TORONTO – While wireless carriers across Canada are beginning to reopen some of their retail stores, a new report from J.D. Power says there was an emerging traffic decline even before the Covid-19 crisis.
(Ed note: This makes sense as the carriers, also prior to the pandemic, were working hard to shift sales to their online channels.)
Canada’s wireless carriers rely on that channel for much of their sales volume but customer traffic for in-store purchases had declined to 51% from 56% in 2019. This casts a shadow over future in-store purchases in the Covid-19 era, says the research company’s release.
However, there is a high level of satisfaction shown by shoppers in the survey.
The study this year finds that overall satisfaction with the shopping experience at carriers’ retail locations is higher than at non-carrier stores (800 vs. 795, respectively, on a 1,000-point scale – see image below), yet customer satisfaction declines with store facilities (-6 points) and with store sales representatives (-8) compared with 2019.
“The in-store purchase experience remains more satisfying compared to phone and web purchase channels, and contributes to a more positive brand image in the eyes of customers,” adds the release.
“The role of retail stores will remain critical for carriers in retaining customers, attracting new ones and building their brand,” said Adrian Chung, J.D. Power’s director of the technology, media and telecom practice. “With fewer shoppers visiting carriers’ brick-and-mortar locations, the prospect of a redesigned shopping experience in a new retail environment will offer opportunities to sharply focus on meeting customer needs and elevating their purchase experience while continuing to adhere to public health guidelines.”
The study also showed a disparity in the in-store experience between new and current wireless customers. While both groups cite a higher satisfaction level when shopping at a retail store versus shopping on a carrier website or on the phone, new customers are more satisfied with the overall store experience (812) than are current customers (795). New customers also have higher satisfaction with the price of the new device or plan (721) than do current customers (678).
Virgin Mobile ranks highest in overall satisfaction with the purchase experience with a score of 820. Koodo Mobile (816) ranks second and Videotron (802) ranks third. Overall satisfaction is 795, a slight increase from 793 in 2019.
The 2020 Canada Wireless Purchase Experience Study examines wireless carriers’ performance across sales-related activities in stores, over the phone and online. Satisfaction is measured in six factors: store representative; online purchase; phone purchase; facility; offerings and promotions; and cost of service. The study is based on responses from 5,249 wireless customers with a postpaid plan from an eligible carrier and who have had a purchasing experience in the past six months. The study was fielded In February-March 2020, explains the release.
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