Half of Australian consumers switch mobile providers biennially
New research highlights that half of Australian consumers switch mobile service providers every two years, while one-third purchase plans for others, according to a study by telecommunications firm SpinTel. The survey, which included 3,000 mobile users, provides valuable insights into buying behaviours and customer loyalty in Australia’s mobile market. The findings underline significant opportunities for smaller service providers amid a dynamic and competitive industry landscape.
The research illuminated three key purchasing patterns among Australian consumers. Firstly, loyalty to mobile service providers is notably low. 50% of respondents had changed their mobile plans within the past two years, suggesting value is more important to consumers than brand loyalty. Secondly, there is a trend towards bulk buying and family plans, with one-third of consumers purchasing mobile plans for themselves and others. Finally, there is a distinct preference for post-paid plans due to their ease of management, convenience, value, and predictable billing cycle facilitated through direct debit arrangements.
SpinTel’s study also identified the primary factors that influence consumer purchasing decisions in the mobile service sector. Reputation, driven by word of mouth and personal networking, emerged as the most influential channel for mobile service research. This finding highlights the need for impeccable customer service and diligent management of online reviews. The second critical factor is the digital footprint, with online advertising, comprehensive websites, and comparison sites playing a crucial role in shaping decisions. Interestingly, despite its widespread use, social media was found to have a limited impact on decision-making compared to direct reputation and personal research.
The study revealed a growing popularity of smaller providers among consumers. One in three people have opted for smaller telcos, showing a high retention rate once the switch is made. However, a significant portion of the market remains hesitant to move away from larger providers, underscoring the importance of trust and perceived reliability in consumer decision-making.
Liam Bal, CEO of SpinTel, commented on the findings, stating, “With 35.6 million mobile users in Australia, it's essential to understand what compels individuals and families to select a particular provider, to keep delivering best value.” He acknowledged that while the cost of living is a driving factor for consumers seeking better deals, other crucial elements influence mobile users. “While low-cost plans are attractive at the moment, we saw that one-third of consumers purchase plans for others, indicating a growing importance on multi-user and family plan options,” Bal explained.
He also noted the competitive nature of the sector, with half of all mobile users switching plans in the last two years and one in three opting for smaller providers due to better value. “It's clear that mobile providers must continually strive to retain their customer base, and impeccable customer service is integral to this,” Bal added. “As a smaller provider, it's an exciting time as we innovate and respond to specific customer needs, ultimately delivering a trustworthy, efficient and value for money telco service.”
SpinTel is one of Australia’s largest privately owned Internet Service Providers, offering a range of telecommunication services, including NBN, wireless internet, cloud-based PBX, and SIM-only mobile plans. The company is recognised for its cost-effective services and has been awarded for its mobile, NBN, internet, and broadband plans by respected review platforms and industry bodies.
