Corporate responsibility/impact on buying behavior in an economic turndown Discovery sessions conducted on June 30, 2008
As part of our global consumer research program PricewaterhouseCoopers Entertainment, Media and Communications practice is holding a series of consumer discovery sessions, which employ creative techniques to elicit candid consumer feedback and gain an understanding of consumer attitudes and behaviors in a rapidly changing media landscape. By exploring both traditional and new media, this research will help identify emerging trends. Below is a summary of what we discovered when talking with consumers, ages 21–49, about the economic downturn and environmental responsibility.
 Key findings
- Mobile communication technology—particularly cell phones—is highest on the “can’t live without” list, so is least likely to be affected in an economic downturn. Cell phones are now the primary means of communication; they are considered critical lifelines and consumers find their increasing capabilities and versatility appealing.
- Vital communication tool: Cell phones are considered the essential means of communication for both personal and business life. For many, especially those with PDAs, the cell phone functions as a kind of mini storage cabinet, containing critical information on contacts, dates and appointments.
- Safety emergency aid: When one needs immediate communication, a cell phone can’t be beat.
- Internet access: Consumers are increasingly using or recognising the potential of cell phones to access the Internet and in turn become mini-laptops; as long as the experience isn’t significantly compromised, they are eager to embrace the opportunities.
- Internet access is consumers’ second priority. The internet is seen as a multi-purpose tool used for communications, information, commerce, entertainment and social networking, and is highly valued for both personal and business use.
- Looking for deals: Consumers are willing to consider modifying how they access or purchase the internet access if it means they can save money.
- The internet has/will replace print media: Consumers say they are or will cut back on newspaper and print media subscriptions as the economy tightens, preferring instead to use the internet for news and entertainment.
- Modifying internet service: Some will consider modifications to their type of internet access, such as reducing from broadband to DSL (but never back to dial up). Another consideration would be eliminating access at home if it’s readily available at work.
- Interest in alternative access: Consumers are not surprisingly interested in getting the best deals on internet service, particularly wireless. The idea of bundling with a wireless cell phone provider or even using the cell phone for internet access is highly appealing and on the rise.
- Cable TV is third on the list of priorities, but not something consumers want to cut in a downturn.
- Entertainment value: Many consumers see cable as their primary form of entertainment, and say it’s even more important when cutting back on entertainment outside the home—such as movies, concerts and shows.
- However, premium packages are first to go: As the idea of cutting back to “basic cable” becomes an increasingly appealing option in a tight economy, consumers are seeking more flexibility to purchase desired premium channels a la carte.
- The convenience of DVR remains highly desired: The flexibility of watching content at their convenience remains a very important option that consumers consider worth the added expense.
- Consumers want more empathy and a greater sense of partnership from companies with whom they do business.
- More long-term views: Consumers expect corporations to have a longer view of their businesses and to think beyond short-term gains and immediate gratification to shareholders. This means creating products and services that have greater performance, efficiency and value for the consumer. Car companies also were frequently cited as needing to be more responsible in creating fuel-efficient, more environmentally-sensitive vehicles.
- Contribution to society: Good corporate citizenship is desired and manifested by such activities as investment in local communities and education; for example, technology companies can donate their products to schools to engender good will.
- Sensitivity to the environment: “Green” is welcome as long as there is no detriment to performance and little impact on cost. Skepticism runs high about the validity of various “green” efforts because the movement is often viewed as “very trendy.” Consumers question how environmentally-friendly certain products really are as well as their efficacy when compared to existing products. This is especially true with technology, as consumers are use to seeing a constant plethora of new products capable of doing more and working faster and with greater functionality than in the past. For example, Nokia’s “Remade” eco-friendly cell phone is interesting as long as there is no sacrifice in form or function and little upward cost.
- "Green” shouldn’t cost more: Consumers want to be a part of socially-conscious efforts and want companies to pursue them—but mostly at the company’s expense. There is a prevailing sentiment that many big companies are reaping big profits, and that some of these profits need to be reinvested in the community in the form of social and/or environmental efforts for the greater good. However, consumers seem generally unwilling to accept the costs of these efforts being passed on to their products—at least no more than 10 –15 percent above the standard costs.
