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FOR IMMEDIATE RELEASE
  About Amdocs | Amdocs News | White Papers | Case Studies

New Research Reveals Most Subscribers Are Satisfied, But Many Will Switch Service Providers for a Better Customer Experience 

Amdocs' Experience Matters Index shows consumers demand more personalization and features; Younger subscribers are more open to mobile advertising

BARCELONA, Spain and ST. LOUIS, Feb. 11 -- The results from the new Experience Matters Index from Amdocs (NYSE: DOX - News), a planned biannual study of consumers of wireline, mobile, cable and satellite services, found that most consumers are happy with their providers, but many would switch for a better experience. The results also showed that personalization and mobile advertising are growing factors of importance for consumers.
 
The recent study measured the impact of the customer experience on service providers by surveying the attitudes and behaviors of more than 2,000 subscribers of mobile, wireline, cable and satellite services in the United States and the United Kingdom. The findings include:
 
Better Experience Drives Switching: While fewer than one in five subscribers said they are likely to switch providers in the next year (18 percent in the United States and 15 percent in the United Kingdom), interest in switching increases significantly when subscribers are offered a better experience - up to one in three U.S. subscribers (33 percent) and one in four UK subscribers (23 percent).
 
Satisfaction Alone Doesn't Cut It: While subscribers are generally satisfied, with eight in ten (79 percent) rating their customer experience as positive, subscribers who have switched service providers were almost twice as likely to have switched due to a compelling offer from a competitor than for a problem they had with their existing provider.
 
Best Customers More Likely To Switch: Subscribers buying the most in services and new products were found to be the most likely to be disappointed and more likely to switch to another provider offering better customer experience.
 
Many Would Pay More for Better Experience: Three in ten U.S. subscribers (30 percent) and one in five UK subscribers (22 percent) said they would definitely or probably pay an extra $5 or 5 pound Sterling per month for a better experience.
 
The Next Frontier - Advertising on Mobile Phones
 
While nearly three in ten U.S. subscribers (28 percent) and one in three UK subscribers (33 percent) would accept advertising on their mobile phones - that percentage could increase if better ad targeting technologies were utilized. The findings include:
 
Personalization is a Top Condition: Ads matching subscriber values and lifestyle was the top condition for receiving mobile ads among both U.K. and US subscribers.
 
Younger Subscribers More Open to Ads: Almost half of subscribers between the ages of 18 and 25 are willing to accept mobile ads (46 percent and 43 percent in United States and the United Kingdom, respectively), which are significantly higher percentages than the general population (28 and 33 percent, respectively).
 
"The results of the first Amdocs Experience Matters Index demonstrate that experience has and will continue to have a profound impact on consumers' buying decisions," said Charles Born, vice president of corporate communications at Amdocs. "Experience and satisfaction are different - and clearly, satisfaction isn't enough to ensure loyalty. It is our hope that the Index will help service providers steer their investments and improvements in experience to drive growth, increase loyalty and enhance their brand. We are looking forward to our next survey and sharing the results."
 
The announcement was made today at the Mobile World Congress (Amdocs Booth B101, Hall 8). For more information or to gain access to the full report please visit www.amdocs.com/EMI.
 
Methodology
 
The Experience Matters Index was conducted by KRC Research from Dec. 8-16, 2007, via 2,006 random telephone interviews in the United States and United Kingdom with adult subscribers of communications services, ages 18 and older. All respondents subscribed to a wired and/or mobile telephone, cable TV, satellite TV or Internet broadband service. The estimated margin of error for the data in each country (1,003 interviews in each) is plus or minus 3.1 percentage points at the 95 percent confidence interval.
 
About the Amdocs CES Blueprint
 
The Amdocs CES Blueprint is the first visionary outline of the operating environment service providers need to establish in order to transform from providers of utility voice, data and video services into purveyors of the digital lifestyle. The blueprint allows providers to deliver a seamless customer experience-personalized, participatory and timely across any service, location and device. The Amdocs CES Blueprint leverages Amdocs comprehensive business process best practices based on real-world scenarios, and transcends traditional business support systems (BSS), operations support systems (OSS) and service delivery platforms (SDPs) to encompass all current and emerging customer experience business processes. For more information, go to http://www.amdocs.com/Site/Vision/ces.htm.
 
About Amdocs
 
Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and intentional customer experience(TM) at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational and financial excellence. A global company with revenue of $2.84 billion in fiscal 2007, Amdocs has more than 16,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at http://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 segments it serves, 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, 2007, filed on December 3, 2007.
 

Editorial Contact:
Colleen Smith

csmith@accesspr.com
 

 

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