Ericsson ConsumerLab: Unlocking consumer value


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A new ConsumerLab report identifies the needs of today’s smartphone and mobile internet users.

The rapid uptake of smartphones and other connected devices has transformed the mobile broadband landscape – shaping and broadening the way users work, play and communicate.
When the uptake of smartphones begins to accelerate in a particular market, it is vital to differentiate between consumers based on what they prioritize in an offering,
whether that’s unwavering performance or cost control and data usage.

This report outlines Ericsson ConsumerLab’s findings and details six different mobile
internet target groups. It can be used to help operators and developers better understand what is important to their users. This information can enhance overall
consumer experience and loyalty by creating more value through relevant services and offerings.

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Ericsson ConsumerLab: Unlocking consumer value

  1. 1. consumerlabUNLOCKINGCONSUMERVALUEIdentifying the needs of today’s smartphoneand mobile internet usersAn Ericsson Consumer Insight Summary ReportMay 2013
  2. 2. 2  ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUEEricsson consumerlabthe voice of the consumerEricsson ConsumerLab has more than 15 years’ experience ofstudying people’s behaviors and values, including the way they actand think about ICT products and services. Ericsson ConsumerLabprovides unique insights on market and consumer trends.Ericsson ConsumerLab gains its knowledge through aglobal consumer research program based on interviews with100,000 individuals each year, in more than 40 countries and15 megacities – statistically representing the views of1.1 billion people.Both quantitative and qualitative methods are used,and hundreds of hours are spent with consumersfrom different cultures.To be close to the market and consumers, EricssonConsumerLab has analysts in all regions where Ericssonis present, which gives a thorough global understandingof the ICT market and business models.All ConsumerLab reports can be found report identifies six target groups who all usemobile internet in different ways and prioritize differentservices. These groups have been defined based on theresults of qualitative fieldwork in Sweden, US, UK and Italy.Each group places a unique emphasis on specific areas ofthe mobile internet experience. In-depth interviews wereconducted to ensure qualitative results were achieved.The defined target groups are based on attitudes andwhat matters to them, not usage of specific services.These attitudes become more stable over time, allowingoperators to better personalize their services and offers,and even apply the findings to consumers that are aboutto start using mobile internet.contentsDIVIDE AND CONQUER 3KEY FACTORS 4PERFORMANCE SEEKERS 5DEVICERS 6VIPs 7COST CUTTERS 8CURIOUS NOVICES 9CONTROL SEEKERS 10Summary 11
  3. 3. ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE 3DIVIDE andconquerPERformance seekersDEVICERS curious novicesVIPs CONTROL SEEKERSCOST CUTTERs> The online experience isincreasingly important –The connected societyis becoming ever moredemanding, and as thesmartphone becomesintegrated into all aspects oflife, operators need to moveswiftly in order to match theneeds and expectations ofnew and current users. Target groups value differentmobile internet features –As technology matures, newtypes of users with differentneeds are entering the scene.It is vital to address and treatusers differently in order toprovide the best individualexperience and make themfeel valued. Four factors affectingconsumers – Examiningsmartphone users shows thatthere are four different keyfactors that affect the overallmobile internet experienceand relationship with theoperator. These factorsare: performance, price,interaction and device. Operators should promoteareas other than price –Price is something mobileinternet users can easilycompare between operators,but comparing importantareas such as networkperformance presents amore challenging task.Highlighting the importanceof this, and making thoseother areas a part of the initialpurchase decision is vital tobuilding lasting relationshipswith consumers. Key findingsThe rapid uptake of smartphonesand other connected devices hastransformed the mobile broadbandlandscape – shaping andbroadening the way users work,play and communicate.When the uptake of smartphonesbegins to accelerate in a particularmarket, it is vital to differentiatebetween consumers based onwhat they prioritize in an offering,whether that’s unwaveringperformance or cost controland data usage.This report outlines EricssonConsumerLab’s findings anddetails six different mobileinternet target groups. It canbe used to help operators anddevelopers better understand whatis important to their users. Thisinformation can enhance overallconsumer experience and loyaltyby creating more value throughrelevant services and offerings.Six different mobile internet target groupsSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013
