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Unhappy with Sprint? You're not alone

Posted May 21 2008, 01:33 PM by Kim Peterson
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Sprint Nextel has a problem keeping customers happy, according to the latest numbers from the American Customer Satisfaction Index. Sprint's numbers are so bad, in fact, that the index's founder wonders how the company can even stay afloat.

"Business is unsustainable in a competitive marketplace when customer satisfaction scores are as low as Sprint Nextel's," said the founder, Claes Fornell. Sprint's satisfaction level dropped 8% from last year to 56 on the 100-point index. Verizon scored the best in the industry, at 72. Commenters on this blog regularly slam AT&T for its service, but the company's cell phone division gained 4% to score a 71. You can see the full customer satisfaction index here.

Sprint shares are down 2% today to $9.05 at last check, and telecom stocks in general are heading lower amid broad market concerns. Shareholders have watched Sprint stock plunge 60% since the 2005 purchase of Nextel Communications, and they aren't at all pleased.

"Verizon and AT&T have been eating our lunch," said one shareholder to CEO Dan Hesse at the company's annual shareholder meeting this week. "How did we get into this situation?"

Hesse gave a rather candid answer, saying that Sprint went to the bottom of the barrel for its customers, getting subscribers with lower credit ratings who have problems paying bills. When the economy heads south, those customers are more likely to cancel service or stop paying. AT&T and other rivals were more selective, aiming for customers with better credit.  

Sprint has also been widely criticized for poor customer service, and its customer satisfaction nosedive reflects that. Its high-end customers have been fleeing for other companies.

Sprint is in the midst of a big turnaround, and investors have shown faith by sending shares up over the last two months. The company is pinning its future on a partnership with Clearwire to build out a national WiMax network, one that has the backing of Google and Intel. With so much riding on the future, Sprint shares are worth a look. But those big plans are doomed if the company can't keep customers happy.

Comments

 

It is too bad that unhappy customers cnnot get out of their contracts!

I worked for Sprint and the only problem with them is that their customers don't want to except responsbility for paying thier bills. Most of my days i spent arguing with people about paying thier bills on time in full each month. Also people don't get the fact that a cell phone will have problems and you shouldn't expect a free phone every time you don't like something. READ YOUR SERVICE AGREEMENTS!! It's has really important information in there especially if you are agreeing to 2 years of service with a company.

the only thing thats keeps ppl from completely leaving sprint is nextel and the PTT feature. the service is so bad and the coverage isnt what it used to be before srpint purcahed nextel. and the fact that the phones for nextel are way behind what verizon and att have i havent seen a new phone that is better than my I930 which is a couple of years old.

I stay with Sprint for the good data plan and decent cost per month.  Verizon and AT & T charge significantly more for unlimited streaming.  I use my sprint smart phone for email, internet and other things and am happy with the quality that I've recieved.  I agree that there service is HORRIBLE though.  But sometimes, if you interact with them as little as possible, it's worth keeping a service that works, gives you what you want and only bothers you with their irritating sales calls (which I never recieved with AT&T), and billing calls - (which I may add, I've paid my bill on time save for twice due to oversight by about 3-5 days - they've called both times within minutes of the "due date")  I've been with them for going on three years and don't intend to change unless they raise my rates.

I completely agree with the statement that they shot way to low on the customer base to build their clients off of. Hell, you can get a Sprint phone with no social security number they just put all 9's in for it and you just pay the deposit. This was bound to happen. They keep lowering their sales people's commissions to help compensate the money they are losing and of course the quality of customer service is going to reflect that, their employee's are pissed.  Sprint relied on feature dumping the market with the fastest internet and video phones hoping that would attract customers to them. They do not put nearly the amount of upgrades and maintenance into their service towers that Verizon and AT&T do.

Sprint is fine as long as you don't need to deal with anyone there.  The pricing is fair or better than its competitors and the network performance is decent Sprint (CDMA) side.  You can forget about Nextel (iDEN).  I get coverage where people with AT&T do not.

No way, people blame their Nextel problems on Sprint.  Nextel has always been garbage and since Sprint's purchase of that trash, it has brought Sprint downhill.  ESRP, complete junk and is what leads to poor customer satisfaction.  Wrong expecations and abuse is expected to be covered by ESRP.  iDEN, please... "Please wait while the Nextel customer you're trying to reach is located", what kind BS is that.  Ensemble another pile of trash.  Sprint was way better when they didn't buy Nextel.

another unhappy Sprnt customer is waiting the contract to be expire.

Sprint is where it is because it made the poor decision to purchase Nextel back in 05' instead of going after a carrier like Alltel who would have been a better fit and had like (CDMA) platforms unlike the Nextel iDen platform. Plain and simple, running two seperate networks side by side gets you no where. Then to top it off Sprint had it hands in too many cookie jars (WiMax, MVNO's, cable joint ventures ect.) at once and failed to concentrate on building the CDMA network that made them Sprint in the first place. I could have ran Sprint for millions of dollars less and made far better decisions than the ones that were made. This is not rocket science guys.

Sprint has had a history of trying to buy market share with the "latest and greatest" technology. What they have failed to do since the inception of Sprint is to develop the basic business functions to deliver, bill, maintain quality service  and gain customer confidence in their products. Billing, account management and plain old customer care have been dismal.

Sprint's executive turnover is legend and they have a bad track record of bringing in inexperienced personnel in key executive and management positions. None of their competitors exhibit these problems in executive turnover and incompetence.

L

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