Service Providers Improve Churn Performance

By

“Loyalty” in the consumer communications and entertainment service arenas arguably has become stronger in the mobile and fixed businesses over the last decade, as measured by churn rates.

That lower churn has come even as numerous studies continue to suggest a relatively significant amount of consumer unhappiness with value, price, handsets, billing simplicity, service continuity and a subjective sense of not being “valued and recognized” as customers.

In 2009, for example, a Forrester Research survey found 40 percent of customers would consider leaving their present provider for a lower price. Since 2009, U.S. mobile service provider churn rates have declined, though. Compared to early in the 2000s, churn rates have dropped substantially, even though competition has grown.

Most observers would credit product bundles in the fixed-line business, and contracts and family plans in the mobile business, for slowing churn rates, despite growing competition.

Though many would say “loyalty” includes a great many elements other than churn, churn is a measurable way of describing customer tenure, if not directly the subjective sense of satisfaction that consumers may have with their service providers.

And, on that score, packaging mechanisms that increase value (product bundles, contracts, group plans), though important, remain vulnerable to “lower price” attacks.

Australia-based Wotif did a study of passenger “loyalty,” as measured by a willingness to stick with their favored provider.

Price, in fact, remains the top preference when consumers book a flight, domestic or international. Availability of a flight on the needed travel dates and availability of direct flights all rank higher than brand of carrier.

"Unsurprisingly, price was the most important factor for travelers booking both domestic and international flights, with preferred airline being ranked least important for domestic travel but more important for international travel," said Helen Demetriou, Wotif Group executive general manager for flights and packages.

In that sense, then, communication and entertainment service providers have other methods for adding value, compared to airlines.

These days, communication and entertainment services represent a bundle of value, including several products embedded in retail plans that offer consumers clear value-price relationships for buying bundles. Mobile service providers also have the additional element of device-offers.

So all of that data seems to indicate that whether or not service providers are highly successful on other elements of “loyalty” programs, keeping accounts for a longer period has become easier over the last decade.


Edited by Rory J. Thompson
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Why More Leads Won't Fix a Broken Lead Management Process

By: Contributing Writer    6/23/2026

When sales results start to stall, many organizations immediately look to the top of the funnel for answers. The assumption is simple: if revenue i…

Read More

Your Post-Quantum Readiness Starts at Y2Q Summit

By: TMCnet News    5/27/2026

Y2Q Summit is an executive conference focused on helping enterprises prepare for the coming era of quantum computing disruption, cybersecurity transfo…

Read More

Why Award Marketing Should Be Part of Every B2B Tech Company's Growth Strategy

By: Erik Linask    5/20/2026

Award marketing matters for B2B tech companies because industry recognition can strengthen trust, support sales and partner relationships, improve con…

Read More

Why Email Is Still the Most Underrated Layer of Modern Software Infrastructure

By: Contributing Writer    5/15/2026

Take, for example, the following scenario. A user requests a password reset, waits a few seconds, refreshes their inbox and nothing arrives. They try …

Read More

Jitterbit's Visionary Status Signals a Shift in the iPaaS Market

By: Contributing Writer    4/7/2026

As enterprise ecosystems grow more complex, integration has become less of a backend IT function and more of a strategic driver of business performanc…

Read More