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Making the switch

From the Archive

News created: 25 Nov 2011

Partnering with mobile phone provider, Amaysim, Macquarie University researchers, Dr. Steven D'Alessandro, Dr. David Gray and Dr. Leanne Carter found that two thirds of Australians are dissatisfied with their current telco provider, with many being "more hated" than banks.  

The study, titled "State of the Mobile Nation," aimed to analyse the behaviors and switching attitudes of mobile phone customers in Australia and was one of the largest of its kind conducted in this country.

For industry, the study highlights that mobile providers need to "wake up and start listening" to their customers if they want to keep them, Dr. Gray mentions.

Why are Australian consumers so unhappy?

 The study found that customer satisfaction with Australia mobile phone providers was significantly lower than Europe in the areas of:

  • comparability
  • trust
  • problems and complaints
  • and the meeting of expectations. 

"Our research shows that the Australian public rates mobile telco trust at a dismal 4 out of 10" explained Dr. David Gray.

The reluctance to switch

Despite this unhappiness, the study found that Australian consumers were reluctant to make the switch with only 16% having made the switch in the last year. 

Some of the reasons consumers gave for this reluctance to switch were: 

  • they are locked into their contracts by their current providers
  • the perception that it is too difficult to switch providers
  • they can't easily compare between the different mobile phone plans on offer.

"For those consumers who did make the switch, they saved an average of $300 a year", according to Dr. D'Alessandro.  

A change is coming 

It seems however that the reluctance to switch is coming to an end, with 46% of those polled claiming they were either 'likely' or 'very likely' to switch providers in 2012. 

"Australian customers are sharpening their knives," added Dr, Leanne Carter. "They're waiting for their contracts to end and they want revenge."

View Dr. D'Alessandro's appearance on A Current Affair (The 9 Network).

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