2013 what today's consumers expect from wireless … what today's... · ·...

© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY

What Today’s Consumers Expect From Wireless Devices

5/8/2013

Kirk Parsons

Senior Director, U.S. Telecom

Key Insights and Trends

2© 2013 J.D. Power & Associates, McGraw Hill Financial. All Rights Reserved.J.D. POWER & ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY


• About J.D. Power & Associates

• Mobile Device Market & Landscape

• Key Elements to Customer Satisfaction (CSI)

• Tablet vs. Smartphone

• Summary

• Questions & Answers

Agenda



About J.D. Power & Associates

� Analyzes millions of consumer/B2B

opinions, perceptions, and

expectations each year

� Helps companies and industries

improve via quality/satisfaction

data from verified owners and

provides performance

improvement training

� Serves as a performance

benchmark in numerous industries

� Independent and unbiased;

credible and trusted



Voice of the Customer Data and Analysis

Syndicated Research Studies

Call Centre / Retail Solutions

Strategic Research

J.D. Power helps clients measure,

understand, and improve the key

performance metrics that drive growth

and profitability.

Co

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ing



How has the Market Evolved?

Source: J.D. Power Syndicated Studies ‘08 – ‘12

Tablet

2012 – 18%

2013 – 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2008Q3

2008Q4

2009Q1

2009Q2

2009Q3

2009Q4

2010Q1

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

% Share of Devices

Share of Mobile Devices

Feature Phones Smartphones

Smartphones overtook feature phones in 2011. Tablet may pass feature phones in 2014.



What are the Key Drivers of Satisfaction?

Smartphone

Customer Satisfaction Index Weights:

2013 Vol. 1

Tablet


2013 Vol. 1

Performance

33%



How have Smartphone Satisfaction Drivers Changed?

Smartphone


2007

Smartphone


2013 Vol. 1

Performance

33%



What about More Recent Changes?

Primary Reason for Selecting Smartphone

Features become less

important because device

is customized by apps

Features over-index during the selection process. As the prior slide indicates, ultimately, Performance, Ease of Operation, and Styling are just as important.



OEM Scorecard

12352

2013 Smartphone Satisfaction V1 2013 Tablet Satisfaction V1

Far more variation between top and bottom performers in the Smartphone industry, where

cost is less of a factor.



Tablet and Smartphone Factor Performance

There are substantial variations between the highest and lowest ranked performers in certain

factors.

N/A

Index Variation between Best and Worst Performers



How do Smartphone and Tablet Scores Compare?

Performance Attributes

Tablet is significantly better in:

� Battery Performance (1.17)

� Reliability of OS (0.74)

� Processing speed of OS (0.56)

� Camera picture and video quality (0.18)

Overall Index

Performance

Ease of Operation

Design

Features

Factor Score Comparison

Index Point Difference

Tablet Worse Tablet Better

For Smartphones, performance gaps are most evident in Battery Life and Reliability of the

Operation System.



What are the Implications? If mobile device owners are so satisfied, why is customer loyalty so low for OEMs relative to Tablets? How do you increase your share of the rabidly loyal customers?

15%Definitely will buy

next Smartphone

from same OEM

30%Definitively will buy

next Tablet from

same OEM

16%Smartphone users

strongly agree

committed to OEM

27%Tablet users

strongly agree

committed to

OEM



Customer Experience – Why it Matters?Most manufacturers receive good ratings. To ensure commitment in this market, you need an outstanding experience, not just quality hardware.

Source: 2013 U.S. Smartphone Study Vol. 1

Smartphone Repurchase Rates

Commitment to OEM

Smartphone Brand Advocacy

% Definitely Will Repurchase

% Definitely Will Recommend Brand

% Strongly Committed to OEM



Customer Experience – Why it Matters?

Source: 2013 Tablet Study Vol. 1

Tablet Repurchase Rates

Commitment to OEM

Tablet Brand Advocacy

% Definitely Will Repurchase

% Definitely Will Recommend Brand

% Strongly Committed to OEM

Achieving a “delighted” experience is even more critical among the Tablet segment – where repurchase and commitment rates reach 60%.



What Attributes Drive Repurchases?

Smartphone

� Overall battery performance

� Timeliness of syncing between

hardware

� Availability of multimedia

functions

� Navigating around phone menu

system

� Processing speed of

operating system

Tablet

� Location of non-display

buttons/controls

� Navigating through the tablet

� Variety of pre-loaded

applications

� Adjusting tablet settings

� Availability of manufacturer

supported accessories

For Tablet customers to commit to a repurchase, improvements in app stores must be made. Battery life is the crucial differentiator for smartphones.

Top 5 Attribute Gaps Between “Definitely” and “Probably” Will Repurchase



How do Usage Activities Differ Between Devices?

Emailing and social media activity remains higher on Smartphones.