Implications for your business
- Strengthen relationships with consumers in these budget-challenged times by offering them the freedom to choose. By offering ways to save money via customised products and services, companies can engender greater loyalty by demonstrably showing empathy for the consumer during this economic turndown; for example, by offering cell phones with more functionality and flexible calling plans that fit the personal needs of the customer. This includes giving consumers the opportunity to bundle services in order to save money or to buy services individually if bundling is not desired.
- Capitalise on the high value placed on communications technologies, especially increased interest in using wireless for access to communications and entertainment vehicles. Because consumers say they don’t want to sacrifice their cellular, internet and cable TV services, this provides great opportunity for new product proliferation—so long as there are improvements involved that enhance performance and efficiency. The convenience of wireless technology is increasingly sought for communication and entertainment, and there is considerable interest in having one wireless device that can do it all—that is, one that can be used as both a cell phone and possibly even replace the PC to easily access and use the internet.
- Cable TV companies have an opportunity to market themselves as high-value/low-cost entertainment. To avoid cutbacks by consumers, cable TV companies should reinforce their low-cost entertainment value in marketing communication efforts, while offering more customised—and perhaps less bundled—packages for consumers to choose premium services that are the best fit. The increased appeal and desire for DVR should be leveraged as an enticement.
- Companies should demonstrate good corporate citizenship via charitable acts and by continuing to meaningfully “go green” in order to help engender consumer goodwill. Recognise that the scrutiny about the “green” movement may need to be addressed in various efforts and products, and that consumers are not willing to pay much more for green products or services.
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Past sessions in this series:
Connecting with the digital consumer
User sessions conducted on May 14, 2008
Key findings
Implications for your business
The mobile consumer: Pet peeves and preferences
User sessions conducted on April 1, 2008
Key findings
Implications for your business
Driving forces behind communication and media brand choice
User sessions conducted on March 3, 2008
Key findings
Implications for your business
Social networks and today's consumer
User sessions conducted on February 5, 2008
Key findings
Implications for your business
Future business model: Monetising content
User sessions conducted on February 4, 2008
Key findings
Implications for your business
The value of user-generated content in today's media landscape
User sessions conducted on January 23, 2008
Key findings
Implications for your business
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User-generated content
As part of our global research programme, PwC's Entertainment, Media and Communications practice is conducting a series of consumer discovery sessions to elicit candid feedback and gain new understanding of consumer attitudes and behaviours in a rapidly changing media landscape. This research will help identify emerging trends and provide fodder for consideration of how best to monetise content. The following is a summary of what we discovered when talking with consumers, ages 18–24 and 25–34, about user-generated content (UGC).
Key findings
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Consumers prefer user-generated videos that are relevant, relatable or provide meaningful information
- Content is more likely to be forwarded when it personally resonates.
- Content that viewers immediately relate to, such as particularly humorous or emotional situations, is more likely to spark an immediate personal connection.
- Restaurant reviews, news about the latest products and other information-driven content appeals to consumers, enabling them to share information with friends and cultivating their sense of awareness.
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Consumers expect advertising in UGC to be entertaining, interesting and personally relevant
- Advertising for products and brands which appeal to youthful audiences are well-suited for this venue.
- Advertising for technology and Internet products fits seamlessly with Internet venues.
- Younger consumers prefer fresh, concise, creative and entertaining advertising to the staged or overly-produced ads that typically appear on television.
- Viewer-created advertising is perceived as more creative and engaging; because this form of advertising is generated by their peers, consumers perceive the message as more credible.
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User-generated content is posted and viewed most often on YouTube, widely considered to be the predominant site to view video online
- YouTube is considered an unmatched source for user-generated video content.
- Consumers favor the site for being easily searchable; maintaining libraries for longer-than-average periods of time; and for featuring content that may not appear on the contents’ original site, such as a news or TV show.
- MySpace and Facebook draw a significant amount of user-generated content; because the sites are password protected, consumers feel comfortable knowing that what they post will be seen only by viewers they pre-approve.
Implications for your business
- Advertisers and marketers will benefit by creating a personal connection with the viewer, tailoring messages and respecting the personal nature ofnon-traditional media venues
- The content and execution of advertising messages must be tailored to fit each venue and appeal to young consumers’ entertainment ideal: young, fresh, innovative and original material.
