Global smartphone sales rose 42% year on year to reach 115m units during the third quarter of 2011, but 2012 is the year when mobile phones will truly embed themselves as indispensable in our lives. At Firstsource our consumer research examined the strong attachment people have to their phones. Our summer 2011 survey showed 30% of participants felt losing their smartphone would be worse than losing their wallet. There is no doubt that mobile phones are now necessity, not accessory. So what opportunities does this create for network operators in 2012?
Mobile broadband and the cloud
Smartphones have already created opportunities for network operators to generate revenue through mobile broadband, and enough momentum has been built up by policy makers, industry and the public to drive forward the UK's mobile powered economy. If the right steps are taken by network operators in 2012 there is every possibility that the UK could have super-fast 4G mobile broadband as early as 2013.
Mobile cloud computing - with data storage and processing happening outside the handset - is already taking place. GPRS, Gmail and Google maps are already in use and there will be increasing use of the mobile cloud in 2012. Users will share information more than ever, accessing it from anywhere - emails, notes, social networks, favourite music and shopping sites - creating opportunities for network providers to move further into the download market, selling packages for games, music, shopping discounts and concert tickets, all from the cloud. The communication ombudsman's recent warning that 'unlimited' data offers need clarification means network operators need to be more transparent with their offerings. Outsourcing firms will become increasingly important strategic partners in this, with their years of experience across markets in listening to callers' concerns, analysing customer trends and advising network operators on how to tailor the most appropriate packages.
Payment methods
Security concerns around transactions need resolution before the smartphone payment revolution really takes off. However, 2012 will slowly see mobiles being used to make in-store purchases instead of via credit cards. The launch of services like Orange quick tap and 02's "mobile wallet" are opportunities for network operators to partner with retailers to create special offers on goods and services for customers who shop via phone. Customers will not only differentiate network operators by the amount of free minutes and texts but also the type of discounts on offer when purchasing goods through their phone.
Mobile surfing
It will be increasingly important for businesses to provide potential and existing customers with an experience that's designed specifically for a mobile device. Network operators will need to ensure their websites are mobile friendly as this is the first place their ever demanding customers are likely to come - not only for queries but also to download new products such as computer games.
Handset manufacturer change in 2012
The handset landscape is constantly changing too, with Nokia teaming up with Microsoft to enter the smartphone market and Samsung recently named the market's biggest smartphone manufacturer by volume. This next generation of handsets will be even more complex with 3D video and pictures as well as 4G speeds.
Our research shows consumers turn to network providers in preference to manufacturers when they encounter handset problems - only three per cent call the manufacturer whilst 19% call their network provider with technical issues. With no clear single point of call for service issues, the risk of variable response quality is greater, presenting a risk to network operators. Outsourcing customer service to experienced agents who can explain ever changing complex operating systems will be an important way to help callers solve problems first time.
The rising cost to network operators of supporting smartphone complexity and their multiple applications creates a need to reduce customer service calls and encourage self serve through FAQs, peer forums and social media. At Firstsource we found excellent results through creating an on-line community of techno-consumers who help each other resolve their technical issues and are rewarded for their contributions with extra minutes, text or data bundles, even cash rewards. A buzz and enthusiasm amongst these consumers encourages them to help each other, as well as helping create advocacy and gain new customers - or 'community members'.
Looking after customers
Consumers are increasingly better informed so customer churn is likely to be a bigger issue in 2012 and beyond. But network operators can only go so far competing on price. They need to differentiate themselves more effectively; one of the best ways is providing service that truly fits around customers' increasingly busy lives. Social media, online chat, analytics and speech recognition can support people on the move, along with trained customer service agents who know when to step in and step back, having the empathy and experience to deal effectively with callers.
Mobile phones are newsworthy due to their increasing importance in our lives, with problems seized on to create negative global headlines. Blackberry saw this when a four day outage potentially damaged years of brand building. Mobile manufacturers and network providers are on even greater guard against faults and service disruption. If there is a problem it is even more crucial for the survival of the brand that they ramp up customer service agents to deal with the problem effectively. Outsourcers with contact centres around the world in different time zones provide that flexibility.
A huge year of change lies ahead. Customers expect and demand more and operators need to be flexible and able to deal with such changes. It also creates a huge opportunity for operators to build closer relationships and trust with customers. The ability of outsourcers to adapt and fine tune customer service channels is likely to be crucial in helping network operators stay one step ahead in 2012.