Network performance vital for user loyalty, says Ericsson ConsumerLab report


STOCKHOLM, SWEDEN--(Marketwired - Jun 12, 2013) -

* 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 theyget from current network performance

Improved network performance is vital for ensuring subscriber loyalty amongsmartphone users, and provides operators with a significant competitiveadvantage. These findings come from a new report from Ericsson (NASDAQ: ERIC)ConsumerLab, which also shows that current mobile networks don't alwayslive upto user expectations. Up to 60 percent of smartphone users say theyexperienceproblems at least once a week and just over 30 percent encounter problemseveryday.

The ConsumerLab research looked into the factors that influence users'loyaltyto operator brands, says Anders Kälvemark, Senior Advisor, ConsumerInsights atEricsson ConsumerLab.

"Our analysis shows that network performance is currently the prime driverofconsumer loyalty to an operator brand, followed by value for money," hesays."That is almost three times the impact of the handset/device offering, forexample. Consumer satisfaction with these factors has to be improved toaffectloyalty in a positive way.

"Generally, consumers expect more from the services than what they receive.Whenservice requirements such as reasonable waiting times and sufficientcoverageare not met - especially when people are in transit - it is natural thatconsumer loyalty suffers."

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

However, it is not enough for operators simply to improve networkperformance inthe hope that customers will notice. Communication is essential forimprovingcustomer perceptions. Users need to be aware that things have changed forthereto be an impact on satisfaction levels, and for this to improve theirloyalty tothe operator.

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

About the report:

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

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

All ConsumerLab reports can be found at

Link to


Ericsson Mobility Report:

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Ericsson is a world-leading provider of communications technology andservices.We are enabling the Networked Society with efficient real-time solutionsthatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.

Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks andwesupport customers' networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

Network performance vital for user loyalty:

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