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Telecom Report 2017 1Arrows indicate significantly higher than comparison group at 95% confidence interval
Telecom Report2017CONSUMER ATTITUDES AND LOYALTY
Telecom Report 2017 2Arrows indicate significantly higher than comparison group at 95% confidence interval
Current Wireless Carrier Current Wireless Carrier
The telecom industry has seen many changes over the past few years. Verizon and AT&T are striving to maintain their status as
industry leaders, while T-Mobile is disrupting the marketplace with its Uncarrier movement. Sprint is working hard to attract new
customers, while the ever-growing number of pre-paid budget offerings slowly chip away at the post-paid market share. In this
report, we explore usage patterns among Americans when it comes to their wireless service, as well as attitudes towards different
carriers.
Verizon and AT&T are the market frontrunners and boast the largest numbers of subscribers, with T-Mobile and Sprint close behind
given their multi-tiered product offerings. MetroPCS is T-Mobile’s pre-paid business while Boost Mobile is Sprint’s – both helping to
drive new customers for the parent brands. Verizon and AT&T are more popular with the older, more affluent crowd. Millennials are
more likely to embrace T-Mobile as well as some pre-paid carriers, such as Boost Mobile.
Lower income Americans are more likely to have a pre-paid wireless service plan on carriers such as MetroPCS, Boost Mobile and
Cricket. As can be expected, those with higher incomes subscribe to the more expensive premium carriers, Verizon and AT&T.
Verizon Wireless
AT&T
T-Mobile
MetroPCS
Sprint
Boost Mobile
Cricket Wireless
Virgin Mobile
Other
Verizon Wireless
AT&T
T-Mobile
MetroPCS
Sprint
Boost Mobile
Cricket Wireless
Virgin Mobile
Other
Total US
Millennials (18-34)
Non-Millennials (35+)
Income Under 50K
Income Over 50K
19%25%
22%
11%
11%
8%
7%
4%
1%
11%
16%
11%
18%
8%
9%
5%
1%
13%
30%20%
17%
16%
15%
10%
10%
5%
0%
9%
26%
24%
10%
11%
7%
6%
4%
1%
11%
28%
12%
6%
7%
5%
3%
1%
9%
State of the Telecom Market
Telecom Report 2017 3Arrows indicate significantly higher than comparison group at 95% confidence interval
Which of the following wireless carriers would you classify as premium or top tier?
Based on everything you know, which of the following wireless carriers do you think have great network coverage?
Verizon and AT&T are spending a lot of advertising dollars to
convince consumers that they are the best in the business.
For the most part, this strategy has been successful. Verizon
Wireless and AT&T are the top two brands regarded as
“premium” and “top tier”, followed by Sprint and T-Mobile.
Despite losing consumers for the first time last quarter, Verizon
is still king in terms of quality perception among both, current
customers and non-customers.
However, swaying consumer perceptions can be challenging.
There is a strong incentive for subscribers to rationalize their
wireless carrier choice. When asked which wireless brand they
associate with premium service, great network or affordable
plans, subscribers for each brand tend to select their current
carrier in overwhelming numbers. Even so, T-Mobile and Sprint
customers are less likely to classify their carriers as “premium”
relative to Verizon and AT&T customers.
Verizon subscribers are extremely positive about Verizon’s network coverage, more than subscribers of any other brand are about
their own service.
Verizon Wireless
AT&T
Sprint
T-Mobile
MetroPCS
Boost Mobile
Cricket Wireless
Virgin Mobile
None of the above
93%
38%
24%
13%
5%
4%
3%
2%
5%
49%
80%
28%
21%
5%
7%
4%
4%
14%
45%
35%
24%
67%
8%
7%
4%
4%
18%
54%
45%
29%
25%
14%
11%
7%
5%
15%
Total US Verizon Subscribers
AT&T Subscribers
T-Mobile Subscribers
Sprint Subscribers
43%
37%
73%
19%
4%
5%
2%
2%
17%
Verizon Wireless
AT&T
Sprint
T-Mobile
MetroPCS
Boost Mobile
Cricket Wireless
Virgin Mobile
None of the above
92%
29%
15%
9%
1%
2%
3%
2%
5%
38%
84%
20%
18%
5%
2%
1%
2%
9%
45%
32%
20%
69%
5%
4%
3%
2%
4%
50%
41%
23%
22%
12%
9%
6%
4%
10%
Total US Verizon Subscribers
AT&T Subscribers
T-Mobile Subscribers
Sprint Subscribers
40%
24%
65%
10%
6%
3%
3%
3%
10%
indicates top choice for each comparison grouop
Telecom Report 2017 4Arrows indicate significantly higher than comparison group at 95% confidence interval
Based on everything you know, which of the following wireless carriers do you associate with having a high-speed network?
