U.S. Internet Providers See High Churn Risk Due to Increasing Costs

In 2023, approximately 20% of Home Internet customers expressed a strong inclination to switch providers within the next year. However, the actual number could be higher due to many customers feeling "locked in" by factors such as limited options in their neighborhood or apartment/community restrictions.

Notably, over a third of those who actively searched for a new provider cited cost as their primary motivation. NPS Prism data reveals that customers who received proactive communication from their internet provider of an upcoming price change were nearly twice as likely to remain with that provider compared to those unaware of the impending changes.

While no one welcomes higher bills, it's imperative for home internet providers to be transparent about upcoming price changes and increases. Outside of large scale network improvements, proactive communication goes a long way in developing trust and creating "stickiness' with customers. 

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Source: NPS Prism US Telco4 2022-Q3 2023