The Importance of Security

The Importance of Security

Some 47% of global consumers would change operator in the event of a security breach. This is one of the findings reported by Nokia in its recently completed 2016 Nokia Acquisition and Retention Study.

Security

Consumers worry about how secure their personal data is on their phones. In fact, 91% of consumers globally are worried about at least one potential security threat. With increasing amounts of sensitive personal and business information now stored on smartphones, mobile security has become an important aspect of consumers’ relationships with their operator and an increasingly important driver for retention.

  • 47% of global consumers would change operator in the event of a security breach…
  • …and the more concerned a consumer is over security issues, the higher the propensity to churn
  • But less than 50% of consumers have anti-virus software on their smartphones as compared to 87% of laptop/PC users.

In South Africa, 96% of the respondents are worried about a security issue, while 56% would switch network operators if their operator experienced a security breach.

The Importance of Security ASource: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.

Data allowance, voice and messaging

Mobile Data allowance, Voice and Messaging Trends

The adoption of smart phones and the associated consumption of data is creating significant changes to the revenue mix of mobile operators. The trend in consumer adoption of messaging and calling apps is reported in Nokia’s recently completed 2016 Nokia Acquisition and Retention Study.

Data allowance

Voice and SMS revenue has been declining steadily for many years, largely due to the emergence of data-consuming messaging and calling apps. Although the usage of these apps differs by market, most consumers globally still prefer to use traditional phone services for making calls.

  • Consumers avoid using apps on the mobile network for three main reasons: data allowance, cost and speed.
  • Within transition markets, purchasing an additional amount of once-off data remains the most popular option for consumers, at 44%. This is particularly pronounced in South Africa, at 61%, but less so among Mexican consumers, at 30 percent.
  • Consumers from South Africa (36%), Mexico (30%) and Brazil (32%) are willing to pay for access to Wi-Fi hotspots from their operators.

Voice and Messaging

  • Globally, the use of messaging apps is far more common than calling apps.
    • The use of messaging apps is particularly popular in transition markets where 86% of consumers claimed to use them. Furthermore, 47% of all consumers in transition markets use messaging apps more often than traditional SMS services.
    • The total number of consumers using voice apps is considerably lower than the use of messaging apps. 74% of consumers globally still rely solely on core operator services for making and receiving calls.
    • IInterestingly, 45% of consumers use these apps even more than their phone service. This is driven by markets such as Brazil (46%), Mexico (56%) and South Africa (50%).
  • Globally, 74% of consumers don’t use voice and calling apps. Only 8% of global consumers use these apps more than their phone service, and another 8% use voice and video apps as much as traditional phone services.
  • In South Africa, 9% of mobile users use calling apps more than traditional phone services.

The following chart shows the app usage in different types of markets:


Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.

Choosing a Mobile Operator

Choosing a Mobile Operator

Which mobile operator are you with? Over 40% of consumers rely on advice and recommendations made by family and friends when choosing their mobile operator. These are the findings from reported by Nokia in their recently completed their 2016 Nokia Acquisition and Retention study.

Reasons for Choosing a Mobile Operator

The study found that the key reasons are:

  • Being on the same network as friends and family is an important consideration
  • But price is still the main reason for 45% of global consumers when choosing their mobile operator
  • After price, the main reasons for choosing a mobile operator are network quality and network coverage
  • But many consumers are now considering factors such as customer care when selecting a new mobile provider.

Over the best price is the largest deciding factor in choosing an operator. This is also seen among non-4G and 4G users. Although among 4G users, best price and best network quality are rated higher than the non-4G users:

Reasons for choosing an operator

Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.

Bundled services and Connected Devices

Bundled services and Connected Devices

Research published by Nokia shows the positive impact that value-added and bundled services have on customer behaviour and attitudes.

Value-added, bundled services and connected devices

Value-added and bundled services both have a positive impact on retention and value-added services also improve network quality perception and data usage. 44 percent of global consumers claimed to bundle at least one other service with their mobile subscription. Only 27 percent of consumers globally receive value-added services from their mobile operator.

  • Offering value-added services has a positive impact on retention – by as much as 11 percent. It also has a significantly positive impact on consumer perception of network quality (+ 55%) and their likelihood to use more than one gigabyte of mobile data each month (+15%).
  • The concept of value-added services is further evolving to include connected devices. 56 percent of consumers in mature markets and 82 percent in transition markets would be interested in controlling at least one additional device from their smartphone.
  • Consumers choose bundled services for better prices and increased convenience. Home telephone and home broadband services are the most frequently bundled services, followed by multichannel pay TV services.

Overall, the bundles are selected as they provide a better overall price, it’s easier to get all services from one company and to have the company issue a single bill for the various services. The following chart shows the types of subscriptions and the drivers for taking bundled services:

Bundled services and Connected Devices (Pic 1)

Source: 2016 Acquisition and Retention Study

The following chart shows the impact of value-added services on the subscriber:

Bundled services and Connected Devices (Pic 2)

Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.

Unified Comms Header Pic

The future of the South African Unified Communications Market

The increasing availability of good quality Unified Communications (UC) solutions, with expanded functionality, and growing interoperability between systems, is resulting in renewed interest in the UC product suite. In general, the South African market trails behind more developed markets in terms of adoption of UC products. However, in some respects it is more progressive through greater openness to a multi-vendor environment, integrating different brand components into a single system. This often allows quicker and less expensive deployment of UC solutions. Moreover, the comparatively high cost of bandwidth in SA is driving users towards an integrated omni-channel model more quickly, in order to economise on bandwidth and equipment.

South African Unified Communications Market Status

Based on feedback from the local providers of UC solutions, the market is at a very early growth phase, with larger companies demonstrating stronger interest and uptake than the SMEs. The expectation is for accelerating, strong growth of UC solutions over the next two to three years, with the SME market trailing behind the large enterprises, but increasingly subscribing to “commoditised” UC solutions in the cloud as this option becomes more viable.

Priority is still being given by many companies to convergence of networks/infrastructure and enablement of mobile users, as well as the implementation of VoIP. They are in the process of putting in place building blocks that will allow the adoption of UC in the future.

Currently, many service providers offer standardised UC solutions – one size fits all. However, as the market becomes more sophisticated and the requirement for customised solutions grows, a level of complexity will be added. This is likely to result in a growing need for system integration skills and consulting services as future revenue streams.

The transformation taking place in the workplace – a move towards a more collaborative environment, with a greater degree of mobility – will require the implementation of a proper UC environment. This will be a further driver of UC adoption.

Going forward, UC will progress to communications-enabled business processes, rather than be only a set of integrated multiple services. This will make UC considerably more useful as a set of business tools and is expected to result in faster uptake of UC services by business users.

Unified Communications Market Outlook

In the future, specialisation is likely to emerge, with strong players “dominating” each of the different UC system components – network, platform, front-end applications and back-end applications. This will result in a greater need for standardisation, collaboration and the ability to integrate different systems.
Total revenue for the SA UC market (excluding IP telephony revenue) is expected to reach R4.1 billion by the end of 2020, at which time over 80% of the revenue is expected to be generated through cloud-based UC services.


South African Unified Communications Market Study, 2015
This post is drawn from a study of the South Africa Unified Communications market undertaken by Africa Analysis.