AT&T Service Quality & Customer Retention May 9, 2011 Joe Famiglietti Dongcheng (Neo) Niu Yuan (Emma) Li Fengqi (Carrie) Zhang Michele Mammen Zhimin (Cassie) Zheng

The Marketing Problem Which aspects of AT&T’s service should help prevent current iPhone customers from switching to a different service provider?

The Sample

The Sample used Sample size n=61 (plan- 300, actually - 126) Sample characteristicsImplies Gender:50.8 % -male; 49.2%- femaleeven Age:88.6% iPhone Target-customers Years of using internet83.6%- more than 6 yearsiPhone Target-customers Education level90.2 % - bachelor degree or aboveiPhone Target-customers Residential community:37.7%-urban; 62.3%-not citySignal requirement Way of paying85.2 % - onlineOnline system Time of service68.9% minutesImprove efficiency Race:32.8%-white; 59%-AsianLanguage service Annual income:70.5%-below $20,000Price sensitive Occupation52.5%-studentsLimited representativeness

Data Analysis and Findings

Logic Line

Scenarios

Data Analysis Methods Used: Independent-Sample T-test Aiming to determine: Regarding Customer Retention, Recommendation, Purchase Intention, Confidence about AT&T, does overall service being whether high quality or low quality matter? Results: Service quality matters when discussing CR, R, PI, C. Two Groups Dependent Variables

Data Analysis Methods Used: Regression(Factor Analysis) Aiming to determine: What elements are most important to determine each Dependent Variables? Stepwise is powerful!

Data Analysis Results 1: Customer Retention: Quality of Customer Service; Number of Minutes, Texts, Data in Monthly Plan; Flexibility of Service Agreement Recommendation: How to contact Customer Service; Primary Language; Plan Requirements (include Occupation, Number of Minutes, Texts, and Data in Monthly Plan); Internet Requirements (include How long have been using Internet, Quality of Customer Service, 3G Speed, Flexibility of Service) Factor Analysis Concern: sample

Data Analysis Results 2: Confidence about AT&T Service: Quality of Reception; Retail Store Being Organized and Tidy; 3G Speed; Flexibility of Service; Annual Income Purchase Intention: Quality of Reception; Retail Store Being Organized and Tidy; 3G Speed; Marital Status

Marketing Actions

Strategic Marketing Actions: 1 Customer service is extremely important Require longer and more extensive training for AT&T employees Ask management to make sure that employees are listening to consumers and fulfilling their needs

Strategic Marketing Actions: 2 Customers prefer to pay bills online Make paying bills online the only option Enter all consumers into drawings to win monthly prizes

Strategic Marketing Actions: 3 Flexible contract terms favor customer retention More flexible terms for AT&T Customers only Allow customers to alter their plan at any point during the contract Offer no termination fees Offer to convert introductory offers to last for the life of the contract

Strategic Marketing Actions: 4 Reception is key to maintain customer satisfaction Inform customers of improved infrastructure through advertisements Focus on significantly reducing dropped calls Constantly administer customer satisfaction surveys to measure progress and to display AT&Ts efforts Offer discount incentives to customers who live in dead zones

Strategic Marketing Actions: 5 According to data analysis, marital status is the key factors when determine purchase intention of devices supported by ATT.  86.9% is single, 11.5% is married. Using Database Marketing to maintain the existed customers who are married.  Database name: Harland Torche Analyzer  Implement: Use Harland to segment customers into two profile married and single. When send out monthly or promotion letter, coding different message for two profile to better target the married customers.

Strategic Marketing Actions: 6 Retail Store Being Organized and Tidy is one of the key factors for determining the customer’s confidence about AT&T Service Marketing Action: Better organize the store’s phone display Frequently clean the phones on display to enhance the customer’s purchase experience Detail-oriented regarding the cleanliness of the store.

The End