Acxiom study reveals valuable insights into wireless consumers

LITTLE ROCK, USA: Wireless providers competing for a larger market share can get to know consumers on a more personal level and adjust customer engagement plans accordingly with insights from the first Communications Consumer Dynamics study released today by Acxiom Corp.

The in-depth analysis segments consumers to reveal which ones have switched services in the past, which are most likely to switch in the near future, and what factors most influence these decisions. This innovative insight can help companies significantly increase the effectiveness of their customer engagement efforts. Among the findings:

Consumers in three groups comprising 36.4 percent of US households appear most likely to be considering a switch in the near future:
* “High Bill/Contract”
* “High Bill/Monthly”
* “Medium Bill/Monthly”

Consumers in the three pre-Paid segments, making up 32 percent of households, appear least likely to be making a switch in the near term.

“To be successful in adding customers and improving existing relationships, service providers need to understand individual consumers on a whole new level,” said Greg Hogue, Acxiom communications industry executive. “If they know consumers’ interests, needs, usage and personal situation, then marketers can tailor products, offers and messages in a much more relevant and effective way.”

The study reveals the High Bill/Monthly segment is at greatest risk of churn. These consumers are most likely to be paying for unused services or overpaying when a bundled text plan or higher-minute plan would save them money. Growing family and career demands can cause them to be too time crunched to make changes they know they need.

“By saving consumers money on things they don’t need, wireless providers can earn their trust and foster loyalty,” said Hogue. “With the money saved, they may be willing to go on a contract to upgrade their phone.”

The study also validates the need for marketers to adapt to change. Each customer type shows differences between what they feel will be important to them in their next switch versus what they felt was important the last time.

“Consumers looking ahead to a possible change of providers rated the importance of price, technology and service differently than what drove previous decisions to switch,” said Hogue. “The ability to extract meaningful insights from available data and act on it is a must to successfully adapt to changes in customers and the market.”

Acxiom went beyond conventional demographic-driven profiles to take a fresh look at behaviors of wireless users. Armed with consumer survey data from BIGresearch, Acxiom developed a new segmentation model that helps marketers understand how consumers are changing their approach to selecting wireless providers.

The study segments wireless customers on a combination of Household Bill Size and Customer Type, allowing for analysis of consumer behavior from different yet related perspectives –- how much they pay and how they prefer to pay.

Household Bill Size identifies and prioritizes consumers based on their level of monthly spending on wireless services, categorized as High, Medium or Low. Customer Type further segments the groups by the agreement customers choose with their providers –- as contract customers, monthly pay-as-you-go, or pre-paid.

Based on the data and findings of this study, Acxiom is producing an off-the-shelf predictive modeling and analytic solution for wireless providers. This tool will help with customer acquisition and retention according to propensity to switch for reasons outlined in the study.

“Using these modeling solutions, we can also help find customers and prospects with a propensity for a higher household bill, a preference for pre-paid, contract or non-contract service, or an affinity for features like advanced smartphones,” said Hogue.