A loyal long-term customer is considered a key asset by companies in most industries. It’s conventional wisdom that it costs more to recruit a new customer than to keep an existing one. Consequently, existing customers should be treated better than new customers. Continue reading The anti-guide: Six ways to make sure your customer churns
For operators, the biggest piece of news in Apple’s event yesterday isn’t the iPhone 6S or the iPad Pro. Instead it’s Apple’s introduction of its own iPhone Upgrade Program. Continue reading With the iPhone Upgrade Program Apple makes operators replaceable
Decoupled, non-binding, unsubsidised: A game changer?
Consequently, we examine the success of the operators who – in order to reduce SAC/SRC and improve margin – are challenging the mature market norm with binding contracts with coupled, subsidised, equipment. Continue reading Increase loyalty. Increase revenue. Reduce SAC/SRC. Is the combo possible?
Since T-Mobile’s plans for Data Stash were made public in December last year, we have looked forward to T-Mobile’s reporting of Q1 results – since we hoped to see the first indications of if rollover data actually helps customer retention. Continue reading T-Mobile’s churn lowest ever – following introduction of Data Stash
Consumers often think of carriers being somewhat stuffy and dusty, being slow to give customers flexibility and big at small print. But there are great exceptions to the rule with T-Mobile in the US, Free in France and Tele2 in Sweden, and we believe the next two years will see some further fun, entertaining and disruptive carrier offerings on the market. Continue reading Freedom to stay – The power of 40000 Tweets
The subsidy model – which dominated operators’ handset and equipment sales in mature markets for decades – is rightfully retiring. It wasn’t a brilliant idea to discount goods not produced inhouse (taking cost pressure away from equipment manufacturers like Apple) and, to compensate, overcharge for the services actually produced (making over-the-top services and Wi-Fi more attractive). Continue reading Churn: Still a concern
This is our fourth analysis on subscriber acquisition cost (SAC) and subscriber retention cost (SRC). Previous SAC & SRC analyses showed that an increase in SRC had a positive effect on contract churn without any negative effect on EBITDA – as long as not exceeding 100% of contract SAC.
Our new analysis shows that much has happened in 2013: Average unit SAC and SRC have decreased significantly. How come – and what has it led to?
Based on data from 35 mobile operators in 24 mature markets globally.
The analysis comes in two versions: A public version which you can download below – and a premium version which adds country-specific SAC & SRC analyses on eight countries: France, Germany, Poland, Austria, the Netherlands, UK, Denmark and Canada.
Download public version: tefficient industry analysis 2 2014 SAC vs SRC – public version