Avoiding the Churn Burn: Loyalty Influencers and Churn Potential for Core

Avoiding the Churn Burn: Loyalty Influencers and Churn Potential for Core Residential Services

Product Type: Market Research Report
Published by: In-Stat
Published: November 2004
Product Code: R97-1819

Description

Loyalty and churn continue to be key, and often elusive, factors for subscriber growth. This report examines drivers for loyalty and churn, and the relationship between the two, based on primary structured research on the US residential market. Detailed segmentation analysis based on income, age, ethnicity, and geography is provided.

Table of Contents

Table
of Contents

Executive Summary

Methodology
- Forecasting
  Techniques
- Structured
  Research Sources
  - Consumer
    Telecom Survey, 2004
  - US Census
    Bureau

Market Demographics
- US Population
  - US Population
    by Age
  - US Population
    by Ethnicity
  - US Population
    by Region
- US Households
  - US Households
    by Income

Usage
- Incidence of
  Usage By Income of Respondent
- Incidence of
  Usage By Age of Respondent
- Incidence of
  Usage By Ethnicity of Respondent
- Incidence of
  Usage By RBOC Region of Respondent

Loyalty Influencers
- Service Quality
- Price vs. Customer
  Service
  - Strategies
    for Creating Loyalty
- Loyalty Ratings
  by Service Type
  - Providers
    have a Solid Loyalty Foundation
  - Loyal Subscribers
    the Most Influenced by Incentives
  - Long Distance
    and Cable: Opposite Ends of the Loyalty Spectrum

Churn Potential?
- Plan to Switch
  Providers by Service Type
- Correlation
  Between Loyalty and Churn
- Why is Internet
  Churn So High?
  - The Cost
    of Churn

Customer Segmentation
- Money to Burn:
  Income and Churn Potential
  - Higher
    Income Groups More Difficult to Please
  - High Income
    = High Maintenance = High Churn?
- "Life-cycle":
  Age and Churn Potential
  - The Young
    and Old: More Similar than Might Be Expected

Older Individuals
Are More Loyal

Older Individual
= Loyalty = Less Churn?

Loyalty Is
Generational and Disappearing

Culture Shock:
Ethnicity and Churn Potential
- Variances
  in Loyalty Drivers Among Ethnicities
- Ethnic Loyalty
  Differences Most Evident in "Elective" Services
- Black/African
  Americans: High Loyalty, High Churn?

ILEC Regional
View
- The Incumbent
  Loyalty Edge?
- Regional View
  of Loyalty by Service Type
- Churn Potential
  by Region
  - RBOC Strategies
    and Regional Churn
  - Regional
    Demographics and Regional Churn

A Provider Specific
View
- Loyalty for
  Key Providers
- Loyalty Comparisons:
  On or Off Par?
- Provider Churn
  Potential?

Conclusion

List
of Tables

Table 1. RBOC Regions
by Provider

Table 2. US Population
by Age (in Thousands) - 2003-2008

Table 3. US Population
by Age (in Thousands) - 2003-2008

Table 4. US Population
by Region (in Thousands) - 2003-2008

Table 5. US Households
by Household Income (in Thousands) - 2003-2008

Table 6. Service
Adoption by Income of Respondent: From Cable TV to Wireless

Table 7. Service
Adoption by Age of Respondent: From Cable TV to Wireless

Table 8. Service
Adoption by Ethnicity of Respondent: From Cable TV to Wireless

Table 9. Service
Adoption by Ethnicity of Respondent: From Cable TV to Wireless

Table 10. Drivers
for Provider Loyalty, Segmented by Income (Multiples Accepted)

Table 11. Percentage
of Subscribers Extremely/Very Loyal to Provider, Segmented by Type of
Service and Income

Table 12. Plans
to Switch Providers Within a Year, Segmented by Type of Service and
Income

Table 13. Drivers
for Provider Loyalty, Segmented by Age (Multiples Accepted)

Table 14. Percentage
of Subscribers Extremely/Very Loyal to Provider, Segmented by Type of
Service and Age

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