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Drivers of Mobile Customer Retention

Cost and billing was the greatest driver of customer retention. That was in the past. Since 2014, consumers are attributing more importance to service. These are some of the key findings reported by Nokia in its recently completed 2016 Nokia Acquisition and Retention Study.

Drivers of customer retention

A positive customer experience has a direct impact on consumers’ likelihood to stay with their mobile operator. Sounds simple, right? Not quite:

  • Cost & Billing has the greatest impact on customer retention, but…
  • Since 2014, consumers attribute less importance to price and more to service
  • Customer care has 60% more impact on mobile subscriber loyalty than it did in 2014
  • Consumers expect a certain level of service and device expertise and after care to be offered by their operator.

In South Africa, customer care ranks higher, while cost & billing ranks lower than the survey averages across the various countries (developed and developing).

Drivers of Customer Retention Pic
Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.

Choosing a Mobile Operator

Which mobile operator are you with? Over 40% of consumers rely on advice and recommendations made by family and friends when choosing their mobile operator. These are the findings from reported by Nokia in their recently completed their 2016 Nokia Acquisition and Retention study.

Reasons for Choosing a Mobile Operator

The study found that the key reasons are:

  • Being on the same network as friends and family is an important consideration
  • But price is still the main reason for 45% of global consumers when choosing their mobile operator
  • After price, the main reasons for choosing a mobile operator are network quality and network coverage
  • But many consumers are now considering factors such as customer care when selecting a new mobile provider.

Over the best price is the largest deciding factor in choosing an operator. This is also seen among non-4G and 4G users. Although among 4G users, best price and best network quality are rated higher than the non-4G users:

Reasons for choosing an operator

Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.