Based on everything you know, which of the following wireless carriers do you associate with having affordable plans?
Verizon and AT&T subscribers also have the most positive perception of their provider’s high speed network. While consumers
naturally tend to favor their current network the most, customers of AT&T, T-Mobile, and Sprint are all more likely to associate
Verizon with having a high-speed network.
Even when asked about plan affordability, subscribers tend to favor their own carrier. Perceptions of affordability among non-
subscribers are fairly low for Verizon and AT&T and are higher for T-Mobile and Sprint. MetroPCS is also seen as a very affordable
option overall.
Verizon Wireless
AT&T
T-Mobile
Sprint
MetroPCS
Boost Mobile
Cricket Wireless
Virgin Mobile
None of the above
85%
27%
6%
11%
1%
1%
2%
1%
9%
36%
83%
14%
19%
4%
2%
2%
1%
10%
38%
35%
74%
21%
3%
2%
2%
2%
7%
48%
42%
21%
21%
11%
6%
5%
3%
12%
Total US Verizon Subscribers
AT&T Subscribers
T-Mobile Subscribers
Sprint Subscribers
31%
28%
13%
63%
2%
2%
3%
4%
14%
Verizon Wireless
MetroPCS
T-Mobile
AT&T
Sprint
Cricket Wireless
Boost Mobile
Virgin Mobile
None of the above
58%
12%
20%
13%
19%
16%
8%
5%
19%
16%
15%
19%
57%
20%
14%
11%
5%
17%
16%
21%
69%
17%
14%
15%
17%
7%
9%
25%
23%
23%
22%
19%
18%
17%
7%
16%
Total US Verizon Subscribers
AT&T Subscribers
T-Mobile Subscribers
Sprint Subscribers
7%
17%
10%
9%
61%
18%
14%
8%
13%
indicates top choice for each comparison grouop
Telecom Report 2017 5Arrows indicate significantly higher than comparison group at 95% confidence interval
Based on everything you know, which of the following wireless carriers do you associate with having great customer service?
While Verizon and T-Mobile customers are equally happy with their own customer support, Verizon is more likely to be viewed as
having strong customer service by non-customers. On the other hand, customer support is a pain point for AT&T and Sprint.
Verizon Wireless
AT&T
T-Mobile
Sprint
MetroPCS
Boost Mobile
Cricket Wireless
Virgin Mobile
None of the above
74%
13%
8%
9%
3%
1%
2%
1%
21%
22%
68%
15%
14%
5%
3%
3%
1%
21%
20%
18%
76%
12%
6%
6%
7%
8%
14%
33%
28%
21%
16%
12%
9%
7%
4%
20%
Total US Verizon Subscribers
AT&T Subscribers
T-Mobile Subscribers
Sprint Subscribers
14%
12%
5%
65%
2%
7%
4%
3%
20%
indicates top choice for each comparison grouop
Telecom Report 2017 6Arrows indicate significantly higher than comparison group at 95% confidence interval
What are the main reasons you decided to go with your current wireless service provider?
How important are the following when choosing a wireless service provider? (Extremely/Very important)
When asked why they chose the provider they have now, consumers mention unlimited data plans and low plan rates as the top
reasons, followed by better network coverage. Having a good network is important, but unlimited data deals and low plan rates can
help lock in new subscribers.
