New Research Reveals Priorities for Carrier Switchers

Maybe a customer service representative didn't give you the level of service you expected. Maybe the data plans on offer don't meet your needs. Maybe your household income decreased and your cell phone bill is higher than you can afford. Whatever the reason may be, churn is a huge part of the wireless market in the United States. People switch carriers by the thousands on a daily basis, creating churn figures in the millions for some carriers during particularly bad quarters. While consumers all have their own reasons for jumping ship, and some may be signing up for their first wireless plan, some new data from Parks Associates gives a fairly good sample of what makes consumers tick when it comes to choosing a new carrier in the States.

As carriers priorities shift from increasing the average revenue per user to managing churn, consumers' priorities have been changing as well. For example, the two-year contract, long a staple of users who wanted to pay less upfront, is seen as important to only 23% of Parks Associates' data set. Consumers have largely turned their eyes from cost-saving to feature sets and maximizing bang for buck, especially when it comes to their data plans. Unlimited plans are hard to come by and tend to be expensive, so many consumers consider access to otherwise hidden Wi-Fi hotspots to be a big plus for signing up with a new carrier. Rollover data, which is well on its way to becoming an industry-wide feature, is also a big turn on.

Interestingly, a good number of consumers, about 60% of the data set, say that a customer loyalty program is important. Most carriers lack a proper long-term loyalty program per se, but offer customers big discounts after a certain amount of time, or initiatives like T-Mobile Tuesdays that extend to all customers. According to researchers, with churn increasing at an alarming rate due to the ease of switching afforded by the fall of the two-year contract, we're going to start seeing carriers rolling out more creative initiatives, going beyond the price wars, out-networking and out-featuring of yesteryear. According to these researchers, managing churn is going to become a crucial part of the wireless industry in the future.

You May Like These
More Like This:
About the Author
2018/10/Daniel-Fuller-2018.jpg

Daniel Fuller

Senior Staff Writer
Daniel has been writing for Android Headlines since 2015, and is one of the site's Senior Staff Writers. He's been living the Android life since 2010, and has been interested in technology of all sorts since childhood. His personal, educational and professional backgrounds in computer science, gaming, literature, and music leave him uniquely equipped to handle a wide range of news topics for the site. These include the likes of machine learning, voice assistants, AI technology development, and hot gaming news in the Android world. Contact him at [email protected]
Android Headlines We Are Hiring Apply Now