireless non-contract carriers in the value segment with a score of 866.

Now in their 15th year, the semiannual studies evaluate the wireless purchase experience of customers who use any one of three purchase channels: phone calls with sales representatives; visits to a retail wireless store; or online/website. Overall purchase experience satisfaction with both full-service and non-contract carriers is measured in six factors (in order of importance): store sales representative; website; offerings and promotions; phone sales representative; facility; and cost of service.

The 2018 U.S. Wireless Purchase Experience Full-Service Performance Study--Volume 1 and the 2018 U.S. Wireless Purchase Experience Non-Contract Performance Study--Volume 1 collectively surveyed 13,344 customers who made a sales transaction with their current carrier within the previous three months. The studies were fielded from July through December 2017.

For more information about the U.S. Wireless Purchase Performance studies, visit http://www.jdpower.com/resource/us-wireless-purchase-experience-performance-studies.

See the online press release at http://www.jdpower.com/pr-id/2018017.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.


                               Study Rankings
                               --------------


    Full-Service Carriers                            JDPower.com Power Circle Ratings(TM)

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


    T-Mobile                                                                            5

                                              855

    AT&T                                      839                                       3

    Full-Service Average                      838                                       3

    Verizon Wireless                          833                                       3

    Sprint                                    819                                       2


                             Study Rankings
                             --------------


    Non-Contract Full-Service Carriers            JDPower.com Power Circle Ratings(TM)

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


    MetroPCS                                  858                                       5

    Boost Mobile                              853                                       3

    Non-Contract Full-Service Average         851                                       3

    Cricket                                   849                                       3

    Virgin Mobile                             833                                       2


                             Study Rankings
                             --------------


    Non-Contract Value Carriers                   JDPower.com Power Circle Ratings(TM)

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


    Consumer Cellular                         866                                       5

    Non-Contract Value Average                834                                       3

    Net10                                     831                                       3

    TracFone                                  828                                       3

    Straight Talk                             826                                       2




    Power Circle Ratings
     Legend

    5 - Among the best

    4 - Better than most

    3 - About average

    2 - The rest




    Award-Eligible Full-Service Carriers Included in the Study

    Company Name                   Business Leader Name        U.S. Company Address
    ------------                   --------------------        --------------------

    AT&T                           Randall L. Stephenson       Dallas, TX

    Sprint                         Marcelo Claure              Overland Park, KS

    T-Mobile                       John Legere                 Bellevue, WA

    Verizon Wireless               Lowell C. McAdam            New York, NY


    Award-Eligible Non-Contract Carriers Included in the Study

    Company Name                   Business Leader Name        U.S. Company Address
    ------------                   --------------------        --------------------

    Boost Mobile                   Marcelo Claure              Overland Park, KS

    Consumer Cellular              John Marick                 Portland, OR

    Cricket                        Randall L. Stephenson       Dallas, TX

    MetroPCS                       John Legere                 Bellevue, WA

    Net10                          Gustavo Blanco              Miami, FL

    Straight Talk                  Gustavo Blanco              Miami, FL

    TracFone                       Gustavo Blanco              Miami, FL

    Boost Mobile                   Marcelo Claure              Overland Park, KS

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.com
John Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.com

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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SOURCE J.D. Power