Wireless customers dissatisfied playing the waiting game
Wireless phone customers who call their provider when experiencing a problem are waiting on hold longer than in the past to speak with a service representative, according to the J.D. Power and Associates 2008 Wireless Customer Care Performance Study, Volume 2, conducted by Westlake Village, Calif., research company J.D. Power and Associates.
Now in its sixth year, the semi-annual study examines wireless carrier customer care service in three areas: telephone calls with a service representative and/or automated response system; visits to a retail wireless store; and via the Internet. Within each contact method, processing issues such as problem-resolution efficiency and hold-time duration are also measured.
The study finds that the average amount of time wireless customers spend on hold before speaking with a customer service representative in 2008 is 4.4 minutes, up 34 percent from the average hold time in 2003 (3.3 minutes).
“As customers try new and increasingly complex wireless phone services and products, such as playing MP3 files, capturing still pictures or video or downloading ring tones, they are more likely to call their provider for support,” says Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “Customer care centers and service representatives are under pressure to handle the increase in inquiries, while still trying to understand and resolve the customer’s issue on the initial contact. This can potentially increase the number of transfers and the hold times for customers. With an increase in hold times, providers run the risk of decreasing customer satisfaction and losing customers to other providers, as switching levels are 83 percent higher among customers who are put on hold, compared with those who are not.”
Forty-nine percent of wireless customers have contacted the customer care service center for assistance within the past year, an increase from 47 percent reported six months ago. Additionally, among customers who contacted the service department, 34 percent did so due to service/equipment issues.
Verizon Wireless ranks highest in wireless customer care performance with an index score of 103, followed by Alltel (102), T-Mobile (100) and AT&T (97). Specifically, customers report that Verizon Wireless performs particularly well in resolving problems in one contact.
The study also finds several key wireless customer care patterns: among customers who contact their provider, 75 percent do so by telephone while 24 percent do so by visiting their provider’s retail store. E-mail/Internet interactions account for only 1 percent of customer contacts. The average number of reported phone contacts needed to resolve a customer inquiry is 1.76, down from 1.91 contacts in the last reporting period. Customers who visit the provider’s retail store for service inquiries report waiting an average of seven minutes before speaking with a representative. For more information visit www.jdpower.com.
Future homebuyers likely to be young and minority
The housing boom of 2004-2005 led to a bust that’s worse than most expected. Home prices are still falling, foreclosures rising and homeownership rates are starting to drop. Still, a study from Chicago research company Mintel projects golden opportunities in this dismal market: young adults and minorities. Mintel’s mortgage report suggests echo Boomers (currently aged 13-30) and Hispanic, Asian and black Americans could be key to the real estate market’s turnaround.
“As home prices fall, we see more first-time buyers stepping up,” says Susan Menke. “Those who couldn’t afford to buy during the housing boom - and now have nothing to sell - are taking advantage of lower prices. Lenders should focus on first-time buyers, especially echo Boomers and minorities, to pump life back into the mortgage market.”
Homeownership rates are rising fastest among young adults and minorities. In 2007, nearly 25 percent of Americans under age 25 owned a home, up substantially from 16 percent in 1990. Likewise, 51 percent of Hispanic, black and Asian-Americans owned homes in 2006, a notable rise from 44 percent in 1995.
The study revealed that more young adults and minorities plan to buy a house in the next five years. Though just 23 percent of the general population plans to buy, 38 percent of adults age 18-24 and 39 percent of those 25-34 say they will. Across age groups, more Asians (42 percent), blacks (37 percent) and Hispanics (30 percent) say they will buy a home in the next five years than whites (20 percent).
“Young adults and minorities represent tremendous opportunity,” says Menke. “Echo Boomers comprise a quarter of today’s population and span two decades; minority groups are some of the fastest-growing in the U.S. By helping these individuals prepare for future homeownership, lenders can tap their demographic power and lead them to eventual home-buying success.” For more information visit www.mintel.com.
Americans passing on travel packages
More than 75 percent of Americans say they like to make their travel arrangements themselves, according to a study conducted by London research company TNS Global on behalf of the U.S. Tour Operators Association (USTOA), New York. Only 10 percent said they mostly buy independent tours (an itinerary you can do on your own), and 5 percent said they buy vacation packages (separate elements bundled together). Yet the USTOA has found that travelers save an average 20-30 percent when buying the same arrangements in a vacation package or tour rather than on their own.
“The survey points out that clearly there are tremendous prejudices and misconceptions to overcome about packaged travel versus independent travel,” says Bob Whitley, USTOA president. Whitley points out that many people don’t realize they can buy the same independent arrangements directly from a tour operator or through a travel agent and save money.
Baby Boomers were the most likely to choose packaged travel, with 30 percent of Boomers saying they enjoyed independent touring. This echoes findings of a 2006 USTOA consumer survey, which found that 70 percent of consumers age 55-64 were likely to buy a tour or vacation package because of the savings. The survey also found that attaining a higher level of education is associated with an increased preference for independent touring. Thirteen percent with a college education selected independent touring. For more information visit www.ustoa.com.
The generations judge one another
As generations are grouped and named, it begs the questions of what those in the same age group have in common, or what other people view the generation as having in common. Generation Y (ages 13-31) is seen as the most self-indulgent, Generation X (ages 32-43) most innovative and Boomers (44-62) as most productive. Most admired are the silent (ages 63-83) and the greatest (ages 84+) generations, according to research conducted by Rochester, N.Y., research company Harris Interactive on behalf of San Francisco investment services company Charles Schwab. The results show how very differently people view the different generations, with many people holding strong positive and negative opinions about them.
