Some 2/3 of mobile telecoms service customers “feel neglected” by their service providers and more than 2-in-5 are likely to switch within the next two years as a result, according to the results of a research survey commissioned by Finnish dynamic Operations Support System software provider Comptel Corp.
Vanson Bourne surveyed 2,000 mobile subscribers from across France, Germany, the UK and US in conducting the survey, which amassed data on consumers’ mobile usage and spending habits, as well as on their relationships and satisfaction with their mobile service providers.
More than 1 in 5 respondents said they had experienced poor quality-of-service (QoS), such as dropped calls, low bandwidth or slow loading of files at least once a week. A large majority, 72%, agreed that they would feel greater loyalty to their service providers if their mobile operators acknowledged and apologized for the poor QoS and sent special offers to make up for it. Among age groups, younger subscribers tended to be more forgiving: 1 in 3 respondents ages 18-25 said they would definitely be more loyal if they were shown “more love.”
Nearly 60% of respondents said they were willing to pay more for faster download rates. Nearly 20% said they were willing to pay more than 5 UK pounds ($7.85) a month extra for this type of upgrade. Younger respondents use up more bandwidth, consuming more video, pictures and music. Nearly 20% download content to their mobile devices at least once a week, and they’re also most likely to pay for faster download speeds (73%), as well as pay the most for it.
“With so many consumers expected to churn in the next two years if their needs are not better met, mobile operators need to significantly improve customer engagement,” commented Ms. Ulla Koivukoski, senior vice president, marketing and communications, Comptel in a news release.
“We live in a real-time world where, particularly with younger subscribers, consumers are requiring more personalized and dynamic services—the right customer engagement solutions should be able to adapt to and facilitate that. Comptel sees real-time data collection and analysis, along with increased interaction with customers, as critical to ensuring customer satisfaction and loyalty and maximizing revenue opportunities.”
Other key findings include:
- On average, users have been with their current mobile operator for four years, with older respondents having been loyal the longest.
- Consumers who have been with their mobile operator for less than a year were more likely to base their selection decision around download speeds, whereas those who have been with their mobile operator longer are more likely to stick with them because of ease.
- The most common reasons for churning were expensive pricing or long service contract options (59 percent), dissatisfaction with download speeds (31 percent) and lack of consistency in terms of QoS (29 percent).
- Pre-paid mobile top-up deals offer revenue growth potential for mobile operators.
- Nearly half of pre-paid customers reported that they were not aware of or that their mobile operator did not provide such promotions.
- This is especially apparent in the U.S. and U.K., where four in ten respondents cited being more likely to spend money on mobile products and services when they have just been paid.
- If offered by mobile operators, more than a quarter of consumers are willing to pay for temporary bandwidth boosts.
- Younger subscribers up to the age of 35 and men indicated that they are more willing to purchase these upgrades.
- Respondents in the U.S. are also more likely to pay for faster download speeds and are willing to pay the most (nearly three dollars on average) each month for it.