Parks Associates: Satisfaction With Bundled Services Builds Customer Retention and Increases ARPU; Study Finds Satisfaction With Bundled Services Increases Customer Retention By 20% and ARPU for Monthly Dual-Play Services By 11%
Posted on: Thursday, 8 June 2006, 15:00 CDT
Service quality exceeds even price as the most significant factor in customer satisfaction, which leads to higher customer retention levels among broadband bundled-service subscribers, according to Parks Associates' Bundled Services and Residential Gateways. The study of more than 3,000 U.S. Internet households reports that close to 35% of satisfied broadband bundled-service subscribers are highly unlikely to switch to another service provider, despite possible cost savings; thereby increasing customer retention by 20%. These satisfied bundled-service subscribers are also less price-sensitive and willing to pay 11% more for their dual-play services than the overall average.
A broadband bundled service combines high-speed Internet with landline voice, wireless voice, and/or television from a single service provider. Close to one-half of broadband bundled-service consumers reported high satisfaction levels with their existing service.
"Bundled services that maintain a high level of quality offer service providers, including cablecos, telcos, and other broadband providers, the opportunity to share an intimate relationship with their consumers," said Deepa Iyer, research analyst at Parks Associates. "It is through this relationship that service providers can build trust among consumers to become the one-stop shop for all their entertainment and communication services, and many subscribers will pay a premium for this high level of service."
Bundled Services & Residential Gateways, a primary consumer research study, is a tool to determine the best mixture and pricing of packaged Internet, communications, and entertainment services. This survey tackles such issues as optimal price points and preferred service providers and also examines how consumer preferences for packaged services impact the design, development, and distribution of residential gateway form factors. For additional information about Bundled Services & Residential Gateways, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.
About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.
Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts several fall events and co-hosts CONNECTIONS(TM) (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com
Source: Business Wire
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