New Research: Churn Persists Amongst Service Providers Although They Retain Customer Experience Advantage Over OTT Players
February 25 2015 - 6:00AM
Amdocs (Nasdaq:DOX), the leading provider of customer experience
solutions, today released new independent research that explores
the market forces driving The New World of Customer Experience, a
world characterized by a rapidly changing competitive landscape and
the ongoing need to compete by delivering a superior customer
experience. The research shows that despite the competitive
challenges from over-the-top (OTT) players, the vast majority of
consumers still favor "traditional" service providers. However,
while customers value their service providers' customer experience,
network quality and brand reputation, churn remains high within the
industry.
The Amdocs Customer Experience Spotlight 2015, an independent
research study conducted by IE Market Research (IEMR) on behalf of
Amdocs, highlights the importance of providing a superior customer
experience in order to retain as well as attract new customers,
such as including a carrier-grade Wi-Fi strategy to combat the
threat of emerging players in the mobile market and offering
multi-play bundles to win market share. The global survey was
conducted among 8,450 consumers in 17 countries.
Key findings include:
- Churn persists within service provider
industry: While 63 percent of respondents stated they
would recommend their service provider, citing customer
care/experience (89 percent) and high-quality Internet connection
and coverage (59 percent) as the top reasons for their endorsement,
50 percent of respondents said they had been with their current
service provider for less than a year.
- Customers prefer "traditional" service
providers: 80 percent of respondents would not consider
switching to OTT disruptors if these players offered mobile
connectivity. The top reasons were: privacy & security issues,
lack of trust and potential network quality issues. Global
variations were significant – the majority of APAC and emerging
markets were more likely to consider OTT disruptor services, while
mature markets in Europe and North America proved more loyal.
- Customers desire innovative and new personalized
services: More than half of the respondents stated that
they would switch mobile subscription plans for a plan that
included additional communication services (e.g. home, Internet,
TV) with almost the same number of respondents saying they would
switch if they were able to choose the bundle components.
- The multi-play opportunity remains unclaimed:
Although more than half (52 percent) of respondents subscribe to
four services (broadband, TV, mobile, fixed line), only 1 percent
has a single quad-play provider. Triple-play penetration was also
low (9 percent).
- Carrier-grade Wi-Fi will drive loyalty: Among
the 62 percent of respondents with a mobile Internet plan, 71
percent use Wi-Fi more frequently than their mobile
connection.
"With changing customer expectations and the ever-increasing
threat of disruptive competitors, service providers are required to
adopt a new strategy by taking a multidimensional view of customer
experience," said Chris Williams, head of global marketing at
Amdocs. "By leveraging their customer experience strengths and
exciting customers with innovative, personalized and multi-play
bundles, as well as shaping the quality of network experience
through real-time network visibility and control carrier-grade
Wi-Fi strategies, service providers have a tremendous opportunity
to lead in The New World of Customer Experience."
Supporting Resources
- Meet with Amdocs at Mobile World Congress, Barcelona, March
2-5, 2015 – Hall 3, Booth 3G10
- Register for Amdocs Insight Theater sessions at Mobile World
Congress next week
- Learn more about Amdocs' Customer Experience, Big Data
Analytics and Network solutions
- Keep up with Amdocs news by visiting the company's website
- Subscribe to Amdocs' RSS Feed and follow us on Twitter,
Facebook, Google+, LinkedIn and YouTube
About Amdocs
For more than 30 years, Amdocs has ensured service providers'
success and embraced their biggest challenges. To win in the
connected world, service providers rely on Amdocs to simplify the
customer experience, harness the data explosion, stay ahead with
new services and improve operational efficiency. The global company
uniquely combines a market-leading BSS, OSS and network control and
optimization product portfolio with value-driven professional
services and managed services operations. With revenue of $3.6
billion in fiscal 2014, Amdocs and its more than 22,000 employees
serve customers in over 80 countries.
Amdocs: Embrace Challenge, Experience Success.
For more information, visit Amdocs at www.amdocs.com
Amdocs' Forward-Looking Statement
This press release includes information that constitutes
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including statements about Amdocs' growth and business results in
future quarters. Although we believe the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, we can give no assurance that our expectations will be
obtained or that any deviations will not be material. Such
statements involve risks and uncertainties that may cause future
results to differ from those anticipated. These risks include, but
are not limited to, the effects of general economic conditions,
Amdocs' ability to grow in the business markets that it serves,
Amdocs' ability to successfully integrate acquired businesses,
adverse effects of market competition, rapid technological shifts
that may render the Company's products and services obsolete,
potential loss of a major customer, our ability to develop
long-term relationships with our customers, and risks associated
with operating businesses in the international market. Amdocs may
elect to update these forward-looking statements at some point in
the future; however, the Company specifically disclaims any
obligation to do so. These and other risks are discussed at greater
length in the Company's filings with the Securities and Exchange
Commission, including in our Annual Report on Form 20-F for the
fiscal year ended September 30, 2014 filed on December 8, 2014 and
our quarterly 6-K form furnished on February 9, 2015.
CONTACT: Media Contact:
Sara Preto
Fusion PR for Amdocs
Tel: +1-212-651-4214
E-Mail: sara.preto@fusionpr.com
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