Welcome!

.NET Authors: Pat Romanski, Jayaram Krishnaswamy, Jim Kaskade, Srinivasan Sundara Rajan, ChandraShekar Dattatreya

Blog Feed Post

Revealed: The Fragility of UK Mobile Customer Loyalty

WDS study finds nearly 40% of UK mobile subscribers at risk of churn in the next 12 months; only 12% truly loyal

Mobile World Congress 2013, Barcelona, Spain, Monday 25th February 2013: The first 'authentic' audit of loyalty among UK mobile subscribers, released today by WDS, A Xerox Company, has worrying implications for mobile operators. The WDS 2013 Mobile Loyalty Audit, integrating new survey data from research specialist TNS, reveals that 38% of UK subscribers are considering leaving their mobile operator in the coming 12 months. The audit also finds that only 12% of customers show the level of loyalty required to protect them from competitive offers and service disruptions.

For the first time, the WDS 2013 Mobile Loyalty Audit uses "stress-tests" to show the impact of real-world disruptions on a customer's propensity to churn and deliver a realistic view of the level of loyalty that exists in the UK. When stress-tested, the audit found customers' positive sentiment towards not switching could be easily reversed, for example:

What if…your current mobile operator increased prices by 10%?

  • 67% of customers who were previously unlikely to switch would now consider leaving.

  • 14% of them would switch immediately without further consideration.

  • 57% of highly satisfied customers would also consider switching, 13% would leave without further consideration.

What if…another operator could reduce your monthly tariff by 10%?

  • Only 34% of customers who were previously unlikely to switch could guarantee that they wouldn't leave for this saving.

What if…there was a privacy breach?

  • 85% of those that said they were unlikely to switch would now consider leaving.

  • 42% of them would switch immediately without further consideration.

  • 39% of highly satisfied customers would switch immediately.

The study suggests that the number of customers at risk of churn could be underestimated by operators. Additionally, many existing measures of loyalty, such as customer satisfaction and Net Promoter Score (NPS), often deliver overly simplistic and potentially misleading results. For example, the WDS audit found that 17% of customers currently considered a "switch-risk" are actually highly satisfied with their mobile operator. Likewise, 15% were NPS Promoters.

It also showed that one fifth of all customers staying with their current operator this year are doing so not through any sense of loyalty, but because they feel that "all mobile operators are the same" and that there is no benefit in switching.

"We've been measuring loyalty in a vacuum; assigning valuable retention budget based on customer sentiment and an out-of-date notion of what loyalty actually is," says Tim Deluca-Smith, Vice President of Marketing at WDS. "A customer might say that he is satisfied or that he has no intention of switching, but how does that sentiment change when there's a network outage or his monthly tariff increases? Loyalty means more than just a customer's intent to repurchase - this is only as good as the next handset subsidy or price discount. True loyalty creates customers that are forgiving when things go wrong and resistant to competitive offers."

The WDS Loyalty Audit also debunks some of the common myths around customer churn. In particular that customers switch primarily because of price, availability of devices or network coverage. Across each of these, the majority of at-risk customers were actually satisfied with their current operator's performance. Just 25% thought they got poor value for money, 21% that network coverage was poor and 13% that availability of devices was inadequate.

Instead, it seems operators are failing to create a feeling of "value" and "reward" among many of their customers. Over 40% of those at risk of switching felt they weren't valued or rewarded. In fact the data shows that if a customer doesn't feel valued they are more than twice as likely to become a switch-risk.

The study concludes with many positive take-aways for mobile operators looking to better manage customer loyalty. In particular the study emphatically shows how some service elements are more influential in building, or damaging, loyalty than others.

  • While a single interaction with customer support is relatively benign in its loyalty influence, customers that have to contact customer support more than once in a six-month period are twice as likely to be a switch-risk.

  • Getting any kind of care interaction right is critical. A customer who rates the performance of customer care as "Excellent" is nearly four times more likely to be secured beyond 12 months than someone who rates the experience as "Poor".

  • Basic network hygiene factors remain vital. 73% of respondents who rated network coverage as "Excellent" are unlikely to switch.

  • Retention budget can be better deployed and many expensive rewards programs are not working. Their value is unproven in creating long-term loyalty and 82% of customers felt they weren't adequately rewarded through existing programs.

"Building trust, developing a sense of value and sustaining strong customer service are fundamental to securing long-term loyalty; especially given the level of parity that exists between operators' pricing strategies and network performance," concludes Deluca-Smith. "Satisfaction alone is no longer enough, in fact it's become little more than a cost of doing business. The WDS Loyalty Audit shows that only 12% of UK customers have the level of loyalty we deem necessary to insulate them from competitive offers and service failures. Understanding who these customers are will help operators to better understand the customers at risk and deploy retention programs that build a more emotional and resilient tie between customer and brand."

-Ends-

To download the full report: http://www.wds.co/enlightened/wds-loyalty-audit-2013/WDS-Loyalty-Audit-UK.pdf

UK Loyalty infographic: http://www.wds.co/enlightened/wds-loyalty-audit-2013/WDS-Loyalty-Audit-UK.jpg

About WDS
WDS, A Xerox Company, is a leading provider of Customer Experience Management (CEM) solutions to the wireless industry.

Our goal is to help wireless brands deliver a more consistent, differentiated and profitable customer experience, shifting attention away from 'managing' customer experience problems and towards mitigating failures that we know have the potential to increase costs and damage end-user loyalty and profitability

We achieve this by embedding a CEM platform across the "customer lifecycle", from retail through technical support and returns management. This platform powers the solutions that we deploy at key end-user touch-points (retail, on-device, on-line and contact center) with the knowledge needed to dynamically manage how end-users buy, explore, use and maintain their wireless products and services.

It's this ability to help our wireless customers identify preventable issues, improve future products and services and build long-term, profitable relationships with end-users that means many of the world's most recognizable wireless brands now trust the outsourcing of their customer experience to WDS.

To find out more, please visit www.wds.co

Media Contacts:
Tim Deluca-Smith, Vice President, Marketing, WDS
+44 7957 311189, [email protected]

Paul Nolan/ Rufus Jay, CCgroup
+44 7717 723 440/ +44 7760 322 050, [email protected]

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

@ThingsExpo Stories
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.