If you were caught in a crisis situation, which would you rather have: Access to voice services on your smartphone or access to data? According to new global research commissioned by Amdocs and conducted by Hot Telecom, data wins out with a solid 55% of respondents choosing data over voice access.
These and other results showed that quality of network experience is becoming increasingly strategic for service providers. The research found that quality of experience, particularly for data, is fast becoming a primary loyalty driver for consumers and that providing improved quality of experience and personalized services represent significant revenue opportunities. It also highlighted the importance of Wi-Fi as a value-added capability to complement data coverage.
The survey probed over 4,700 consumers in North America, Europe, Central and Latin America and the Asia-Pacific regions on their perspectives about quality of network experience. The results provide a comprehensive view of what QoE means to mobile consumers and how it impacts customer loyalty and new revenue opportunities. The analysis covered various segments, including “4G” customers and big data spenders, as well as a breakdown of geographic regions.
Within the results, there were some significant global trends relating to the importance to QoE:
• Quality of experience is essential to drive loyalty: Data coverage and data speed were named as the primary loyalty drivers by mobile users by 55% of respondents.
• Consumers cite personalized services as an important factor in increasing service provider loyalty: Eighty-one percent of respondents identified tailored offers that reflect usage patterns; 85% cited rewards based on usage history; 85% would like the ability to self-manage their plans; and 88% would like to be notified in real time if the service provider is working on an issue related to their use.
• New revenue opportunities emerge: Service providers that can offer improved QoE can monetize the investment. Forty-six percent of mobile users would pay more to have access to better data coverage and 42% to enjoy faster downloads. In addition, 31% of respondents would pay for data speed boosters; and 23% would pay more to receive tailored service and plan offerings. Consumers are also willing to pay more for access to real-time usage and spending information (16%).
• Mobile users actively seek Wi-Fi to enhance voice and data: Wi-Fi is a critical factor for QoE. Seventy-nine percent of mobile users actively look for a Wi-Fi network whenever possible, while 48% of those do so to get better quality.
Who’s a big spender?
There were regional differences too. Representing 29% of the survey sample, North Americans were the furthest down the technology migration path with 52% using 4G. They were also the biggest spenders, with 23% spending more than $100 per month on voice and data services vs. 16% globally. While among the most satisfied with their provider, customers in this region expressed their highest dislike for data plan prices followed by roaming costs, data download speeds and data coverage.
By contrast, in the Asia-Pacific region, only 35% of customers use 4G. They also spend a lot more time than their peers in Europe and North America using their mobile devices for entertainment purposes, which explains their hunger for data speed and coverage. Customers in this region also expressed a greater willingness to pay for improved QoE.
Europeans spend the least on mobile services, with over 70% spending less than $50 per month. They are also the best-served market in terms of technical service, with 38% saying they never encounter technical issues. Europeans also expressed the least willingness of all regions to pay more for better quality.
Customers in Central and Latin America were most happy with the cost of their voice and data service (around 90%). This makes them the least price-sensitive market, with only 45% saying they would change service provider to take advantage of better prices, compared with 61% worldwide.
Enable, boost, exploit, create
So what should service providers take away from these results? The survey points to four key network QoE factors that service providers need to address in order to maintain customer loyalty and drive new revenue opportunities:
• Enable the digital lifestyle;
• Boost data coverage and speed;
• Exploit Wi-Fi to enhance voice and data;
• Create a personalized experience.
Indeed, when it comes to loyalty and revenue generation, what really matters is QoE. As Hot Telecom President Isabelle Paradis puts it, “Mobile service providers need to provide resilient and high-performance data connections, tailored and flexible voice and data plans, à la carte features and services, and ultimately personalized quality of experience.”
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