- New behavior with video apps is
causing smartphone issues, despite improvement in networks. One third of South Korean smartphone users
from the survey say they watch live streamed videos broadcasted by others.
- 50 percent of the smartphone
users in South Korea face more than 11 issues at least weekly, those facing
issues are 1.5 times as likely to switch.
- Net Promoter Scores (NPS) are no
longer enough to gauge smartphone user loyalty.
business of mobile broadband, customer loyalty isn't what it appears to be. As
smartphone users’ behavior changes, traditional measurements are no longer
enough to determine whether customers prefer their operator, a new report from
Ericsson ConsumerLab says.
For all the
improvements in mobile networks since 2013, the number of smartphone users
facing issues daily has not changed. 44 percent in South Korea say they face at
least one issue daily. One key reason for this is new video streaming behavior
worldwide: ranging from South Korea, where one-third of smartphone users watch
live streamed videos broadcast by other users; to the US, where 14 percent have
started to use live video streaming apps.
consumer behavior has changed, the widely-used customer loyalty measurements in
the telecom industry have not. The report, “Experience shapes mobile customer
loyalty,” shows that Net Promoter Scores (NPS) fails to determine users'
preference for their mobile network operator, chiefly because it takes no
account of the changing expectations of network performance as a result of new
video streaming app behavior.
shows that globally smartphone users who face 11 or more issues per week are
approximately twice as likely to think of switching operators. Alarmingly, 50
percent of the smartphone users in South Korea face more than 11 issues at
least weekly, with video streaming glitches more common now.
Head of ConsumerLab RNEA, says: “heavy users of new video-centric app features
are more likely to face a high number of issues and therefore seem more willing
to invest in improving the experience, compared to those who do not use these
new features. 16 percent of smartphone users in South Korea would be willing to
pay more for their data plan if their provider offered a guaranteed good
experience on some of the key apps they use frequently.”
different network connections, in South Korea, 4G users have better experience
on network elements than 3G users. In particular, satisfaction index on time respond to content and data reliability
for 4G users is as 1.8 times high as 3G users. For users who are willing to
switch operator, 4G users are only half the number of 3G users.” says Cathaya.
offers six different loyalty profiles to quantify the different motives and
preferences that smartphone users exhibit towards their operator. In many
cases, consumers who say they would recommend their operator do so not because
they prefer the operator, but because they cannot identify a better
alternative, the report states.
found that the mobile broadband experience remains the principal driver of
smartphone user loyalty to operators. However, it also emerges as a common
source of dissatisfaction among 57percent in South Korea.
users apply their own set of criteria to judge mobile broadband experience,
based on how apps are performing – in particular whether video apps stream
without interruption, or how fast users can upload content to share with their
social networks. Millennial smartphone users (ages 18 to 24) overwhelmingly
prefer to find out from operators how their favorite social media and video
streaming apps perform on the network rather than the extent and reach of
network coverage, the study shows.
apps emerge and video usage behavior evolves, network performance will matter
more than ever and will determine how loyal smartphone users will be to their
operators,” says Jasmeet Singh Sethi, Senior Advisor with Ericsson ConsumerLab.
expressed in the survey are representative of 25 million in South Korea; in
total 650 million smartphone users across 14 markets: Brazil, China, Germany,
India, Indonesia, Ireland, Oman, Poland, Russia, Sweden, South Korea, Ukraine,
the US, and the UK.
About the report
This study included both
qualitative and quantitative research, as well as on-device measurements. A
total of 30 smartphone users from South Korea, the US and the UK participated
in in-depth, face-to-face interviews.
In February 2016, 1,000
smartphone users in 14 global markets participated in an online survey (except
India, in which 2,000 users participated). A total of 15,000 iPhone and Android
smartphone users aged between 18 and 69 took part in the survey across Brazil,
China, Germany, India, Indonesia, Ireland, Oman, Poland, Russia, Sweden, South
Korea, Ukraine, the US, and the UK. All smartphone users surveyed used apps
over mobile broadband at least weekly.
The views expressed in the
survey are representative of 650 million smartphone users across 14 markets.
On-device meter panels
were used on 11,500 Android smartphones in South Korea and the US to record
every interaction users had with their smartphones (data collected by Nielsen
in October 2015).