Broadband customer service disappoints
Broadband bills are 4% lower than last year and speeds 33% faster. But when it comes to customer service, the UK's largest independent broadband customer satisfaction survey reveals that firms are still failing to deliver.
The 2010 Broadband Customer Satisfaction Report from uSwitch.com reveals that the relationship between customers and broadband firms remains a love-hate affair. The survey, based on responses from over 7,500 broadband customers, shows the biggest ever customer service gap (35%) between the best and worst providers. Bills have dropped 4% and speeds have jumped 33% since 2009, yet over 2 million broadband customers (13%) are still not satisfied with their customer service.
The annual broadband bill is now £167, down from £175 in 2009. And, according to the poll, the average speed received by customers has jumped from 4.2Mb to 5.7Mb. But, while overall broadband satisfaction has climbed 2% from 77% to 79%, just 62% of customers are satisfied with customer service. O2 scores an impressive 79% in this category, but Orange's score of just 44% means that less than half its customers are satisfied.
The report paints a picture of a polarised market in which newcomers 02, Plusnet and Sky, are setting the pace at the top of the table, whilst more established providers, AOL, Orange and BT, are languishing at the bottom of the satisfaction stakes.
Best broadband - O2 has kept its position at the top of the table for the second year running scoring the same impressive score of 92%. Entering the broadband market less than three years ago, O2 has shown older rivals a clean pair of heels winning 10 out of the 11 awards, including Best Value for Money, Best Customer Service, Best Technical Support and Best Quality of Connection. O2 conducts a speed check on customers' lines before and after purchase and offers free, UK-based, 24/7 customer service. Over 250,000 new broadband customers have signed up over the last 12 months, bringing its base to almost 600,000. The imminent launch of its home phone service will give those impressed by its broadband the option of taking a bundle - £17 a month will provide up to 8Mb broadband, line rental and free evening and weekend calls.
Worst broadband - Despite a brief respite last year, Orange is back at the bottom again scoring 70% for overall satisfaction. Less than half (47%) of its one million customers would be willing to recommend its broadband to a friend, and almost 1 in 4 (24%) are dissatisfied with the level of customer service. The mobile network started offering fixed-line broadband in 2005 and installed its own equipment in telephone exchanges to support this. However, the network has been plagued with service problems and, in a bid to turn things around, Orange has just appointed BT to take over operations.
Biggest Climber - AOL has pulled itself up from last year's position at the bottom of the ranks. With a 6% improvement in overall satisfaction scores it is this year's biggest climber and is now 7th out of the 9 providers in the survey with 72% of customers satisfied.
Biggest Faller - TalkTalk's score drops 3% with 77% of its customers now satisfied overall. However, it appears that the drop could be an after-shock of the 2009 Tiscali acquisition. Former Tiscali customers gave their new provider an overall score of 72%, while the TalkTalk ‘thorough-breds' gave a score of 82%. The company will now be working hard to smooth out any teething problems to turn around customer opinion amongst the Tiscali base.
Value for Money - The 30% difference between the best and worst performers in the Value for Money category shows how important it is for consumers to shop around for the best broadband deal. While O2 scores a record-breaking 93%, BT scores just 63%. In fact, almost 1 million BT customers are not satisfied with the value for money offered by its broadband service. When it comes to cost, O2 mobile customers can sign up to O2's 8Mb broadband service for as little as £7.50 a month - while BT broadband starts at £15.99 a month for up to 20Mb.
Speed - Britain's dependence on broadband is such that consumers now cite speed and a reliable connection as more important than price when choosing a broadband service. However, overall satisfaction with speed has dropped from 73% to 71% suggesting that providers are failing to keep apace with the content-rich applications now available to consumers.
Lowest overall scores are seen in the category ‘Best Deal for You', assessing whether customers feel their provider has placed them on the most appropriate plan. On average, just 49% of broadband customers are satisfied that this is the case, leaving almost three million (17%) customers feeling short-changed.
Matthew Wheeler, communications expert at uSwitch.com, comments: "This is not rocket science. The continued success of O2 shows that an excellent service does not have to cost the earth. Its broadband service is one of the cheapest on the market but its customer service is head and shoulders above its rivals. Plus, O2's customers can enjoy broadband for less than half the price of BT if they sign up to a mobile deal, demonstrating the added value that's possible by being with the same provider for more than one service.
"It is disappointing that, after pulling up its socks last year, Orange has failed to keep up the momentum, coming bottom for the fourth time since the start of our survey. The expanding gap between the best and worst provider shows just how important it is for consumers to choose on service and not just price. If the larger providers languishing at the bottom don't address their failings, we could well see a significant swing in market share in the coming year as people vote with their feet and switch to one of the high performing newcomers."