Hands0n
25th March 2006, 08:04 PM
An interesting article from Logica follows that discusses the UK mobile churn statistic and its causes etc. Although a bit of an advert for Logica product the content is quite relevant. Have a read and discuss :) What do you think?
Focus on Customer Care for Mobile Data Services Required to Stem GBP2.8 Billion per Year User Churn
AMSTERDAM, November 16 /PRNewswire/ --
- LogicaCMG Research Reveals Low Customer Loyalty Amongst Users of Advanced Mobile Data Services
More than half of advanced mobile data service users in the UK have switched mobile network provider in the last three years, according to independent research announced today by LogicaCMG at its Assuring Innovation conference in Amsterdam. The research also shows that users of services such as multimedia messaging services (MMS) and internet browsing generate the highest average revenue per user (ARPU), creating an annual market churn of over GBP2.8 billion(x). As operators expand their portfolios to include new and increasingly complex premium data services, customer care is identified as a key factor in fostering loyalty and encouraging the uptake of new, high-revenue offerings.
In the last three years, 53 per cent of MMS users and 58 per cent of mobile internet browser users[1] have switched operator, compared to an average of 31 per cent across the UK mobile phone user population. This higher than average rate of churn is symptomatic of the fact that users expressed a growing dissatisfaction with the quality of service delivery and customer care they received from their operator as service complexity increases. Less than half (47 per cent) of customers that use internet browsing[2] are completely or very satisfied with the quality of service, compared to 80 per cent of all those using short messaging services (SMS). Furthermore, when reporting problems to the operator's customer service centre, a quarter (24 per cent) of all customer service centre users[3] reported a poor experience.
Marieke Effting, product marketing manager at LogicaCMG global telecoms, said: "A positive perception of customer services is the cornerstone for building customer loyalty because it is one of few opportunities that network operators have to directly interact with subscribers. In competitive markets customer service becomes a key differentiator and, as the portfolio of enhanced data services gets increasingly broad and complex, can either promote or inhibit service adoption and new revenue opportunities. To enable operators to respond to this challenge and solve data queries 'right first time', LogicaCMG offers SMART customer care, part of the LogicaCMG SMART initiative, which for the first time in the industry, aims to deal with data services challenges in an integral manner."
Chris McDermott, chief executive officer at LogicaCMG global telecoms, said: "Our research shows that mobile operators are facing a rate of churn that almost doubles as users adopt new advanced data services. A high proportion of this churn is attributed to customer service that does not meet users' expectations and demands. SMART customer care provides operators with the information to resolve customer issues on the first call and the tools to provide pro-active customer service. By unlocking customer experience information, the customer service department can now become a key asset for the operator and enhance the lifetime and value of each individual user."
LogicaCMG has combined 30 years of systems integration expertise with its experience of working with more than 300 leading operators worldwide to create the SMART customer care solution. This solution integrates with existing customer relationship management (CRM) systems to make vital service information from the data service delivery platforms available to the front-line customer service operators. As a result, customer care departments can achieve a higher rate of first call resolution on increasingly complex data service enquiries.
SMART customer care is an integral part of LogicaCMG's SMART programme. This programme is an initiative by LogicaCMG to make its extensive industry insight on mobile data services available to marketing, business management, operations and customer care departments within operators that are looking to deploy a differentiating data services strategy. The programme delivers consultancy, engineering and predefined products and solutions, which are easily and cost effectively integrated into the operator environment.
NOTES TO EDITORS
(x) Based on total number of UK mobile users 45 million, 2005
(Source: Datamonitor, Worldwide penetration of handheld devices, 2005, http://www.epaynews.com/statistics/mcommstats.html#24)
Percent Total % Total Average Average Value of
of population churn population spend/ annual churn
sample (sample % in churning month spend (total pop
x total UK last 3 (total pop (Av. churning x
mobile years x % churn) spend/ av. annual
users) month x spend)
12)
Total 100 45m 31 13.950m GBP22.50 GBP270 GBP3.767bn
sample
SMS 74 33.3m 36 11.990m GBP26.60 GBP319.2 GBP3.827bn
users
MMS 18 8.1m 53 4.293m GBP36.40 GBP436.8 GBP1.875bn
users
Internet 8 3.6m 58 2.088m GBP39.40 GBP472.8 GBP0.987bn
browsers
Total value of advanced data services customer churn = GBP2.862 billion
About the research
Face-to-face and telephone interviews were conducted by MORI (Market & Opinion Research International) using their face-to-face CAPI (Computer Assisted Personal Interviewing) omnibus and MTS's (MORI Telephone Surveys) telephone omnibus. A total of 761 face-to-face and 816 telephone interviews were completed with British adult mobile phone users. Telephone interviews were conducted from 28-30 October 2005 and CAPI interviews conducted from 20-25 October 2005. All data are weighted to a representative profile of the British population.
About MORI:
Founded in 1969, MORI is one of Britain's fastest growing market and opinion research agencies. It provides a full range of quantitative and qualitative research services, working with hundreds of clients in both the private and public sectors. MORI embraces both traditional and technologically advanced research methods. Based in London, with offices around the world, MORI adds value to research with interpretation, recommendations, and advice. MORI has recently become part of the Ipsos group - forming Ipsos MORI in the UK.
About LogicaCMG
LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. The company employs around 21,000 staff in offices across 35 countries and has more than 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com
[1] Note: Small base of internet browser users (62).
[2] Note: Small base of internet browser users (62).
