TORONTO – Canadians who bundle their television, Internet and telephone services with the same provider are generally happier customers and are likely to recommend their provider to family and friends, according to a J.D. Power report released Thursday.
According to the Television Provider Customer Satisfaction Study, 83% of customers bundle their TV and Internet service with the same provider, while 17% subscribe to just TV service with their telecom provider. Among customers who bundle, 59% also have telephone service with their provider—commonly referred to as a triple-play package.
(The Television Provider Customer Satisfaction Study measures overall satisfaction with television providers based on six factors: performance and reliability; cost of service; programming; communication; customer service; and billing. The Internet Service Provider Customer Satisfaction Study is based on five factors: performance and reliability; cost of service; communication; billing; and customer service.)
Overall satisfaction is highest among triple-play customers (690 on a 1,000-point scale), compared with among TV and Internet bundlers (678) and TV-only subscribers (658). With 19% of customers indicating they “definitely will” recommend their provider, bundled customers also have higher rates of advocacy, compared to those with only TV and Internet service (17%) or TV service only (12%), says the press release.
“Bundling typically provides discounts and has the added convenience of one bill with one provider,” said Adrian Chung, account director at J.D. Power. “These elements are key drivers of higher satisfaction and provide the stickiness that leads to long-term loyalty.”
Triple-play customers pay an average of $165 per month for service, while TV and Internet bundlers pay an average of $156 and TV-only subscribers pay an average of $89. Satisfaction with cost of service is highest among triple-play customers and is lowest among TV-only subscribers.
* Speed Is Key for Internet. Satisfaction with Internet service providers is highest among customers with fibre optic Internet service. These customers also experience the fewest problems but when they do, they are more perturbed than others. “While customers with fibre optic connections are very pleased with the speed and reliability of their Internet connection, they also have very high expectations,” said Chung.
* Among television provider customers, those who subscribe to premium TV service packages have higher rates of loyalty to their provider, as only 16% indicate they “will likely” switch to another provider in the next 12 months, compared with 22% of basic TV subscribers. Additionally, premium package subscribers are more “likely” to purchase additional services from their provider than are basic TV subscribers (36% vs. 29%, respectively).
* More than one-half (52%) of customers subscribe to HD channels; 42% have a PVR/DVR; and 35% use or subscribe to video on demand (VOD). Of these, both overall and TV programming satisfaction are highest among VOD subscribers, compared with the Television Provider Customer Satisfaction Study average.
* The Television Provider Customer Satisfaction Study also finds that 42% of customers view content from a mobile device, such as their tablet or mobile phone; however, overall satisfaction among these customers averages 661, lower than among those who watch from their television only (683).
* In the east, Vidéotron ranks highest in both television customer satisfaction and Internet customer satisfaction. Shaw ranks second (but has a very small presence), while Cogeco ranks third at 685.
* SaskTel ranks highest in both television and Internet service customer satisfaction in the west. MTS ranks second and Telus, third.
The 2013 Canadian Television Provider Customer Satisfaction Study and the 2013 Canadian Internet Service Provider Customer Satisfaction Study are based on responses from more than 10,500 telecommunication customers—more than 4,500 customers in the West region and 6,000 customers in the East region. Both studies were fielded in October 2012 and April 2013
For the full release, click here.
