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Sky Broadband Customers Most Satisfied, Least Likely to Defect
Study Shows Speed Does Matter for UK Customers
London, England - 13 January 2009 - Speed, rather than price, is more likely to influence British customers to switch Broadband Service Providers (BSPs), according to a study just published by analyst firm Strategy Analytics. The study, "Broadband Satisfaction and Customer Churn: UK 2H'08," found that, despite high self-reported customer satisfaction levels, seventy percent of UK subscribers would defect for a higher speed offering.
This survey was fielded in the fourth quarter of 2008. Strategy Analytics polled 500 UK broadband decision makers on the "three pillars" of customer churn: customer satisfaction levels, propensity to churn and perceived obstacles to defecting. Respondents were presented with various broadband speed and price scenarios to gauge sensitivity.
Sky Broadband customers had the highest overall satisfaction levels, with 87% reporting to be "very" or "somewhat" satisfied with the operator.
"The study results underline the importance of speed to the UK broadband consumer," said Ben Piper, analyst and Director of the Strategy Analytics Multiplay Market Dynamics service. "This is particularly relevant in light of Virgin's recent launch of its 50 Mbps product. In order to stay in the game, competitors will need to quickly and nimbly match or beat the Virgin offering."
Another key finding from this study was the weight customers placed on perceived barriers to switching. The hassle of scheduling installation was viewed as a gating factor for the majority of respondents.
"Companies that focus on minimizing customer disruption and inconvenience during switchover will go a long way toward increasing their subscriber base," noted David Mercer, Vice-President of the Strategy Analytics Digital Consumer Practice.
The survey includes data from the top UK BSPs, including BT, Carphone Warehouse, Virgin Media, Sky, Tiscali, and Orange, among others.
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