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Minimising churn It is expensive to win customers back once you have lost them. By keeping them happy with your service you encourage them to stay with you for longer.
Surveys show that one of the biggest consumer concerns is the quality of the service. A recent JD Power survey of UK consumers reported that about 30% were primarily concerned with this. Yet another survey reported that 58% of the subscribers that had changed their network, had done so because of perceived poor quality.
The message for mobile operators is clear.
Not only does quality need to be significantly improved, but customers have to perceive it as being differentially better than that available from competitors.
Maximising usage The better the quality, the more a service will be used. According to surveys, even relatively minor quality improvements can lead to increases in ARPU of up to 3%. For mobile operators, the better the service, the more they will be able to persuade subscribers to use their mobile rather than a fixed wire phone.
Good quality also helps you to successfully launch new services. If people are happy with your current service, then they will probably give your new service a try as well.
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