Argentina and Kenya have the most loyal mobile network customers, while subscribers in the UK, Brazil and Nigeria are the most likely to defect because of the availability of better mobile devices on other networks, according to a mobile loyalty survey by telecoms IT provider Tecnotree.
The study, entitled 'Subscriber perspective to customer loyalty', examined customer loyalty sentiments in several nations around the world, finding that Kenya (66%), Argentina (57%) and Germany (53%) had the most loyal mobile customers (defined as having remained with their existing provider for at least two years).
Communications service providers (CSPs) were found to be driving loyalty via device upgrades and better tariffs, supplemented by a bundled service offering, and a broader "all of the above" tactic.
Conversely, customer defection ("churn") was found to be mainly driven by the incentive of a better device, with better tariffs playing a secondary role. However, the roll-out of 4G data networks should greatly help with customer retention when it comes to non-communication services, with 59% of consumers seeing this as a major incentive to switch network operators.
"Device upgrades and better tariffs are as much about loyalty for service providers as they are for driving churn," explained Timo Ahomaki, Chief Technology Officer for Tecnotree. "Right now, network coverage is having minimal impact on loyalty and churn. But as service providers roll out 4G, the promise of faster download speeds will become a very appealing incentive to churn."
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