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Bundled Services Builds Customer Retention

Service quality exceeds even price as the most significant factor in customer satisfaction, which leads to higher customer retention levels among broadband bundled-service subscribers, according to Parks Associates.

The study of more than 3,000 U.S. Internet households reports that close to 35 percent of satisfied broadband bundled-service subscribers are highly unlikely to switch to another service provider despite possible cost savings, thereby increasing customer retention by 20 percent. These satisfied bundled-service subscribers are also less price-sensitive and willing to pay 11 percent more for their dual-play services than the overall average.

A broadband bundled service combines high-speed Internet with landline voice, wireless voice, and/or television from a single service provider. Close to one-half of broadband bundled-service consumers reported high satisfaction levels with their existing service.

"Bundled services that maintain a high level of quality offer service providers, including cable MSOs, telcos, and other broadband providers, the opportunity to share an intimate relationship with their consumers," said Deepa Iyer, research analyst at Parks Associates. "It is through this relationship that service providers can build trust among consumers to become the one-stop shop for all their entertainment and communication services, and many subscribers will pay a premium for this high level of service."

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