There are some services that access providers can offer that increase subscriber retention rates. Brett Sappington from Parks Associates explained to me at TelcoTV that their research of 3,000 homes shows that some access providers are losing competitors to alternative access providers while other access providers are keeping their subscribers longer. In their report, bundled services increases customer retention by 20% and increases average revenue per user (ARPU) by over 11%.
Service quality exceeds price in customer satisfaction as 35% of satisfied bundled customers are unlikely to switch to another provider despite possible cost savings. These satisfied bundled customers are willing to pay 11% more for their services on average. Bundled services include Internet, voice, wireless voice, and television services. These and other key discoveries in the report show that subscribers are willing to pay a premium for “one-stop” bundled services if the right services and conditions are offered.
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