5 Emerging Reasons Mobile Customers Churn

Nokia‘s 2016 10th Acquisition and Retention study released today shows that as network quality improves, mobile subscribers globally are placing more importance on customer service and value when choosing an operator.

The survey was based on more than 20,000 mobile phone users in mature and transition markets; telephone interviews with 140 consumers and 28 operators; and bespoke research to contextualize responses.

The study examines the main reasons why mobile customers select and leave operators: cost & billing, network quality, customer care service and device portfolio.

The study is a mobile industry barometer for consumer behavior. It finds five factors that have changed notably in the last two years.

  1. Global mobile subscribers, particularly in mature markets, want more transparency when it comes to contract terms, rate structures and data fees:
    While price is still the most important factor when it comes to customer acquisition and retention, the study shows calling plans and rate structures are 14% more important to respondents than they were in 2014. The report finds customers, confused by different packages, will often choose easy-to-understand terms and conditions over price.
  2. Respondents say customer care has 60% more impact on their loyalty than it did in 2014:
    Respondents say better general services, self-service capabilities and effective complaint handling are increasingly important to them. Customer care is now basically on par with network quality as a deciding factor to stay with a mobile provider.
  3. Networks are getting better in mature markets, but there is work to do in transition markets:
    Consumers in mature markets report a 13% point improvement in their satisfaction with Internet connection quality vs 2014, while transition markets report a slight decline.[related-posts]
  4. Mobile security is a growing issue, 90% of customers in mature markets and 94% in transition markets worry about mobile security:
    Globally, 47% of respondents would change operators if they suffered a security breach – that’s a 7% point increase from 2014.
  5. Consumer expectations about IoT are growing:
    56% of respondents in mature markets and 82% in transition markets would like to control at least one device via their mobile phone or tablet.

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