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The Danes have again become somewhat more loyal to the internet provider they have chosen, on top of a year when the fierce competition for customers really took off. Two up-and-comers who have gone hard in pursuit of more customers with lower prices are now approaching the top.
This is shown by the annual measurement of Danes ‘ loyalty to their provider, which konsulenthuset Loyalty Group conducts.
A year ago – while the corona crisis was still raging-the Danes were largely ready to strike and change providers when the price of a fast internet connection was better elsewhere.
“Overall, the industry has seen some progress in loyalty across all providers. After the drop from 2020 to 2021, loyalty is back at its highest level in three years. And we see a very, very, very close race between the three podiums, ” says Lars Jepsen, head of research and senior consultant at Loyalty Group.
Top scorer 11 years in a row is now threatened
That’s for 11. for years in a row, the internet provider Waoo, which musters the most loyal customers with a score of 63 points out of 100 possible (against 60 last year, but 66 in 2020). Waoo, which a number of the country’s energy companies jointly owned, was fully taken over by Andel, the former SEAS-NVE, in March 2021.
But right on the heels is the old TDC’s low-cost internet provider, Hiper, with 62 points (against 53 last year and 55 in 2020), while the new “Naughty Boy” in the class, Fastspeed, NYE in at 60 points. This is the first time that Fastspeed, which was founded by former YouSee and TDC people and, like Hiper, exclusively provides internet, is included in the list.
Denmark’s second largest telecommunications company, Telenor, has taken a proper leap upwards from a score of 49 points last year to now 58. Telenor has aggressively been in a price war with Fastspeed, as Telenor gained access to sell internet connections over more and more of the lightning-fast fiber networks, which are expanding at a blazing pace all over Denmark.
“Telenor has invested a great deal in being able to provide fiber internet, and this can be quietly read from the results,” says Lars Jepsen.
Below the average score of 56, Denmark’s second largest cable broadcaster Stofa (owned by the energy company Norlys), Swedish Telia and TDC’s YouSee are at the bottom.
“Stofa has advanced in loyalty compared to last year but is still below the level of 2020. Stofa still has major challenges in terms of retaining customers and developing them into very satisfied customers. YouSee is at the bottom, just as the company has been doing for a number of years, but stable and with a slight increase from 2020 to now. YouSee also offers fiber to more and more customers, but often it takes two or three years before you see the full effect of a new venture and are beyond the start-up difficulties,” says Lars Jepsen.
YouSee, which is the country’s largest cable broadcaster, has for years held on to its cable tv network for also internet connections because considerable sums had been invested in it, but has now, like everyone else, joined the fiber wave, which can provide higher internet speeds and greater capacity.
There may be a difference
Helping to curb many people’s urge to change internet providers is the fear that it is cumbersome.
“With banks, insurance companies, mobile and internet providers, many have the mental attitude that the switching costs are relatively high and that it is not easy. But when they hear from people who have actually changed, they discover that it is now quite easy. With a new internet provider, you have to have a new router at home and thus a new code for the wireless network. It may not sound so difficult, but gradually we all have quite a lot of equipment connected to where to change it, just as many guests in the home have often gained access. Therefore, many people stick to the provider that they have had for a number of years,” explains Lars Jepsen.
Yet the measurement – and the customer numbers-show that up-and-comers like Hiper and Fastspeed can mix well.
“They can also be challenged. If someone comes who is even cheaper, can do a little more or has a sharper profile, then customers are sufficiently gullible and look to see if the grass is green elsewhere,” he adds.
When asked about the value for money of the internet subscription, Hiper scores first place. Telenor is number two, Fastspeed number three. Telenor is committed to providing 24-hour customer service. On the other hand, Telia scores top marks when asked about social responsibility. Telia has made its mark on reducing its CO2– imprint, while Telia’s low-cost carrier, CallMe, has for several years asked customers to speak nicely to each other.
“It can be good to stand out from the crowd and get a profile that attracts new customers and retains those you have.Nye. But this must never be done at the expense of the experienced product. It is always a complement to a stable, good product with high internet speed, the best router on the market and being able to secure wireless coverage all the way down to the backyard and preferably all the way up to the holiday home, if possible. Product quality is still paramount, ” emphasizes Lars Jepsen.
The mobile companies have succeeded in significantly improving customer loyalty over the past two years. They are now on par with – or even higher than – banks, insurance and pension companies. Internet service providers can get there too.
“The Internet is still in its NYE start in terms of how many – new and more – products you connect to. Therefore, there are constant challenges with new technology, but the more we get used to it, the easier it becomes and the greater the satisfaction. Over time, the internet industry’s score will rise steadily, but it requires hard work and better communication and explanation,” emphasizes Lars Jepsen.