Friday, June 5, 2009

Mobile Satisfaction: Virgin on Top w/ O2

Anna Yong & Jason Lackey

The J.D. Power 2009 UK Mobile Phone Customer Satisfaction Study is out, revealing interesting differences between pre-paid and post-paid customer satisfaction.

Broken down by Pre and Postpaid ratings, on the 1000 point scale, the results are:


  • O2: 734

  • Tesco Mobile: 710

  • Virgin Mobile: 691


  • Virgin Mobile: 718

  • O2: 698

  • Orange: 673

One factor impacting mobile satisfaction seems taken out of the airline frequent flier miles playbook: incentives and rewards. Both Prepaid and Postpaid customers who receive incentives and rewards tend to be more satisfied than those who do not. It is also likely that those customers who are receiving rewards and incentives are using more minutes or additional services to earn those rewards, making them higher ARPU customers - just the ones you want to hold on to. Maybe it is a good idea to throw your best subs a bone from time to time.

A surprise finding was that Postpaid subs report more desire to churn(!) than Prepaid, 17% vs. 12%.

A non surprise finding is that Postpaid subs spend more: £26.87/month compared to £12.09 for prepaid.

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