- Advertisers and marketers must understand and respect individual interests and deliver against them, rather than overtly “sell” their messages.
- Viewer-created advertising messages may be one way to begin to establish a credible brand/consumer relationship, as consumers may view them as being more welcome on their personal sites than traditional advertising.
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Advertising perceived as relatable and real is more likely to win trust from consumers, while live or “first hand” content can come across as more interesting, entertaining and forward-worthy
- Creating content that audiences will relate to is a critical factor for breaking through in this venue.
- Live or “first hand” content creates a unique intimacy that may have a stronger appeal and connection among viewers.
- Entertaining advertisements increase the likelihood that the ad will be viewed in its entirety and passed along to other viewers.
- Location-based technology affords a range of opportunities in information, education, advertising and sponsorships.
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YouTube is currently the most viable media target for ad-sponsored/supported video
- Viewers perceive YouTube’s content as inherently “real” and therefore inherently relatable.
- Advertisers and marketers will benefit from a presence on the “Go2” site for user-generated content.
- Ad-supported content must fit in with the casual, irreverent, unstructured style of the venue.
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The future business model: Monetising content
Discovery sessions conducted on February 4, 2008
As part of our global research programme, PricewaterhouseCoopers Entertainment, Media and Communications practice is conducting a series of consumer discovery sessions to elicit candid feedback and gain new understanding of consumer attitudes and behaviours in a rapidly changing media landscape. This research will help identify emerging trends and provide fodder for consideration of how best to monetise content. The following is a summary of what we discovered when talking with consumers, ages 14–18; 19–25; and 26–34, about their receptivity to marketing messages across various platforms.
Key findings
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Advertising that is integrated in an appealing way and does not interrupt its medium is accepted and can even enhance content.
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On the Internet, this means ads that visually or thematically fit in with the site’s content, such music or movie ads on an entertainment site, or simple logos and one-line messages on social networking sites.
- For virtual worlds and video games, integrated advertising fits into the context or storyline of the game, typically in the form of product placement. For example, advertising on billboards in stadiums featured in sports games. In this case, the integration of the advertising is welcomed and perceived as actually enhancing the games’ realism.
- For personal media, such as cell-phones and MP3 players, more permission and less intrusiveness is required for acceptance of ads. For example, consumers will most easily accept messages while they are waiting for these devices to power on or download.
- For audio devices such as cell phones and MP3 players, visual content is considered less intrusive than sound. For cell phones, this means free text messages of brand logos instead of calls. For MP3 players, the messages absolutely cannot interrupt the music, as that would defeat the purpose of the MP3 player.
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Consumers increasingly expect targeted messages reflecting demographic relevance and personal lifestyle interests.
- As nontraditional media becomes more personalised and targeted, consumers express a correlating desire to receive relevant advertising. For example, they would prefer to see movie ads on entertainment sites and sports-related ads on sports news sites.
- On sites where consumers post personal information, such as MySpace or Facebook, users prefer advertising that features relevant brands, products and services. Conversely, ads that are not targeted such as a car insurance ads reaching a 14-year-old user are viewed as annoying and lead to negative perception of advertising overall.
- Consumers are willing to trade personal information for more relevant advertising messages. Most consumers, especially the younger ones, regularly divulge such demographic and personal interest information, particularly on social network sites or sites where they purchase products or services. Privacy is becoming less of a concern, as there is a prevalent sense of resignation across age groups that personal information can be easily accessed in this era of cyberspace.
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Resistance to advertising on non-traditional media can be offset with incentives.
- Consumers will readily tolerate advertising in exchange for compensation, such as offers, coupons, free ring tones and discounts on products or services.
- To break the barrier on advertising on personal media such as mobile devices and MP3 players, there is a desire to receive something substantive and related to the medium in return, such as discounts on services, free unlimited text messages, or a discount on provider rates. Other incentives may include content perks, such as free ring tones, songs and movie downloads.
Implications for your business
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Advertising needs to integrate into media content both by execution and by product or service offered.
- Advertising on these sites should be more about presence than persistence. This can set the stage for a positive brand relationship with the consumer.
- Making the message relevant to the user’s interests communicates that the brand understands them and can strengthen the brand-consumer relationship.
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Advertisers have an opportunity to meet customer needs by offering more targeted messages on alternative media.
