Global mobile account churn now is less than three percent per month, according to Strategy Analytics, which tracks such measures for 259 mobile operators. The firm calls that the lowest level of postpaid churn and a prepaid churn since 2009.
Content bundling, multi-play bundles, and digital self-service options have been key to improving customer loyalty in the wireless market, Strategy Analytics says.
It is the direction of change that is most important. Since three percent monthly churn still means 36 percent annual churn, the typical mobile operator still loses more than a third of its customers every year, and essentially turns over 100 percent of its base every three years.
In practice, the losses tend to be less, as the number of lost customers decreases as the cohort base shrinks (three percent monthly attrition is a smaller number of customers as the pool of accounts shrinks). By some measures, a three-percent monthly churn in any single cohort (one month’s account additions, for example) means 70 percent of those customers are gone in three years.
In the U.S. market, AT&T and Verizon tend to have churn below one percent a month, by way of comparison.
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