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The Connected Consumer Survey 2015: mobile customer retention

The Connected Consumer Survey 2015: mobile customer retention


This report focuses on aspects of Analysys Mason's annual 'Connected Consumer Survey' that relate to the behaviour, preferences and future plans of mobile users in fifteen countries in Africa, Asia–Pacific, Europe, the Middle East and North America.


Executive summary
Price is the key driver of churn for most age groups, but network factors (notably speed) were more important for the youngest respondents
Bundling fixed and mobile services does not necessarily reduce churn
There is a correlation between high data allowances and high NPS, but our results emphasise the importance of value, rather than just size
Recommendations
Recommendations
Key drivers of mobile customer churn
Price is the key driver of churn for most age groups, but network factors (notably speed) were more important for the youngest respondents
Price dominated churn decisions in Europe and the USA, but other factors came into play in Asia–Pacific and MEA
Operators with the best coverage have higher NPS than competitors, but where all operators have good coverage, challengers have higher NPS
Pricing structures and churn
SIM-only customers award the highest NPS, but increased churn rates suggest that competition is bringing some volatility to the segment
Bundling fixed and mobile services does not necessarily reduce churn, despite positive correlations among certain service combinations
Examining the effectiveness of fixed–mobile combinations in different countries provides positive and negative examples of the role of pricing
Data pricing and its impact on retention
Data allowance has become a more important factor than voice minutes when selecting a tariff in Europe and the USA
The price of data was identified as more important than that of voice and messaging in APAC and MEA, but both are low priorities in South Korea
There is a correlation between higher data allowance and increased NPS, but our results emphasise the importance of value, not just size
Another dimension of data pricing is balancing the utilisation levels of allowances and managing overage
Operators must balance monetising overage with increased likelihood of churn but overage policies can complement rightsizing to improve NPS
Mobile data speed and customer satisfaction
Speed was a greater factor in churn among younger people who are also more likely to use their handset to watch OTT video content
Customers on high-speed 4G services awarded higher NPS than 3G customers, but speed is not the only variable between 3G and 4G users customers claim to use Wi-Fi more than 3G customers, but in general Wi-Fi usage is an indicator of concern about price and performance
Network coverage is also a significant driver of churn in some countries
Methodology and panel information
Methodology
Panel information: France and Germany
Panel information: Indonesia and Malaysia
Panel information: Morocco and Poland
Panel information: Qatar and Saudi Arabia
Panel information: South Africa and South Korea
Panel information: Spain and Turkey
Panel information: UAE and UK
Panel information: USA
About the authors and Analysys Mason
About the authors
About Analysys Mason
Research from Analysys Mason
Consulting from Analysys Mason
List of figures
Figure 1: Geographical coverage of our Connected Consumer Survey 2015
Figure 2: Main reasons for churn cited by respondents who said they intended to churn in the next 6months, by age group, Europe and the USA
Figure 3: Mobile customers’ intention to churn by fixed–mobile service combinations, Europe and the USA
Figure 4: Mobile customers’ intention to churn by fixed–mobile service combinations, Spain and the USA
Figure 5: Net Promoter Score by mobile data allowance
Figure 6: Intention to churn within 6 months, by proportion of data allowance used
Figure 7: Main reasons for churn cited by respondents who said they intended to churn in the next 6months, by age group, Europe and the USA
Figure 8: Percentage of respondents who cited a given reason for leaving their previous operator, by countries and region
Figure 9: Net Promoter Score for mobile operators, selected countries
Figure 10: Intention to churn by contract type, Europe and the USA, 2012 and 2014
Figure 11: Net Promoter Score by contract type, Europe and the USA, 2014
Figure 12: Mobile customers and intention to churn by fixed–mobile service combinations, Europe and the USA
Figure 13: Mobile customers and intention to churn by fixed–mobile service combinations, Europe and the USA
Figure 14: Intention to churn by service bundle, Spain and the USA
Figure 15: Percentage of respondents who selected more data or minutes as an important factor in choice of mobile tariff, by age group, Europe and the USA, 2012 and 2014
Figure 16: Respondents by size of monthly voice minute and data allowances, 2012 and 2014
Figure 17: Respondents that identified the price of mobile data, relative to that of voice and messaging, as important when selecting their current provider, APAC and MEA countries
Figure 18: NPS and average mobile spend per month by data allowance, Europe and the USA
Figure 19: Mobile data allowances by usage, Europe and the USA
Figure 20: Intention to churn within 6 months, by proportion of data allowance used
Figure 21: Intention to churn because of speed and OTT video consumption by age, Europe and the USA
Figure 22: Intention to churn because of speed, by country
Figure 23: NPS for respondents with 3G or 4G service
Figure 24: Use of Wi-Fi and Wi-Fi hotspots, by cellular technology generation
Figure 25: Intention to churn because of poor network coverage, by country

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