Better network performance drives customer loyalty and profits

Better network performance drives customer loyalty and profits

Staff writer  |   September 16, 2013
Operators are often advised not to throw network technology at their customers. W-CDMA, HSPA, LTE – who cares? Even if you simplify it to 3G, 3.5G, etc, most mobile broadband consumers don’t really understand or care about network technology.
But that doesn’t mean that networks don’t matter to customers. Quite the opposite, actually – operators need a solid network foundation to deliver a great customer experience, and customers are more aware of this than one might think.
Unfortunately, one reason for that awareness is that many operators are falling short of consumer expectations when it comes to superior network performance. The good news is that some cellcos have already devised strategies that not only deliver that expected performance, but also effectively communicate those capabilities to their customers. Meanwhile, other cellcos can implement those strategies to achieve similar benefits.
They’ll have to – because as mobile broadband evolves over the rest of the decade beyond 4G, network performance will matter more than ever and will spell the difference between success and failure on the playing field.
Performance = stickiness
To understand the importance of network performance, operators need only look at current trends in consumer behavior, says Warren Chaisatien, strategic marketing manager for Ericsson South East Asia and Oceania.
“Consumer behavior is changing. They access the internet more frequently every day, driven by the development of smart devices and the increasing affordability of data services,” he says. That trend will escalate as smart devices grow more prevalent.
Meanwhile, a recent report from Ericsson ConsumerLab found that network performance is the most important influencer on customer loyalty to a mobile operator. “Network performance and value for money are closely correlated, which suggests that improving network quality also improves perceived value for money – without actually lowering tariffs,” Chaisatien says.
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