Three wireless phone service providers – Sprint Nextel, T-Mobile and U.S. Cellular (News - Alert) – are among the 40 companies identified as Customer Service Champions, according to J.D. Power. For businesses, understanding and recognizing which industries, aside from one’s own, provide the highest level of service is key to elevating customer service standards, according to J.D. Power’s industry report titled “Achieving Excellence in Customer Service.”
“To be good in any industry, it makes sense to look at the best practices across industries,” said Gary Tucker, senior vice president of global services and emerging industries at J.D. Power and Associates, in a statement.
“Every day, consumers interact with companies from a myriad of industries,” Tucker said. “Invariably, they compare the quality of these service experiences. Industries and companies should be doing the same if they expect to keep pace in today’s increasingly competitive environment.”
Commoditization in industries due to increased automation, standardization and globalization, makes it more difficult for brands to maintain differentiation based on price alone. In this scenario, the only differentiator will be to offer superior service to customers.
Brands that excel in providing customer service enjoy higher rates of customer retention, pricing advantages and reduced costs to acquire new customers, compared with companies with lower levels of customer service satisfaction, the research said.
Among customers of brands designated as J.D. Power Customer Service Champions, 62 percent said they definitely would recommend the brand to family and friends, while just 23 percent of customers of other companies included in the report said the same.
About 58 percent of customers of J.D. Power Customer Service Champions said they definitely would repurchase products or services from those brands, compared with just 36 percent of customers of other brands included in the report. The Customer Service Champion designation is based on the data obtained from studies conducted in 2010.
The J.D. Power special report is based on customer feedback, opinions and perceptions of more than 800 companies in more than 20 industries, gathered from U.S. J.D. Power studies conducted between 2000 and 2010.In October 2010, J.D. Power entered into partnership with social media technology companies Clarabridge (News - Alert) and NetBase to further expand and enhance its capabilities in digital research.