What Do Wireless Consumers Care About?Understanding one’s audience is more important than ever now, when there are few new consumers signing up for wireless plans
and telecom brands can increase their market share by stealing subscribers from their competitors.
When considering a new wireless service provider, consumers are now mostly concerned with network coverage, the speed of the
network, and availability of unlimited data plans.
Brands should also consider that when consumers are thinking of switching wireless plans, they are not always buying another
phone at the same time. Since certain networks (such as Verizon) require compatible phones, more than three-quarters (76%) of
Americans say that wireless service compatibility with their current cell phone is extremely/very important.
Unlimited data plan
Lower plan rates
Better network coverage
Joined a family plan
Good deal on a smartphone
Better customer service
Faster browsing and downloading speed
Carrier offered the smartphone I wanted
Carrier compatible with my smartphone
Overseas coverage at no additional charge
Other
Network coverage
Unlimited Data
Availability of the
smartphone you want
Device Financing Options
Overseas Coverage
High-speed network
Compatibility with your
current cell phone
83% 79% 76% 75%66% 60%
39%
33%
28%
28%
23%
22%
19%
17%
11%
11%
6%
19%
Telecom Report 2017 7Arrows indicate significantly higher than comparison group at 95% confidence interval
How important are the following when choosing a wireless service provider? (Extremely/Very important)
Millennial AudiencesTo reach the coveted millennial segment, it is imperative
for telecom brands to consider the singular behaviors and
preferences of this audience. Millennials want features and
services that are more in line with their lifestyle preferences,
which include constant use of smartphones, streaming video on
mobile, and a desire to travel overseas.
A high speed network is more important to millennials, as they
are more likely to stream video content on their mobile devices
(49% vs 31% for older generations1). Younger consumers are
also more particular about the smartphone they want; 73% say
that it is extremely/very important for the wireless carrier to
have their smartphone of choice available. Since millennials on
average have lower incomes, device financing options are more
important to them as well.
While free overseas coverage is the least important feature on
everyone’s list, it is significantly more important for millennials.
According to a recent study by Internet Marketing Inc, 75%
of millennials say that they want to travel abroad as much as
possible, compared to 52% for older generations2. Providing
free overseas coverage is a differentiating factor that may help
lure in this younger audience.
1 Fluent Streaming Services study 20172 Internet Marketing Inc (http://www.internetmarketinginc.com/blog/millennial-travel-trends/)
Network coverage
High-speed network
Compatibility with your current cell phone
Unlimited Data
Availability of the smartphone you want
Device Financing Options
Overseas Coverage
Millennials (18-34)
Non-Millennials (35+)
87%
86%
77%
73%
73%
66%
52%
83%
78%
76%
75%
65%
59%
36%
Telecom Report 2017 8Arrows indicate significantly higher than comparison group at 95% confidence interval
What are the main reasons you decided to go with your current wireless service provider?
While having an unlimited data plan and lower plan rates were the top reasons cited by millennials for choosing their current
carrier, better network coverage was more frequently cited by older generations. It makes sense then, that millennials are more
likely to have a pre-paid plan or be on T-Mobile, but older consumers are more likely to subscribe to Verizon and AT&T.
Unlimited data plan
Lower plan rates
Better network coverage
Joined a family plan
Good deal on a smartphone
Better customer service
Faster browsing and downloading speed
Carrier offered the smartphone I wanted
Carrier compatible with my smartphone
Overseas coverage at no additional charge
Other
Which is most important to you when you are choosing a wireless service plan?
While there are some users who are mainly concerned with talking minutes or data, most (72%) find both equally important. There
is a shift when it comes to younger consumers though, many of whom are more likely to prioritize either data or talk and texting
capabilities when choosing their plans.
