Part A5 · Networks, Switching and Customer Value

Switching Costs and Dual-SIM Customers

Switching costs are what customers lose or must do to move. With dual SIMs, customers often stay but shift spending, so share of wallet matters more than churn.

Switching Costs and Dual-SIM Customers · Illustrated by Hendra Saputra with AI assistanceSelect the illustration to explore it at a larger size.

The idea

The phone number, stored value, device instalments and habit all reduce price sensitivity. European evidence found number portability cut mobile prices by at least 4% (Cho, Ferreira and Telang, 2016). Where many customers carry two SIMs, a customer who moves most of their top-ups elsewhere is mostly lost even though they never churn.

Use it thoughtfully

  • Add share of wallet to retention reporting.
  • Strengthen switching costs that also help customers.
  • Expect price pressure if number portability arrives.

An example

ILLUSTRATIVE EXAMPLE: A customer still tops up both SIMs but now spends 70% on the other one. The retention team targets this decline before the SIM goes silent.

A question to try

What share of your customers' total mobile spending do you capture, and how is it trending?

A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.

Connect the ideas

Illustration

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