Ericsson has released its findings from its latest Experience Shapes Mobile Customer Loyalty report, revealing some interesting facts about the New Zealand market.
The report found new evolving apps and video streaming behaviour is placing different demands on a network’s expected performance.
According to Ericsson, the past two years has seen many new mobile video apps launched (eg. Periscope) and existing apps being enriched with new features, such as live video streaming – increasing video streaming behaviour.
Additionally, the possibility to watch live broadcasts of user generated content as well as professional content on apps like Facebook has increased the appeal of live streaming, the report shows.
According to the report, 1/3 Korean smartphone users watch both live stream videos and 14% of US smartphone owners use live streaming apps. Globally, 30% are interested to watch video on mobile devices.
The report found new emerging video app usage is causing smart phone issues and impacting customer loyalty.
Two in five users are facing more than 11 issues at least weekly with video streaming glitches more common, the result reveal. Those who face more than 11 issues at least weekly are twice as likely to consider switching operators.
Consumers have a mental criteria list to assess network performance, according to the report.
The results show 86% use at least one of the new indices to judge connectivity:
- Web page loading time - top measure 46% of those surveyed
- Content upload time - Picture upload speeds (33%)
- Email attachments to download (30%)
- Video buffering (30%)
- Time taken to transfer files (27%)
- Time taken to download apps (25%)
Ericsson says Net Promoter Scores need to be complemented to better understand customer loyalty.
”Net Promoter Scores are no longer enough to gauge smartphone user loyalty as they don’t take account for changing expectations of network performance,” the report explains.
Selina O’Connor, head of Communications, Ericsson Australia & New Zealand, says the results of Ericsson research on consumer views on network performance are ‘compelling’.
“Results show that globally video streaming is growing and issues with video are now more common, further those who are most likely to switch operators face twice as many issues with video streaming. This is an early warning, as new streaming behaviours grow globally,” she explains.
“Consumers have devised their own mental index to judge connectivity; time to content on video apps, sessions without interruptions, and time to share content on social media apps are the top mental indices that consumers use when assessing connectivity experience,” O’Connor says.
”Millennial users are most demanding and expect operators to communicate around app experience, the report shows that operators not only need to offer superior performance but also communicate how this relates to customer’s app experience,” she adds.