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21.09.2014
Based on surveys, between network performance and churn rate it appears some customers aren't feeling the love. Churn rates don't lie Let's start with the wireless industry's plum line for how well a carrier holds on to its customers -- churn rate. In the company's fiscal Q2 2014 earnings release this week, Sprint said it lost 272,000 postpaid subscribers in the quarter. Of course there are a few factors that play into churn rates other than a customer being dissatisfied with a carrier, but on the whole the lower the churn rate the better the indicator customers are happy with their current wireless provider.
But let's assume for a minute that Sprint has a higher churn rate than its competitors for some reason other than customer dissatisfaction.
This comes as Sprint was fined $7.5 million by the FCC earlier this year for violating "do-not-call" requests by its customers.
But even before this survey came out, Sprint's been known for its lackluster reputation among the public. An ongoing problemLast year Consumer Reports published a survey showing that Sprint was in dead last place among cell phone carriers, according to the publications' readers. For "ease and speed of getting through phone system to appropriate support staff" Sprint received Consumer Reports' worse-than-average rating, as did the company's rating for how well customer issues were resolved. This is isn't helping things eitherAccording to data from RootMetrics, in the first six months of this year Sprint had the worst performing network of all the major wireless carriers. Sprint trailed the pack in network speed, call performance, and data performance, while barely beating T-Mobile for reliability and text performance.


Fortunately, Sprint's in the process of updating its old 3G network with 4G LTE and is bringing its ultrafast tri-band Spark network to more cities. While Sprint's clearly making changes to reverse its place among competitors, the company needs to focus on its industry high churn rate.
Merger and Acquisition Analysts that need to examine population demographics in various wireless markets. Fortune 500 companies that contract with wireless service providers over large geographic areas.
Emergency Response organizations that need to provide the right wireless technology to their field response teams. PowerPack provides detailed information about the carriers' configuration for each county in the US. But if we look at some of the data on Sprint (NYSE:S) it appears the company has the most unhappy customers in the wireless industry.
Net tablet additions hid some of the worst news that a whopping 500,000 phone subscribers left in the three month period.
Well, then we could look to other sources for whether or not Sprint's customers are truly unhappy. While the Consumer Reports took into account factors like voice calls and data, the most telling indicators came from Sprint's customer support. On top of that, Sprint just replaced its former CEO with billionaire Marcelo Claure, the founder of the wireless distribution services company, Brightstar.


Competition among wireless carriers is stronger than ever, and with T-Mobile's aggressive offers and superior network, there are some clear benefits for Sprint customers to switch to the "uncarrier" network.
Based on the rate at which customers leave the company and two independent surveys, the nation's third-largest carrier is struggling to please its customers. In Sprint's most recent quarter the company had a postpaid churn rate of 2.18% -- the highest of all major US carriers. AT&T is paying $105 million to settle FTC charges that it added unauthorized charges onto its customers' phone bills. With a new network and a new leader, RootMetrics thinks Sprint's last place finish could be short-lived. Sprint CEO Marcelo Claure reportedly asked his vice presidents "Why would anybody want to buy a Sprint phone?" after he took over the job -- and they had no answer. If that's the case, it's no wonder why Sprint customers are likely asking themselves the same thing.
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