This is the complete 26 page research paper from a global Network Operator Customer Loyalty study. The survey was fielded in Spring 2010, asking a sample of 5,000 people from 111 countries about their user experience with respect to their current network operator, mobile phones and mobile applications. Mob4Hire as well as Business Over Broadway (ne: TCELab) co-sponsored the survey results. Table of Contents ============== Methodology 2 Panel Description 2 Key Metrics Used in the Study 2 Executive Summary 3 Top Wireless Insights 3 Top Mobile Insights 3 Table of Contents 4 Figures 5 Operator Performance & Loyalty Grids 6 Network Operator Performance Grid 7 Network Operator Customer Loyalty Grid 8 Network Operator RAPID Loyalty Measurement Rankings 9 Network Operator Loyalty Insights 10 Network Operator Business Attributes 13 Drivers of Customer Loyalty 15 Operator Mobile App Performance Grid 16 Mobile App User Experience Insights 17 Impact of Mobile Applications on Ecosystem 20 Mobile Handsets 21 Smartphone vs. Feature Phones 22 RAPID Loyalty Measurement Primer 23 Customer Loyalty 23 Customer Lifetime Value 24 References 25 Who we are 26

1.
The
Impact
of
Mobile
User
Experience
on
Network
Operator
Customer
Loyalty
Summer
2010
A
global
study
in
111
countries
by
Mob4Hire
and
Business
Over
Broadway
reports
on
the
mobile
user
experience
(mobile
handsets,
mobile
apps,
app
stores
and
network
operators)
and
how
network
operators
can
use
this
information
to
accelerate
growth.

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Methodology
Business
Over
Broadway
(BOB.;
www.businessoverbroadway.com),
customer
satisfaction
and
loyalty
experts,
helped
design
the
survey
instrument
and
research
design.
This
particular
study
on
network
operators,
which
included
both
loyalty-­‐
and
quality-­‐related
questions,
was
powered
by
Mob4Hire
(www.mob4hire.com)
who
provided
the
online
data
collection
and
consumer
panels.
Panel
Description
Mob4Hire
has
a
proprietary,
worldwide
sample
of
over
45,000
panelists
(or
Mobsters)
who
represent
early
adopting,
mobile
savvy
users
who
live
a
mobile
lifestyle.
Mobsters
are
recruited
through
an
opt-­‐in
process
through
the
Mob4Hire.com
website.
Mobsters’
opinions
about
their
mobile
experience
help
us
identify
factors
that
predict
customer
purchasing
behavior
and
revenue
growth
across
the
entire
mobile
ecosystem.
All
respondents
for
this
study
were
rewarded
with
an
incentive
for
filling
out
the
survey.
The
survey
was
fielded
in
Spring
2010,
asking
a
sample
of
5000
Mobsters
ages
18
or
older
about
their
user
experience
with
respect
to
their
current
network
operator,
mobile
phones
and
mobile
applications.
The
survey
respondents
were
primarily
male
(82%)
with
a
median
age
of
25
years.
A
highly
educated
sample,
57%
of
the
respondents
have
a
4-­‐year
degree
or
higher.
The
worldwide
sample
of
respondents
represented
111
countries,
204
network
operators
and
179
distinct
mobile
handsets.
All
references
to
“people,”
“users,”
“respondents,”
and
“subscribers”
in
this
report
refer
specifically
to
this
panel
sample
regarding
their
mobile
phone
use.
Key
Metrics
Used
in
the
Study
Customer
loyalty
is
a
leading
indicator
of
financial
growth.
This
report
contains
comparative
analysis
across
network
operators,
identifies
top
network
operators
with
respect
to
customer
loyalty,
customer
service,
and
coverage/reliability
quality.
Additionally,
key
drivers
of
the
components
of
customer
loyalty
will
be
presented.
The
three
measures
of
customer
loyalty
(and
their
definitions)
are:
1. Retention
Loyalty
(RLI):
The
extent
to
which
your
customers
will
remain
customers.
Will
your
customers
switch
to
another
provider?
2. Advocacy
Loyalty
Index
(ALI):
The
extent
to
which
your
customers
will
be
advocates
for
your
product.
Will
your
customers
recommend
your
products
and
services
to
their
friends?
3. Purchasing
Loyalty
Index
(PLI):
The
extent
to
which
your
customers
will
purchase
more
from
you.
Will
your
customers
purchase
different
products
and/or
increase
the
amount
they
purchase
from
you?
These
three
dimensions
form
the
basis
of
the
RAPID
Loyalty
Measurement
Method;
a
primer
on
this
research
approach
can
be
found
in
the
last
section
of
this
report.
The
RAPID
Score
indicates
the
general
health
of
the
customer
relationship.
By
measuring
all
three
dimensions
of
customer
loyalty,
companies
are
better
able
to
understand
their
customers’
loyalty
behaviors,
manage
their
customer
relationships
more
effectively
and,
consequently,
experience
accelerated
business
growth
through
new
and
existing
customers.