- Most consumers are willing to divulge personal information if it means better targeting for products or services relevant to their lives. Questions about gender and age do not raise confidentiality concerns, and users do not see a downside to revealing those basic demographics..
- Consumers often have already revealed personal interests on their social networks, such as entertainment preferences, sports and hobbies, and wish advertisers would pay attention to this information to create more relevant and targeted ads.
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Advertisers should explore creative opportunities to provide relevant incentives to consumers in order to make it more acceptable and engender a positive relationship with the consumer.
- Younger, more price-conscious consumers are particularly receptive to opportunities to save money by reducing media access fees and getting free perks.
- The same rules still apply: ads need to integrate within the content and not interrupt.
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Social networks and today's consumer Discovery sessions conducted on February 5, 2008
As part of our global research programme, PricewaterhouseCoopers Entertainment, Media and Communications practice is conducting a series of discovery sessions to elicit candid consumer feedback and gain new understanding of consumer attitudes and behaviours in a rapidly changing media landscape. This research will help identify emerging trends and provide fodder for consideration of how best to monetise content. The following is a summary of what we discovered when talking with consumers, ages 18–25; 26–34; and 25–49, about social networks.
Key findings
- Younger consumers largely define themselves by their social networks, spend significant time on their social sites, and are typically loyal to just one or two particular sites.
- Younger consumers belong to sites which allow them to express their personalities creatively and with discretion. They often spend a considerable portion of their days on social sites, and would be receptive to accessing them via cell phone if they could afford the fees.
- The participant's perception was that Facebook typically attracts more college students than MySpace; emphasis is on searching for and learning about other users via user profiles.
- MySpace, meanwhile, is typically regarded as a space for personal expression, such as posting personal updates and blogs.
- While most young social networking consumers have accounts on both sites, users generally check their MySpace site less frequently and maintain it primarily to keep in touch with friends who don’t have Facebook.
- Older consumers generally use social network sites as a tool to satisfy a specific purpose.
- While older consumers visit a wider variety of sites than younger consumers, their visits are typically purposeful and specific; as such,
they are less involved with any particular site. Many compartmentalise their personal and professional social networks with Web sites specifically tailored to each interest.
- They are less interested in accessing social sites on their cell phones.
- Advertising on social networking sites is widely accepted by users across age groups; however, they expect the ads will be well-integrated and will not interrupt viewing.
- While younger groups are more tolerant of advertising in general, all age groups look for Internet ads to be unobtrusive and subtle. Ads that flash and flicker across the page are annoying and can potentially generate ill will.
- Integrated advertising means ads for products or services that specifically target users or make sense for them personally. Ads tailored to personal interests are most relevant; for example, placing movie advertisements on the page of a movie enthusiast.
- Privacy on the Internet is not a significant concern, particularly among younger consumers.
- Most consumers are very comfortable divulging personal information within certain parameters; they will rarely disclose their social security number and generally will not disclose their address or phone number.
- Many older consumers, ages 35 - 49, indicate their privacy concerns have decreased over the years as sites develop stronger password protections; however, they remain less willing to disclose personal information than younger consumers.
Implications for your business
- Advertising must integrate into the social network site content both by execution and by product or service offered.
- Advertising on these sites should be more about presence than persistence. This can set the stage for a positive brand relationship with the consumer.
- Making the message relevant to the user’s interests communicates that the brand understands them and can strengthen the brand-consumer relationship.
- Advertising may have an opportunity to offset Internet fees on cell phones.
- Younger consumers are receptive to any opportunity to reduce the cost of cellular internet access fees.
- Ads on cell phones also need to integrate within the content and not interrupt; for example, users do not want to be alerted to an ad message. Images, rather than text, are considered least intrusive in this venue.
- Advertisers must ask consumers for the personal information needed to target them directly.
- Most consumers are willing to divulge personal information if it means better targeting for products or services relevant to their lives. Questions about gender and age do not raise confidentiality concerns, and users do not see a downside to revealing those basic demographics.
- Consumers already reveal personal interests on their social networks, such as entertainment preferences, sports and hobbies, and wish advertisers would pay attention to this information to create more relevant and targeted ads.
