Why telco customers switch

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Getting a cheaper deal is the main factor driving both mobile and fixed-line telecommunications customers to switch providers, according a study by the Commerce Commission as part of its brief to keep an eye on barriers to switching and thus ensure competition in the market.

In mobile, 13.7% of respondents said they had switched provider in the preceding 12 months. Of those, 46.6% cited obtaining cheaper rates as a reason for switching, followed by better network coverage at 22.4%, being on the same network as friends or family at 20.4%, and not being locked into a fixed-term contract at 13%.

Switchers were overwhelmingly happy to have made the move, with 81.6% reporting a positive experience and just 1.5% reporting a negative experience.

Of those who had thought about switching but hadn’t, the results were split between pre-paid and post-paid customers; the former were more likely to cite being happy with their current provider as a reason to stay, while the latter tended not to switch because it was easier to stay with the same provider.

Having to pay a cancellation fee was cited as a barrier to switching by 14.1% of post-paid customers.

For fixed line customers, 23.9% had either switched service providers or changed their service package.

48.6% of those who had switched providers did so in order to improve their broadband. Of those, 41.1% were looking for a cheaper service, 33.2% were after a higher data cap, 17.1% were unhappy with their ISP’s customer service, and just 4% sought a faster connection.

Both full and summarised versions of the study can be downloaded here.
http://www.comcom.govt.nz/consumer-switching-survey/

Original article published by Techday By Contributor, Thursday, 12th April, 2012
Link to original article: http://www.techday.co.nz/telecommunicationsreview/news/why-telco-customers-switch/22711/6/

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