|[April 12, 2012]
Strategy Analytics: Global Mobile Customer Loyalty Reaches All-Time Low
BOSTON --(Business Wire)--
The average mobile customer switches service provider every 27
months, more than twice as frequently as a decade ago. According to new
research from Strategy Analytics (News - Alert), "Wireless
Operator Performance Benchmarking, Q4 2011," global mobile
customer churn - customers switching providers each year - reached 44
percent at the end of last year, its highest ever level.
Average prepaid customer lifetimes have halved over the last 5 years, to
only 17 months, according to Strategy Analytics Wireless Operator
Strategies (WOS) research which tracks the operational and financial
performance of over 215 mobile operators, accounting for over 75 percent
of global subscribers. By contrast, average postpaid customer lifetimes
of 67 months have improved from the depths of th global recession in
2008/09, since customers show an increased propensity for upgrading with
their current provider instead of switching to better deals elsewhere.
"Prepaid churn has really been hit by promotional SIM card activity in
developing markets, making customer loyalty virtually obsolete in some
countries," commented Phil Kendall, Director, Wireless Operator
Strategies, and author of the report. "For example, prepaid churn in
Asia-Pacific is nearly 100 percent per year. It doesn't cost much to
push new SIM cards into the market, however, operators would still
benefit by promoting targeted offers to existing users which build
longer-term, more valuable, customer relationships."
Sue Rudd, Director, Service Provider Analysis, added, "With smartphone
subsidies stretching operator resources, it is the postpaid market where
churn is more expensive to manage. Operators are finally looking at new
device purchasing models, like installment plans or leasing, that can
alleviate pressure. Of course, consumers are 'addicted' to the
discounted handset model-and it will be difficult to change this."
About Strategy Analytics
Strategy Analytics, Inc. provides timely and actionable market
intelligence focused on opportunities and disruptive forces in the areas
of Automotive Electronics and Entertainment, Broadband Connected Home,
Mobile & Wireless Intelligent Systems and Virtual Worlds.
Headquartered in Boston, MA, with offices in the UK, France, Germany,
Japan, S. Korea and China, Strategy Analytics works with clients through
annual multi-client services, management team workshops and custom
consulting engagements. For more information, please visit http://www.strategyanalytics.com/.
[ Back To Mobile Security Homepage's Homepage ]