For all of the time, money and effort wireless companies put into customer retention and acquisition, the biggest factor keeping someone from switching carriers is inertia.
More than one-quarter of mobile subscribers say they stay with their current carrier because it’s simply too inconvenient to switch, according to WDS’s most recent Mobile Annual Audit. What’s more, although more than a third of consumers (35%) are concerned about losing coverage if they switch, 15% say they don’t believe there’s any difference between carriers, and therefore there’s no benefit to switching.
Although consumers are inclined to stay with their current wireless companies, they aren’t particularly happy with them. A majority of consumers (55%) said they remain with their provider because it meets their service expectations, only 16% of them feel they are being rewarded for their loyalty. In fact, only 44% of retained customers are highly satisfied with the service, according to the survey.
“The problem for mobile brands is that price, coverage and convenience (while high on the wish list when choosing a brand) are relatively weak loyalty drivers,” according to the report. “Brands must look to shift the focus of their customer relationships from price-based to value-based. This year’s audit highlights that customer satisfaction is no longer enough; it’s far from a guarantee of loyalty. Instead, brands must better understand their customers’ expectations, meet those expectations and build trust into the relationship.”
Among those who were intending to switch carriers, more than half (54%) said they didn’t feel valued. A similar number (54%) cited ineffective rewards and loyalty programs, while 44% said they simply didn’t trust their carrier.
Yet even those who are happy aren’t particularly loyal. Even among customers who say they're satisfied, 18% were still considering switching carriers.