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UK Data Users Tend to Switch Networks Regularly - Report
More than half of advanced mobile data service users in the UK have switched mobile network provider in the last three years, according to independent research commissioned by LogicaCMG. The research also shows that users of services such as MMS and internet browsing generate the highest average revenue per user (ARPU), creating an annual market churn of over US$4.8 billion. As operators expand their portfolios to include new and increasingly complex premium data services, customer care is identified as a key factor in fostering loyalty and encouraging the uptake of new, high-revenue offerings.
In the last three years, 53% of MMS users and 58% of mobile internet browser users have switched operator, compared to an average of 31% across the UK mobile phone user population. This higher than average rate of churn is symptomatic of the fact that users expressed a growing dissatisfaction with the quality of service delivery and customer care they received from their operator as service complexity increases.
Less than half (47%) of customers that use internet browsing are completely or very satisfied with the quality of service, compared to 80% of all those using SM). Furthermore, when reporting problems to the operator's customer service centre, a quarter (24%) of all customer service centre users reported a poor experience.
Marieke Effting, product marketing manager at LogicaCMG global telecoms, said: "A positive perception of customer services is the cornerstone for building customer loyalty because it is one of few opportunities that network operators have to directly interact with subscribers. In competitive markets customer service becomes a key differentiator and, as the portfolio of enhanced data services gets increasingly broad and complex, can either promote or inhibit service adoption and new revenue opportunities. To enable operators to respond to this challenge and solve data queries 'right first time', LogicaCMG offers SMART customer care, part of the LogicaCMG SMART initiative, which for the first time in the industry, aims to deal with data services challenges in an integral manner."
Chris McDermott, chief executive officer at LogicaCMG global telecoms, said: "Our research shows that mobile operators are facing a rate of churn that almost doubles as users adopt new advanced data services. A high proportion of this churn is attributed to customer service that does not meet users' expectations and demands. SMART customer care provides operators with the information to resolve customer issues on the first call and the tools to provide pro-active customer service. By unlocking customer experience information, the customer service department can now become a key asset for the operator and enhance the lifetime and value of each individual user."
| Percent of sample | Total population (sample % x total UK mobile users) | % churn in last 3 years | Total population churning (total pop x % churn) | Average spend/ month | Average annual spend (Av. spend/ month x 12) | Value of churn (total pop churning x av. annual spend) | |
| Total sample | 100 | 45m | 31 | 13.950m | Posted to the site on 17th November 2005
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