Mobile Customer Desire for Personalization Not Being Met by Carriers

Comptel Corporation (OMX Helsinki: CTL1V) has released the results of a new report which highlights the opportunity carriers are missing to improve customer retention, better monetise customers and drive additional revenue opportunities by not providing more personalised services and support.

Surveying 2,000 mobile data users in the US and the UK, Comptel found that more than half of mobile data customers (55 percent) are eager for more proactive, personalised messages and services. Meanwhile, fewer than one in seven customers (13 percent) has ever received this kind of communication from their carrier.

The research reveals that mobile customers who think their carrier values their business are three times more likely to feel loyalty to their carrier as those who don’t. Fortunately for carriers, customers are overwhelmingly in favour of receiving proactive and personalised communications that can help carriers demonstrate that value. For instance, 74 percent of customers would like to be alerted when they are using a lot of data in areas where public Wi-Fi is available, and 67 percent would like to be alerted when they aren't taking advantage of certain benefits of their mobile plan.

“It’s no longer enough to simply react when the customer faces a negative circumstance,” said Ari Vanttinen, CMO at Comptel. “To retain customer loyalty, carriers must be much more proactive in their communication, and that communication must appear genuine, tailored to individual needs and behaviours; it needs to harness personalisation.”

But simply retaining customers is not enough to grow carriers' top and bottom lines. Average revenue per user is primarily grown through upselling specific plans and services – ones that can be personalised to more strongly appeal to customers. Unfortunately, only half of mobile customers (48 percent) believe their carrier provides services customised for their needs.

In addition to looking internally for sources of revenue growth, the research reveals an opportunity for carriers to create external streams of revenue. By leveraging their wealth of data to create personalised offers, carriers can build revenue-generating third-party partnerships with streaming content providers, brick-and-mortars, consumer goods companies, and more.

Third-party collaborations which mobile customers are receptive to include geo-targeting and co-branded sponsored data offers, which requires customers to perform a specific action, such as watching a video or signing up for periodic advertisements, in exchange for free or discounted data.

“The rise of personalisation has arrived at a critical time, as carrier revenues are threatened by declining voice and SMS services, by market saturation, and fierce competition from both established and non-traditional players.” said Vanttinen. “Now, they must focus more than ever on retaining current customers, increasing the value that each brings in, and finding new, external sources of revenue – all of which can be achieved through the power of personal.”

Source: Comptel Corporation media announcement