Who's not loyal to their mobile service, and why?

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By: Wise Marketer Staff |

Posted on October 30, 2009

Mobile phone service providers need to understand consumers on a more personal level  and adjust their customer engagement plans accordingly, according to the 'Communications Consumer Dynamics' study from Acxiom.

The study segmented typical consumers to discover which ones have switched services in the past, which are most likely to switch in the near future, and which factors most influence these decisions.

Among the study's key findings:

  • Consumers in three groups (High bill/contract, High bill/monthly, and Medium bill/monthly) comprising 36.4% of US households are most likely to be considering a switch in the near future;
  • Consumers in the three pre-paid segments, making up 32% of US households, are least likely to switch providers in the near term.

The study found that the High bill/monthly segment is at the greatest risk of churn. These consumers are most likely to be paying for unused services or overpaying when a bundled text plan or higher-minute plan would save them money. Growing family and career demands means they are often too 'time crunched' to make the changes they know they need.

"By saving consumers money on things they don't need, wireless providers could earn their trust and foster loyalty," said Acxiom communications industry executive, Greg Hogue. "With the money saved, they may be willing to go on a contract to upgrade their phone."

The study also reaffirmed the need for marketers to adapt to changes in the market. Each customer type showed differences between what they feel will be important to them in their next switch, compared to what they felt was important the last time they switched.

Consumers looking ahead to a possible change of providers rated the importance of price, technology and service differently to when they switched providers previously. Hogue concluded:  "The ability to extract meaningful insights from available data and act on it is a must to successfully adapt to changes in customers and the market."

The report has been made available for free download from Acxiom's web site - click here (free registration required).

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