Virgin Mobile Tops US Customer Satisfaction Ranking - Again

Overall customer satisfaction with wireless prepaid service providers has increased considerably since 2006 as customers respond to new service offerings, aggressive pricing strategies and improved network quality, according to a new J.D. Power and Associates study.

The study, now in its second year, measures customer satisfaction with current prepaid wireless service across seven key dimensions (in order of importance): call quality (24%); company image (19%); cost of service (17%); account management (15%); initial activation (11%); service plan options (8%); and customer service (6%).

Overall satisfaction improves by 10 index points since 2006 to 727 on a 1,000-point scale. In particular, the study finds that the availability of new services and more attractive pricing options has contributed to the industry-wide increase. For example, the cost of service factor increases by 21 points -- the largest increase of any factor since 2006. Contributing to the increase in satisfaction with the cost of service are improvements related to the cost/value relationship of airtime minutes offered for the price paid and fairness of charges for calls made while roaming outside the local calling area.

"It's encouraging to see that industry-wide service improvements such as expanded service offerings and aggressive service plan pricing have resulted in higher satisfaction with wireless service experiences," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "However, customer expectations will continue to rise as wireless users increasingly rely on the communication functions of their cell phones beyond voice calling. With the addition of features such as unlimited text messaging and video sharing plans, prepaid service offerings are beginning to match postpaid offerings, which will contribute further to the increase in customer expectations."

The study also finds that call quality improves by 14 index points since 2006 -- particularly regarding connection and quality-related issues such as the perceived size of the local calling area and the ability to place or receive calls inside buildings.

Virgin Mobile ranks highest in prepaid wireless satisfaction for a second consecutive year and performs particularly well in cost of service, account management, initial activation and service plan options. Also ranking above the industry average are AT&T GoPhone, Boost Mobile and T-Mobile To Go, respectively.

"By providing its customers with positive service experiences, Virgin Mobile continues to differentiate itself from the competition in areas related to support functions," said Parsons. "From initial account setup and activation to account management tools that track and update available minutes, Virgin Mobile continues to provide 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 an average of $38 when purchasing additional airtime. Comparatively, the average monthly service cost for typical postpaid customers is $71.
• Prepaid customers report using 218 minutes per month -- less than one-half as much as postpaid customers, who average 528 minutes per month.
• Approximately 59 percent of prepaid phones that are prepackaged with minutes are purchased from retail stores, while an additional 25 percent of customers report purchasing a prepackaged phone via the Internet. Approximately 16 percent of customers purchase activated minutes cards separately from their cell phones.
• The percentage of prepaid customers who use a card provided by their local retailer to purchase additional airtime minutes is equal to the percentage of customers who use the provider's Web site to do so -- 36 percent. Thirteen percent of prepaid customers use their handsets to purchase additional minutes in 2007, which has increased from 10 percent in 2006.

The 2007 Wireless Prepaid Customer Satisfaction Study is based on responses from 2,925 wireless customers who currently subscribe to prepaid service plans. Findings are based on the past two reporting waves, which were conducted in January 2007 and April 2007.

Posted to the site on 23rd August 2007