Both are equally important
Amount of data Talk and text
Millennials (18-34)
Non-Millennials (35+)
41%
34%
20%
22%
25%
16%
17%
11%
8%
7%
18%
72%
14% 14%
31%
27%
29%
24%
21%
19%
17%
11%
11%
5%
19%
62%
21% 17%
75%
12% 13%
Total US
Millennials (18-34)
Non-Millennials (35+)
Telecom Report 2017 9Arrows indicate significantly higher than comparison group at 95% confidence interval
22%
Are you planning to purchase another mobile phone in the next 6 months?(% Yes)
What kind of a mobile phone are you planning to purchase? Among those who are planning to purchase a new phone in 6 months
Are you planning to switch wireless service providers in the next 6 months?(% Yes)
Since smartphones are integral parts of millennials’ lives, despite having lower incomes, they care more about their phones than
older generations. Millennials are more likely to purchase a new phone in the next 6 months and have a stronger preference for the
iPhone.
Most importantly, millennials are less loyal to their wireless carriers. While the level of satisfaction with their current carrier is the
same for all age groups, millennials report a higher desire to switch their wireless service provider in the next 6 months (18% vs
12%).
Millennials (18-34)
Non-Millennials (35+)
18%
35%
12%
55%
36%
25%
27%
10%
17%
1%
3%
10%
17%
iPhone
Samsung
Other Android smartphone
Other smartphone (Windows, Amazon)
Don't know
Millennials (18-34)
Non-Millennials (35+)
Millennials (18-34)
Non-Millennials (35+)
Telecom Report 2017 10Arrows indicate significantly higher than comparison group at 95% confidence interval
What type of a cell phone plan do you currently have?
Why did you decide to go with a prepaid wireless service plan?
Understanding the Pre-paid ConsumerPre-paid plans have been gaining popularity, as more and more providers and resellers are entering the space and the stigma of
the pre-paid plans is lessening, especially among the millennial population.3 Currently, 18% of Americans say they have a pre-paid
plan and this propensity is higher among millennials (23%).
Low price is by far the main reason consumers decide to go with a pre-paid plan. For millennial consumers, flexibility is also a
major selling point.
3 PrepaidPress (http://www.prepaidpress.com/features/wireless-industry-continues-to-evolve.html)
Total US
Millennials (18-34)
Non-Millennials (35+)
Cheapest plan available
Good network coverage
I could get the phone I
wanted
I don’t use a lot of data
Flexibility I could transfer my phone number
No minutes/data wasted
Other
Family plan
Individual plan
Prepaid individual plan
Prepaid family plan51%
45%
52%
31%
32%
31%
13%
18%
11%
6%
5%
6%
Total US
Millennials (18-34)
Non-Millennials (35+)
17% 16% 15%13%
18%21%
29%
41%
17%20%
14%16%
11%
23%
44%
53%
17%14% 15%
12%
20%20%24%
37%
Telecom Report 2017 11Arrows indicate significantly higher than comparison group at 95% confidence interval
What incentives could get you to switch your wireless provider?
Are you planning to switch wireless service providers in the next 6 months?(% Yes)
Reasons for Switching CarriersConsumers may be swayed to switch by different offers, largely
depending on their current wireless carrier. Telecom brands
should take this opportunity to understand and capitalize on
any features/services consumers’ current plans may be missing.
For example, AT&T is one of the more expensive carriers in the
marketplace and only very recently started offering unlimited
data plans to all of its customers. Therefore, it is no surprise that
50% of AT&T customers say they may be convinced to switch
with lower plan rates and another 42% with unlimited data plan
options.
On the other hand, consumers who are on pre-paid low cost
carriers such as Boost Mobile and Cricket wireless are very
sensitive to the availability of better smartphones and getting a
good deal on a handset.
Customers of certain wireless service providers are keener to switch than others. Specifically, T-Mobile customers, as well as
customers of the largest pre-paid brands (especially Boost Mobile) are the least loyal and therefore make the best prospects for
conquest marketing campaigns.
