Why operators need to up their game to avoid customer churn

Small and medium sized enterprises are less satisfied with their telecoms services than larger enterprises, according to new research from Analysys Mason.

The research, which polled 1600 enterprises, also found a clear link between operators beefing up their Net Promoter Scores (NPS) and reducing churn.

This ‘clear relationship’ between levels of satisfaction and enterprises leaving their provider may not be hugely surprising, yet according to the figures, operators can reduce ‘intended churn’ by 1.6 percentage points for every 10 point increase in NPS.

Interestingly, in countries where incumbent operators particularly rule the roost, such as Australia, Malaysia and the UAE, the highest rates of intended churn occur. The exception which proves the rule is France, where Orange “is a good example of how an incumbent is retaining its market share with a high quality of service,” as the analysts point out.

Another issue put together in the research is around traditional connectivity services. SMEs satisfied with their traditional services are twice as likely to purchase additional services from their operator, such as security. “Operators need to ensure that the basics, such as customer service and network quality, are of a high standard in order to effectively compete in the broader ICT market,” wrote Terry Van Staden, Analysys Mason research analyst.  

“Enterprise revenue is declining for many telecoms operators in high-income countries,” Van Staden added. “It is essential for operators to keep customers satisfied in order to help defend revenue. However, our survey reveals that enterprise customers are often dissatisfied with the service they receive and this is leading to churn.”

So which operators are getting it right? According to the SME and larger enterprise poll, AT&T and Verizon, Orange, and Optus, scored highest based on NPS. In separate research from Analysys Mason, AT&T, Etisalat, Singtel, Swisscom and Telefonica were praised for the extent of their digitalised customer experience, according to scoring criteria based on automation, personalisation, social media, unified omni-channel support, and more.

You can read the full blog on operators and customer dissatisfaction here.

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