ericsson
satisfied users recommend their networks
Network performance drives customer satisfaction and this translates into a profound effect on loyalty as users’ word-of-mouth and recommendations turn into powerful brand promotion tools for operators. Customers with high satisfaction are found to be very loyal to their operators, with three-quarters planning to stay with their current operator2. On the other hand, those customers with low satisfaction display a 50-50 chance of staying, suggesting that moving users from a low to high satisfaction level would dramatically reduce churn. For mobile operators to keep costs under control, it is even more critical to retain existing customers than to acquire new ones.
How likely are you to stay with your current network provider? Likelihood of staying with network provider Network
High = 78%
Medium = 50%
High Satisfaction Medium Satisfaction 0%
20%
40%
60%
80%
Research has shown that most network operators are yet to offer the ‘wow factor’ that will entice their customers to generate positive recommendations. Analysis from Ericsson ConsumerLab has shown2 that the Net Promoter Score (NPS) or likelihood of brand promotion by customers—calculated by plotting the percentage of users who would act as either detractors or promoters of a brand—shows that highly satisfied customers can increase an operator’s NPS by at least 40 points.
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