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Executive
Summary
Mobile
applications
and
handsets
are
becoming
increasingly
important
factors
in
network
operator
customer
loyalty.
Top
drivers
of
network
customer
loyalty,
however,
continue
to
be
coverage/reliablity
and
customer
service
quality.
Top
Wireless
Insights
1. Vodafone
and
Zain
are
the
best
network
operators
in
the
world,
appearing
in
the
top
25%
quadrant
on
all
3
of
our
measurement
grids:
Network
Performance,
Network
Customer
Loyalty
and
Mobile
App
Performance.
2. Sixty-­‐five
percent
of
respondents
indicated
that
mobile
applications
are
important
in
their
decision
to
select
a
network
operator.
3. Respondents
are
more
likely
to
tell
their
friends
about
their
network
operator
than
they
are
to
purchase
additional
services
from
that
network
operator.
4. Seventy-­‐nine
percent
of
the
respondents
indicated
they
are
likely
to
recommend
their
network
operator
to
a
friend.
Fifty-­‐five
percent
of
respondents
said
they
are
likely
to
purchase
additional
services
from
their
network
operator.
5. Thirty-­‐seven
percent
of
respondents
think
their
network
operator’s
coverage
is
inadequate.
Half
of
the
respondents
said
customer
service
is
not
adequate.
6. Twenty-­‐seven
percent
of
respondents
said
they
are
likely
to
switch
to
another
network
operator
within
12
months.
Top
Mobile
Insights
1. Smartphone
users
need
to
see
at
least
a
4-­‐star
user
review
rating
in
an
app
store
before
they
download
/
purchase
a
mobile
application.
2. Eighty-­‐nine
percent
of
mobile
users
report
they
have
experienced
a
mobile
app
crash
on
their
phone.
3. Smartphone
respondents
reported
higher
loyalty
toward
their
mobile
device
(e.g.,
mobile
device
and
performance
of
mobile
applications)
compared
to
feature
phone
respondents.
However,
there
were
no
differences
between
phone
types
with
respect
to
loyalty
toward
the
respondent’s
network
operator.

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Copyright © 2010 Mob4Hire and Business Over Broadway
Table
of
Contents
Methodology
.................................................................................................................................
2
Panel
Description
....................................................................................................................................
2
Key
Metrics
Used
in
the
Study
.................................................................................................................
2
Executive
Summary
.......................................................................................................................
3
Top
Wireless
Insights
...............................................................................................................................
3
Top
Mobile
Insights
.................................................................................................................................
3
Table
of
Contents
..........................................................................................................................
4
Figures
...........................................................................................................................................
5
Operator
Performance
&
Loyalty
Grids
..........................................................................................
6
Network
Operator
Performance
Grid
.......................................................................................................
7
Network
Operator
Customer
Loyalty
Grid
................................................................................................
8
Network
Operator
RAPID
Loyalty
Measurement
Rankings
.......................................................................
9
Network
Operator
Loyalty
Insights
..............................................................................................
10
Network
Operator
Business
Attributes
........................................................................................
13
Drivers
of
Customer
Loyalty
.........................................................................................................
15
Operator
Mobile
App
Performance
Grid
......................................................................................
16
Mobile
App
User
Experience
Insights
...........................................................................................
17
Impact
of
Mobile
Applications
on
Ecosystem
.........................................................................................
20
Mobile
Handsets
..........................................................................................................................
21
Smartphone
vs.
Feature
Phones
............................................................................................................
22
RAPID
Loyalty
Measurement
Primer
............................................................................................
23
Customer
Loyalty
...................................................................................................................................
23
Customer
Lifetime
Value
.......................................................................................................................
24
References
...................................................................................................................................
25
Who
we
are
.................................................................................................................................
26

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Figures
Figure
1
Reasons
for
switching
to
a
different
network
provider.
........................................................................
6
Figure
2
Network
Operator
Performance
Grid
(Customer
Service
Quality
and
Coverage
/
Reliability)
...............
7
Figure
3.
Hayes
Loyalty
Grid
for
Network
Operators
............................................................................................
8
Figure
4.
RAPID
Loyalty
Indices
...........................................................................................................................
10
Figure
5.
Loyalty
Questions
.................................................................................................................................
10
Figure
6.
Retention
Loyalty
Questions
................................................................................................................
11
Figure
7.
Advocacy
Loyalty
Questions
................................................................................................................
11
Figure
8.
Purchasing
Loyalty
Questions
..............................................................................................................
12
Figure
9.
Product
and
Service
Quality
Ratings
for
Network
Operators
..............................................................
13
Figure
10.
Customer
Service
Quality
Ratings
for
Network
Operators
................................................................
13
Figure
11.
Coverage
and
Reliability
Ratings
for
Network
Operators
..................................................................
14
Figure
12.
Network
Operator
Mobile
Application
Performance
Grid
.................................................................
16
Figure
13.
Star
Ratings
Needed
before
Purchasing/Downloading
Mobile
Apps
.................................................
17
Figure
14.
Crash
Frequency
Ratings
....................................................................................................................
17
Figure
15.
Number
of
mobile
applications
downloaded
in
the
past
three
months
............................................
18
Figure
16.
Number
of
mobile
applications
purchased
in
the
past
three
months.
..............................................
18
Figure
17.
Number
of
mobile
applications
downloaded
in
past
three
months.
.................................................
19
Figure
18.
Number
of
mobile
applications
purchased
in
the
past
three
months.
..............................................
19
Figure
19.
Reasons
for
switching
network
operators
.........................................................................................
20
Figure
20.
Satisfaction
Ratings
of
Mobile
Ecosystem
by
Handset
Manufacturer
...............................................
21
Figure
21.
Loyalty
Ratings
by
Smartphone
and
Feature
Phone
Respondents
....................................................
22
Figure
22.
Customer
Loyalty
and
Customer
Lifetime
Value
................................................................................
24

