In a recent survey of 4,000 mobile subscribers a quarter said they stay with their mobile carrier because it’s too inconvenient to switch, according to a new study by WDS, A Xerox (NYSE: XRX) Company. The Mobile Loyalty Audit 2014, an annual report coordinated in partnership with MobileSquared and GMI, indicated that carriers are misinterpreting satisfaction metrics, overestimating customer loyalty and, therefore, misdirecting investment in customer retention. Customer retention budgets have little impact There is very little evidence to suggest that retention is being driven by proactive investment by mobile service providers, or that current allocated retention budgets are having any meaningful impact, according to the survey which reveals:
- More than a quarter of customers interviewed (26 percent) admit that the only reason they stay with their current provider is that switching is “inconvenient.”
- 15 percent believe that all mobile carriers are the same and that they see no benefit in switching.
- Over a third (35 percent) do not want to risk changing carriers for fear of losing coverage.
- 55 percent of retained customers say that they stay because their current carrier meets their service expectations.
- Just 16 percent of mobile consumers feel rewarded for their loyalty.
Satisfied customers still switchThe Mobile Loyalty Audit also underlined a large disparity between customer satisfaction and customer retention. The study shows:
- Almost one fifth (18 percent) of customers who are considering switching, admitted to being highly satisfied with their current provider.
- Less than half of retained customers (44 percent) are highly satisfied.
- 54 percent said they didn’t feel valued.
- 54 percent cited ineffective rewards and loyalty programs.
- 44 percent did not trust their carrier.