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(mobileYouth) Download - Ethnographic trends in mobile: context defines experience
 

(mobileYouth) Download - Ethnographic trends in mobile: context defines experience

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mobileYouth takes a look at how using qualitative research and ethnography as research methods will improve mobile carrier's chances in taking advantage of the rising use of mobile data. ...

mobileYouth takes a look at how using qualitative research and ethnography as research methods will improve mobile carrier's chances in taking advantage of the rising use of mobile data.

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    (mobileYouth) Download - Ethnographic trends in mobile: context defines experience (mobileYouth) Download - Ethnographic trends in mobile: context defines experience Document Transcript

    • Context Drives Experience:How Ethnographic Research on MobileData Drives Sustainable Profit forMobile CarriersThe Optus CEO recently declared his company’s shift to “sustainable profitgrowth,” moving from “raw subscriber acquisition” to an emphasis onretaining and increasing revenues from existing customers.Sustainable profitability means retaining existing customers and encouragingthem to spend more money on mobile. Central to this proposition in the era ofdata is understanding why.Monetizing the increase in data use means building a better customerexperience around social context. Customers don’t consume data, theyconsume what data does for them. Understanding the motivations and driversbehind data usage will provide more solid foundations for pricing andmarketing strategies. Find the most relevant insights on youth mobile marketing: http://www.mobileYouthReport.com
    • Carriers need to upgrade their marketing strategies: without context-drivencustomer experience, data is simply a commodity. Competing on data volumeand price will become a race to the bottom that operators will lose to newentrants wanting to establish a foothold in the market.The 4 Benefits of Ethnographic Research on Data for MobileCarriersThe best way to understand customer drivers is to research mobile data incontext i.e. in the malls, street and homes (not focus groups and online)where people actually use data. This ethnographic approach yields 4 keybenefits for operators:1) Drive product development road map by identifying customer pain pointsand usage profiles. Identify the quick wins that operators can fix to improvecustomer experience.Smartphone customers who experience between fewer problems with slowmobile web speeds spend an average of $11 more per month than those whoexperience considerable problems ($140 vs. $129, respectively). (source JDPower)2) Develop relevant marketing messages to help migrate the sales strategyfrom being about selling commodities on price to being about selling thepremium of social benefit.Rohan Ganeson, MD of retail sales at Optus recently said of the carrier’sintentions to ramp up retail investment that, “We want interactions with Optusto exceed expectations and the feedback, both good and bad, from our pilotstores will be invaluable in helping us shape the experience for the rest of thetransformation.” Success at the Frontline will depend on arming the retail staffwith the most competitive insights.3) Empower frontline and service employees with insight on how customersuse/could use data and help them cross-sell other data products in theoperator portfolio.4) By identifying the power users and influencers, operators can dedicatemore resources to these key market makers. The power users (20% of the Find the most relevant insights on youth mobile marketing: http://www.mobileYouthReport.com
    • market) currently use 80% of data traffic, with top 1% generating 17% oftraffic (source Cisco).All 4 benefits combine to create a better customer experience which in turnreduces customer attrition (churn), increases individual revenues (ARPU) anddrives recommendation (NPS).The Starting PointYouth drive mobile trends.They are already at the forefront of change. Youth are both the heaviest usersof mobile internet and those with the greatest social need to make operatorrollouts successful. Youth are the influencers. Technologies that reach massmarket adoption often filter through   the youth market first (e.g. SMS,Facebook, Messenger). Not only do youth influence each other but data fromthe 2013 Mobile Youth Report shows that they exert a significant influenceover the adult market.Compared to adults, youth are more likely to use mobile internet services likesocial networking (50% vs 12% for adults), photo sharing (38% vs 12%) andstreaming videos (24% vs 5%) (source Gallup).Quantitative research into mobile data consumption patterns cannot revealthe offline scenarios in which youth use mobile internet. Mobile carriers needqualitative research to step into the 3Hs (homes, hangouts and hideouts). Actionable insights for marketing and innovation can only be achieved whenwe understand how and why youth use mobile internet.Operators should start developing their future customer propositions byemploying ethnographic research to understand how youth are using datatoday.What Should be The 3 Key Outputs of Ethnographic Research?The key outputs of ethnographic research should help operators identifywhich users and activities within mobile data are most conducive toprofitability (e.g. We found that 15% of SingTel customers now generate 85%of the data traffic but not necessarily 85% of their profits).   MobileYouthethnographic research focuses on building operator customer propositions Find the most relevant insights on youth mobile marketing: http://www.mobileYouthReport.com
    • around a solid context-driven customer experience. The 3 deliverables ofsuch research are:1) A gradation of young data users based on behavior and attitude asopposed to more traditional demographic segmentations.2) Pen profiles of key data users that identify both drivers and the offlinescenarios where they use data. How do pen profiles vary by usage scenarioand handset? (e.g. NPS for mobile internet varies by handset ownership:Apple +49%, HTC +41%, Samsung +23%). Profiles providers operators witha natural starting point by identifying youth market influencers.3) Reframing of app categories based on social context (e.g. arrangingmeetings, while watching TV, photo sharing) as opposed to traditional formats(e.g. games, business, utility). Already 60% of youth use mobile data toorganize gatherings, and 45% of youth use mobile data to settle arguments(source Pew Research).   These behaviors are more relevant to youngpeople’s social lives and are unlikely to change as they enter the adult world.Positive Customer Experience for Data Creates a Barrier to MarketEntryIn an interview with Rutgers, Verizon CEO McAdam spoke of the early daysthe mobile industry where operators focused on monetizing negativecustomer experiences (e.g. roaming charges, paid voicemail etc) but that leftthe door open to new players (such as Verizon Wireless).“It was a pretty ugly experience,” he said. “There was a good opportunity forsomeone to come in and disrupt the environment – to consolidate and createscale.”Verizon successfully disrupted the environment by building its culture aroundcustomer need as opposed to customer revenue maximization. As operatorstalk up the opportunity to maximize customer data revenue through pricingstructures which by comparison to fixed line offerings are archaic, they tooexpose themselves to external disruption. By contrast, focusing on thecustomer experience has enabled Verizon to maintain the lowest churn andhighest customer recommendation rates in their market, despite rivals payingextensively for iPhone exclusivity. Find the most relevant insights on youth mobile marketing: http://www.mobileYouthReport.com
    • Today, operators need to re-engineer their cultures around the customerexperience of data and leverage ethnographic insights to guide theirstrategies.If operators fail to get data strategies right now they leave the door wide opento profit erosion from new competitors such as Google who thrive in fixingbroken technology experiences. As the handset industry has learned, oncethey invite new players like Apple in, it’s impossible to regain their marketposition.Find out more:The 2013 mobileYouth Report Find the most relevant insights on youth mobile marketing: http://www.mobileYouthReport.com