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Network and service quality keeps customers loyal, Nokia retention study shows

by david.nunes

Network and service quality keeps customers loyal, Nokia retention study shows

Likelihood to churn remains high at 40%

41% of customers demand excellent network quality, even if it costs a bit more

75% consider also security to be operator’s responsibility


May 21, 2014

Espoo, Finland – Mobile operators who lead in loyalty outperform their competition in network and service quality, as well as in customer care, says the 2014 Acquisition and Retention Study Report* from Nokia. While retention drivers vary by market maturity, delivering excellent quality keeps customers happy and loyal. The study results also show that churn continues to keep operators on their toes with 40% of customers globally planning to switch provider in the next 12 months.

The appetite for applications is not easing off. The share of heavy users of advanced services** keeps rising globally, currently covering 69% of all customers. The share of heavy users is specifically high in mature markets, reaching 75%, up from 67% a year ago, and is as high as 84% of users in very advanced markets with top notch LTE networks, like Korea.

But customers do not want quantity at the cost of quality. Showing a two percentage point increase from the 2013 report, now 41% of customers globally think an operator must offer excellent network quality, even if it costs more. Messaging and Internet service quality is below customer expectations in all markets with 60% experiencing problems with mobile data and application usage.

Cost and billing plays a key role across markets when deciding to stay with an operator, but is specifically important for emerging markets where 49% of customers consider it to be the most important factor when deciding to stay with an operator, with network and service quality following at 25%. For in-transition markets, the importance of network and service quality jumps up to 37%. In mature markets, quality drops to 29%, giving way to customer care which is now at 18%.

Security is another focus area for customers. The study report also shows that 75% of customers consider security to be the operator’s responsibility. Of those 89% who think security is important, 40% are likely to churn in case of security issues. 40% are also willing to pay extra for security protection.

To learn more about Nokia’s 2014 Customer Acquisition and Retention Study Report, register to a webinar on June 12. To share your thoughts on the topic, join the discussion with @NSNtweets on Twitter using #CSPCX and #mobilebroadband. For expert insights, visit our blog.

To download an infographic to illustrate reports please click this link.

About Nokia

Nokia invests in technologies important in a world where billions of devices are connected. We are focused on three businesses: network infrastructure software, hardware and services, which we offer through Networks; location intelligence, which we provide through HERE; and advanced technology development and licensing, which we pursue through Technologies. Each of these businesses is a leader in its respective field.

Through Networks, Nokia is the world’s specialist in mobile broadband. From the first ever call on GSM, to the first call on LTE, we operate at the forefront of each generation of mobile technology. Our global experts invent the new capabilities our customers need in their networks. We provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services to make it all work seamlessly. www.nsn.com / www.company.nokia.com

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