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Revolting mobile users cite poor service

by Robert Jaques

16 Nov 2005

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Customer service is not meeting mobile users' expectations and demands

Dissatisfaction with operators has prompted more than half of advanced mobile data service users in the UK to switch providers in the past three years, according to independent research published today.

The research, conducted by Mori on behalf of LogicaCMG, shows that users of multimedia messaging services (MMS) and mobile internet browsing generate the highest average revenue per user.

However, during the past three years, 53 per cent of MMS users and 58 per cent of mobile internet browser users switched operators, compared to an average of 31 per cent across the UK mobile phone user population as a whole.

This higher than average rate of 'churn' points to users' growing dissatisfaction with the quality of service delivery and customer care received from their operator as service complexity increases, according to the report.

Fewer than half (47 per cent) of the customers who use internet browsing indicated that they are 'completely' or 'very' satisfied with the quality of service, compared to 80 per cent of all those using SMS.

Furthermore, a quarter of all users reported a poor experience when reporting problems to the operator's customer service centre.

Marieke Effting, product marketing manager at LogicaCMG Global Telecoms, said: "A positive perception of customer service is the cornerstone for building customer loyalty because it is one of few opportunities that network operators have to directly interact with subscribers.

"In competitive markets customer service becomes a key differentiator and, as the portfolio of enhanced data services gets increasingly broad and complex, it can either promote or inhibit service adoption and new revenue opportunities."

Chris McDermott, chief executive at LogicaCMG Global Telecoms, added: "Our research shows that mobile operators are facing a rate of churn that almost doubles as users adopt new advanced data services.

"A high proportion of this churn is attributed to customer service that does not meet users' expectations and demands."

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