User Satisfaction

  • Posted: 22 September 2011 05:41 PM

    There probably is no better way to judge customer satisfaction with a product that via customer retention. And Apple products have that in spades.

    Apple’s iPhone has 89% retention rate, next nearest hardware is HTC at 39%

    A whopping 89 percent of iPhone owners have indicated they will stick with Apple for their next handset, dwarfing all other hardware makers, according to a new survey.

    The next nearest competitor to Apple in terms of hardware manufacturers is HTC, which earned a 39 percent retention rate among users surveyed by UBS Investment Research. The biggest loser in the survey was Research in Motion, whose retention rate has dropped from 62 percent to 33 percent in the last 18 months.

    Rounding out the top five companies in terms of retention rates were two more Android vendors: Samsung and Motorola, earning 28 percent and 25 percent, respectively.

    So check it out:

    89% iPhone
    39% HTC
    33% RIM
    28% Samsung & Motorola

    How many times have I heard Android lovers tell me how superior their phone was. With a 28% retention rate? Lower than RIM? I don’t think so.

    Android fared better when users were asked solely about software, as 55 percent said they would stick with Google’s mobile platform. But an additional 31 percent of Android users also indicated they are likely to switch to an iPhone for their next handset, leaving Apple a sizable chunk of Android users.

    Now THAT is interesting. One of my contentions has been that many users don’t even know that they’re using Android; that they’re solely focused on their particular phone or brand. The above suggests just the opposite.

    Nonetheless, the above also suggest that 31% of Android users have indicated that they are likely to switch from Android to the iPhone. Wow.

    For the sake of argument, let’s assume that every person who leaves the iPhone purchases an Android device. That means that out of every 10 iPhone customers, when they purchase their next phone, 9 will stay with the iPhone and 1 will leave for an Android. Meanwhile, on the Android side of the equation, for every 10 Android owners who are purchasing a new pone, 6 (rounding up) will stay with Android and 3 will move to the iPhone.

    Do the math. If Android and the iPhone were exactly equal is market share, then for every 20 people who were moving on to their next phone, 12 would go with Apple, 7 would go with Android and 1 would go with “other”. Not only that, but the larger the Android market share, the LARGER the number of iPhone converts there will be.

    Android advocates claim that they are winning the smart phone wars. But it’s a pyrrhic victory if 45% of first time Android owners abandon the platform on their next purchase.

    [ Edited: 22 September 2011 08:48 PM by FalKirk ]      
  • Posted: 23 September 2011 03:10 AM #1

    High customer retention (reduced customer churn) is one of the factors that brought Verizon to the table for the iPhone after first passing on the device. It’s among the reasons the iPhone is so highly valued by both AT&T and Verizon.

         
  • Posted: 23 September 2011 03:30 AM #2

    DawnTreader - 23 September 2011 06:10 AM

    High customer retention (reduced customer churn) is one of the factors that brought Verizon to the table for the iPhone after first passing on the device. It’s among the reasons the iPhone is so highly valued by both AT&T and Verizon.

    I don’t have the quote but I know that the CEO of Sprint recently talked about how the iPHone significantly reduced churn everywhere it went. He’s already been praising the iPhone while - correctly - refusing to admit that Sprint will be carrying it soon.