Carrier Evolution

Both Generation Y and Pre-Boomer (Millennial) customers are significantly more satisfied with their home telephone service than customers in other generational groups, according to J.D. Power and Associates.

J.D. Power and Associates defines “Pre-Boomers” as people born before 1946; Baby Boomers as born 1946-1964; Generation X as born 1965-1976; and Generation Y as born 1977-1994)

The study measures customer satisfaction based on performance and reliability; cost of service; billing; offerings and promotions; and customer service.

Overall satisfaction among Pre-Boomers with their residential telephone service is 709 on a 1,000-point scale, compared with 690 among Gen Y (Millennial) customers.

The average overall customer satisfaction is 682. In addition, Pre-Boomers and Millennial customers are significantly more satisfied with their phone service than are customers in the Gen X (667) and Baby Boomer (678) generational groups. according to J.D. Power and Associates.

Pre-Boomers are satisfied with their phone service because it is reliable, while Gen Y customers are satisfied because of their ability to bundle other services such as cellular phone service and high-speed Internet.

While the majority of Pre-Boomers are unlikely to switch providers, nearly one-fourth of Millennials are likely shop around for a different provider.

“Pre-Boomers tend to take an ‘if it’s working, why switch’ approach to their telephone service, while Gen Y customers are not afraid to switch and will consider a provider offering a less expensive alternative,” says Frank Perazzini, J.D. Power and Associates director of telecommunications.

Some 22 percent of Millennial customers indicate they “definitely will” or “probably will” switch phone service providers, compared with just 11 percent of Pre-Boomers.

Among Millennial customers who are willing to switch, 72 percent say they are willing to switch for a better price, compared with 60 percent of Pre-Boomers who say the same.

In addition, the study finds that 57 percent of Millennial customers say it would be “extremely easy” or “somewhat easy” to switch their phone service, compared with 51 percent of Pre-Boomers who say the same.

While Millennial customers have a high propensity to switch providers, they also present the greatest opportunity for growth. Among Millennial customers, 41 percent indicate they will buy additional products from their provider, compared with 31 percent of Gen X customers, 25 percent of Baby Boomers and 21 percent of Pre-Boomers.

About 12 percent of Millennials are interested in bundling home security services with their telephone service. Some 11 percent of Gen X customers, nine percent of, Baby Boomers and seven percent of Pre-Boomers have such interest.

Some 21 percent of Millennial customers use online video chat, compared with 13 percent of Gen X consumers, nine percent of Baby Boomers and seven percent of Pre-Boomers.