  4. 4. 4  ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUEkey factorsConsumers select operators based on a number of key factors– ranging from performance of the network, to value for money.Target groups place emphasis on specific areas of mobileinternet, considering one or more of the following aspects:PerformanceToday, the quality of network performance is one of the most important factorsaffecting customer loyalty to the operator. Therefore ensuring network speed andreliability is fundamental to a trusting, long-term relationship.PRICEValue for money is a deciding factor for most when considering a smartphonepackage. Being trapped in an unsuitable price plan can impact negatively onthe relationship and lead to churn, but a transparent, fair plan that is flexible canpositively impact the user experience.DEVICEThe devices that operators offer can be extremely important for certainconsumers. In particular, it’s important that operators carry the very latestand sought-after models. Although the device does not directly improve therelationship between the operator and consumer, it can be used to build on therelationship through device-related communications, such as offering upgrades.INTERACTIONThe relationship between operator and consumer is currently distant and a littleunfamiliar. Most users don’t experience an overly negative relationship, but thepersonal touch is somewhat lacking, and the relationship is often peripheralrather than focal. The relationship could be vastly improved through offeringloyalty rewards or personalized prices, which could effectively re-engage theconsumer and ensure improved satisfaction.
  5. 5. ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE 5PerformanceseekersThe best possible experience to support connected lifestylesThe reliability and performance of a service is importantfor a successful operator-user relationship. But forPerformance Seekers, it’s absolutely fundamental.Members of this target group live and breathe technology,and their device touches every part of what they do andhow they do it.Therefore providing a network experienceMy operator’s coveragein Chicago is really good.You can even be ona train and you stillhave a signal.”Samir, Performance SeekerThe fundamentalsatisfaction driver forPerformance SeekersRELIABLESERVICEthat is good, reliable and efficient could be thedifference between user satisfaction and churn.They realize that everything can be achievedthrough their connected devices, and thereforelook for operators who can deliver fast and reliablemobile internet services.PerformancePriceInteractionDeviceMost important factors for Performance SeekersSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013
  6. 6. 6  ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUEA phone is more than just aphone – it’s a statementdevicersFor Devicers, a handset is far more than a means tocommunicate. Their choice of smartphone expressestheir style of living, while the brands and productsthey consume are directly linked to an aspiredsocial status.Deciding which mobile phone operator andsubscription to have is not as important as the deviceitself. The choice of provider can also be a direct resultof the device – with Devicers choosing the operatorthat provides the right device for them.PerformancePriceInteractionDeviceMost important factors for DevicersSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013I really need to get the new iPhone as soon as it’savailable, it is so cool!”Emilia, DevicerHaving the perfect devicedrives loyalty for this groupupgrade
  7. 7. ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE 7special treatmentvipsFeeling valued is paramountVIPs expect a level of service and performance that issecond to none, even if they might not always fully utilizeit.The relationship between the operator and the user isvital for this group, and they demand superior treatmentat all times.VIPs are prepared to pay for a service that hasthe right service level and doesn’t limit their experiencein any way.They need to feel like a premium consumerand want all the perks that come with that – whether it’sjumping queues or receiving personalized promotions.Their mobile internet usage is rich and extensive,making use of all types of apps and features throughouteveryday life.The use of mobile internet is not seen as aluxury toVIPs, but more a necessity to maintain a levelof consumption that is in line with their lifestyle.I’ve been with my operator for years and I must saythat I like them very much. Maybe my operator couldacknowledge me somehow, that I am a loyal customer.”Monica, VIPPerformancePriceInteractionDeviceMost important factors for VIPsSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013VIPs expect acknowledgement and special rewards
  8. 8. 8  ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUEcostcuttersI don’t see why I shouldhave to pay anythingextra for my subscription.Internet is supposedto be included.”Irene, Cost CutterPerformancePriceInteractionDevicelow pricesCost overrules quality of service for this groupAlways searching for thecheapest possible alternativeCost Cutters prioritize onething – price. They lookfor simple, low cost plansfrom honest operatorswho will not surprisethem with additionalcharges in the smallprint. They are naturallyskeptical and constantlyon guard, not reallytrusting their operator.The device and theservice they use mustfulfill basic operationsand cover basic needs,but must meet theirspecific expectations,allowing them to still dothe things they want.Many of them are finewith using an olderphone model or device,as long as it doesn’thamper the experiencetoo much.Cost Cutters usemobile internet invery different ways,depending on theirpriorities and needs.Usage can be as richand frequent as anyother user group. Thisgroup appreciates otherfactors such as reliableand good networkperformance, but theyare not willing to payextra in order to improvethem – price is still theprimary focus.Most important factors for Cost CuttersSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013
