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Network performance vital for user loyalty, says Ericsson ConsumerLab report

STOCKHOLM, SWEDEN — (Marketwired) — 06/12/13 —

* New Ericsson consumer research on smartphone users shows that network
performance is key to ensuring subscriber loyalty and low churn

* Improving user satisfaction with network performance increases operator
revenue over subscriber lifetime and ensures a competitive advantage

* Smartphone users sometimes express concerns about the experience they
get
from current network performance

Improved network performance is vital for ensuring subscriber loyalty among
smartphone users, and provides operators with a significant competitive
advantage. These findings come from a new report from Ericsson (NASDAQ: ERIC)
ConsumerLab, which also shows that current mobile networks don-t always
live up
to user expectations. Up to 60 percent of smartphone users say they
experience
problems at least once a week and just over 30 percent encounter problems
every
day.

The ConsumerLab research looked into the factors that influence users-
loyalty
to operator brands, says Anders Kälvemark, Senior Advisor, Consumer
Insights at
Ericsson ConsumerLab.

“Our analysis shows that network performance is currently the prime driver
of
consumer loyalty to an operator brand, followed by value for money,” he
says.
“That is almost three times the impact of the handset/device offering, for
example. Consumer satisfaction with these factors has to be improved to
affect
loyalty in a positive way.

“Generally, consumers expect more from the services than what they receive.
When
service requirements such as reasonable waiting times and sufficient
coverage
are not met – especially when people are in transit – it is natural that
consumer loyalty suffers.”

To ensure a good user experience, content needs to appear on the screen
quickly.
Relatively low levels of satisfaction with network performance are often a
result of smartphone users becoming tired of waiting.

However, it is not enough for operators simply to improve network
performance in
the hope that customers will notice. Communication is essential for
improving
customer perceptions. Users need to be aware that things have changed for
there
to be an impact on satisfaction levels, and for this to improve their
loyalty to
the operator.

The report also shows that a satisfied user is generally less likely to
switch
operator, leading to higher operator revenue over the user-s lifetime.

About the report:

Ericsson ConsumerLab conducted online interviews with 1,000 smartphone
users,
aged 18 to 64, in each of the following 12 markets: Brazil, Chile, China,
Indonesia, Japan, Mexico, Russia, South Korea, Sweden, Turkey, the UK and
the
US.

Loyalty was measured using the Net Promoter Score (NPS) metric.

All ConsumerLab reports can be found at

Link to report:

NOTES TO EDITORS

Ericsson Mobility Report:

Download high-resolution photos and broadcast-quality video at

Ericsson is a world-leading provider of communications technology and
services.
We are enabling the Networked Society with efficient real-time solutions
that
allow us all to study, work and live our lives more freely, in sustainable
societies around the world.

Our offering comprises services, software and infrastructure within
Information
and Communications Technology for telecom operators and other industries.
Today
40 percent of the world-s mobile traffic goes 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 more than 180
countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.
In
2012 the company-s net sales were SEK 227.8 billion (USD 33.8 billion).
Ericsson
is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

Network performance vital for user loyalty:

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