Mobile Phone Vendors to Roll Out More Loyalty-​Based Marketing Programs

With so many consumers now dependent on feature or smartphones, wireless carriers may be tempted to compete as if they’re in a smartphone2commodity industry and advertise solely  on price advantages. These marketers likely know that up to 36% of wireless customers are considering a move to a different carrier in the next year. But new research shows that wireless operators can increase loyalty and reduce the risk of churn by marketing strengths other than price.

WDS 2013 Mobile Loyalty Audit ran a stress-​test on current wireless customers to determine what would cause them to change operators. Top reasons for defection include:

  • 10% price increase could cause 70% of satisfied current customers to consider leaving
  • Privacy breach could cause 29% of satisfied current customers to switch immediately

While price and privacy breaches are important indicators of future churn, other commonly held notions were proved false in this study. For example, 65% of current subscribers think they’re getting good value, 72% are satisfied with network coverage and 85% are happy with the device availability.

The single detail that most bothers the 36% of subscribers who are considering changing providers relates to feeling valued and being rewarded. A carrier should be especially aware of interactions when customers call for support. If a subscriber has to call more than once in a 6 month period, the likelihood of defection soars. However, when customers rate their call experience as excellent, they are likely to stay with a subscriber.

Given the increasingly competitive nature of the wireless service industry, operators may want to promote their outstanding service and promise their customers a reward if they have a less than optimal client care experience.

To learn more about Smartphone Users, check out the Audience Interests & Intent Report available on the Research Store at ad​-ology​.com.

[Source: The Fragility of U.S. Wireless customer Loyalty. Wds​.co. 18 Mar. 2013. Web. 26 Mar. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.