One in three UK households see little or no difference between providers of bundled services and do not see buying mobile and broadband together as “logical”, new research has found.
According to EY’s latest Navigating the Bundle Jungle report, which polled 2,500 UK consumers in April, a quarter of respondents are willing to switch their broadband provider.
Lower prices and trust were the main reasons for churning, as less than one in 10 said premium TV or mobile tempted them to sign up with another provider.
Mobile services appears particularly difficult to sell.
One in three users disagreed that purchasing mobile and broadband services together is a logical purchasing decision, while 55 percent said they would only be interested in a package that included mobile if offered a significant discount on the stand-alone price.
A further 28 percent said they found it difficult to find a bundle that meets their needs.
Using the research EY broke down UK households into seven distinct groups, but with the largest accounting for just 17 percent of the market it is clear operators need a multi-pronged strategy to appeal to them all.
The groups range from “content light bundlers”, which EY describes as sophisticated users who are unwilling to pay for sport to “digital devotees” who are young, tech-savvy and content-hungry but have a high propensity to switch providers.
Adrian Baschnonga, EY Lead Telecommunications Analyst, said: “There has never been as much choice in the market for bundle customers, yet our report demonstrates that consumers remain confused and frustrated by what is on offer.
“For example, nearly half of the households surveyed find that introductory offers make it difficult for them to choose the best value package.
“This is despite the fact that 43 percent of households agree that these offers play a role in their choice of broadband service provider.
“In addition, 38 percent of respondents to our survey now use price comparison websites to choose their broadband provider, up from 34 percent in 2013, further illustrating that consumers are struggling to navigate the ‘bundle jungle’.”
Adrian Baschnonga will be presenting detailed findings of the report at European Communications’ annual OTT/Digital Content Seminar on 28 September. Click here for more details.