Acxiom Study Reveals Valuable Insights Into Wireless Consumers
October 19 2009 - 2:10PM
Business Wire
Wireless providers competing for a larger market share can
get to know consumers on a more personal level − and adjust
customer engagement plans accordingly − with insights from the
first Communications Consumer Dynamics
study released today by
Acxiom® Corporation (Nasdaq:
ACXM). (View video
introduction).
The in-depth analysis segments consumers to reveal which
ones have switched services in the past, which are most likely to
switch in the near future, and what factors most influence these
decisions. This innovative insight can help companies significantly
increase the effectiveness of their customer engagement efforts.
Among the findings:
- Consumers in three groups
comprising 36.4 percent of U.S. households appear most likely to be
considering a switch in the near future:
- “High
Bill/Contract”
- “High
Bill/Monthly”
- “Medium
Bill/Monthly”
- Consumers in the three
Pre-Paid segments, making up 32 percent of households, appear least
likely to be making a switch in the near term.
“To be successful in adding customers and improving
existing relationships, service providers need to understand
individual consumers on a whole new level,” said Greg Hogue, Acxiom
communications industry executive. “If they know consumers’
interests, needs, usage and personal situation, then marketers can
tailor products, offers and messages in a much more relevant and
effective way.”
The study reveals the High Bill/Monthly segment is at
greatest risk of churn. These consumers are most likely to be
paying for unused services or overpaying when a bundled text plan
or higher-minute plan would save them money. Growing family and
career demands can cause them to be too time crunched to make
changes they know they need.
“By saving consumers money on things they don’t need,
wireless providers can earn their trust and foster loyalty,” said
Hogue. “With the money saved, they may be willing to go on a
contract to upgrade their phone.”
The study also validates the need for marketers to adapt
to change. Each customer type shows differences between what they
feel will be important to them in their next switch versus what
they felt was important the last time.
“Consumers looking ahead to a possible change of providers
rated the importance of price, technology and service differently
than what drove previous decisions to switch,” said Hogue. “The
ability to extract meaningful insights from available data and act
on it is a must to successfully adapt to changes in customers and
the market.”
Acxiom went beyond conventional demographic-driven
profiles to take a fresh look at behaviors of wireless users. Armed
with consumer survey data from BIGresearch, Acxiom developed a new
segmentation model that helps marketers understand how consumers
are changing their approach to selecting wireless
providers.
The study segments wireless customers on a combination of
Household Bill Size and Customer Type, allowing for analysis of
consumer behavior from different yet related perspectives – how
much they pay and how they prefer to pay.
Household Bill Size identifies and prioritizes consumers
based on their level of monthly spending on wireless services,
categorized as High, Medium or Low. Customer Type further segments
the groups by the agreement customers choose with their providers –
as contract customers, monthly pay-as-you-go, or
pre-paid.
Based on the data and findings of this study, Acxiom is
producing an off-the-shelf predictive modeling and analytic
solution for wireless providers. This tool will help with customer
acquisition and retention according to propensity to switch for
reasons outlined in the study.
“Using these modeling solutions, we can also help find
customers and prospects with a propensity for a higher household
bill, a preference for pre-paid, contract or non-contract service,
or an affinity for features like advanced smartphones,” said
Hogue.
For a free copy of the Communications Consumer Dynamics
study, visit
www.acxiom.com/communications_consumer_dynamics
or call +1 888.3ACXIOM (888.322.9466).
About Acxiom
A global leader in interactive marketing services and
infrastructure management, Acxiom connects clients with their
customers through deep consumer insight, powering effective and
profitable marketing initiatives and business decisions. Our
consultative approach spans multiple industries and incorporates
decades of experience in consumer data and analytics, information
technology, data integration and consulting solutions for effective
marketing across digital, Internet, email, mobile and direct mail
channels. Our secure, high-performance technology services deliver
consistent value and reliability. Founded in 1969, Acxiom is
headquartered in Little Rock, Ark., and serves clients around the
world from locations in the United States, Europe and Asia-Pacific.
For more information about Acxiom, visit
www.acxiom.com.
Acxiom is a registered trademark of Acxiom
Corporation.
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