Mobile subscriber loyalty falling
Nearly 40% of mobile subscribers are ready to churn to a new mobile operator, and just 24% are completely loyal to their current provider, according to an NSN survey.
The survey shows that 39% of customers are likely to switch operators, up 20% from the prior year.
Only 24% indicate that their current network is the only one they would consider using, while 46% said it is their preferred choice, but not the only one they would consider.
The remainder indicated that their current provider is either not a network they plan to stay with, or only one of several options they would consider.
The study polled mobile subscribers in India, South Korea, Japan, the UK, the US, Denmark, Brazil, Colombia and Russia.
“Many factors affect the reasons why customers choose to stay with their operators. Globally, voice quality, network coverage and calling rate structures have the greatest impact on customer loyalty,” NSN head of portfolio marketing Phil Twist said.
On the bright side, subscribers globally are quite satisfied with voice quality and network coverage.
But the current global economic situation has increased cost-consciousness among consumers, the study notes, which is impacting their attitudes towards pricing of mobile services and customer loyalty.
The survey also suggests that mobile subscribers are willing to pay for quality. Nearly 30% of subscribers in mature markets are willing to pay more for mobile services, and 47% of respondents globally said operators should offer excellent network quality, even if it means charging a higher price.
Finally, two thirds of subscribers in emerging markets can now be classified as heavy users of mobile services, meaning they use at least two types of data or value added services – such as email, web browsing, LBS or mobile payment – at least once a week.