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Operator
Performance
&
Loyalty
Grids
Of
the
respondents
indicating
they
are
likely
to
switch
to
a
different
network
operator,
top
reasons
cited
for
switching
were
Coverage/Reliability
Quality
and
Customer
Service
Quality.
Figure
1
Reasons
for
switching
to
a
different
network
provider.
For
the
Wireless
Performance
Grid
shown
in
Figure
2,
we
charted
two
performance
indices
(Coverage/Reliability
Quality
and
Customer
Service
Quality)
for
each
network
operator.
Coverage/Reliability
index
was
calculated
by
averaging
the
satisfaction
rating
of
Coverage
and
Reliability
(e.g.,
few
dropped
calls)
questions.
The
Customer
Service
Index
was
calculated
by
averaging
the
ratings
of
five
customer
service
questions:
1) Timely
Response
2) Knowledgeable
service
agent
3) Courtesy
4) Understanding
customer
needs
5) Always
there
when
needed
64%
53%
51%
46%
37%
28%
17%
0%
10%
20%
30%
40%
50%
60%
70%
Poor
value
for
the
price
Poor
customer
service
Poor
network
coverage
Unreliable
service
Does
not
have
apps
I
want
Poor
variety
of
phones
Poor
reputafon
Percent
of
Respondents

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Network
Operator
Performance
Grid
The
Network
Operator
Performance
Grid
reflects
the
relative
performance
on
coverage/reliability
and
customer
service
quality.
As
you
can
see
in
the
grid,
there
was
considerable
variability
across
the
network
operators
for
these
two
indices.
The
network
operators
who
received
the
highest
ratings
in
both
coverage/reliability
and
customer
service
was
Mtel,
Tigo,
Warid
Telecom,
Mobitel,
and
Zain.
Figure 2 Network Operator Performance Grid (Customer Service Quality and Coverage / Reliability)

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Copyright © 2010 Mob4Hire and Business Over Broadway
Network
Operator
Customer
Loyalty
Grid
We
charted
the
two
loyalty
indices,
ALI
(Advocacy)
and
PLI
(Purchasing),
for
each
network
operator
to
display
the
different
type
of
growth
each
provider
is
likely
to
experience
within
one
year.
Advocacy
loyalty
helps
predict
growth
based
on
new
customer
acquisition
due
to
the
effect
of
word
of
mouth
and
viral
advertising.
Purchasing
loyalty
predict
revenue
growth
based
on
additional
purchases
by
existing
customers.
The
Network
Operator
Loyalty
Grid
reflects
the
relative
growth
potential
of
companies.
The
companies
in
the
upper
right
quadrant
are
predicted
to
experience
accelerated
business
growth
with
respect
to
customer
acquisition
and
increased
purchases
from
existing
customers.
Companies
in
the
lower
left
quadrant
are
predicted
to
have
slower
growth
compared
to
their
competition
in
both
customer
acquisition
and
increased
purchases
from
existing
customers.
Figure 3. Hayes Loyalty Grid for Network Operators

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Copyright © 2010 Mob4Hire and Business Over Broadway
Network
Operator
RAPID
Loyalty
Measurement
Rankings
In
Table
1,
we
rank
the
network
operators
on
their
RAPID
Loyalty
Growth
Score
(average
of
RLI,
ALI
and
PLI).
Only
network
operators
with
a
sufficient
number
of
responses
to
provide
reliable
results
were
included.
Table 1. Network Operator's Loyalty Scores (ranked by RAPID Loyalty Growth Score)
Rank
Network
Operator
Retention
(RLI)
Advocacy
(ALI)
Purchasing
(PLI)
RAPID
Loyalty
Growth
Score
1 Tigo 6.6 7.9 6.6 7.0
2 Mobitel 7.2 7.7 4.6 6.5
3 Sun Cellular 6.2 7.5 5.4 6.4
4 O2 6.6 7.4 5.1 6.4
5 Zain 6.3 7.3 5.6 6.4
6 Globe Telecom 6.1 7.3 5.6 6.3
7 Ufone 6.6 7.3 5.1 6.3
8 Vodafone 6.3 7.3 5.3 6.3
9 Warid Telcom 6.7 7.2 4.9 6.3
10 BSNL 6.1 7.0 5.4 6.2
11 Tele2 6.8 7.4 4.3 6.1
12 Telenor 6.7 7.1 4.6 6.1
13 Indosat 6.3 6.8 5.2 6.1
14 Mtel 6.6 6.8 4.8 6.1
15 Dialog 6.4 6.9 4.8 6.0
16 Smart Communications 5.8 7.2 5.1 6.0
17 Movistar 6.1 6.6 5.3 6.0
18 Airtel 5.8 6.9 5.2 6.0
19 Mobilink 6.2 6.5 4.6 5.8
20 3 6.1 6.8 4.4 5.8
21 Claro 5.7 6.2 5.4 5.8
22 Telkomsel 5.4 6.7 5.2 5.7
23 T-Mobile 6.0 6.6 4.5 5.7
24 Reliance Mobile 5.5 6.0 5.5 5.7
25 Orange 6.1 6.4 4.4 5.6
26 AT&T Mobility 5.8 6.6 4.5 5.6
27 Rogers Wireless 5.9 6.5 4.5 5.6
28 Idea Cellular 5.4 6.3 5.2 5.6
29 MTN 5.2 6.6 5.0 5.6
30 XL 5.9 6.3 3.8 5.3
31 Telcel 5.0 6.0 4.4 5.2
32 Safaricom 5.1 5.8 4.5 5.1