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Driving forces behind communication and media brand choice Discovery sessions conducted on March 3, 2008
As part of our global consumer research programme, PricewaterhouseCoopers' entertainment, media and communications practice is conducting a series of consumer discovery sessions to elicit candid consumer feedback and gain an understanding of consumer attitudes and behaviours in a rapidly changing media landscape. This research will help identify emerging trends and provide fodder for consideration of how to monetise content. The following is a summary of what we discovered when talking with three separate groups of consumers, ages 14–18, 19–24, and 25–34, about communications and media brand affinity.
Key findings
- Consumers develop relationships with their favorite brands based on real experiences. Brand marketing and advertising efforts more often serve to carry news and/or reinforce relationships—not create them.
- In developing a relationship with a particular brand, consumer expectations are centered around basic product performance needs: reliability, ease of use, and approachable and quality customer service.
- For younger consumers the relationship has not yet matured into loyalty to a brand—it’s simply about how well the product meets their performance needs. As they age and mature, relationships will develop from product attribute performance to feelings about a brand that include credibility, familiarity, comfort and trust.
- Innovation is a critical part of what keeps a brand relevant.
- Apple emerges as a paradigm of a “favorite brand,” due to its reliability, creativity, user-friendliness, quality and functionality. It draws highest marks for its constant product innovation as well as the creation of new product categories, such as the iPod for portable music and the iPhone as a PDA.
- Innovation must be relevant to connect. One retail company’s new relationship marketing campaign was viewed as contrived, as it was a “disconnect” with consumer perceptions of the brand and of the clothing products.
- Communications brand choices are driven by price, peers and flexibility.
- Particularly among teen consumers, peers heavily influence communications choices, which often are made either to ‘stand apart from the pack’ or alternatively to ‘fit in’ with others.
- Financial considerations also heavily influence communications brand choices, especially with cellular service and particularly among younger consumers, who rely on the services but tend to have more limited funds. For example, T-Mobile’s free cell-to-cell calling among its customers offers a strong incentive. Cellular contracts are disliked as being constrictive. There is an opportunity for service carriers to create greater brand affinity by offering more innovation, especially in terms of flexibility and personalisation of contracts, such as allowing consumers to choose their “weekends.”
- The new barcode scan technology for cell phones is viewed as impressive—especially to younger consumers—but there are a wide range of opinions about how it can be best applied and the risks of using it.
- Its use as a credit card substitute is worrisome, especially for teens concerned about getting into trouble with parents, and consumers in their early 20’s who are concerned about running up their bills. Among consumers aged 25 to 34, concerns range more toward privacy and security, such as concerns about the theft or loss of a phone containing credit card information.
- Consumers view the technology useful for accessing quick information, such as at a retail store to get product data, but express skepticism around the idea that the product would provide objective information.
Implications for your business
- Establishing and building a successful relationship with empowered consumers means delivering basic product performance and being credible in what and how you deliver.
- Successful relationships require constant “upgrading” and innovation. The brand working to meaningfully improve itself by adding value to the consumer draws the greatest affinity.
- The empowered consumer requires “straight talk” from its brands. To keep the communication credible, it must be genuine and consistent with perceptions of the brand and the types of product being offered.
- Effective relationships with the empowered consumer require flexibility, options and increased personalisation.
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The mobile consumer: Pet peeves and preferences Discovery sessions conducted on April 1, 2008
As part of our global research program, PricewaterhouseCoopers’ Entertainment, Media and Communications practice is conducting a series of consumer discovery sessions to elicit candid feedback and understand consumer attitudes and behaviors in a rapidly changing media landscape. This research investigates emerging trends and helps identify ways to monetise content. The following is a summary of feedback gathered from consumers, ages 18 to 34, who spoke about what they want, need, and expect in the future as customers and users of mobile devices.
Key findings
- Innovation will continue to propel the mobile-device industry. Consumers offer many ideas for imaginative improvements and refinements, but they say the Next Big Thing will be a single device that does everything they need.
- Participants said the ability to send and receive text messages is the most important feature for a mobile device. The highest number of participants ranked this capability as one of the top five features they wanted in a mobile device. The group also ranked music-playing capabilities, internet search, and e-mail access highly; movie-viewing capabilities and picture-taking scored low.
- Consumers also want more refined versions of features that already exist on mobile devices, such as voice-activated command, better Bluetooth connectivity and cameras with higher resolution.