  9. 9. ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE  9curiousnovicesExploring recommendationsand appreciating supportIt’s very frustrating when it takes four times the usualtime to do things on the iPad.”Massimiliano, Curious NoviceAn important factor for Curious Novicesas they enter the communications evolutionOPERATORSUPPORTCurious Novices are popping up everywhere, findingtheir feet on digital platforms and discovering thepotential of connected devices. Curious Novices wantto become part of the media and communicationsevolution but are unsure and uninformed about theiroptions.They look for devices that perform well and areeasy to use.They need to feel supported in the technicalside of things, so they appreciate friendly help andadvice.The relationship with the operator shouldbe a trusting, open and caring one.Mobile internet usage varies greatly in this group.Curious Novices consume data on a daily basis, butsome more freely than others. They use mobile devicesevery day and expect everything to work seamlessly,so a reliable service is fundamental to how theyconsume mobile internet services, and impactshow they will consume data in the future.PerformancePriceInteractionDeviceMost important factors for Curious NovicesSource: Ericsson ConsumerLab, Unlocking Consumer Value 2013
  10. 10. Cautious users who stayon top of spendingcontrolseekersI haven’t reached my limityet, but I’m very careful.I pay an extra GBP 5 for500 megabytes in case I dogo over. I try not to watchvideos that are too long.”Dionne, Control SeekerStaying in control of mobile internet usageand avoiding bad surprises is something ControlSeekers value highly. They are headstrong users whohave possibly had bad experiences concerning billingand subscriptions. As a result, they are now cautiousin the way they use mobile broadband services.Some users will even use trackers to keep a closereye on their usage, which helps to avoid financialshocks when the bill arrives, and ensures datausage is paced more effectively.Although they like to keep a close eye on howmuch data they consume, habits can vary within thisgroup, ranging from high to average usage. ControlSeekers restrict the use of certain devices and aremore likely to opt for pre-paid services which offermore control over costs.CustomizedPLANSVital for those who wish to controltheir mobile internet usagePerformancePriceInteractionDeviceMost important factors for Control SeekersSource: Ericsson ConsumerLab, Unlocking Consumer Value 201310  ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE
  11. 11. ERICSSON CONSUMERLAB UNLOCKING CONSUMER VALUE 11SUMMARYUsing a smartphoneis a vital part of manyconsumers’ lives all overthe world.Their needs andwants continue to evolve,as do the demands forfaster, more reliable andflexible mobile networks.Of course, differentconsumer groups requiredifferent things, andoperators must handlethese expectations withinnovative solutions thatare tailored to specifictarget groups, not specificusage habits.In addressing consumerloyalty, operators mustbuild relationshipsin the areas that areimportant for multipletarget groups – be itperformance, value,or service. If operatorsmanage to address theareas that are importantto the consumer, theywill increase value forusers and ultimately buildstronger relationships.Inspired business opportunitiesUnderstanding the target groups identified in this reportcan help operators to tailor their offerings and increaseuptake in mobile internet services and usage. Whetherit’s providing better loyalty benefits for those whodemand constant attention, or improving data bundlesfor the user who wants to keep control – effectivelytargeting the right user group presents the operatorwith a number of opportunities. Below are three ofthe many suggestions resulting from the study,proposing how operators can address and improvevalue for some of the identified target groups.How do operators delivera service PerformanceSeekers will love?Provide consumers with abetter way to evaluate networkperformance. Allowing consumersto see personalized performancemaps based on their commutinghabits would provide them with amore individualized and relevantnetwork rating, which is importantwhen choosing an operator.What makes CuriousNovices tick?This dependent target groupcan be helped by having apersonal telecom contact whothey can turn to whenever theyare overwhelmed by technicalproblems. Having this personalcontact will help to build along-term relationship withtheir operator.What do Control Seekerslook for in an operator?Assurance and the right toreturn offers that are not livingup to expectations are highlyvalued by Control Seekers.Offering this type of flexibleservice will greatly improvethe trust between operatorand subscriber.SMARTPHONEsA vital part of consumers’ lives
  12. 12. EAB-13:026921 Uen© Ericsson AB 2013EricssonSE-126 25 Stockholm, SwedenTelephone +46 10 719 00 00Fax +46 8 18 40 is a world-leading provider of communications technologyand services. We are enabling the Networked Society with efficientreal-time solutions that allow us all to study, work and live our livesmore freely, in sustainable societies around the world.Our offering comprises services, software and infrastructure withinInformation and Communications Technology for telecom operatorsand other industries. Today 40 percent of the world’s mobile trafficgoes through Ericsson networks and we support customers’networks servicing more than 2.5 billion subscriptions.We are more than 110,000 people working with customers in morethan 180 countries. Founded in 1876, Ericsson is headquarteredin Stockholm, Sweden. In 2012 the company’s net sales were SEK227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX,Stockholm and NASDAQ, New York stock exchanges.The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.