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Copyright © 2010 Mob4Hire and Business Over Broadway
Network
Operator
Loyalty
Insights
1. People
are
more
likely
to
tell
their
friends
about
their
network
operator
than
they
are
to
purchase
additional
services
from
that
network
operator.
2. Advocacy
Loyalty
(e.g.
satisfaction,
purchase
same,
recommend,
choose
again)
was
substantially
higher
than
Purchasing
Loyalty
(e.g.
purchase
additional
services
and
purchase
more
expensive
plans).
Customers
are
more
willing
to
sell
their
friends
on
the
merits
of
their
network
operator
than
they
are
to
spend
more
of
their
own
money
on
their
network
operator.
Figure 5. Loyalty Questions
75%
75%
71%
69%
55%
41%
34%
27%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Safsfied
Purchase
Same
Recommend
Choose
Again
Purchase
Addifonal
Services
Purchase
from
Compeftors
Purchase
More
Expensive
Plans
Switch
w/in
12
months
Stop
Purchasing
Services
Percent
of
Respondents
6.0
6.8
5.0
4
5
6
7
8
Retenfon
Advocacy
Purchasing
Loyalty
toward
Network
Operator
Loyalty
Metric
Figure 4. RAPID Loyalty Indices

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Copyright © 2010 Mob4Hire and Business Over Broadway
3. Churn
continues
to
be
an
important
element
in
the
wireless
industry.
Survey
results
show
that
about
21%
to
41%
of
customers
are
likely
to
consider
competitors
products
within
the
next
12
months.
Figure 6. Retention Loyalty Questions
4. Most
respondents
report
they
are
loyal
to
their
network
operators.
Although
29%
of
people
are
likely
to
evangelize
their
network
operator,
results
indicate
that
most
customers
(70-­‐80%)
are
advocates
(moderate
to
high
likelihood)
of
their
network
operator.
Figure 7. Advocacy Loyalty Questions
59%
80% 73%
32%
15%
17%
9% 6% 10%
0%
25%
50%
75%
100%
Purchase from
competitors
Stop purchasing Switching
Percentofrespondents
likelytoswitchproviders
Retention Loyalty
High likelihood (9-10
rating)
Moderate likelihood
(6-8 rating)
Low/No llikelihood
(0-5 rating)
26% 26% 29% 33%
61%
43% 42%
42%
13%
31% 29% 26%
0%
25%
50%
75%
100%
Satisfied Choose Again Recommend Purchase
Same
Percentofcustomers
Advocacy Loyalty
No/Low likelihood
(0-5 rating)
Moderate likelihood
(6-8 rating)
High likelihood
(9-10 rating)

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Copyright © 2010 Mob4Hire and Business Over Broadway
83%
of
respondents
said
that
they
recommended
their
current
network
operator
to
at
least
one
friend/colleague
within
the
past
12
months.
55%
of
respondents
said
that
they
recommended
their
current
network
operator
to
five
or
more
friends/colleagues
in
the
past
12
months.
4. Roughly
half
of
respondents
indicated
they
are
likely
to
purchase
additional
/
different
types
of
services
from
their
current
network
operator
55%
of
respondents
said
they
are
likely
(moderate
to
high
likelihood)
to
purchase
additional/different
types
of
service
plans
in
the
future.
Fewer
customers
(33%)
are
likely
to
purchase
more
expensive
service
plans.
Compare
this
with
the
70%
to
80%
who
are
likely
to
recommend
their
network
provider.
In
other
words,
more
respondents
will
recommend
their
network
operator
than
will
purchase
additional
/
different
services
from
them.
Figure 8. Purchasing Loyalty Questions
15%
8%
40%
25%
45%
66%
0%
25%
50%
75%
100%
Purchcase Different Increase Purchase
Percentofcustomers
Purchasing Loyalty
No/Low likelihood
(0-5 rating)
Moderate
likelihood (6-8
rating)
High likelihood
(9-10 rating)

