Wireless carrier relationships differ across ethnic groups: Forrester

By Mickey Alam Khan

August 13, 2008

Bruce D. Temkin is analyst at Forrester Research

A new study from Forrester Research claims that wireless carriers' bonds with consumers vary by ethnicity.

The Cambridge, MA-based market researcher surveyed 4,758 U.S. consumers on their overall customer experience and satisfaction with online, store and phone interactions and their plans to stick with their current carriers.

"Hispanics get the most enjoyment from wireless carriers, blacks gave highest marks for phone interactions and Caucasians are the least likely to switch," said Forrester analyst Bruce Temkin in his report with Steven Geller.

While only 62 percent of consumers think that their carriers are enjoyable, 69 percent of Hispanics felt that way. African-Americans were next, at 67 percent.

However, when rating carriers on meeting their needs, African-Americans and multiracial consumers gave their providers the lowest marks, Mr. Temkin said.

"Multiracial consumers also did not think that their carriers were easy to work with," he said.

I can't get no satisfaction
Surveying channels, consumers told Forrester that they were most satisfied when interacting with their carriers on the Web -- 76 percent -- and least when interacting on the phone -- 73 percent. Branch or store interactions got a 73 percent satisfaction grade.

Interestingly, satisfaction rates differ by ethnicity.

African-Americans, for example, are the most satisfied with stores. Seventy-eight percent of this group were satisfied with the store experience.

By contrast, only 68 percent of multiracial consumers were satisfied with their visits to carriers' stores.

The research showed that Asians were most satisfied with phones, at 81 percent. Hispanics came in next at 79 percent, followed by 77 percent of African-Americans who were well above the 70 percent satisfaction level of Caucasians.

At 62 percent, multiracial consumers liked phone interactions with carriers the least.

Asians and African-Americans are the most satisfied with the carriers' Web experience.

Eighty-two percent of Asians and 80 percent of African-Americans were satisfied with Web interactions with their carriers.

Multiracial and Hispanic consumers, at 65 percent and 71 percent, respectively, were the least enamored with the online experience.

Buy buy
Examining loyalty, Forrester's Mr. Temkin noted that three-quarters of consumers would consider buying another product from their current carriers, but only two-thirds of consumers were likely to switch.

Seventy percent of Caucasians are unlikely to switch, according to Forrester, indicating the highest degree of loyalty among ethnic groups.

Asians and African-Americans, both at 51 percent, had the lowest levels of loyalty toward their current carrier. Biracial or multiracial consumers were a tad more loyal than these two groups, at 53 percent.

Also, multiracial consumers are the least likely to buy more, the Forrester survey showed.

For most groups, between 75 percent and 77 percent of consumers were willing to consider their carrier for another repurchase versus 60 percent for multiracial consumers.

What this means is that carriers cannot treat consumers as one monolithic block.

"Asians and blacks have the highest likelihood to switch," Mr. Temkin concludes in his report.

"Blacks give the wireless carriers lowest marks in meeting their overall needs while Asians do not like in-store experiences," he said. "Multiracial consumers also give many aspects of their relationship a very low mark."