New survey shows importance of customer service when renewing mobile contracts

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Customer service is becoming increasingly important as a reason why people renew their mobile phone contracts, a new survey published today shows.

Despite handset upgrades enticing those who hanker for the latest tech – the new iPhone 6S is expected to be launched today (9 September) – the survey shows that users place practical considerations above keeping up with the latest tech.

As technology and phone functionality becomes more complex and data remains vulnerable to hacking or data loss concerns, consumers are increasingly relying on good quality customer service from operators to solve their problems and provide reassurance.

The cost of a contract and reliable connectivity are the major reasons why people renew their mobile phone contracts, but customer service was ranked in third place (27% of respondents) in the YouGov survey of more than 2,000 adults carried out on behalf of Firstsource Solutions, a leading business process management company.

Respondents of the YouGov survey, whose findings are published today, were asked to name a range of factors which would make it most likely they would stay with their current mobile phone provider.

The survey shows:

  • Cost was the most cited reason why people stay with a mobile provider for a long period of time (55 per cent of respondents), with a good mobile signal the next most popular (45 per cent of respondents);
  • Customer service was in third place (27 per cent of respondents);
  • 13 per cent of respondents said it was because they wouldn’t want to miss an upgrade at the end of their current contract;
  • 11 per cent of respondents said it was because of the extra-add ons (e.g. preferential access to concerts/events/discounts);
  • 11 per cent of respondents said it was because it was too time consuming to switch, and 7 per cent said it was because it was too difficult to switch;
  • 18-24 year olds are the most value conscious group – with 64 per cent saying that competitive cost would be the reason why they would stay with a mobile provider for a long period;
  • Just 14% of 18-24 year olds cited handset upgrades as a reason to stay with a provider.

Sid Parashar, Senior Vice President, Client Relationship Management, Firstsource Solutions, said:

“As coverage of a recent Ofcom telco complaints report on consumer complaints showed recently, as the complexity of phones and our reliance on them has grown, if your mobile stops working then so can you.  That’s why receiving good customer service from your mobile operator is now more important than ever.”

The survey was undertaken by YouGov and consisted of interviews with 2,168 nationally representative respondents between 3-4 March 2015. All interviews were conducted online with YouGov panellists.

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