Research firm finds the highest net promoter scores (NPS) are among prepaid services and low ARPU subscribers
New research from Parks Associates finds only 14% of U.S. mobile subscribers switched providers as the most recent change to their mobile service plan. Mobile Service Churn: Managing Consumer Expectations reports that, despite intense efforts by Sprint, T-Mobile, Verizon, and AT&T to lure new subscribers, only 39% of mobile subscribers have made a plan change in the past 12 months, typically either a plan upgrade or a new phone. One-third of mobile customers have not made any changes in their mobile services for more than two years.
“Unlimited data offerings are no longer effective levers to attract customers from competitors,” said Kristen Hanich, Research Analyst, Parks Associates. “The challenge now is to find ways to increase ARPU without negatively impacting customer satisfaction. Currently, with few exceptions, the top spenders give their mobile carriers a low NPS, ten points lower on average than the lowest spenders. Carriers are searching for new ways to upsell without alienating their subscriber base.”
Parks Associates finds prepaid services score high NPS, indicating consumers respond positively to simplified billing. Currently postpaid carriers are starting to explore new value-added services such as bundled entertainment packages as new upsell options.
“AT&T exempted DIRECTV from mobile data caps, so its subscribers get video benefits with their mobile services,” Hanich said. “AT&T is looking to offer a wireless-centric video service offering, and in response, T-Mobile and Verizon are moving to introduce their own OTT TV services this year.”
Mobile Service Churn: Managing Consumer Expectations analyzes successful service provider strategies in the competitive mobile industry and explores reasons behind consumers’ decision to change operators or stay with their existing one. It also explores consumer interest in using alternative mobile services. Additional findings include:
- New smartphone purchases account for more than 50% of all changes that customers make on their mobile service plans.
- On average, U.S. broadband households pay over $60 more per month for postpaid mobile service than they do for prepaid service.
- Monthly expenditure for mobile service is greatest among Sprint and Verizon subscribers.
For more information about Parks Associates’ research, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific data, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.
About Parks Associates
Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. A woman-owned and woman-led company, Parks Associates is a trusted partner and advisor to executives, providing custom research, strategic consulting, and forward-looking analysis across smart home, small business, and commercial markets, including security, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.
Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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