Research firm finds the highest net promoter scores (NPS) are among prepaid services and low ARPU subscribers

New research from Parks Associates finds only 14% of U.S. mobile subscribers switched providers as the most recent change to their mobile service plan. Mobile Service Churn: Managing Consumer Expectations reports that, despite intense efforts by Sprint, T-Mobile, Verizon, and AT&T to lure new subscribers, only 39% of mobile subscribers have made a plan change in the past 12 months, typically either a plan upgrade or a new phone. One-third of mobile customers have not made any changes in their mobile services for more than two years.

“Unlimited data offerings are no longer effective levers to attract customers from competitors,” said Kristen Hanich, Research Analyst, Parks Associates. “The challenge now is to find ways to increase ARPU without negatively impacting customer satisfaction. Currently, with few exceptions, the top spenders give their mobile carriers a low NPS, ten points lower on average than the lowest spenders. Carriers are searching for new ways to upsell without alienating their subscriber base.”

Parks Associates finds prepaid services score high NPS, indicating consumers respond positively to simplified billing. Currently postpaid carriers are starting to explore new value-added services such as bundled entertainment packages as new upsell options.

“AT&T exempted DIRECTV from mobile data caps, so its subscribers get video benefits with their mobile services,” Hanich said. “AT&T is looking to offer a wireless-centric video service offering, and in response, T-Mobile and Verizon are moving to introduce their own OTT TV services this year.”

Mobile Service Churn: Managing Consumer Expectations analyzes successful service provider strategies in the competitive mobile industry and explores reasons behind consumers’ decision to change operators or stay with their existing one. It also explores consumer interest in using alternative mobile services. Additional findings include:

• New smartphone purchases account for more than 50% of all changes that customers make on their mobile service plans.
• On average, U.S. broadband households pay over $60 more per month for postpaid mobile service than they do for prepaid service.
• Monthly expenditure for mobile service is greatest among Sprint and Verizon subscribers.
   

For more information about Parks Associates’ research, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific data, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.

About Parks Associates

Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com

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