CANADIAN WIRELESS CUSTOMERS ARE hungry for a deal. According to brand new research, they are seeing the big ad campaigns and know they can shop around more than they ever have – and they’ll take their business to the best rate.
While all the wireless providers, new or incumbent, talk a great game about providing the best customer service, the highest speeds, the greatest apps and handsets, and the strongest, most reliable network – all lovely marketing bullet points – they only work to a degree.
Exclusive research from Toronto’s Solutions Research Group and Cartt.ca shows that when it comes to securing the loyalty of Canadian wireless customers, it’s all about the money, the rate, the number of dollars they’re forced to part with every month. They care about their cash. EVERYTHING else is secondary.
SRG surveyed 1,000 Canadians in late July/early August to gauge their opinion about their current wireless provider and how loyal they are to that brand, what they know about the new Canadian wireless companies, what might entice them to switch providers, which carrier they would switch to – and, what their current provider could do to get them to stay.
The data showed that while Canadians are generally okay with their wireless service, 41% have considered switching providers recently (16% said “many times”, 25% said “once or twice). In Quebec, where Videotron launched last week, 31% considered switching, and 14% said "many times".
And the group most likely to think of changing wireless companies? The 20-29 year old market, at 51%.
Overall, 28% of Canadians are either going month-to-month on an expired contract, or it expires sometime in the next 12 months. And that doesn’t include the 21% surveyed who use prepaid and are not on a contract. That means nearly half (49%) of Canadian wireless subscribers could be considered transient, tied to no company and willing to pursue lower rates at a moment’s notice (or may be motivated when they see a Wind, Chatr or Koodo ad during Bachelor Pad).
Clearly the Canadian wireless market is in for some upheaval as these contracts expire and the likes of Wind, Mobilicity, and Public Mobile gain market traction – and then when Videotron and Shaw launch wireless in their territories. Add into the mix regional players MTS, SaskTel, and Aliant as well as Rogers’ new Chatr brand and Bell’s Solo re-launch, and Canadians have no shortage of choice as they shop around.
The price plans now being made available, most of which are along the lines of $35 unlimited talk plan and a $45 unlimited talk-and-text plan, are pretty similar from Chatr to Solo to Wind and Mobilicity. It’s clearly a price war and Canadians are hoping to benefit.
In direct interviews with survey respondents, which are contained and summarized in the full report, a large number of Bell, Virgin, Telus, Koodo, Rogers and Fido customers (35%) said the first thing their provider must do to keep them as subscribers is offer “a better price” or “cheaper rates” or to “cut costs".
While many just demanded a lower monthly bill, a substantial number had other suggestions that would also take the edge off their charges like bundling discounts, free texting, and free handset upgrades.
When asked what two things other providers could do to get them to switch, once again, price was the number one reason, by a LONG shot, cited by nearly all survey respondents (72%).
While the bulk of those surveyed who said they were considering a switch were generally contemplating an established brand (Rogers/Fido, Bell/Virgin, Telus/Koodo), Wind Mobile has clearly made an impact on Canadians. Wind was mentioned by name more often than Virgin, actually.
When asked which brand they would consider if they were shopping around, 7% said Wind (8% in Ontario). Projected over 23 million subscribers, this means that Wind is top-of-mind for over a million people. The other new brands were hardly mentioned at all.
What gets lost in some of the anger documented in the full report is that most Canadian wireless customers report they are either, a) relatively happy with their provider, or, b) not bugged enough to bother switching or shopping.
While we’re reluctant to refer to the Canadian wireless market as a “war” or “bloodbath”, as many have already – and we’re cognizant that the big incumbents have yet to feel any material subscriber losses thanks to the newcomers in the market – this survey’s data clearly shows that while many Canadians are happy with their service, they are ready and willing to be lured by the better deal.
To purchase a full copy of this special report, complete with data by wireless provider and open-ended quotes from over 800 real Canadian wireless customers, you can download the information pack here.
