Home phone giants still letting customers down

The latest uSwitch.com Home Phone Customer Satisfaction Report, based on the responses of over 12,000 home phone customers, reveals a reversal of fortune for the UK's home phone industry. Last year saw the sector hit an all time low, with customer satisfaction soured by hidden charges and price rises. This year however, the industry has started to put all that behind it with three quarters (76%) of home phone customers satisfied overall with their provider.

The results indicate that industry initiatives and improvements, such as BT introducing free calls to 0845 numbers, have started to pay dividends. But they also show there is a lot more work to be done by home phone providers, especially around customer service, value for money and ensuring consumers are getting a good deal.

Worryingly, only 59% of customers - just under 14 million - are satisfied with their supplier's customer support services, arguably the area where consumers really get to experience firsthand what a company's service is really like. Less than half of customers (47%), potentially 11 million, believe that their provider has them on the best deal - a real concern in these difficult financial times.

However, consumers have seen a marked improvement in the value for money offered by providers. With suppliers now offering a choice of inclusive packages which can substantially reduce the cost of calls, 75% of customers are satisfied that they are getting good value - a 12% increase on last year.

The report also reveals a growing divide between the level of customer satisfaction given by the larger, established home phone providers and smaller, newer players. For the second year running, the UK's largest home phone providers (BT and Virgin Media) were ranked bottom by consumers, proving yet again that being big does not necessarily mean giving good service. Yet despite the fact that smaller players are ranking top for service time and time again, almost 7.5 million customers have never switched.

Best provider: Sky launched its home phone service almost three years ago. It has now been voted ‘Best Overall Provider' for a second year, with 86% of its customers satisfied with its overall service. Sky Talk has continued to offer great value bundle deals for those who take up its TV service and has backed this up with strong customer service. This is a winner for consumers as 90% of those on bundles have their home telephone included. Sky Talk has swept the board in the uSwitch.com survey once again, winning 8 out of 11 categories including Best Customer Service, Most Likely to be Recommended, Best for Set Up and Best for Ease of Use.

For the fourth time running, TalkTalk has come second for overall customer satisfaction in the poll, satisfying over 8 out of 10 (82%) of its home phone customers, a 3% increase on last year. TalkTalk has won three categories, including Best Value for Money, for the fifth time running. Since the research was carried out, TalkTalk has actually increased its line rental. However, it is set to offer customers free local calls at any time from May and free 0870 and 0845 calls from June.

Tiscali has moved up the poll to joint second in overall service following a 10% drop in customer satisfaction last year. The settling of the migration of Tiscali and Pipex customers has been followed by a 5% improvement in the percentage of customers satisfied with the overall service they receive.

Worst provider: for the second year running, BT has been voted bottom for Overall Customer Satisfaction in the uSwitch.com survey. BT is the UK's largest home phone company with a 46% market share and almost 11 million customers - of which 7.7 million (72%) are satisfied. Although the company showed a 2% improvement in overall service, it has come last in all but 1 of 11 categories, including Value for Money, even though it was the first provider to stop charging for calls to 0845 and 0870 numbers.

The UK's second largest company, Virgin Media, comes second to last with just over three quarters (78%) of its 4.6 million customers satisfied.

Customer Service: overall, 59% of customers are satisfied with the customer support service provided by their home phone company. All the main providers, except Tiscali, have improved on customer service since 2008, leaving Tiscali bottom of the category with only 53% of its customers satisfied. Virgin Media and TalkTalk showed the greatest improvement on customer service since last year with a 9% and 7% increase in the number of customers satisfied respectively. Yet even Sky Talk, which comes top of the class for the second year running, still only sees 64% of its customers satisfied with the customer service they receive.

Last year Virgin Media's customer service rating fell by 4% after a year plagued with price hikes. Just over half of its customers (54%) were satisfied with its customer support. Now its customer service is at a three year high and it has taken the second from top slot. Further price hikes to its ‘M' tariffs have been counteracted with price cuts to its ‘L' and ‘XL' tariffs and it has continued to offer good value bundle packages for customers also taking out its digital TV and broadband services. It has also moved up the tables on Ease of Set Up and Billing Services. However, Virgin Media customers will see an increase in charges of £1.25 per month for paper billing from 1st May 2009. Although this is a green measure, designed to have a positive impact on the environment, the additional cost could be a concern for customers.

Jason Glynn, communications expert at uSwitch.com, comments: "Sky has swept the board for the second year running, showing that the up and coming home telephone providers are here to stay. These newer companies are a force to be reckoned with, easily outperforming traditional players who still hold the majority market share. This is a trend impacting all areas of the communications industry, with new entrants seeing similar results in our recent broadband customer satisfaction report. It is clear that the established providers really need to step up their game if they are to remain in it.

"The good news for consumers is that home phone providers are starting to get things right - customer satisfaction has improved on last year, with almost all suppliers showing some improvement across the majority of categories. This is a step in the right direction, but with providers falling down on customer service, value for money and ensuring consumers are getting a good deal, clearly there is still far more to be done.

"Customer friendly steps, such as BT introducing free calls to 0845 and 0870 numbers, have been very welcome. But consumers will still be concerned by increased line rental costs and being hit by charges for receiving paper bills. While these measures will bring in much needed revenue to companies, it could be at the cost of customer satisfaction and trust built up over many years.

"With younger players ready to nip in and offer superior service it's now up to the 7.5 million customers who have never switched to vote with their feet. Switching home phone provider is a very simple process and shopping around for the best deal could save you up to £250 a year."

The full results can be viewed at uSwitch.com where consumers can compare levels of customer service alongside information on cost and potential savings.

For more information visit, uSwitch.com