Why Consumers Want to Buy Mobile Services from Amazon or Netflix, and What Telcos Can Do About It

We recently polled mobile users across the United States and the UK to find out which mobile apps they considered favorites, and why. The impetus behind the survey was straightforward. We talk to mobile operators around the world on a daily basis, all of whom recognize the need to better-compete with on-demand, digital experiences for their customers. The challenge every operator faces is – how best to compete?

The survey results underscored the value that consumers place on customer experience as it relates to how and where they place their loyalties. The results were fairly illuminating, particularly when you consider that nearly three-quarters of all respondents would switch to Amazon if the internet giant offered mobile services. PayPal, Netflix and eBay also ranked high on the list. This highlights a significant brand issue for Telcos, as it is clear consumers identify more with their favorite apps than they do the mobile operator responsible for enabling these apps.

As Saleha Riaz with Mobile World Live shared, mobile operator apps tend to focus on basic customer care rather than taking advantage of an opportunity to keep customers engaged by marketing and selling personalized, relevant offers.

It’s not all bad news for Telcos however. The survey results highlight a number of consumer expectations that, if met,  would see more than half of all customers recommending their mobile carrier to friends and family providing a healthy boost in NPS® scores. What’s more, many respondents indicated a willingness to increase their spending with their carrier.

So what features do users want to see their carriers adopt from favorite apps? Transparency in pricing ranked at the top of the list for 75% of respondents. As Guy Daniels of TelecomTV pointed out, users are still very cost-conscious, and it remains their number one reason for choosing a carrier. Yet consumers have proven they will spend more when given insight into charges and allowed greater freedom to choose.

In addition to transparency in pricing, survey respondents highlighted ease of use, greater personalization and instant access to services as additional features they would love to see from their mobile services provider.

Scott Bicheno of Telecoms.com was correct when he said we didn’t conduct this survey just for fun. MATRIXX has a vested interest in helping operators deliver faster, more agile engagement that not only takes advantage of operator’s strengths, but can transition today’s Communication Service Providers into Digital Service Providers primed to compete in an increasingly instant and on-demand economy.

Without question, leading digital brands have redefined the customer experience, and users are growing to expect that level of service across everything they do. This shouldn’t frustrate Telcos however, it’s a golden opportunity to deliver a new level of intuitive engagement – one that builds brand loyalty through highly personalized, transparent and value-based experiences that will redefine their brand for today’s digital generation.