Amdocs Eyes Churn, Ways to Fight It

According to research conducted for Amdocs (NASDAQ:DOX), despite the competitive challenges from over-the-top (OTT) players, the most consumers still favor "traditional" service providers. However, while customers value their service providers' customer experience, network quality and brand reputation, churn remains high within the industry.

The Amdocs Customer Experience Spotlight 2015 survey was conducted among 8,450 consumers in 17 countries. Among the findings:

• While 63% of respondents stated they would recommend their service provider, citing customer care/experience (89%) and high-quality Internet connection and coverage (59%) as the top reasons for their endorsement, 50% of respondents said they had been with their current service provider for less than a year.
• 80% of respondents would not consider switching to OTT disruptors if these players offered mobile connectivity. The top reasons were privacy and security issues, lack of trust, and potential network quality issues. Global variations were significant - the majority of APAC and emerging markets were more likely to consider OTT disruptor services, while mature markets in Europe and North America were more loyal.
• More than half of the respondents stated that they would switch mobile subscription plans for a plan that included additional communication services (e.g., home, Internet, TV) with almost the same number of respondents saying they would switch if they were able to choose the bundle components.
• Although 52% of respondents subscribe to four services (broadband, TV, mobile, fixed line voice), only 1% has a single quad-play provider. Triple-play penetration was also low (9%).
• Among the 62% of respondents with a mobile Internet plan, 71% use WiFi more frequently than their mobile connection.