J.D. Power and Associates Reports: Cox Communications and Verizon Rank Highest in Satisfying Business Customers With Their Telecommunications Data Ser6 April 2006
Among data service providers, Cox Communications ranks highest in satisfying small- and midsize business customers, and Verizon ranks highest in satisfying large enterprise business customers, according to the J.D. Power and Associates 2006 Major Provider Business Telecommunications Data Services Study(SM) released today.
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The study, now in its sixth year, measures customer satisfaction with providers of data services, such as cable modem, DSL, T1, T3/DS3, Ethernet and Frame Relay. For the first time, rankings are compiled in two segments: small/midsize businesses (companies with 2 to 499 employees) and large enterprise businesses (companies with 500 or more employees). Seven key factors are used to measure satisfaction: performance and reliability; billing; cost of service; sales representatives/account executives; company image; offerings and promotions; and customer service.
New to the study in 2006, Cox Communications ranks highest in customer satisfaction with small/midsize businesses. Cox receives the highest ratings in the segment in six of the seven factors included in the study.
Verizon, which includes previous MCI customers after a 2005 acquisition, ranks highest in customer satisfaction among large enterprise businesses. Verizon also receives the highest ratings in six of the seven factors that measure satisfaction and sets the study benchmark in offerings and promotions, company image and cost of service.
The study finds that company image has become particularly important to business customers when choosing a telecommunications provider in both the small/midsize business and large enterprise segments. Image, performance and reliability and sales representatives/account executives are the three most important factors affecting customer satisfaction. Image was the least important factor in the 2005 study. Conversely, customer service, which was among the most important factors in the 2005 study, is now least important among small/midsize and large business customers in the 2006 study.
"As mergers and acquisitions among telecom companies reshape the industry, business customers are increasingly concerned about the long-term stability or 'image' of their data service provider, even overshadowing the importance of more traditional satisfaction influencers, such as cost and customer service," said Steve Kirkeby, executive director of telecommunications and technology at J.D. Power and Associates.
The study also finds that while customers in both the small/midsize and large enterprise segments are spending less on telecommunications services when compared to the 2005 study, small/midsize businesses are still significantly less satisfied with offerings and promotions and cost of services. Satisfaction ratings for the offerings and promotions factor among small/midsize businesses are 54 index points (on a 1,000-point scale) lower than satisfaction ratings among large enterprise businesses, and are 45 index points lower for cost of service.
"While 83 percent of small/midsize business spend less than $1,000 on telecommunications data services in the past year -- an increase from the 65 percent in 2005 -- satisfaction levels associated with cost are consistently lower when compared to large enterprise businesses," said Kirkeby. "These lower levels in spending among small/midsize businesses are not necessarily being translated into a value proposition that is resonating with the overall market. Service providers need to re-open lines of communication with this customer base to insure they don't equate paying less with getting less."
The 2006 Major Provider Business Telecommunications Services Study is based on responses from 6,254 business customers with telecom services at small/midsize and large enterprise U.S. businesses and includes evaluation of their data and voice service providers. Evaluations of voice service providers will be released in late April.
Customer Satisfaction Index Scores
Small/Midsize Business Segment
(Based on a 1,000-point scale)
Qwest 624
AT&T/SBC 667
Sprint 672
Small/Midsize Business Segment Average 674
Verizon 682
BellSouth 684
Time Warner Cable 695
Cox Communications 717
Large Enterprise Business Segment
(Based on a 1,000-point scale)
Qwest 672
Time Warner Cable 690
AT&T/SBC 694
Large Enterprise Business Segment Average 701
Sprint 702
BellSouth 709
Verizon 726
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Media Relations Contacts:
John Tews Peter Dadlani
Director, Media Relations Supervisor, Media Relations
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.com peter.dadlani@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
Source: prnewswire
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