While the Mobile Phone Market has Grown to Near Saturation Level, Customer Loyalty Has Shrunk to New Lows, Finds Phoenix Marketing International

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Semi-annual and monthly research conducted by Phoenix Marketing International among wireless users indicates that over 1/3 of current wireless customers intend on switching service providers in the next year and nearly 2/3 plan on replacing their current mobile device with one from a different manufacturer. A startling 25% of so called service provider “promoters” plan on switching providers in the next year.

Phoenix Marketing International, one of the top research companies in the U.S., released summary findings from two studies conducted among mobile phone users. While results vary significantly by brand, overall findings show that the often used Net Promoter Score customer metric needs to be enhanced by other information in order to develop an actionable understanding of brand health and direction. Of those that are considered promoters (highly likely to recommend a brand), 24% are still planning to switch service providers, 49% will change their device brand, 36% will switch device operating systems, and 26% will purchase their device at a different location. Surprisingly, 40% of those that are classified as Service Providers “Detractors” (would not recommend their provider) report that they will continue to use the same provider at the time of their next purchase. Please click here to view findings.

Based on our data we have developed a new NPS Enhancer offering for the Wireless industry. This innovative approach combines traditional survey data with our partner’s ability to access over 15 million wireless feature and smartphone users directly via push technology. Utilizing this methodology we can track the customer experiences of mobile users across key impact points in their lifecycle, such as first week of purchase, first month after purchase and month before contract expiration. This information can be combined and pushed into client CRM solutions that will provide real time actionable checkpoints and allow clients to enhance their overall customer experience and increase their brand loyalty.

“By analyzing this data in conjunction with real behavioral data we have uncovered some very surprising and powerful insights”, said John Schiela, President of Phoenix’s Converged Technology and Media Practice. “For example, while Huawei users have one of the initial lowest satisfaction rates with their self-identified most important phone feature, they have one of the highest growth rates of actual loyalty as measured by repeat purchase.”

The semi-annual Convergence 360 Study and Monthly NPS Enhancer cover the U.S. Consumer Mobile Communications Market and covers brands such as AT&T, Boost, Tracfone, US Cellular, Sprint, T-Mobile, Verizon Wireless, Apple, Samsung, Motorola, LG, Nokia, Blackberry, HTC, Pantech, Kyocera, Huawei, Microsoft, Windows, Android, Java, Brew.

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John Schiela
Phoenix Marketing International
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