TELCOS DEPEND ON THE GRAPEVINE TO ATTRACT AND RETAIN MOBILE CUSTOMERS

Sydney, Australia: A new study into consumer behaviour within the mobile market in Australia has revealed critical insights into purchasing habits and loyalty, and what ultimately drives customer decision-making.  The research among 3,000 mobile users, conducted by Australian telecommunications company SpinTel, not only defines buying patterns but also highlights significant opportunities for smaller service providers.

The research shows the top three purchasing patterns among respondents include:

• Low brand loyalty: The research indicates a dynamic market, with 50 per cent of respondents switching plans in the past two years, indicating value is a priority over loyalty.
• Multipurpose purchasing: One-third of consumers are purchasing mobile plans not just for themselves but for others, indicating a trend towards 'bulk' buying and family plans.
• Preference for post-paid plans: Customers are showing a clear preference for post-paid plans due to their ease of management, convenience, value and predictable billing cycle through direct debit arrangements. 

The top three factors shaping consumer purchasing decisions include:

• Reputation: Word of mouth and personal networking emerged as the most influential channels for mobile service research, underscoring the need for faultless customer service and active management of online reviews.
• Digital footprint: Online advertising, comprehensive websites, and comparison sites play a crucial role in influencing decisions, coming in as the second most critical channel.
• Social media's limited impact: Despite its prevalence, social media ranks lower in affecting decision-making compared to direct reputation and personal research.

The research also indicated a rise in popularity of smaller providers, with one in three people opting for a smaller telco, with a high retention rate once they make the switch. Nonetheless, a third of the market remains hesitant to shift away from larger providers.

Liam Bal, SpinTel's CEO said 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.

"No doubt cost of living is driving consumers to seek better deals, but the research points to other critical elements that are important to mobile users as they consider the right provider," said Bal. "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.

"And we know half of all mobile users have switched plans in the last two years as competition in the sector increases, with one in three opting for a smaller provider 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. 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."

About SpinTel

SpinTel is one of the largest privately-owned ISPs in Australia, established in 1996 offering both residential and business telecommunication services including congestion-free NBN, wireless Internet, cloud-based PBX, and SIM-only mobile plans at affordable rates. SpinTel's mobile, mobile broadband and wireless broadband plans are powered by the Optus Mobile Network. SpinTel is awarded as Australia's best provider across Mobile, NBN, Internet, and Broadband by WhistleOut, Product Review, Canstar Blue, Finder, and Money Magazine. SpinTel is one of the most popular Australian ISP's on ProductReview with a rating of 4.4 from over 9476 reviews.