Survey Finds 73% of U.S. cell phone users aware of FCC
25 November 2003
Sprint & US cellular most likely to see immediate customer losses
LOS ANGELES — A nationwide study conducted by Synovate, a leading global market research firm, found a large majority of cell phone users aware of Monday's new FCC rule on cell phone number portability, but far fewer likely to switch carriers because of it.
"Seventy-three percent of cell phone users said they knew about the FCC policy, but less than one in five claimed that they were extremely or very likely to switch," said Larry Levin, Synovate's Executive Vice President of Sales and Marketing based in Los Angeles, CA (see attached graph, PDF 64Kb).
Yet when cell users were asked about their next phone purchase and the likelihood that they would use their current carrier for that purchase, sixty three percent reported being extremely or very likely to stay with their existing cell phone provider.
Customer loyalty and likelihood of switching varies widely by provider
Among the cell phone users, those most committed to their current providers are users of Cingular, AT&T Wireless, T-Mobile and Verizon. These carriers had users that demonstrated solid commitment to their brands. Sixty nine percent of Cingular customers said they were extremely or very likely to buy their next phone from the company, while 66% of Verizon's customers felt the same about their current provider.
"Frankly, we were surprised by the commitment shown by customers to their existing carriers. It's so common for people to complain about their cell service. But many consumers told us each company is pretty similar, so why switch?" commented Levin.
While the survey found high levels of commitment among users of the larger cell company brands, Sprint and US Cellular had significantly lower commitment levels among their users than other companies. "For these companies, where your customer commitment level is hovering around 50%, it has to concern their marketing teams," continued Levin. "But it's still the early days of the 'number portability' marketplace. These companies have the opportunity to delve into the concerns of their users, take action and perhaps keep them."
What company co cell users want to switch to Verizon!
Verizon, which has the largest share of cell phone users according to this survey, has the greatest potential to lure customers to its brand. "Among those who claim to want to change carriers, we found that nearly twice as many consumers see Verizon as their preferred brand. But, what's most interesting is that half of those who want to switch know they want to change, but have not committed to a new company," Levin concluded. "That certainly creates opportunity and a ripe marketplace for all cell service providers."
Contact(s) for this press release
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Larry Levin
Executive Vice President |
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Synovate |
Telephone: +1 818-380-1480 |
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Phyllis Stevens
Vice President |
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Zlokower Public Relations |
Telephone: +1 212 447 9292 |
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 6,000 staff across 62 countries.
For more information on Synovate visit www.synovate.com.