J.D. Power and Associates Reports: Customer Expectations for Data Speed Drive Satisfaction with Internet Service Providers

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J.D. Power and Associates Reports: Customer Expectations for Data Speed Drive Satisfaction with Internet Service Providers

Cox Communications, Verizon and WOW! Each Rank Highest in Customer Satisfaction in Their Respective Regions

WESTLAKE VILLAGE, Calif., Oct. 27, 2011 /PRNewswire/ -- As customers' thirst for bandwidth increases, the ability for Internet service providers to meet or exceed those speed expectations is a key driver of overall customer satisfaction, according to the J.D. Power and Associates 2011 U.S. Internet Service Provider Residential Customer Satisfaction Study(SM) released today.

(Logo: http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

Now in its 14th year, the study measures customer satisfaction with high-speed Internet service based on five factors: performance and reliability; cost of service; billing; offerings and promotions; and customer service.

The study finds that the Internet speed customers expect to receive from their service provider is achieved 69 percent of the time and is exceeded 17 percent of the time, while 14 percent find their Internet speed to be below expectations.

"With streaming video continuing to grow in popularity, supporting customer demand for bandwidth and download speeds presents many challenges for the industry," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "The importance of meeting these challenges is clear: customers are considerably more satisfied when their expectations are met or exceeded."

Satisfaction averages 755 on a 1,000-point scale among customers who consider their Internet speed is better than expected--129 index points higher than the industry average.

The study finds that the proportion of customers who contact customer service has increased by 8 percentage points from 2010 to 39 percent in 2011. In addition, the number of customers reporting an outage has increased year over year to 34 percent from 27 percent.

"The financial implications of outages are significant," said Perazzini. "Among customers who experience an outage, the percentage who say they 'probably will' or 'definitely will' switch providers in the next 12 months is 21 percent, compared with only 15 percent of those who did not experience an outage."

The study also finds that the percentage of customers who contacted customer service by telephone has increased to 92 percent in 2011 from 81 percent in 2010.

"Service providers have apparently lost some of the operational efficiencies they realized in 2010," said Perazzini. "Although the average cost of a customer contact varies across carriers and the reasons for contact, handling a telephone call is enormously more expensive than any other mode of customer contact."

High-speed Internet service providers are examined in four regions:

East Region: Verizon ranks highest with a score of 640 and performs particularly well in three of five factors: offerings and promotions; cost of service; and performance and reliability. Cox Communications follows in the regional rankings with a score of 635, while AT&T ranks third with a score of 626.

South Region: With a score of 665, Verizon ranks highest in the region and performs well in two factors: performance and reliability as well as offerings and promotions. Bright House Networks' Roadrunner service follows in the rankings with a score of 658, while Cox Communications ranks third with a score of 654.

North Central Region: WOW! ranks highest in the region with a score of 708, performing particularly well in all five factors driving satisfaction,. Insight Communications follows with 651, while AT&T ranks third with 642.

West Region: Cox Communications ranks highest in the region with a score of 645 and performs particularly well in performance and reliability; billing; and offerings and promotions. Following Cox in the regional rankings are Verizon (632) and Xfinity service from Comcast (619).

The 2011 Internet Service Provider Residential Customer Satisfaction Study is based on responses from 23,098 residential customers of Internet service providers nationwide. The study was fielded in four waves: November 2010 and in January, April and July 2011.

    Customer Satisfaction Index Ranking
    East Region
    (Based on a 1,000-point scale)

                                   Index       JDPower.com Power Circle
    Provider                       score       Ratings
    --------                      ------       -------------------------
                                                For Consumers
                                                -------------
    Verizon                              640                           5

    Cox Communications                   635                           4

    *East Region Average Major
     Provider                            627                           3
    AT&T                                 626                           3

    Optimum Online (Cablevision)         616                           2
    Time Warner Cable                    612                           2
    RCN                                  609                           2
    Frontier                             608                           2
    Charter Communications               603                           2
    XFINITY (Comcast)                    603                           2
    *The Major Provider Average for this region includes only those
     carriers with market share of 1.9% or greater.

    South Region
    ------------
    (Based on a 1,000-point scale)
    ------------------------------

                                 Index       JDPower.com Power Circle
    Provider                     score       Ratings
    --------                    ------       -------------------------
                                              For Consumers
                                              -------------
    Verizon                            665                           5
    Bright House Networks              658                           5

    Cox Communications                 654                           4
    Suddenlink                         639                           3
    Insight                            637                           3
    Windstream                         637                           3
    AT&T                               635                           3
    *South Region Major
     Provider Average                  634                           3
    CenturyLink                        626                           3
    Time Warner Cable                  621                           3
    XFINITY (Comcast)                  606                           2
    Charter Communications             580                           2
    *The Major Provider Average for this region includes only
     those carriers with market share of 1.9% or greater.

    North Central Region
    (Based on a 1,000-point scale)

                                 Index       JDPower.com Power Circle
    Provider                     score       Ratings
    --------                    ------      -------------------------
                                              For Consumers
                                              -------------
    WOW! (Wide Open West)              708                          5

    Insight                            651                          4

    AT&T                               642                          3
    Bright House Networks              636                          3
    Cincinnati Bell (ZoomTown)         632                          3
    *North Central Major
     Provider Average                  629                          3
    CenturyLink                        616                          3
    XFINITY (Comcast)                  608                          3
    Time Warner Cable                  606                          3

    Frontier                           591                          2
    Charter Communications             574                          2
    *The Major Provider Average for this region includes only
     those carriers with market share of 1.9% or greater.

    West Region
    (Based on a 1,000-point scale)

                                 Index       JDPower.com Power Circle
    Provider                     score       Ratings
    --------                    ------      -------------------------
                                              For Consumers
                                              -------------
    Cox Communications                 645                          5

    Verizon                            632                          4

    XFINITY (Comcast)                  619                          3
    Qwest                              615                          3
    *West Region Major
     Provider Average                  612                          3
    CenturyLink                        609                          3
    AT&T                               598                          3

    Time Warner Cable                  589                          2
    Charter Communications             585                          2
    Mediacom                           559                          2
    *The Major Provider Average for this region includes only
     those carriers with market share of 1.9% or greater.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. 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

McGraw-Hill is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor's, S&P Capital IQ, S&P Indices, Platts energy information services and McGraw-Hill Education. With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries. On September 12, 2011, the Corporation announced its intention to separate into two public companies - McGraw-Hill Markets (working name), primarily focused on global capital and commodities markets and McGraw-Hill Education focused on digital learning and education services worldwide. Additional information is available at http://www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contacts:
John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; media.relations@jdpa.com

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

SOURCE  J.D. Power and Associates

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J.D. Power and Associates

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