Baby Boomers (35 percent) are most viewed as having a positive effect on society, followed by Generation X (25 percent). The silent generation (33 percent) and the greatest generation (30 percent) are the most admired generations, followed by Baby Boomers (22 percent). The silent generation (40 percent) and Baby Boomers (33 percent) are viewed as the most generous. The two generations seen as the most productive are Baby Boomers (45 percent) and Generation X (32 percent). A 53 percent majority (including a majority of Generation Y itself) believe Generation Y is the most self-indulgent, followed by Generation X (25 percent). A 41 percent plurality sees Generation X as the most innovative, followed by Baby Boomers (25 percent) and Generation Y (22 percent). There is no consensus as to which generation is most socially conscious, but Baby Boomers (34 percent) and Generation X (26 percent) top the list.
Generation Y would like to rename themselves the “Internet generation” (32 percent). Generation X would choose to rename themselves “generation tech” (25 percent). Baby Boomers are the only generation which seems to really like the name given to them (27 percent). The silent generation would rename themselves the “responsible generation” (44 percent).
These findings show that two widely-held views are false. One is that America is riddled with ageism and that younger people have no respect for older people. While there is surely some prejudice against older people which sometimes leads to age discrimination, the two oldest generations - the silent and the greatest generations - are much more admired than any other generation.
Another common belief, shown to be false in this survey, is that Baby Boomers are seen as particularly self-indulgent or even greedy. In reality, Boomers get higher marks than other generations for being socially-conscious, productive and having a positive effect on society. For more information visit www.harrisinteractive.com.
Ownership of vehicle navigation systems expected to grow
According to results from Farmington Hills, Mich., research company Morpace Inc., over 25 percent of respondents indicate that they currently own some type of vehicle navigation system. The rate of ownership of this technology is highest for married respondents and those earning at least $50,000 annually. Thirty-nine percent of non-owners plan to purchase a navigation system in the future.
Portability is especially important among those who own or are considering a navigation system. Nearly three-quarters of respondents prefer a navigation system that can be moved from vehicle to vehicle versus a system built into the dashboard of their vehicle or a system integrated into a cell phone. Prevention of getting lost is ranked as the highest reason for owning a navigation system. Other important reasons include the convenience of not having to pre-plan a route and the ability to change routes on the fly.
Of those not interested in navigation systems, 36 percent say it’s primarily because they don’t need them rather than because of cost, and 67 percent cite they don’t travel to unfamiliar places often enough or they don’t mind using maps or Internet-based directions. Only 14 percent cite cost as the primary reason. For more information visit www.morpace.com.
Teachers an active and savvy market segment
More than half of teachers have traveled abroad in the past few years, one-fourth of them are always buying the latest high-tech gadgets to hit store shelves and 73 percent of them seek out stores that carry their favorite brand names, according to a report issued by MDR, a Shelton, Conn., education sales and marketing company, based on research conducted by Experian Consumer Research, New York.
Almost 80 percent say that the Internet has influenced how they learn about products, with 49 percent revealing that they have used the Internet to research or obtain information within the past month. The report finds that teachers stand out from the general population because they are more likely to be married, have children and own their own homes. The mean household income for educators is $117,000, compared with the mean household income of $80,900 for the general pool of survey respondents. Sixty-two percent invest compared with 38 percent of the general population, and educators have 403(b) accounts with no preselected providers so teachers are more proactive in their investment decisions compared with other U.S. workers.
Teachers are brand-loyal consumers who are more likely to pay a premium for quality, while still keeping an eye on good bargains. Seventy-seven percent of the teachers surveyed say they would pay more for a high-quality product; 65 percent indicate that they shop for bargains or discounts, compared with just 53 percent of the general public; 75 percent of the teachers surveyed say that they do their homework before making a purchasing decision on expensive items; and 92 percent have and use credit cards once a purchase decision is made. For more information visit www.smrb.com.
Job searchers young, educated, athletic and online
Online job searchers, those adults who have conducted an employment search online during the past month, represent a youthful, educated, racially-diverse group, according to research from Scarborough Research, New York. Online job searchers are 62 percent more likely than the total adult population to be ages 18-34; 23 percent more likely to have at least some college education; and 47 percent more likely to be African-American.
Scarborough also finds that San Francisco and Norfolk, Va., are the leading markets for online job searchers. Sixteen percent of consumers in these markets searched online for employment during the past month, versus the national average of 12 percent.
People already employed full-time or part-time are more likely to conduct online job searches than those who are not employed. While the majority of employed online job searchers are white-collar (68 percent), about one-third (32 percent, or almost 7 million) are blue-collar. Online job searchers tend to come from mid- to upper-income households. Even though they are already well-educated, online job searchers have a thirst for more knowledge or career advancement. They are nearly two-and-a-half times more likely than adults overall to plan to go back to school during the next year and 63 percent more likely to have engaged in an adult continuing education program during the past year.
“Job search Web sites are used daily by all types of people seeking employment, especially the young, educated and currently-employed,” says Gary Meo, senior vice president, digital media services, Scarborough Research. “To differentiate themselves in a crowded marketplace, job search Web sites would do well to understand the job seeker’s desired geography, in both local and expanded job searches. Knowing the local-market characteristics of the job searchers’ desired location can help sites better position their services to both employers and applicants.”
Online job searchers are more likely than other Internet audiences to be avid downloaders of digital content, such as music, television programs, video games and podcasts. In fact, they are heavy Internet users overall, going online to do everything from paying bills and making travel reservations to e-mail and weather.
From a lifestyle perspective, online job searchers are more active and athletic than the average person and considerably more likely to engage in activities such as basketball, jogging, tennis and yoga. They are also more likely to enjoy a wide variety of social events, including attending rock and R&B/hip-hop concerts, visiting art museums and going to the zoo. For more information visit www.scarborough.com.