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63%
58%
58%
51%
20%
30%
40%
50%
60%
70%
80%
90%
Products
are
excellent
Services
are
excellent
Best
reputafon
Good
value
for
price
Percent
who
agreed
with
item
Business
A`ribute
Network
Operator
Business
Attributes
5. There
is
more
room
for
improvement
in
customer
service
areas
than
there
is
for
products
/
services
63%
of
respondents
indicated
that
their
current
network
operator’s
products
are
excellent.
58%
of
respondents
indicated
that
their
current
network
operator’s
services
are
excellent.
Figure 9. Product and Service Quality Ratings for Network Operators
4. 61%
of
the
respondents
said
their
customer
service
reps
are
courteous.
About
a
half
of
the
respondents
do
not
believe
that
the
customer
service
reps
are
always
there
when
needed
(47%)
or
have
the
knowledge
to
answer
questions
(54%).
Similar
findings
hold
for
the
remaining
customer
service
rep
attributes.
“They need to improve
their people handling skills
and response time”
“The customer service is
awful.”
“They should add more
customer service people to
answer calls right away.”
“Contact with a real
person when you have
any problem is very
difficult.”
50%
54%
61%
53%
47%
20%
30%
40%
50%
60%
70%
80%
90%
Timely
response
Knowledgable
Courteous
Understand
my
needs
Always
there
when
needed
Percent
who
agreed
with
item
Customer
Service
Reps
A`ributes
Figure 10. Customer Service Quality Ratings for Network Operators

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5. Nearly
three-­‐quarters
(73%)
of
the
respondents
say
that
their
service
provider
has
good
coverage
in
their
area
of
interest.
Fewer
respondents
(63%)
indicate
that
their
service
provider
has
reliable
service
(e.g.,
few
dropped
calls).
Figure 11. Coverage and Reliability Ratings for Network Operators
73%
63%
20%
30%
40%
50%
60%
70%
80%
90%
Good
coverage
Reliable
service
Percent
who
agreed
with
item
Business
A`ribute

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Drivers
of
Customer
Loyalty
6. The
main
drivers
of
the
three
components
of
customer
loyalty
for
network
operators
are:
1)
Reliable
service
(few
dropped
calls),
and
2)
Customer
service
representative
attributes
(e.g.,
timely
response,
knowledgeable,
understands
needs,
always
there).
Improving
these
key
areas
is
likely
to
have
a
substantial
impact
on
improving
customer
loyalty
toward
network
operators.
7. Satisfaction
with
the
mobile
device
and
mobile
applications
also
impact
advocacy
and
purchasing
loyalty
toward
the
respondents’
network
operator.
DRIVERS
OF
LOYALTY
Key
Loyalty
Metrics
Business
Attribute
Retention
Advocacy
Purchasing
Quality
of
Coverage/Reliability
1
1
2
Quality
of
Customer
Service
Reps
2
2
1
Satisfaction
with
Mobile
Phone
3
3
Satisfaction
with
Mobile
Apps
4
5
Quality
of
Handset
Selections
5
4
Numbers
indicate
order
of
variable
in
final
model
of
stepwise
regression
analysis.
Table 2. Drivers of each Component of Customer Loyalty toward Network Operators

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Operator
Mobile
App
Performance
Grid
The
research
illustrates
that
mobile
apps
are
playing
an
increasingly
vital
role
in
sustained
revenue
growth
by
network
operators.
Those
who
provide
a
great
mobile
app
experience
for
their
users
are
poised
to
grow
faster
than
their
peers.
Who
are
the
world
leaders
when
it
comes
to
delivering
a
great
mobile
app
experience?
The
two
dimensions
of
Mobile
App
Customer
Satisfaction
and
Mobile
App
Stability
varies
greatly
across
global
network
operators;
the
report
ranks
33
of
the
top
network
operators
worldwide,
shown
in
Figure
12.
According
to
the
survey
respondents,
the
network
operator
providing
the
best
mobile
app
experience
is
Zain,
serving
over
64
million
customers
in
21
countries
in
Africa
and
the
Middle
East.
Seven
other
operators
share
the
top
quadrant
with
Zain
(in
no
particular
order):
BSNL,
MTN,
Vodafone,
AT&T,
Orange,
Claro
and
Movistar.
Figure 12. Network Operator Mobile Application Performance Grid

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Mobile
App
User
Experience
Insights
1. The
star
rating
of
mobile
applications
in
mobile
app
stores
determines
whether
users
will
download
/
purchase
mobile
applications.
When
considering
downloading/purchasing
mobile
applications,
users
typically
need
to
see
at
least
a
4-­‐star
rating
before
they
download/purchase
the
mobile
application.
Figure 13. Star Ratings Needed before Purchasing/Downloading Mobile Apps
2. While
three
quarters
(72%)
of
respondents
indicated
they
are
satisfied
with
the
performance
of
mobile
applications
on
their
mobile
device,
more
respondents
(89%)
report
that
applications
crash
on
their
mobile
phone.
Figure 14. Crash Frequency Ratings
0%
10%
20%
30%
40%
50%
At
least
1
star
At
least
2
stars
At
least
3
stars
At
least
4
stars
At
least
5
stars
Percent
of
Respondents
Number
of
stars
needed
before
downloading/
purchasing
apps
0%
10%
20%
30%
40%
50%
Never
Rarely
Somefmes
Ojen
Always
Percent
of
Respondents
Crash
Frequency

