Telephony LIVE

Know a service provider that is DEFINING INNOVATION?

Nominate a service provider today for the Telephony Innovation Awards, to be held at Telephony LIVE: The 2008 Telecom Summit!

Learn more or Nominate!

         Subscribe in NewsGator Online   Subscribe in Bloglines

Survey calls for customer experience overhaul

more on the topic

More Related Articles

When Forrester Research asked nearly 5,000 consumers about their interactions with a variety of companies to gauge the usefulness, usability, and enjoyability of their experiences, wireless carriers kept coming up short. Consumer feedback indicated that wireless customers are largely displeased with their carriers across the board. The survey, however, also showed they are even unhappier with both their Internet and television service providers.

Forrester used the survey findings to calculate a Customer Experience Index (CxPi) for 112 firms spanning nine industries. With a CxPi of 66%, wireless carriers came in fifth in the industry rankings. Internet providers came in third to last on the list of nine with a CxPi of 62%, and TV service providers followed, beating out only medical insurance providers, at a CxPi of 60%.

In order of overall CxPi, the wireless carriers ranked included Virgin Mobile, Alltel, T-Mobile, Verizon Wireless, TracFone, AT&T, Nextel and Sprint. Only the top three wireless carriers received "excellent" ratings in usefulness, and not a single carrier was considered particularly enjoyable to work with. In fact, Virgin Mobile and T-Mobile barely scraped by with "okay" ratings, while Sprint, Nextel and TracFone all scored in the "very poor" level.

Forrester analyst and report author, Bruce Temkin, noted that if you remove Virgin Mobile from the mix, the industry would actually fall near the bottom of the list of all nine industries. As wireless handsets add more applications and features and smart phones become more pervasive, wireless carriers’ biggest problem was in ease of use.

Sprint, however, fell behind in all categories, including cross-channel experiences, an area studied in earlier reports. Temkin recommended a radical overhaul of customer experience efforts for Sprint as it comes off a rocky year of financial troubles and WiMAX woes. Temkin also called for a strong commitment from the CEO, a spot temporarily filled by Chief Financial Officer Paul Saleh, until the company replaces the position vacated by Gary Forsee in October.

“While Sprint received the lowest scores in all three areas of the CxPi, it ran into the most problems with ease of use -- where it was rated well below every other wireless provider,” Temkin said in an email interview. “It's hard to tell the cause and effect with customer experience. Certainly a poor customer experience will hurt business. But sometimes, companies take their eye off of key customer-facing processes when their business is struggling, which can create customer experience problems. This can cause a real downward spiral.”

While the survey didn’t provide a report card for AT&T and Verizon’s IPTV service offerings, it did rank eight satellite and cable operators in its survey of television providers. DirecTV scored highest, and at the other end of the spectrum, two firms, Charter Communications and Cablevision/Interactive Optimum ended up with “very poor” overall ratings. Ease of use and usefulness aside, most consumers said they are simply not enjoying their television service. All TV providers scored in the “very poor” range for enjoyability.

Charter Communications continued its losing streak in the Internet provider realm coming in last across the board. Overall, BellSouth, now part of AT&T, topped the list and Earthlink was voted the easiest to do business with.

As wireless, TV and Internet technologies continue to evolve, the results seem to indicate that either consumers are expecting too much or service providers and carriers are failing to deliver. Temkin’s determination, at least as far as service providers are concerned, is that it is time for the industries to undergo a complete customer experience overhaul.

“When it comes to customer experience, these firms should stop benchmarking each other, unless their goal is comparative mediocrity,” he said in the report. “If service providers want to break out of their customer experience funk, they need to look outside of their industry for best practices to emulate. This will take a significant effort, as it will require considerable shifts in the firms’ processes and cultures.”

Get Updates Via Email

related resources

popular articles

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

White Papers

WHITE PAPER

Network Evolution to SIP-based Networks: Migration Strategies for Success

This paper explores the benefits of optical control plane functionality for service providers. You’ll learn the benefits of Ciena's CoreDirector, the first intelligent optical switch. DOWNLOAD NOW

Podcasts

PODCAST

A NXTcomm08 Podcast: George Dobrowski, Broadband Forum

George Dobrowski, chairman and president of the Broadband Forum, speaks with Associate News Editor Sarah Reedy about the broadband industry and its relevant themes at NXTComm08. LISTEN

Blogs

BLOG

What happened at NXTcomm08

Recuperating from the big show, here are some reflections on some of the more prominent themes amid activity at the show... READ

E-Books

E-BOOK

READ E-BOOK: MANAGING THE CUSTOMER EXPERIENCE

This e-book explains how to keep your customers happy, reduce churn and strengthen profits. Sponsored by CA’s Wily Technology Division. READ NOW!

Events

FEATURED EVENT

NXTcomm08: News from the show as only Telephony can deliver!

The editors of Telephony have all the news from NXTcomm08, including keynote recaps, podcasts, video interviews and much more! Visit nxtcommnews.com.

TV

TV

Interview with Jim Hansen of Embarq at NXTcomm08

Tune in to Telephony TV to watch an interview with Embarq's Jim Hansen at NXTcomm08. WATCH IT NOW.

  • Telephony Content
  • Telephony Content

current issue

Current Issue

June 30, 2008

Telecom's top execs had lots to say at NXTcomm08 -- our editors covered every word. Read Now

Telephony Innovation Awards

The second annual Telephony Innovation Awards recognize service providers who have developed unique or first-to-market offerings that either utilize technology or address customers’ needs in a new way. Nominate a service provider for this distinctive award!
Learn more or
Nominate

NXTcomm08 Show Daily News

Get up-to-the-minute news from NXTcomm08 -- before, during and after the show! Hear interview podcasts, announcements, commentary and more. Visit www.nxtcommnews.com!

more news

Global >>

MORE

Ethernet >>

MORE

Independent >>

MORE

IPTV >>

MORE

IMS >>

MORE

WiMax >>

MORE

VOIP >>

MORE

FTTX >>

MORE

Access >>

MORE

Broadband >>

MORE

Wireless >>

MORE

Software >>

MORE

Podcasts >>

MORE

Get Updates Via Email

Browse Issues

  • June 30, 2008
  • Jun 16, 2008
  • May 19, 2008
  • May 5, 2008
  • Apr 28, 2008
  • Apr 14, 2008
  • Mar 31, 2008