3GScottishUser
17th June 2005, 01:29 PM
From Mobile News (17/06/2005):
Churn - 3's Big Issue
Aura MD Mike Trotman gives his interpretation of the survey's findings. And it's scary reading for 3.
With the publication of this year's results we are able to identify trends across the board. Though the sample size is much bigger, we're not seeing any surprises in areas where we would have expected things to stay still. For example, overall satisfaction with GSM network coverage, which is effectively a done deal, is fairly constant from one year to the next.
We can say with confidence that year-on-year comparisons between this study and the pilot are valid and we can draw conclusions based on performances across both MICS surveys.
Loyalty
In 2004, we couldn't recruit enough 3 customers to give us a sample size we were comfortable with. As a result, 3 was not included in the survey. This time the number of 3 customers was far higher - and they were not satisfied. The network certainly has some problems to address. Loyalty quotients among 3 customers are on the floor. Looking at the survey results, we can see that churn is going to be a massive issue for 3. There might be a tide of enthusiasm at the moment on the back of the big marketing spend. But that tide will ebb as customers come to renew their contracts.
The survey says, in many cases, that as soon as 3's customers get a chance to leave the network, they will be off. But we can't lay this dissatisfaction at the door of 3's much lamented customer service. This unhappiness is more fundamental even than bad core customer service.
In fact, customers also perceive problems with handsets and coverage. The network fails to score highly across the board. Whether 3 avoids meltdown in months to come depends on what steps the management take to address the problems it faces and how quickly the network moves.
Threat
Other networks have moved slightly to combat the perceived threat from 3, particularly as far as voice bundles are concerned. In doing so, they have blunted 3's price instrument a little bit, but no one's come close to trying to match 3. Luckily for them, this survey confirms that there's probably no need to do so in the future as things stand.
Whatever market you are in, if price is the only criterion you're winning on, things don't look good for the long term. If you look at the performance of other networks as a benchmark, it's simple to see that 3 is in trouble as far as consumer perception is concerned. So simple, in fact, that it's a no-brainer.
Full Article (http://www.mobilenewscwp.co.uk/cgi-bin/show_more.cgi?id=8095&referer=lister.cgi&area=Feature)
Churn - 3's Big Issue
Aura MD Mike Trotman gives his interpretation of the survey's findings. And it's scary reading for 3.
With the publication of this year's results we are able to identify trends across the board. Though the sample size is much bigger, we're not seeing any surprises in areas where we would have expected things to stay still. For example, overall satisfaction with GSM network coverage, which is effectively a done deal, is fairly constant from one year to the next.
We can say with confidence that year-on-year comparisons between this study and the pilot are valid and we can draw conclusions based on performances across both MICS surveys.
Loyalty
In 2004, we couldn't recruit enough 3 customers to give us a sample size we were comfortable with. As a result, 3 was not included in the survey. This time the number of 3 customers was far higher - and they were not satisfied. The network certainly has some problems to address. Loyalty quotients among 3 customers are on the floor. Looking at the survey results, we can see that churn is going to be a massive issue for 3. There might be a tide of enthusiasm at the moment on the back of the big marketing spend. But that tide will ebb as customers come to renew their contracts.
The survey says, in many cases, that as soon as 3's customers get a chance to leave the network, they will be off. But we can't lay this dissatisfaction at the door of 3's much lamented customer service. This unhappiness is more fundamental even than bad core customer service.
In fact, customers also perceive problems with handsets and coverage. The network fails to score highly across the board. Whether 3 avoids meltdown in months to come depends on what steps the management take to address the problems it faces and how quickly the network moves.
Threat
Other networks have moved slightly to combat the perceived threat from 3, particularly as far as voice bundles are concerned. In doing so, they have blunted 3's price instrument a little bit, but no one's come close to trying to match 3. Luckily for them, this survey confirms that there's probably no need to do so in the future as things stand.
Whatever market you are in, if price is the only criterion you're winning on, things don't look good for the long term. If you look at the performance of other networks as a benchmark, it's simple to see that 3 is in trouble as far as consumer perception is concerned. So simple, in fact, that it's a no-brainer.
Full Article (http://www.mobilenewscwp.co.uk/cgi-bin/show_more.cgi?id=8095&referer=lister.cgi&area=Feature)