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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
Photo:http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a
http://photoarchive.ap.org/
J.D. Power and Associates
Web Site: http://www.jdpower.com
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
Photo:http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a
http://photoarchive.ap.org/
J.D. Power and Associates
Web Site: http://www.jdpower.com