Fewer Customers Relying on Assistance from Retail Sales Staff

The percentage of salespeople who ask questions or otherwise aid customers in making informed purchase decisions regarding their wireless service has steadily decreased since 2006, according to the latest J.D. Power and Associates Study.

Now in its fifth year, the semi-annual study analyzes evaluations from customers who recently had a wireless retail sales experience. Overall customer satisfaction with major wireless carrier-branded stores is based on four factors. In order of importance, they are: sales staff (51%); store display (17%); store facility (16%); and price/promotion (16%).

Among the 13 key activities measured in the study that could be performed by a wireless salesperson to ensure a positive retail experience (such as greeting the customer or explaining possible extra charges), 10 activities are being performed by salespeople much less frequently in 2008, compared with 2006. For example, the incidence of salespeople showing or providing customers with a local service area map has declined to 58 percent, down 16 percent from 2006. Additionally, the incidence of salespeople explaining the wireless coverage area has declined to 58 percent, a decrease of 12 percent from 2006.

"Continuous change in the wireless industry, including ever-improving products and services, has made it easy for salespeople to overlook the fundamental needs of their customers," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Asking questions about a customerĂ's intended usage and outlining the available coverage areas and service maps can go a long way toward providing a satisfying retail experience and building consumer loyalty."

Overall satisfaction with the retail process decreases dramatically when key activities are not performed or when the appropriate information and sales materials are not provided. Satisfaction is 130 points lower when a salesperson doesnĂ't offer to explain a phoneĂ's operation and 124 points lower when a salesperson neglects to provide literature about the service plan.

"Customers who believe their salesperson was not necessarily acting in a straightforward and honest manner tend to be significantly less satisfied with their wireless retail sales experience," said Parsons. "A poor sales experience is more likely to impact a customerĂ's overall satisfaction with their wireless provider, making it of the utmost importance that salespeople fulfill the customerĂ's core needs—such as leaving the store with an understanding of the services and options covered in the plan purchased and how to use them."

Verizon Wireless ranks highest in customer satisfaction among major wireless carrier-owned retail stores with a score of 715 on a 1,000-point scale, performing well in all four factors that drive satisfaction. Alltel (710) follows Verizon Wireless in the rankings.

The study also finds the following key retail wireless sales transaction patterns:

• The average wireless retail sales transaction takes approximately 60 minutes to complete from the time the customer enters the store to the time the paperwork is finished and the cell phone is received - an increase of four minutes from the last reporting period.
• Satisfaction levels among new wireless customers - those who are switching from another carrier or never previously had wireless service - tend to be lower than those of existing customers. New customers are more likely to be overwhelmed by the breadth of products and services available and may be offered plan options and equipment that may not necessarily suit their needs.
• Retail satisfaction is 15 percent lower among customers who report they were pressured during the sales process. The average overall satisfaction score when customers report experiencing no sales pressure is 722, compared with an average of just 613 when customers say they were pressured.

Posted to the site on 23rd October 2008