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Slow broadband causes users to switch ISP’s

Published: 06/06/2010 by Comments

A study on consumer behavior for broadband services has revealed that the factors effecting a consumer’s decision to switch to a new service and the choice of a new service is not necessarily the same.

A study by Orchid Consulting shows that while slow connections speeds is the most common reason of customers abandoning ship, they often base their choice of a new service on price, rather than speed or reliability.

Although the study, based on research from ICM Omnibus, found that 81% of broadband users surveyed were happy with service they were using, over 50% said that they have switched services at some stage. Of the ones that have switched, 79% make their decision based on price. Moreover, according to marketing research company Infogroup, 30% of all British broadband users rely in suggestions from family and friends when choosing a new provider.

Keith Gait, founder and principal consultant at Orchid Consulting, said that people have a tendency of switching if they are not satisfied with their connection speed, and poor customer retention can prove very costly for ISPs. However, he noted that broadband providers cannot focus simply on a single aspect of their offering, as “purchasing decisions and switching decisions are much more complex than any one single issue.”

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