One can get a good argument about whether consumer satisfaction with any communications or entertainment video service is strongly related to customer loyalty.
The conventional wisdom is that "happy" customers are "loyal" customers, but that always has been tough to demonstrate in the consumer communications market.
Churn rates for "satisfied" customers often do not seem all that different from the behavior of demonstrably "unhappy" customers, though few would argue there is no relationship between "satisfaction" and "loyalty."
Some new analysis by Parks Associates illustrates the issue. As it turns out, "satisfaction" with various broadband access services is relatively comparable across platforms and networks. Fiber to the home fares better, satellite broadband and fixed broadband a bit worse than either cable modem service or digital subscriber line.
But the differences are not quite as pronounced as one might think. With cable modem and DSL service as the benchmark, FTTH does a bit better and wireless a bit worse. But FTTH, while "above average," and wireless "a bit below average," are fairly close to the baseline.
At the margin, FTTH customers are a bit more happy, wireless customers a bit less happy. But the link between satisfaction and churn is not precise, nor linear. Other surveys tend to show that overall consumer satisfaction with most entertainment video, mobile and fixed line services is reasonable, but not typically among the products consumers routinely say they are most happy with.
Grumbling and grousing just comes with the territory, it seems.
Monday, December 21, 2009
A Look at Consumer Satisfaction with Broadband
Labels:
broadband,
broadband access,
consumer behavior
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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