Price of Residential Internet Drives Customer Choice, J.D. Power Finds
Fixed and wireless broadband customers cited price as the number one reason they would switch service providers in a new J.D. Power study. The report analyzes consumer sentiment and operator achievement across five categories: performance and reliability, cost of service, billing and payment, communications and promotions, and customer care. Ian Greenblatt, managing director at J.D. Power, said the first two categories alone account for nearly 60% of an operator’s score. "So obviously keeping the lights on is job number one. It’s got to work, it’s got to work all the time. Reliability is critical…followed by the cost of service,” he said. “How do I feel about the value I get for the dollars I pay? Does it feel like I’m getting the right deal, do I feel like I’m getting taken advantage of?” He added consumers seem most satisfied if their service cost $70 per month or less. After that “we see a meaningful drop off” in satisfaction, Greenblatt noted. Practically speaking, that means most consumers are shopping operators’ mid-tier plans. On the reliability front, Greenblatt noted there’s a huge satisfaction gap between those who experience intermittent internet signal problems and those who don’t.
Price of Residential Internet Drives Customer Choice, J.D. Power Finds $70 is the magic number for internet pricing, J.D. Power says