TalkTalk pays price for 2015 data hack

Imran Choudhary

Imran Choudhary

Customers have lost faith in TalkTalk as a trustworthy brand following the telco’s personal data hack in October 2015, according to new research from Kantar Worldpanel

The provider saw its share of the home services market fall by 4.4 percentage points quarter on quarter in terms of new customers, only 1.4% of whom gave reliability as a reason for joining the provider in the last three months – well below the market average.

“TalkTalk continues to offer some of the most attractive promotions across the home services market and almost a third of its new customers did choose it for this reason,” explains Imran Choudhary, consumer insight director at Kantar Worldpanel,  “but there can be no doubt that it lost potential customers following the major data hack. If it’s to recover from recent events TalkTalk will need to offer more than just good value.”

Aside from losing share across each of the home services in terms of new acquisitions, TalkTalk also lost existing customers in the fourth quarter of 2015, with 7% of its broadband base turning away to a different provider. BT was the biggest winner, picking up 40% of this lost share. Nearly a fifth of those leaving TalkTalk did so directly as a result of poor reliability – a significant increase on the previous quarter when fewer than 1% cited this reason.


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