AT&T Churn Rate Insanely Low

Gary Kim does a great job explaining in an article that Customers will put up with a a lot of imperfection in service quality as evidenced by the 1% churn rate of AT&T versus the industry average of 3%. One wonders however if this staggering low rate isn’t just consumers not wanting to give up their iPhones.
Kim also mentions Verizon in his post and I agree that the real test comes when the iPhone gets offered on this network – if ever. My experience has shown that around 50% of AT&T users would switch to Verizon based on casual conversations. The impact of so many millions of customers switching carriers would obviouslyu mean the burden of supporting all this wireless data will switch from one carrier to another quite quickly.
This brings us back to AT&T who has a limited amount of time to improve it’s network before it has to deal with real competition from the Verizon iPhone, Droid X or new Blackberry device said to be yet another iPhone killer.

  • Paul
    July 29, 2010 at 1:59 pm

    There may be a disconnect between device and carrier satisfaction, which bears looking at closer. In May, ChangeWave came out with some smartphone satisfaction numbers. Android phones came in a close second to Android. Now, yes Android is available on multiple carriers. Volume of highly (and not so highly) rated phones, by carrier, may lead to an answer that’s not so much because of the iPhone, but do to selling a mix of higher rated devices. Another area to look at is volume/corporate purchases, as corporate customers may be less likely to change carriers than consumers. About Me

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