Wireless Carriers Looking for New Routes to Upselling Customers as Changing Providers Wanes
Fourteen percent of U.S. mobile subscribers reported switching cellular providers as the most recent change to their mobile service plan, Parks Associates blogged, despite efforts by the top four providers to lure new subscribers. Some 39 percent made a plan…
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change in the past 12 months, typically to upgrade a service plan or phone, it said Monday. A third of mobile customers haven’t made any changes to their mobile services in more than two years, as unlimited data offerings are “no longer effective levers” to draw customers from competitors, said analyst Kristen Hanich. "The challenge now is to find ways to increase ARPU [annual revenue per user] without negatively impacting customer satisfaction.” With few exceptions, the top spenders give their mobile carriers a low net provider score that’s some 10 points lower on average than the lowest spenders, she said, leaving carriers to search for “new ways to upsell without alienating their subscriber base." For example, AT&T exempted DirecTV from mobile data caps, “so its subscribers get video benefits with their mobile services," Hanich said. In response, T-Mobile and Verizon are moving to introduce their own over-the-top TV services this year, she said.