NCA report on switching
- Switching on the rise
- Four in five consumers who switch service providers save money as a result
- 14% of consumers have previously switched broadband provider
- 4% of consumers switched electricity provider over past 12 months
24 August 2009
A survey commissioned by the National Consumer Agency and carried out by Amárach Research shows that four in five (82%) Irish consumers who have switched service providers did so in order to get a better deal, with four in five saving money as a result.
The biggest change seen since the last wave of research is in the market for broadband, where 14% of consumers say they have switched service provider, an increase of 8% on the previous wave.
Switching is clearly on the rise, with 12 out of the 17 sectors surveyed showing an increase in the level of switching taking place.
Ann Fitzgerald, Chief Executive of the NCA, said: "There is a huge appetite for value among Irish consumers.
"With budgets tightening due to the economic downturn, savvy consumers are examining the options and value available to them, switching to get the best deal where possible and the NCA is happy to report they are mostly saving money as a result."
Electricity and phones
Significant changes have been seen in the electricity market, where 4% of customers have switched providers over the past 12 months and 12% of consumers plan to change their electricity supplier in the coming year.
"The additional competition in the electricity market, with Bord Gáis and Airtricity entering the frame, has provided Irish consumers with more choice and the option to compare prices and change supplier if they so wish," Ms Fitzgerald said.
Switching mobile phone provider remains at the top of the switch list, with one in four Irish consumers saying that they have changed provider. However, young people are the keenest when it comes to getting best value for their mobile phone, with 41% of 15- to 24-year-olds switching provider.
"People remain very much influenced by friends and colleagues, and our research indicates that 60% of those who have switched mobile phone provider did so as a result of recommendations," Ms Fitzgerald said.
"The number of people who have found switching to be an easy process is up 7% on last year, which is very positive and it indicates that service providers are facilitating customers' needs and understand the importance of delivering a quality service," she added.
"The NCA is delighted to report from these findings that 69% of Irish consumers who have switched providers believe they are now receiving a better service.
"Informed consumers are empowered consumers and savings can be made if people shop around. As well as getting the best value for themselves they will also help to drive competition among providers in the long run," Ms Fitzgerald said.
Background to the survey
Amárach Research was commissioned in 2009 to continue the programme of consumer research conducted by the NCA with a view to monitoring, analysing and recording patterns of consumer behaviour and experiences in Ireland.
The research was conducted over a four-week period in May/June 2009, by means of face-to-face interviewing with a nationally representative sample 1,000 people between the ages of 15-74.
As with previous iterations of research, switching providers for mobile phones continues to be top of the list of providers, which consumers have switched from, with over one in four (28%) saying that they have done so, followed by car insurance providers and main grocery shop.
Recommendations from family/friends and preferring to keep switching all the time in order to ensure the best deal are equally as influential when deciding to switch home insurance providers (37%). The same can be said for top-up grocery shop (36%).
The number of consumers who have switched providers and found it to be an easy process has increased to over four in five (82%) since the previous wave of research, an increase of 7%.
Over two in three (69%) Irish consumers who have switched providers believe that they are receiving a better service with their new service provider.
As with those who found the switching process to be easy, over four in five (82%) believe that they have saved money due to switching providers. ABC1s are slightly more inclined than C2DEs to say so (86% versus 80%).
Consistent with previous waves, the main reason for not switching providers continues to be that consumers believe that they are already getting the best value for money from their current provider.
As with previous waves, switching providers for car insurance, main and top-up grocery shop remain at the top of the list for future likelihood of switching.
However, the most notable difference since the previous wave is the number of consumers who intend switching their electricity supply service provider within the next year (12%).Those aged 45+ are more inclined to say so (17%).
Learn more
Download a report of the market research findings (MS Word, 460KB)
View Amárach's presentation of the key findings (PowerPoint, 1.1MB)