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3. There
were
differences
between
genders
in
their
mobile
application
experience.
More
men
(72%)
were
satisfied
with
the
mobile
application
performance
compared
to
women
(64%).
More
women
(54%)
regularly
experienced
mobile
applications
crashes
(57%)
compared
to
men
(47%).
4. About
86%
of
users
have
downloaded
at
least
1
mobile
application
in
the
past
three
months.
About
42%
of
users
have
purchased
at
least
1
mobile
application
in
the
past
three
months.
Not
surprisingly,
iPhone
users
are
the
most
active
mobile
app
users.
What
is
surprising,
however,
is
how
large
the
gap
is
with
other
handset
manufacturers.
iPhone
users
download
the
most
free
mobile
apps
than
any
other
handset
manufacturer.
iPhone
users
also
download
the
most
paid
apps,
with
over
60%
purchasing
more
than
2,
which
translates
into
real
dollars
for
mobile
developers.
Figure 15. Number of mobile applications downloaded in the past three months
Figure 16. Number of mobile applications purchased in the past three months.
0%
20%
40%
60%
80%
100%
Percent
of
Respondents
Mobile
Phone
Manufacturer
0
apps
1
app
2-­‐4
apps
5-­‐7
apps
8
or
more
apps
0%
20%
40%
60%
80%
100%
Percent
of
Respondents
Mobile
Phone
Manufacturer
0
apps
1
app
2-­‐4
apps
5-­‐7
apps
8
or
more
apps

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5. Users
who
were
more
satisfied
with
the
performance
of
mobile
applications
on
their
phone
downloaded/purchased
more
mobile
applications
than
users
who
were
dissatisfied
with
the
performance
of
mobile
applications.
Figure 17. Number of mobile applications downloaded in past three months.
Figure 18. Number of mobile applications purchased in the past three months.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percent
of
Respondents
Saesfaceon
with
Mobile
Applicaeons
0
apps
1
app
2-­‐4
apps
5-­‐7
apps
8
or
more
apps
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Very
Dissafsfied
Neutral
Very
Safsfied
Percent
of
Respondents
Saesfaceon
with
Mobile
Applicaeons
0
apps
1
app
2-­‐4
apps
5-­‐7
apps
8
or
more
apps

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6. About
half
(53%)
of
the
respondents
used
one
mobile
application
store
in
the
past
three
months.
47%
of
the
respondents
used
two
or
more
mobile
application
stores
in
the
past
three
months.
A
majority
of
iPhone
users
(71%)
and
Motorola
users
(63%)
typically
use
one
mobile
application
store
while
users
of
HTC
phones
(56%)
and
RIM
users
(55%
typically
use
two
or
more
mobile
application
stores.
Impact
of
Mobile
Applications
on
Ecosystem
7. When
selecting
a
network
operator,
respondents
say
that
mobile
applications
are
important
to
them
when
making
their
decision.
65%
of
respondents
indicated
that
mobile
applications
are
important
in
their
decision
to
select
a
network
operator.
8. When
defecting
from
their
current
network
operator,
37%
of
the
respondents
indicated
lack
of
mobile
apps
as
a
reason
for
their
defection.
Top
reasons
for
defecting,
however,
revolve
around
poor
value,
poor
customer
service
and
poor
coverage/reliability.
Top
reasons
for
switching
network
operators
were
related
to
poor
value
(63%)
poor
customer
service
(53%)
and
poor
coverage/reliability
(~49%).
Interestingly,
nearly
40%
of
likely
switchers
attributed
their
desire
to
switch
to
lack
of
mobile
applications.
Also,
poor
variety
of
phones
played
a
minor
role
for
customers
switching
(28%).
After
primary
product/service
features,
mobile
applications
play
a
significant
role
in
churn
rates
for
network
operators.
Figure 19. Reasons for switching network operators
64%
53%
51%
46%
37%
28%
17%
0%
10%
20%
30%
40%
50%
60%
70%
Poor
value
for
the
price
Poor
customer
service
Poor
network
coverage
Unreliable
service
Does
not
have
apps
I
want
Poor
variety
of
phones
Poor
reputafon
Percent
of
Respondents

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Mobile
Handsets
Mobile
handset
manufacturers
continue
to
release
mobile
handsets
with
increasingly
sophisticated
capabilities
in
the
hopes
of
improving
the
mobile
experience.
The
figure
below
includes
customer
experience
ratings
for
each
major
handset
manufacturer.
Handset
manufacturers
are
ranked
by
satisfaction
with
the
mobile
device.
1. Users
who
use
the
Apple
iPhone
report
a
better
mobile
application
experience
(e.g.,
mobile
device
and
mobile
application
performance)
compared
to
users
using
other
mobile
devices.
Apple
iPhone
users
gave
the
highest
satisfaction
ratings
for
their
device
and
their
mobile
application
performance.
RIM,
HTC,
Sony/Ericsson,
Nokia
and
Samsung
users
gave
lower
satisfaction
ratings
to
their
mobile
device
and
mobile
application
performance.
LG
and
Motorola
users
gave
the
lowest
satisfaction
ratings.
There
were
no
differences
among
handset
manufacturers
with
respect
to
satisfaction
with
their
network
operator.
Figure 20. Satisfaction Ratings of Mobile Ecosystem by Handset Manufacturer
4.00
5.00
6.00
7.00
8.00
9.00
10.00
Saesfaceon
Mobile
Device
Mobile
App
Performance
Network
Operator

