Churn is our biggest challenge. It causes lost customers, shrinking revenues, and adds the possibility of going out of business. However, churn can also be a good thing—more customers, higher revenues, and growth—at least for the operator that people churn to.
According to the most recent CTIA annual report1, the North American wireless market is saturated, with device penetration estimated to be over 115%. Nearly everyone already has a cell phone and a plan. Add in mandatory (and easy) wireless number portability and churn becomes the new normal, as subscribers move nearly frictionlessly from one operator to another looking for the best deal. T-Mobile added over 2.2 million new subscribers in the first quarter of this year. Where did those customers come from? Other operators.
So why do people churn? A 2015 study by Analysys Mason2 revealed these top 5 reasons:
- Cheaper rates
- Better network coverage
- Higher data/voice/messaging allowances
- Faster data speeds
- Improved customer service
Improvement in any of these areas can help to reduce operator churn rate—and if significant enough, it may even drive increased churn for your competitors.
One way to combat churn is to improve your network’s coverage, especially inside homes and workplaces where most calling occurs. The U.S. Census Bureau reported in 2016 that 79.9% of households in the United States have Internet access in their homes. And the previously mentioned CTIA study1 found that over 80% of all cell phones in North America are smartphones—most of which are capable of making calls and sending messages over a WiFi network. Deploying a VoWiFi solution that leverages in-home WiFi access points and WiFi Calling to deliver wireless coverage solves one of the top motives for churn; it also gives your subscribers less reason to switch and offers other operators’ subscribers an alternative.
Remember, churn means growth, either someone else’s or yours. You choose.
VoWiFi and WiFi Calling…subscribers want it. Devices support it. Competitors have it. Why don’t you?
To learn more about VoWiFi and WiFi Calling from Interop Technologies, contact us.
Sources: 1. CTIA's Wireless Industry Summary Report, Year-End 2015 Results, 2015 2. Analysys Mason, Nov. 2015 study (Question: “Why do you intend to change your mobile provider?”; n = 963.) 3. US Census Bureau ‘Measuring America’ report, March 23, 2016
