J.D. Power on Smartphone Purchase Habits: People Like to Use Smartphones to Buy Smartphones

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People favor use of their smartphones to purchase wireless devices, according to two studies about smartphone purchase habits released this week by J.D. Power. That channel has surpassed in-store, telephone and others.

“The wireless market is rapidly evolving into a self-contained ecosystem in which all aspects of the ownership experience, from buying the device to engaging with customer support, is done entirely on a mobile device,” said Peter Cunningham, the Technology, Media and Telecommunications Practice Lead at J.D. Power, in a press release. “While in-store customer service is still key for things like explaining data usage and demonstrating device operations, the speed and consistency of the experience delivered via mobile is clearly resonating with mobile customers.”

Smartphone Purchase Habits

The two reports are “J.D. Power 2018 U.S. Wireless Purchase Experience Full-Service Performance Study—Volume 1” and the “J.D. Power 2018 U.S. Wireless Purchase Experience Non-Contract Performance Study—Volume 1.”

The release highlights key findings:

  • Satisfaction highest when making wireless device purchase online via smartphone: Overall satisfaction with the wireless device purchase experience is highest among customers who accessed an online sales channel via smartphone. Overall satisfaction among customers making new wireless device purchases online via smartphone is 857 points (on a 1,000-point scale) vs. 823 among customers who used the online channel via computer or tablet; 842 among those who used the in-store channel; and 836 among those who used the telephone.
  • Wireless purchase experience optimized for small screen: Customers making a new device purchase online via a smartphone spend an average of 10.6 minutes completing their online purchase, compared with 13.7 minutes among those using a computer or tablet. Customers purchasing via smartphone also provide higher ratings for website attributes, such as ease of navigation; appearance of website; and ease of making an order.
  • Stores still important: Among customers using the in-store channel to buy a new wireless device, the key drivers of satisfaction are explanation of how to manage data usage; explanation of the latest technology; and demonstration of device operations and features. Even when customers make the wireless purchase online, overall satisfaction scores are higher when they visit a store prior to making the purchase.
  • Unlimited data still wields influence: When it comes to cost of service, satisfaction is 12 points higher among customers with unlimited data plans than among those with data limits (768 vs. 756, respectively). Combining individual and family plans, the average price paid for a wireless phone increases to $364 from $308 in the 2017 Volume 2 study, and the average monthly service bill increases to $157 from $149.

Customer satisfaction with their carrier is important. J.D. Power ranks T-Mobile highest among wireless full service carriers (with a score of 855), MetroPCS among non-contract full service carriers (858) and Consumer Cellular among wireless non-contract carriers in the value segment (866).

The two studies surveyed 13,344 people who had made purchases with their current carrier during the past three months. The studies were conducted from July to December of last year.