J.D. Power and Associates Reports:
DIRECTV and WOW! Lead the Regional Cable and Satellite Customer Satisfaction Rankings
Popularity of Bundling Drives Importance of Reliable Service
WESTLAKE VILLAGE, Calif.: 15 August 2007 — DIRECTV ranks highest in customer satisfaction in three regions and WOW! ranks highest in one region among cable and satellite providers, according to the J.D. Power and Associates 2007 Residential Cable/Satellite Satisfaction StudySM released today.
The study measures customer satisfaction with cable and satellite TV providers in four regional segments: North Central, East, West and South. Within each segment, six factors are measured to determine overall customer satisfaction: performance and reliability; customer service; cost of service; image; billing; and offerings and promotions. Customer satisfaction with cable/satellite provider performance is reported as an index score based on a 1,000-point scale.
DIRECTV—represented in all four regional segments—ranks highest in the East (with an index score of 690), West (675), and South (682) regions. Although the provider ranked highest in the 2003 and 2004 studies, 2007 marks the first year that DIRECTV leads in the West and South regions, and the second consecutive year it ranks highest in the East since the study was changed to a regional study. Additionally, DIRECTV makes considerable improvement in the performance and reliability factor in 2007.
In the North Central region, WOW! ranks highest for a second consecutive year with an index score of 729 points, the highest satisfaction score in the study and 21 points higher than the provider's 2006 score. WOW! performs particularly well in the North Central region in all six factors driving overall satisfaction.
The study finds that as service options become more complex and multiple products are bundled into one bill with greater frequency, the importance of performance and reliability has increased considerably among cable/satellite customers—from 19 percent in 2006 to 24 percent in 2007. In addition, service reliability is the most frequently cited reason to switch carriers, with more than 80 percent of customers reporting they would switch for this reason.
"The cable/satellite market has shifted to a service model based on the voice, video and data triple play," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "As providers focus on putting this new model into practice, service reliability—which includes reception clarity and minimizing the number of outages—is critical in maintaining a satisfied customer base."
Currently, 24 percent of cable subscribers are bundling voice, video and data services with their provider on a single bill. Future intention to bundle is also strong among cable customers, with 34 percent indicating they "definitely/probably" would combine all their services—an increase from 33 percent in 2006. Satellite providers that offer voice, video and data bundles though strategic alliances with telephone companies also experience increased demand from customers, as 41 percent of satellite subscribers indicate they will "definitely/probably" would combine all their services, compared with 39 percent in 2006.
"We've reached a point where the economics of bundling can't be ignored, and customers are evaluating features and prices and making informed decisions based on their needs and usage patterns," said Perazzini. "While satellite providers in particular face challenges with offering bundled service options—as they are typically not equipped with the same level of technology as cable providers—their strength lies in the reliability of their service. This is most evident in the regional performance of DIRECTV."
The study also finds that 60 percent of satellite and 52 percent of cable customers visit their providers' Web site—up from 53 percent and 41 percent, respectively, in 2006. Nearly one-half of customers use the Internet to pay their bill—47 percent of satellite customers and 48 percent of cable customers.
The 2007 Residential Cable/Satellite Satisfaction Study is based on responses from 17,033 U.S. households that evaluated their satellite or cable TV provider. Fielding for the study was conducted in April 2007.
To view cable and satellite TV provider ratings visit JDPower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
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Won it this year, last year.......
- 7 times, and what BS are you talking about? The fact that I don't agree with you or even sympathize with you makes you want to convince people I'm the one trying to mislead them?
