Customer Churn Rockets to 24% in ISPs
Posted: 26th Oct, 2005 By: MarkJ
Research, conducted by Group 1 Software in July 2005, has indicated that customer churn rates amongst ISPs is as high as 24% per annum. Essentially indicating that one in four customers are likely to defect to another ISP:
Andrew Greenyer, Director of Marketing EMEA, Group 1 Software comments; "Falling charges in the ISP sector, along with the multiple provision of various bundled and unbundled broadband services have created a complex usage pattern amongst consumers. The jury is currently out regarding whether packaged or individual services will win out, and no pundit is currently prepared to put their money on the line on this issue."
It's interesting to note that churn remains high despite it being more difficult to migrate away from broadband ISP's.
Certainly one of the biggest reasons we see for people moving is down to a drop in performance or the inability of the ISP to keep a competitive pricing level.
Being in the UK ISP market is highly competitive and some providers still fail to adapt quickly enough to new challenges.
Andrew Greenyer, Director of Marketing EMEA, Group 1 Software comments; "Falling charges in the ISP sector, along with the multiple provision of various bundled and unbundled broadband services have created a complex usage pattern amongst consumers. The jury is currently out regarding whether packaged or individual services will win out, and no pundit is currently prepared to put their money on the line on this issue."
It's interesting to note that churn remains high despite it being more difficult to migrate away from broadband ISP's.
Certainly one of the biggest reasons we see for people moving is down to a drop in performance or the inability of the ISP to keep a competitive pricing level.
Being in the UK ISP market is highly competitive and some providers still fail to adapt quickly enough to new challenges.
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