ROCHESTER, N.Y.-Citing low levels of customer satisfaction, a Harris Interactive Inc. study found that 13 percent of wireless customers have switched wireless providers during the past 12 months, an additional 13 percent are probably or definitely planning to switch carriers within the next year, and another 23 percent are considering a switch.
The findings, which were part of Harris Interactive’s quarterly 2004 Telecommunications Report, added that 24 percent of wireless customers were highly satisfied with their service provider, compared with 45 percent who are satisfied with their landline operator and 42 percent with their Internet service provider.
The study also found that 44 percent of wireless customers switched providers due to service pricing, and 12 percent switched due to a promotion or sale offered by a new provider. Just more than half of those customers who said they were considering switching carriers due to pricing said they would stay with their current operators if the prices of their service plans were reduced, while 33 percent said they would stay if offered an increase in the amount of calling minutes, 23 percent if offered a better family plan and 20 percent if offered additional product features.
In addition, the survey found that 49 percent of customers who selected two-year contracts did so because of promotions, while 24 percent said they selected contracts due to price. By contrast, 42 percent of prepaid users, which accounted for 11 percent of customers surveyed, said they selected their plans to avoid a contract.
“Wireless service providers will need to find ways to turn these challenges into opportunities in order to remain competitive,” said Joe Porus, chief architect at Harris Interactive. “Some may choose to address satisfaction levels in more traditional ways in an effort to retain customers while others may venture into new technology, such as wireless data applications or Internet telephony; still others may try a combination of these. One thing for sure is that with the rapid change seen within the telecommunications industry, providers need to think fast and think smart.”
