Over 40% of Brazilians think about changing telecom operator.
Brazilian telecom costumers show a relatively high willingness to switch operators. Over 40% are considering switching their mobile or fixed internet provider, with just under 20% saying they are looking to do so within the next two years.
With fierce competition in most major markets, the telecom sector in Brazil is no different. The challenges of customer retention for Brazil’s telecom companies were revealed in a new report from Oliver Wyman, which surveyed more than 3,000 Brazilians across the country.
Across Brazil's different regions, the inclination to switch telecom operators varies notably. Fixed broadband sees up to a 15% fluctuation, while mobile services show a 7% difference. Particularly, the north, northeast, and center-west regions, marked by less developed telecom infrastructure, demonstrate the greatest likelihood of changing providers.
The main factors compelling Brazil’s telecom customers to switch providers are price and speed of connection. Price is main factor for mobile service, with most providers offering adequate coverage in most urban areas. For fixed internet service, speed is a more relevant factor.
Additional factors that are important for customers are data cap on mobile service, reliability of fixed internet services, customer service, package offerings, and deals that include mobile devices. Some customers weighed the ESG qualifications of the providers, but it does not stand out as a leading consideration for most customers.
“To foster customer loyalty, operators must address these aspects comprehensively and craft a unique value proposition. To avoid devaluing their offerings through price reductions, operators must prioritize alternative strategies like convergence, premium services, improved customer experiences, and loyalty programs,” said the authors of the report.