TORONTO – Customers with shorter contracts have lower wireless bills and are more satisfied with their service, while SaskTel and Telus’ Koodo Mobile ranked highest in wireless customer satisfaction for the third year in a row, according to a new study released by J.D. Power & Associates.
Among full-service carriers, SaskTel’s score was highest at 727, which was 15 points higher than its 2013 score. The survey noted that SaskTel performed particularly well in terms of network quality, account management, offerings and promotions, customer service, and handset factors.
Koodo Mobile from Telus scored highest among stand-alone carriers with 778 points, up by 13 points from 2013. The wireless provider stood out for its network quality, account management, offerings and promotions, handset, and purchase process.
The 2014 Canadian Wireless Total Ownership Experience Study is based on responses from 12,474 mobile phone customers collected in October 2014 and March 2014. It examines wireless customer perceptions of their service, mobile devices and retail experiences. Satisfaction is measured in seven factors: cost of service; network quality; account management; offerings and promotions; customer service; handset; and purchase process. Carriers are ranked in two segments, full-service and stand-alone, which are differentiated by the range of products and services offered as well as the ability of customers to bundle wireless services with other offerings.
“While the Wireless Code appears to have benefited wireless customers with a reduction in monthly fees, it may put increased financial strain on carriers over time,” said Adrian Chung, account director at J.D. Power, in the report’s news release. “Carriers will need to look for other products and services to make up the losses and generate new revenue streams. Tablets with data packages are starting to take hold, and the average additional spend is $34 dollars per month among those with a connected tablet on their plan, compared to those without one. This is a great opportunity for carriers to leverage.”
Smartphone market penetration in Canada grew to 73% in 2014, up from 63% in 2013. Customers are replacing traditional feature phones across all carriers regardless of plan type.
Other key findings include:
– Overall satisfaction improves by 14 points to 705 (on a 1,000-point scale) in 2014 from 691 in 2013. In the full-service carrier segment, overall satisfaction in 2014 averages 694, compared with 680 in 2013. In the stand-alone segment, satisfaction averages 744, compared with 730 in 2013;
– Nearly one-third (32%) of customers have two-year contracts, compared with 57% who have three-year contracts. Satisfaction is much higher among customers with two-year contracts than among those with three-year contracts (723 vs. 688, respectively), and customers with two-year contracts pay less per month ($76 vs. $81, respectively);
– Sixteen percent of full-service customers indicate they were unexpectedly charged for overages in the past three months. Eleven per cent said their bill is typically not consistent with their expectations;
– Data network quality, measured in problems per 100 connections (PP100), has improved due to 4G rollouts. Year over year, overall problems in network quality have remained stable at 10 PP100; however, data problems among full-service carriers have dropped to 14 PP100 in 2014 from 16 PP100 in 2013. In particular, the number of problems with slow mobile Web loading has declined among full-service customers to 15 PP100 from 18 PP100 in 2013;
– Penetration of connected tablets has reached 7%. Wireless customers with connected tablets spend an average of $101 per month vs. $67 among those who do not have one, a difference of $34.
The chart below ranks how all the full-service and stand-alone carriers included in the J.D. Power study rated in terms of overall customer satisfaction:
Overall Customer Satisfaction Index Scores JDPower.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Full-Service Segment
SaskTel 727 5
Telus Mobility 717 4
Full-Service Average 694 3
Bell Mobility 688 3
Rogers Wireless 674 2
Stand-Alone Segment
Koodo Mobile 778 5
Virgin Mobile 753 4
PC Mobile 752 4
Stand-Alone Average 744 3
Solo Mobile 736 3
Public Mobile 734 3
Fido 729 2
Mobilicity 728 2
Wind Mobile 727 2
Power Circle ratings legend: 5 – among the best; 4 – better than most; 3 – about average; 2 – the rest
