New survey results from Strategy Analytics suggests that 75% of existing broadband subscribers would be willing to switch to a new service provider. According to the findings, Time Warner Cable is most vulnerable to subscriber defections, while Cox has the most secure customer base. Telcos are vulnerable to competing services that offer faster speeds. The hypothesis is worth noting since pure growth in broadband appears to be slowing, so broadband service providers (BSPs) will increasingly be eyeing each other’s customers for subscriber growth.
The findings also identified customer service as having a growing importance for customers. “The implications for BSPs are clear,” noted John Lee, Analyst in the Strategy Analytics Digital Consumer Practice in a press release. “In this highly competitive and commoditizing market, companies can differentiate through customer service,” he said. Survey findings also indicate that perceived installation hassles play a key role in buying decisions. Seems like consumers are sick of the “four hour” installation window, suggesting that BSPs who offer appointments and stick to them may have a window of opportunity to steal customers away from competitors. It’s hard to draw firm conclusions from research findings like this. But it is a good reminder that service providers should never take existing subs for granted, especially in times where new subscribers may be harder to find.