AT&T
Sprint
T-Mobile
Verizon Wireless
Boost Mobile
Cricket Wireless
MetroPCS
Incentives that are most likely to get consumers to switch Moderately likely to get consumers to switch Least likely to get consumers to switch
10%
12%
18%
12%
27%
15%
15%
Lower plan rates
Unlimited data plan
Better network coverage
Faster browsing and downloading speed
Good deal on a smartphone
Better phones available
Better customer service
Overseas coverage at no additional charge
Nothing
SprintAT&T T-Mobile Verizon Wireless
Boost Mobile
Cricket Wireless MetroPCS
40%
37%
28%
26%
30%
23%
19%
12%
28%
50%
44%
33%
34%
32%
40%
23%
15%
24%
37%
33%
31%
34%
26%
20%
14%
11%
36%
29%
35%
33%
37%
42%
30%
20%
16%
23%
41%
34%
23%
21%
22%
20%
16%
11%
42%
42%
32%
22%
28%
23%
20%
13%
6%
41%
50%
42%
29%
27%
27%
21%
18%
15%
33%
Telecom Report 2017 12Arrows indicate significantly higher than comparison group at 95% confidence interval
How satisfied are you with your current wireless service provider?
Interestingly, satisfaction with one’s wireless service provider is not necessarily correlated with a desire to switch. Instead, it is an indication that consumers are more loyal to certain brands. For example, while T-Mobile and Boost Mobile have some of the highest rates of customer satisfaction, they also have the highest number of customers who are planning to switch. On the other hand, Sprint customers are more loyal to their brand. While 16% of Sprint customers report being dissatisfied with their wireless carrier – higher than most other brands – only 12% are planning to switch in the next 6 months.
What incentives could get you to stay with your current provider? Among those planning to switch in the next 6 months
Customer RetentionIn a crowded marketplace, retaining current customers is as important for telecom brands as adding new ones. While certain features (such as network coverage) largely depend on outside factors such as spectrum auctions, there might be an opportunity to appease consumers by offering them features and services that are easier to control.
Among consumers who said they are planning to switch wireless carriers in the next 6 months, features that can convince them to stay vary by provider.
Lower plan rates are top of mind for many, especially those currently on Verizon, T-Mobile and Sprint. On the other hand, 76% of Cricket Wireless customers and 43% of T-Mobile customers could be persuaded to stay by being offered a good deal on a new smartphone.
Better customer service, while never on the top of the list, can incentivize at least 20% of consumers to stay with their current carrier.
Incentives that are most likely to get consumers to switch Moderately likely to get consumers to switch Least likely to get consumers to switch
Lower plan rates
Unlimited data plan
Better network coverage
Good deal on a smartphone
Faster browsing and downloading speed
Better phones available
Better customer service
Overseas coverage at no additional
Nothing
17%
31%
41%
44%
29%
40%
21%
23%
13%
43%
45%
36%
34%
46%
32%
19%
31%
11%
61%
61%
41%
43%
37%
42%
19%
27%
20%
43%
66%
49%
76%
70%
62%
34%
13%
0%
68%
48%
42%
30%
39%
23%
20%
15%
2%
55%
56%
41%
42%
52%
24%
23%
19%
9%
47%
53%
40%
39%
29%
21%
26%
8%
10%
SprintAT&T T-Mobile Verizon Wireless
Boost Mobile
Cricket Wireless MetroPCS
Satisfied (very/somewhat)
Neither satisfied nor dissatisfied
Dissatisfied (very/somewhat)
70%
14%
16%
Sprint
81%
10%
10%
AT&T
81%
9%
10%
T-Mobile
87%
7%
6%
Verizon Wireless
81%
8%
10%
Boost Mobile
73%
8%
18%
Cricket Wireless
76%
12%
11%
MetroPCS
Telecom Report 2017 13Arrows indicate significantly higher than comparison group at 95% confidence interval
MethodologyFluent’s “Telecom Survey” was conducted online within the United States by Fluent, LLC on May 7, 2017
among 1,611 US consumers (aged 18 and up). Due to rounding, percentages may not always add up to
100%. Fluent’s proprietary ad serving technology includes a real-time survey module that was used to
facilitate the data collection for this study. Respondents were randomly selected and data was weighted to
US Census 2010 population distribution.
https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml
ABOUT FLUENTFluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital marketing and customer acquisition, serving over 500 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The company is headquartered in New York City. For more information visit www.fluentco.com.
fluentco.com I [email protected] I 646.647.2966