- Other ideas include: mobile access to files saved on a user’s computer, remote file storage, TV viewing, holographic viewers, solar battery chargers, and book and movie downloads.
- Consumers want a mobile device that delivers the same benefits as—and simulates the experience of—using their traditional computer.
- Focus group participants said slow internet access speed remains one of their biggest frustrations with mobile devices, echoing one of the biggest concerns from last year’s research.
- Consumers want their mobile devices to synchronise with, or provide instantaneous access to, the files on their computers.
- Inconsistent website rendering irritates consumers. Focus group participants said they are accustomed to viewing web pages on their computers, and want to see the pages rendered the same way on their mobile devices.
- Consumers want to add new features to their mobile devices through software upgrades. They are willing to pay for these upgrades if it saves them the expense and hassle of migrating to new hardware.
- Just as these users have grown accustomed to running multiple applications and viewing more than one website at once on a traditional computer, they want mobile devices that allow them to handle multiple tasks simultaneously.
- Consumers seek greater flexibility and freedom from their mobile device service providers.
- Many participants named contract-free service and unlimited plans as top benefits they sought from providers.
- Consumers want unlimited plans so they can send text messages, make calls, and access the Internet without worrying about exceeding their plan allotments and incurring additional costs.
- Consumers seek contract-free plans because they want the ability to take advantage of new plans that may become available.
- The focus group showed great interest in Android, Google’s initiative to develop an operating system for a variety of mobile devices. Android is still under development; the first mobile devices featuring Android are not expected to go to market until late 2008. The focus group watched a video demonstration of Android and said it addressed some of the perceived shortcomings of the industry standard-bearer, the Apple iPhone.
- Android’s touch-screen interface and navigation system appears appealing, fast, and intuitive.
- The device works quickly, which has implications for online gaming.
- Android’s browser renders web pages the same way as a computer browser. Focus group participants liked this; they said the slimmed down, reformatted Web sites some other mobile devices display compromise the online experience.
- Consumers feel Google’s open development approach to Android will be an advantage. They said Android invites innovation because many manufacturers will be making hardware, and because developers can add new features by creating new software and improving existing programs. In contrast, they said, Apple rigidly controls development of the iPhone and will have a heavy hand in controlling and distributing third-party software when it is available later this year.
- Many consumers said the iPhone did not meet their original expectations for user friendliness, speed, and video viewing quality.
- Some concerns arose about data security on Android. Participants suggested Google build in a security feature to protect a user’s data automatically if a mobile device is lost or stolen.
Implications for your business
- As consumers embrace an increasingly mobile lifestyle, mobile devices are poised to become their primary and preferred tools for information, entertainment, commerce, and social networking. For these users, technology and services that offer more speed and flexibility to mobile devices—that is, improvements that give mobile devices more of the benefits of notebook computers—cannot advance quickly enough.
- Every improvement in mobile device technology lifts expectations for the next wave of advancements. We expect the forthcoming breed of devices running Android will continue to raise the bar for the entire industry.
- Given the high priority and importance of text messaging, innovation to this feature is likely to attract the most interest.
- The “Next Big Things” consumers are looking for in mobile technology is total integration between all forms of technology and more “hands-off” operational features: Remote access to/ability to run all applications and programs from a mobile device without the need to store data on their mobile device; Voice controlled, activated and directed; Face on screen/holograms
- Consumers are growing impatient with plans that lack freedom. They also appear more educated about cellular service plans and trends than they were a year ago. Plan providers should therefore be creative in crafting unlimited usage plans and commitment-free contracts to retain current customers and attract new ones.
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Connecting with the digital consumer Discovery sessions conducted on May 14, 2008
As part of our global consumer research program, PricewaterhouseCoopers Entertainment, Media and Communications practice is holding a series of consumer discovery sessions, which employ unique and creative techniques to elicit candid consumer feedback and gain an understanding of consumer attitudes and behaviors in a rapidly changing media landscape. By exploring both traditional and new media, this research will help identify emerging trends and provide insight on how to monetise content today. Below is a summary of what we discovered when talking with consumers ages 21– 49.