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Smartphone
vs.
Feature
Phones
Mobile
handsets
can
be
categorized
into
two
types:
1)
Feature
phone
and
2)
Smartphone.
Our
definition
of
a
smartphone
is
a
mobile
device
with
computer-­‐like
functionality.
These
devices
sport
complete
operating
system
and
have
a
platform
for
application
developers.
A
feature
phone,
on
the
other
hand,
is
not
a
smartphone:
it
has
operating
system
firmware,
but
third
party
software
support
is
limited
to
only
Java
or
BREW
applications.
Using
these
criteria,
we
segmented
our
respondents
into
these
two
groups.
Forty-­‐one
percent
of
respondents
indicated
their
primary
phone
was
a
feature
phone
while
59%
of
respondents
indicated
their
primary
phone
was
a
smart
phone.
2. Smartphone
users
have
a
better
mobile
experience
(e.g.,
mobile
device
and
mobile
app
experience)
compared
to
feature
phone
users.
Comparing
these
two
phone
types,
we
found
that
smartphone
respondents
reported
higher
loyalty/satisfaction
ratings
with
their
mobile
device
and
performance
of
mobile
applications
compared
than
feature
phone
respondents.
However,
there
were
no
differences
between
phone
types
with
respect
to
loyalty
toward
the
network
operators;
that
is,
loyalty
toward
the
network
operator
was
not
dependent
on
the
respondents’
phone
type.
Figure 21. Loyalty Ratings by Smartphone and Feature Phone Respondents
Additionally,
the
frequency
of
crashes
were
similar
across
the
two
phone
types
(Smartphone
=
2.53;
Feature
Phone
=
2.45
–
on
a
1-­‐5
scale.
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
Advocacy
Loyalty
-­‐
Mobile
Device
Safsfacfon
with
Performance
of
Mobile
Applicafons
Advocacy
Loyalty
-­‐
Network
Operator
Purchasing
Loyalty
-­‐
Network
Operator
Retenfon
Loyalty
-­‐
Network
Operator
Loyalty/Saesfaceon
Feature
Phone
Smartphone

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Copyright © 2010 Mob4Hire and Business Over Broadway
RAPID
Loyalty
Measurement
Primer
Customer
Loyalty
The
term
“customer
loyalty”
is
typically
used
to
describe
positive
customer
feelings
for
and
behaviors
toward
a
company
or
brand.
There
are
a
plethora
of
possible
types
of
positive
customer
feelings
and
behaviors
(e.g.,
overall
satisfaction,
choose
again
for
first
time,
recommend,
purchase
same
again,
purchase
more
often,
purchase
different
products/services,
leave,
and
reduce
wallet-­‐share).
Objective
measures
of
customer
loyalty
provide
a
backwards
look
into
customer
loyalty
levels
(e.g.,
defection
rates,
number
of
new
customers,
and
sales).
Customer
surveys,
however,
allow
companies
to
examine
customer
loyalty
in
real-­‐time.
Surveys
solicit
questions
regarding
expected
levels
of
loyalty-­‐related
behavior
and
provide
opportunities
for
companies
to
“look
into
the
future”
regarding
customer
loyalty.
Based
on
customers’
ratings
of
their
own
likely
future
behaviors,
Hayes
(2008,
2009)
found
that
these
seemingly
distinct
customer
loyalty
behaviors
can
be
grouped
into
three
general
categories
of
loyalty
behaviors:
• Retention:
leave,
reduce
wallet-­‐share
• Advocacy:
overall
sat,
choose
again
for
first
time,
recommend,
purchase
same
again
• Purchasing:
purchase
more
often,
purchase
different
products/services
The
corresponding
behaviors
for
these
three
components
were
used
to
create
customer
loyalty
indices
that
can
be
used
in
customer
surveys:
• Retention
Loyalty
Index
(RLI):
Degree
to
which
customers
will
remain
as
customers
or
not
leave
to
competitors
• Advocacy
Loyalty
Index
(ALI):
Degree
to
which
customers
feel
positively
toward/will
advocate
your
product/service/brand
• Purchasing
Loyalty
Index
(PLI):
Degree
to
which
customers
will
increase
their
purchasing
behavior
Hayes
(2009)
found
that
these
three
loyalty
indices
were
reliable,
valid
and
useful;
each
index
has
excellent
reliability
(low
measurement
error)
and
is
predictive
of
important
business
outcomes.
Additionally,
he
found
that
all
three
components
of
loyalty
are
useful
for
understanding
customer
relationships
that
drive
business
growth
in
different
ways.
In
a
study
asking
over
1000
customers
about
their
current
network
operator,
Hayes
(2008)
found
that
these
loyalty
indices
were
predictive
of
business
metrics
across
several
US
network
operators
(Alltel,
AT&T,
Sprint/Nextel,
T-­‐Mobile,
and
Verizon).
As
expected,
the
RLI
was
the
best
predictor
of
future
churn
rate;
the
ALI
was
a
good
predictor
of
new
customer
growth;
finally,
the
PLI
was
the
best
predictor
of
Average
Revenue
per
User
(ARPU)
growth.
Because
each
loyalty
index
provided
unique
information
regarding
the
growth
of
the
companies,
companies
can
use
these
three
indices
to
fully
understand
their
customer
relationships
to
grow
their
company
through
new
and
existing
customers.

