Sunday, February 4, 2018

Unexpected Upside from Unlimited Data Plans

Quality is what the customer says it is.

And  perceptions of quality can be based on any combination of objective and subjective attributes. Consider the latest J.D. Power 2018 U.S. Wireless Network Quality Performance Study.  

The study says that “customers with unlimited data plans experience a lower incidence of overall network problems, data problems, messaging problems and calling problems than those with data allowances.”

You might wonder how that is possible. Can the plan change the network? No, but the plan can change the user’s experience of using the network.

On the other hand, “customers who bring their old devices to a new plan experience a higher incidence of network quality problems than those that purchase phones from their carrier.”

Most of us could guess at why that practice could lead to perceived “network quality” problems. The device might not be able to use all the frequencies available on the new network. That can be a minor problem when network generations are stable, but a bigger problem when the next-generation platform is introduced.

Then there are configuration issues, such as resetting voice mail.

The point is that the study suggests unlimited plans lead to higher perceived network quality, not that quality is objectively affected by the choice of plan or device.

In other words, customers using unlimited data plans believe their network experience also is better. That is an unanticipated benefit of such plans, as churn is lower when customer experience is better.

As it turns out, unlimited usage plans improve customer perceptions of network quality. And, in the end, quality is what the customer says it is.

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