Users happy to change ISPs for better speeds

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More than half of broadband customers have changed their providers to seek out better deals, according to a report released today.

The survey, from Orchid Consulting, shows the figure was much higher than originally thought.

Although the main reason for customers moving was the speed of connection, the report showed they selected new providers based on cost, not dependability.

Keith Gait, founder and principal consultant at Orchid, said this finding demonstrated customer satisfaction is not a predictor of customer loyalty.

"It's clear that broadband companies have got to walk the walk as well as talk the talk,” Gait said in a statement.

More than a quarter of customers surveyed said the service they received did not match their expectations, even though it was the most common cause for them to leave.

“People aren't afraid of switching if connectivity speed is not up to scratch, and poor customer retention can prove very costly,” added Gait.

The report also showed that newly acquired customers are not the only ones to move, as more than 80 per cent of respondents said they stayed with their provider for over a year before switching.

At present there are high levels of infrastructure competition in the broadband market, with more than 300 broadband providers in the UK.

In 2010, nearly nine out of 10 UK internet connections were made using broadband, according to the Office for National Statistics (ONS).

“Good satisfaction levels will not necessarily be maintained and inertia can turn to churn very swiftly,” concluded Gait.

“The key learning is that you cannot focus simply on one aspect of your offering. Purchasing decisions and switching decisions are much more complex than any one single issue."

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