Brand Interference: How Network Performance Impacts Customer Loyalty

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In today’s high-speed, data-hungry world, network metrics such as signal strength, app coverage2 and download speeds wield considerable influence over an operator’s bottom line. They impact revenues, marketing budgets, customer churn and more.

As the airwaves become more congested and consumer expectations regarding network performance grow, service becomes more of an issue. On average, 30 percent of smartphone users experience daily problems when browsing the Web or using apps. As many as 60 percent experience problems weekly.1

Signal interference—while not the sole cause—severely affects the customer’s experience.

It is typically generated by other networks, mobile and non-mobile, operating on frequencies within or adjacent to the operator’s frequency. The direct effects can include a loss of signal strength, suppressed download speeds and reduced network capacity.

Therefore, the strength of an operator’s brand is closely tied to their ability to effectively mitigate system interference. Engaging a reliable provider to engineer an interference solution tailored to the RF environment can be one of the most valuable investments operators can make.

To learn how CommScope can help you with interference mitigation, contact a CommScope representative and mention this article.

Loyalty rewards

Initial purchase

Handset/devices offered

Billing and payment

Account management

Customer support

Tariff plans offered

Ongoing communication

Value for money

Network perfomance 20%

16%

11%

10%

9%

8%

7%

7%

7%

5%

Figure 24: Drivers of loyalty to operator brand (NPS)

Shapley regression analysis, showing the relative impact between each driver and loyalty to operator brand (NPS).

Customer service Offer Marketing Network

Source: Ericsson ConsumerLab (2013)

Base: 9,040 smartphone users in BR, CN, SK, JP, US, UK, SE, RU, ID

Drivers of Loyalty to Operator Brand (NPS)

Addressing network issues such as interference provides twice the impact on customer loyalty compared to measures such as improving customer support, and is four times as effective as introducing loyalty rewards.1 These findings are part of the Ericsson Mobility Report published June 2013.

1 Ericsson Mobility Report: On the Pulse of the Networked Society; Ericsson; June 2013

2 App Coverage is defined as the area in which the network performance is sufficient to run a specific app at an acceptable quality level.

More than price, marketing or perceived value, a customer’s loyalty towards a mobile operator is most heavily influenced by network performance.

On average, 30 percent of smartphone users experience daily problems

when browsing the web or using apps.

As many as 60 percent experience problems weekly.1