[3] Note: Small base for customer service centre users (92).
Article Soure: http://www.prnewswire.co.uk/cgi/news/release?id=158476
Focus on Customer Care for Mobile Data Services Required to Stem GBP2.8 Billion per Year User Churn
AMSTERDAM, November 16 /PRNewswire/ --
- LogicaCMG Research Reveals Low Customer Loyalty Amongst Users of Advanced Mobile Data Services
More than half of advanced mobile data service users in the UK have switched mobile network provider in the last three years, according to independent research announced today by LogicaCMG at its Assuring Innovation conference in Amsterdam. The research also shows that users of services such as multimedia messaging services (MMS) and internet browsing generate the highest average revenue per user (ARPU), creating an annual market churn of over GBP2.8 billion(x). As operators expand their portfolios to include new and increasingly complex premium data services, customer care is identified as a key factor in fostering loyalty and encouraging the uptake of new, high-revenue offerings.
In the last three years, 53 per cent of MMS users and 58 per cent of mobile internet browser users[1] have switched operator, compared to an average of 31 per cent across the UK mobile phone user population. This higher than average rate of churn is symptomatic of the fact that users expressed a growing dissatisfaction with the quality of service delivery and customer care they received from their operator as service complexity increases. Less than half (47 per cent) of customers that use internet browsing[2] are completely or very satisfied with the quality of service, compared to 80 per cent of all those using short messaging services (SMS). Furthermore, when reporting problems to the operator's customer service centre, a quarter (24 per cent) of all customer service centre users[3] reported a poor experience.
Marieke Effting, product marketing manager at LogicaCMG global telecoms, said: "A positive perception of customer services is the cornerstone for building customer loyalty because it is one of few opportunities that network operators have to directly interact with subscribers. In competitive markets customer service becomes a key differentiator and, as the portfolio of enhanced data services gets increasingly broad and complex, can either promote or inhibit service adoption and new revenue opportunities. To enable operators to respond to this challenge and solve data queries 'right first time', LogicaCMG offers SMART customer care, part of the LogicaCMG SMART initiative, which for the first time in the industry, aims to deal with data services challenges in an integral manner."
Chris McDermott, chief executive officer at LogicaCMG global telecoms, said: "Our research shows that mobile operators are facing a rate of churn that almost doubles as users adopt new advanced data services. A high proportion of this churn is attributed to customer service that does not meet users' expectations and demands. SMART customer care provides operators with the information to resolve customer issues on the first call and the tools to provide pro-active customer service. By unlocking customer experience information, the customer service department can now become a key asset for the operator and enhance the lifetime and value of each individual user."
LogicaCMG has combined 30 years of systems integration expertise with its experience of working with more than 300 leading operators worldwide to create the SMART customer care solution. This solution integrates with existing customer relationship management (CRM) systems to make vital service information from the data service delivery platforms available to the front-line customer service operators. As a result, customer care departments can achieve a higher rate of first call resolution on increasingly complex data service enquiries.
SMART customer care is an integral part of LogicaCMG's SMART programme. This programme is an initiative by LogicaCMG to make its extensive industry insight on mobile data services available to marketing, business management, operations and customer care departments within operators that are looking to deploy a differentiating data services strategy. The programme delivers consultancy, engineering and predefined products and solutions, which are easily and cost effectively integrated into the operator environment.
NOTES TO EDITORS
(x) Based on total number of UK mobile users 45 million, 2005
(Source: Datamonitor, Worldwide penetration of handheld devices, 2005, http://www.epaynews.com/statistics/mcommstats.html#24)
Percent Total % Total Average Average Value of
of population churn population spend/ annual churn
sample (sample % in churning month spend (total pop
x total UK last 3 (total pop (Av. churning x
mobile years x % churn) spend/ av. annual
users) month x spend)
12)
Total 100 45m 31 13.950m GBP22.50 GBP270 GBP3.767bn
sample
SMS 74 33.3m 36 11.990m GBP26.60 GBP319.2 GBP3.827bn
users
MMS 18 8.1m 53 4.293m GBP36.40 GBP436.8 GBP1.875bn
users
Internet 8 3.6m 58 2.088m GBP39.40 GBP472.8 GBP0.987bn
browsers
Total value of advanced data services customer churn = GBP2.862 billion
About the research
Face-to-face and telephone interviews were conducted by MORI (Market & Opinion Research International) using their face-to-face CAPI (Computer Assisted Personal Interviewing) omnibus and MTS's (MORI Telephone Surveys) telephone omnibus. A total of 761 face-to-face and 816 telephone interviews were completed with British adult mobile phone users. Telephone interviews were conducted from 28-30 October 2005 and CAPI interviews conducted from 20-25 October 2005. All data are weighted to a representative profile of the British population.
About MORI:
Founded in 1969, MORI is one of Britain's fastest growing market and opinion research agencies. It provides a full range of quantitative and qualitative research services, working with hundreds of clients in both the private and public sectors. MORI embraces both traditional and technologically advanced research methods. Based in London, with offices around the world, MORI adds value to research with interpretation, recommendations, and advice. MORI has recently become part of the Ipsos group - forming Ipsos MORI in the UK.
About LogicaCMG
LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. The company employs around 21,000 staff in offices across 35 countries and has more than 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com
[1] Note: Small base of internet browser users (62).
[2] Note: Small base of internet browser users (62).
[3] Note: Small base for customer service centre users (92).
Article Soure: http://www.prnewswire.co.uk/cgi/news/release?id=158476