By Jo Best, 1 July 2004 15:40
NEWS Rubbish customer service is making more than a third of the UK's mobile users change operator, research has claimed.
About 35 per cent of mobile owners have had enough of poor service and are thinking of switching operator because of it, according to research from LogicaCMG, at the same time as fewer managers in the industry are rating service as their most important priority.
In 2003, 35 per cent of senior managers rated customer service as their number one concern. This year, 14 per cent did.
As the telecoms market claws its way out of its recent slow period, managers are now focusing on attracting new customers rather than holding on to the ones they've already got.
And as the operators scramble to get their business 3G products onto the market, Tim Bharucha, manager of LogicaCMG's OSS consultancy practice, believes that if service issues are unresolved, they could well come back to haunt them.
With 3G cards starting to become standard for business laptops, "the service has to be available – it's no longer a fun, entertainment thing, it's functional," said Bharucha, adding that those operators who focus on convincing people they have the best service might be able to win some loyalty from the potentially lucrative business market.
When it comes to consumers though, keeping residential users onside is a much easier business – like giving a kid sweeties, in fact. According to the survey, 28 per cent of users will complain to their operator before they switch.
"An operator has to do quite a lot to unpick that [dissatisfaction] that's probably been building up over months. What do they do? They probably offer you free minutes or an upgrade. It's the chocolate factor, a quick rush," said Bharucha.
Comments
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1. Peter Cane
Is'nt the above typical. Dont look after your good customers, but give all sorts of insentives to new ones. Customer service!!! big companies do not know what this is anymore. You are just a number and no one cares anymore. My customers expect to get looked after. As far as phones go it seems, as far as my ideas are concerned all the big comapnies are after is face items not functional. We now have to have full car kits for our phones, which I strongly agree with, but cant see then phone when it is in it. Screens and buttons are to small.
2. Wayne Moore
I've never understood the attitude of the mobile operators. Surely it's cheaper to RETAIN a customer than to attract a new one with a heavily subsidised (at their cost) shiny new handset?
3. Robert Privett
When I purchased my mobile phone I got an offer of a very good tariff, however when my wife asked for the same tariff for her mobile phone she was refused and was told "it only applies to new customers". She then canceled her contract that she with the same supplier and told the supplier she was going else where for her mobile phone contract, almost over night she was offered the same tarrif that I had, it seem that even back last year the operators were only interested in new customers and not retaining the ones that they already had.
4. Stephen Wigginton
I had been with Singlepoint on a business tariff for years, but moved from them because they couldn't or wouldn't supply me with a free bluetooth enabled phone.
5. Julian Sawkins
Agreed. Buttons too small. Designed for kids. Nokia take note - the 6310 (that is no longer sold) was your best business phone.
Camera manufacturers might also want to think about the nimbleness of fingers versus spending power. What good is 5MP if you can only press the buttons two at a time? There are a lot of retired people who want these items struggling with micro-toys for no good reason.
6. anonymous
I say forget about buying out poor Customer Service with "shiny new phones" but "just give me (us) better service”.
We moved our corporate mobiles because of poor customer services, and now we are suffering the same! We are an established customer, a predictable revenue stream, low maintenance - this seems to equate to ".. needs no account management"
I think the tangible and hidden costs of 'churn' to both Service Provider and Customer have been forgotten. Someone has to subsidise the cost of ‘churn’!
7. Simon
I have been involved with mobile telephony (as a customer) since 1980. That predates Cellular by 5 years! As a comms manager and consultant, I have been purchasing mobiles since 1983.
The sum of my knowledge? Stay with your supplier, for they are all the same. Changing supplier is VERY rarely worth the hassle. If you feel insulted and upset, remember that providing mobile service is like the NHA - no one can actually meet the expectations generated by the hype!