40% of Mobile Operator Churn Driven by "Cost"

Not all customer churn is controllable by actions of the service provider. But about 40 percent of controllable churn still hinges on “cost and billing” issues, while 26 percent of churn is driven by network quality issues.

About 24 percent of churn is created by “customer care” issues, while “service and device portfolios” seem to drive about 10 percent of churn, a study sponsored by Nokia suggests.

In other words, prices deemed to be too high remain the biggest single driver of customer desertion, globally.

Perhaps also not surprisingly, prices are the top driver of customer decisions to choose a carrier. Asked why consumers chose a particular service provider, 45 percent indicated that “best prices” was the top reason.

Some 26 percent indicated that “network quality” was the chief reason for choosing a particular new service provider, while 25 percent said “geographical coverage” was the main reason for selecting a particular service provider.

source: Nokia


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