A new consumer survey shows that a widely-known issue plaguing the mobile networking industry, customer churn, is being impacted by rising and problematic call drop-off rates. More than one-third (36%) of UK mobile users, who responded to a survey commissioned by Horsebridge Network Systems, experience call drop-off at least once daily and an alarming one in five more than three times per day. The study also showed that mobile phone users that frequently lose calls are more likely to contribute to the widespread problem of customer churn in the telecoms market. One third of all mobile consumers in the UK switched operators in 2004, according to telecom watchdog group Ofcom. The typical frustrations that consumers have with their mobile service that may drive them to change networks were explored in the Horsebridge survey. Each major mobile operator claims that churn causes around 8 to 12% of their customer base to constantly be in flux. Number portability is one recent advent in the telecoms sector which has made it easier for users to switch mobile operators when dissatisfied. According to the study, every respondent (100%) indicated that poor quality of service (call drop-offs) was amongst the top three considerations that cause them to consider changing their mobile service. An alarming, 44% of respondents indicated that poor quality of service is their top consideration in changing mobile operators. The only other consideration ranked higher was "if call charges were lower" which 45% indicated was the biggest driver to make them change operators. No respondents indicated that better 3G services would drive them to change. The cost of capturing every new mobile customer is around £400 per year in the UK which is mainly spent on marketing schemes. At this rate, the total cost to the mobile industry of replacing every churning customer is £8.16bn per year. Per Horsebridge's survey, 44% of respondents indicated call drop-off was the most important consideration in changing operators, leaving the estimated cost to the industry of poor quality networks at £3.59bn. [Figure as provided by a leading UK mobile operator]. In total, mobile operators spend millions of pounds annually on marketing and advertising to attract customers onto their networks, but the study also revealed that this is not significantly helping to address the issue of customer churn. Only 20% of respondents said that their operator's marketing schemes make them less likely to change services while nearly 80% felt they had little or no impact on their decision to change. Respondents to the survey were also questioned about what they find frustrating in mobile phone services. Call charges being too high (42%); poor network coverage (32 per cent) and poor quality of service (31 per cent) were most frequently selected by respondents as the thing they found most frustrating about their mobile service. Contractual issues and the inability to access all desired applications were amongst the second most frustrating complaints from respondents on mobile phone service. A management report with the full results of the survey, which polled 500 UK consumers during October-November 2005, can be found on Horsebridge Network Systems' web site.
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