Key findings
- The area of customer service represents an untapped opportunity to foster a personal connection in a relationship where no single company currently stands out for doing this. While previous media research found differences by age group, there is no distinction between older and younger consumers relative to customer service needs and desires.
- The nature of the relationship between the customer and service providers for internet, cell and broadband is perceived as being fairly impersonal and basically dormant beyond the initial account set up.
- Although customers feel completely dependent on the provider’s services for professional and personal uses, they are not necessarily invested in a relationship with them.
- Excellent customer service is perceived as being either non-existent or occasional, surprising and the exception rather than the rule.
- Consumers express a desire for a personal connection and want to feel like they “matter” to their service providers. In addition to the obvious characteristics (knowledgeable, courteous, helpful, friendly) consumers want:
- Readily available communication: When there’s a problem, providers must be ready to assist on their customer’s timetable—24/7 tech support via all means of communication including the internet, phone calls, texting or snail mail. This communicates that the company puts the customer first.
- Guaranteed resolution of concerns/problems: Many consumers said they felt valued when a provider partnered with them to resolve an issue, such as guiding them to the proper resources through the process, providing one call resolution or calling them back until the issue was resolved.
- Recognition of individual needs: This makes customers feel valued. Consumers want to feel that the company will stop at nothing to resolve their problems.
- A human connection: A great customer service experience reflects positively on the company. Through superior customer service, the representative adds a human element to the corporation.
- There continues to be a pervasive desire for self-serve and on-demand options: “What I want, when I want it, where I want it—with no limitations on how I use it.” Further, there is a perception that this is all readily available for the consumers now, so there is no temerity in asking for it. In fact, limitations on flexibility and customisation imply the provider may be withholding something, which can create resentment among consumers.
The top three most highly desired features and benefits confirm the demand for customised content and flexible consumption, which are the same across age groups.
- Extend or move all content currently available with cable package to portable device, mobile device and/or the PC.
- Watch all on-demand content on the web.
- Watch live tv channel lineup on the web.
- More choices: Downloadable movies on-demand, customised cable features and services.
- More interactivity: Web and traffic cameras on location, virtual gaming online interaction, any movie title or music offered on demand.
- More “live” entertainment and information: “Live” virtual TV via satellite, including concerts, sporting events, theatre and opera, or 3D at home.
- More mobility: The ability to enjoy internet/cable/phone services in the same way that they do at home, even when they are away, such as being able to watch a movie or TV program on their cell phone.
- More connectivity: There’s a desire to improve connectivity among their digital devices, such as being able to program the DVR from their cell phone.
- Both younger and older consumers primarily get local news and information via the internet.
- Accessing the internet or mobile device supports the consumers’ desire to customise their news and information. They go directly to exactly what they want to know, such as weather, traffic, etc.
- They also believe the internet helps them avoid advertising altogether, or to at least click through it more quickly.
- There is occasion to use traditional media for local news or information when there is the desire for exposure to broader “more important” information (TV and radio; rarely newspapers, especially among younger consumers).
- Network neutrality as a concept is unfamiliar and confusing to many.
- Very few consumers understand this concept. Further discussion indicates that it smacks to them of regulation and restriction, and that in the end, it will somehow benefit the corporation, not the customer.
- Consumers we spoke with did not perceive any benefit to this scenario.
Implications for your business
- Personalise. Offering customers the ability to choose what services they want, the ability to use it without limitations and offering a fixed price with limited contractual obligation would satisfy their ultimate desire for personalisation, flexibility and respect. Further, customised service has implications for increased customer loyalty and retention.
- Offer distinctive customer-focused service. A consumer-focused customer service strategy can be a differentiating offer—and, if done correctly—has the potential for positive impact on customer loyalty and retention. It’s not simply about the product’s features and benefits—it’s about taking care of the customer.
- Freedom from service tethers has potential for positive impact on customer loyalty and retention. While consumers may feel a sense of empowerment, given the freedom to modify their service agreement or change providers at will, and given constraints on time and the mobile lifestyle, it is unlikely that most will frequently switch providers. However, by offering this highly desired benefit, the provider is likely to engender the greatest loyalty.
- Be flexible and innovative. The consumer never stops changing or moving, and they want their service plans to change with them. They want plans that constantly offer more options to provide them with more real-time, instant and on-demand access to information, social networks and news and entertainment.
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