Source: 2013 Vol. 1 Tablet Study

Weekly Usage by Device

Ho

urs



Impact of Apps on Tablet Satisfaction

Sources: 2012 and 2013 Vol.1 Tablet Studies

Heavier apps usage results in higher satisfaction as they increase engagement and act as a means to customize a device. Satisfaction is higher among those paying for apps.

2013

Ove

rall

Ta

ble

t S

ati

sfa

ctio

n

Number of Apps Downloaded per Month

2012

Ove

rall

Ta

ble

t S

ati

sfa

ctio

n

Number of Apps Downloaded per Month

Avg. # of paid apps – 2.5

Avg. # of free apps – 6.48

Avg. # of paid apps – 1.46

Avg. # of free apps – 4.8



Impact of Cost on Tablet Satisfaction: Osat Sweet spot

appears between $300< $500

Source: 2013 Vol.1 Tablet Study

Tablet Factor Satisfaction by Price Point

Tablet “Key” Attribute Satisfaction by Price Point



Tablet and Smartphone Sales Experience

Sources: 2013 Tablet Study Vol. 1 and 2013 Full-Service Purchase Experience Vol. 1

Tablet Sales Channel

Impact of Sales Channel on

Tablet Satisfaction

Smartphone Sales Channel

Impact of Sales Channel on

Smartphone Satisfaction



Tablet Sales Experience


Heavier apps usage results in higher satisfaction as they increase engagement and act as a means to customize a device. Satisfaction is higher among those paying for apps.

Impact of Sales Experience on Tablet

Satisfaction

Sales Satisfaction - Purchase Channel

Impact of Sales Experience on Smartphone

Satisfaction





There are a variety of reasons why consumers choose to purchase their tablet brand. These reasons vary by manufacturer. Manufacturers should be mindful of this and tailor advertisements and marketing campaigns to these main reasons.





Consumers who select their device due to past experience with other products are the most satisfied with their tablet vs. those who select their device due to lower price tend to be less satisfied.

Overall Satisfaction by Main Reason for Purchase



Impact of Sharing Tablet

Source: 2013 Vol.1 Tablet Study

Number of People in Household Who Use Tablet

Number of Users Overall Satisfaction “Definitely Will” Repurchase

1 824 28%

2 830 31%

3+ 836 36%



What about the Product Ecosystems?

*Data is dependent on consumer’s understanding of OEM’s other offerings.

Because of increased familiarity and synergy across operating systems, customers who have tablets and smartphones made by the same OEM are more satisfied on average.

Impact on Tablet IndexImpact on Likelihood to

“Definitely” Buy Other Electronics

from Tablet OEM*

Manufacturer A

Manufacturer B

+11

+23

39% vs. 46%

21% vs. 24%



In Summary…

� Customer preferences and requirements have been evolving as Tablets become

more common place and being shared within the household

� Top performing OEMs have better understanding of customers preferences as it

relates to their target audience

� Customer usage patterns vary based on number of devices they own and across

similar ecosystems – sharing of content is rising

� Applications that increase personal productivity significantly improve customer

satisfaction but users are becoming more discerning in which apps are being

downloaded

� Seamless and transparent user experience across smart devices is important for

brand loyalty and future repurchase – shopping experience can positively impact

device satisfaction performance.

Customer experience is key to brand loyalty and repurchase commitment



Before We Conclude…Upcoming Device Studies

� 2013 Device V2 studies cover field period between January – August,

2013. Handset is an annual study offering.

� There will be two Tablet studies offered in 2013.

� Smartphone and Traditional Handset awards now at the Carrier/OEM

brand level

2013 Wireless Report Schedule

Study# of Awards Per

ReportAward Classification

Fieldwork

Waves

Pre-Release

Date

Report Release

Date

2013 Handset – Volume 2Four (one per Tier 1

Carrier)

Brand that achieves “highest” overall

satisfaction among model ownership < 1 year

per Tier 1 carrier

Jan - Aug 2013 Oct 22, 2013 Oct 24, 2013

2013 Smartphone CSI – Volume 2Four (one per Tier 1

Carrier)

Brand that achieves “highest” overall

satisfaction among model ownership < 1 year

per Tier 1 carrier

Jan - Aug 2013 Oct 22, 2013 Oct 24, 2013

2013 Wireless Tablet – Volume 1 OneBrand that achieves “highest” overall

satisfaction among model ownership < 1 yearJan - Feb 2013 April 23, 2013 April 25, 2013

2013 Wireless Tablet – Volume 2 OneBrand that achieves “highest” overall

satisfaction among model ownership < 1 yearMarch - Aug 2013 Nov 5, 2013 Nov 7, 2013



Questions?



For more information, contact:

Kirk Parsons, Senior Director, U.S. Telecom

[email protected] | 203.663.4120

2013 what today's consumers expect from wireless … what today's... · ·...

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