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Smart phone users at the highest risk of churn |
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A global customer Acquisition and Retention Study by Nokia Siemens Networks has revealed that one of three smart phone users are ready to swap operators.  The study has found that customer loyalty to operators is lowest in mature markets with high smart phone penetration, with close to 40 percent smart phone and data card users likely to churn within a year. The study covered 20,000 subscribers in 17 countries. Nokia Siemens Networks has identified that customer intent to churn in the UK, Germany and the US due to dissatisfaction with network quality has grown significantly over 2008 levels. Michael Matthews, head of strategy and business development at Nokia Siemens Networks said the silver lining is that price is becoming less critical as a churn trigger. “Without a doubt, access to mobile broadband has changed people’s priorities and the expectations they have of their service providers.” The study reveals that in the UK, 45% of the negative experiences people have with their mobile can be explained by network quality falling below expectation, which may be attributable to the recent steep increase of smart phones in the network as this can cause a rapid increase in signaling traffic that has the potential to cause network congestion for all subscribers. The study results were similar in the US and Germany. Nokia Siemens Networks says that unless the issue is pro-actively addressed, it’s only a matter of time before emerging markets around the world have same issues. The global impact of network quality on subscriber retention stands at 34%, far higher than in previous years, the company said. |
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