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Customer
Lifetime
Value
Customer
lifetime
value
(CLV)
reflects
the
present
total
value
of
a
customer
to
the
company
over
his
or
her
lifetime.
Customer
loyalty
and
customer
lifetime
value
(CLV)
are
interrelated.
As
see
in
Figure
21
below,
three
components
of
customer
loyalty
each
contributes
to
CLV.
Figure 22. Customer Loyalty and Customer Lifetime Value
In
fact,
the
calculation
of
CLV
is
based
on
understanding
the
three
components
of
customer
loyalty:
• CL:
Average
customer
life
(in
years)
-­‐
RETENTION
• NC:
Number
of
customers
-­‐
ADVOCACY
• NP:
Number
of
times
the
average
customer
make
a
purchase
each
year
-­‐
PURCHASING
• PPS:
Average
profit
per
sale
(total
sales
revenue
–
costs)/number
of
sales
While
there
other
elements
that
are
included
in
the
calculation
of
the
customer
lifetime
value
that
are
not
presented
here
(e.g.,
future
value
of
the
dollar,
and
risk
factors),
these
four
elements
are
the
core
at
understanding
how
customer
loyalty
and
customer
value
are
related
to
each
other.
Using
these
elements,
we
can
calculate
the
customer
lifetime
value
for
the
entire
customer
base
(or
customer
segment):
CLV
=
CL
x
NC
x
NP
x
PPS
With
the
creation
of
the
Retention
Loyalty,
Advocacy
Loyalty
and
Purchasing
Loyalty
Indices,
companies
can
now
use
customer
surveys
to
understand
each
customer
component
as
they
relate
to
customer
lifetime
value.
Using
these
loyalty
indices,
we
can
calculate
the
RAPID
Loyalty
Growth
Score
which
measures
the
health
of
the
customer
relationship:
RAPID
Loyalty
Growth
Score
=
(RLI
+
ALI
+
PLI)/3
The
RAPID
Loyalty
Growth
Score
reflects
the
general
health
of
the
customer
relationship
and
the
future
levels
of
growth.
Because
RAPID
scores
indicate
better
health
of
the
customer
relationship,
companies
with
higher
RAPID
scores
are
predicted
to
experience
accelerated
levels
of
business
growth.

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References
Hayes,
B.
E.
(2009).
Beyond
the
ultimate
question:
A
systematic
approach
to
improve
customer
loyalty.
Quality
Press.
Milwaukee,
WI.
Hayes,
B.
E.
(2008).
Measuring
customer
satisfaction
and
loyalty:
Survey
design,
use
and
statistical
analysis
methods
(3rd
ed.).
Quality
Press.
Milwaukee,
WI.
Hayes,
B.
E.
(2008).
Customer
loyalty
2.0:
The
Net
Promoter
Score
debate
and
the
meaning
of
customer
loyalty,
Quirk’s
Marketing
Research
Review,
October,
54-­‐62.
Hayes,
B.
E.
(2008).
The
true
test
of
loyalty.
Quality
Progress.
June,
20-­‐26.

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Copyright © 2010 Mob4Hire and Business Over Broadway
Who
we
are
About
Business
Over
Broadway
Business
Over
Broadway
(BOB;
www.businessoverbroadway.com)
provides
consultative
services
to
help
companies
gain
superior
customer
insight
through
customer
satisfaction
and
loyalty
research.
Customer
insights
help
business
professionals
make
better-­‐informed
decisions
to
improve
customer
satisfaction
and
ensure
long-­‐term
customer
loyalty
and
financial
success.
Business
Over
Broadway
is
Bob
E.
Hayes,
Ph.D.,
a
recognized
expert
in
customer
satisfaction
and
loyalty
measurement,
and
author
of
the
best-­‐selling
books,
Beyond
the
Ultimate
Question,
and
Measuring
Customer
Satisfaction
and
Loyalty.
Dr.
Hayes
has
conducted
survey
research
for
Oracle,
Sophos,
Siebel
Systems,
Agilent
Technologies,
and
Cisco
Systems.
For
more
information
about
Business
Over
Broadway,
please
surf
to
www.businessoverbroadway.com,
or
contact
us
at
info@businessoverbroadway.com.
About
Mob4Hire
With
45,000
mobile
users
on
over
350
operators
in
150
countries
worldwide,
Mob4Hire
(www.mob4hire.com)
is
the
largest
real
world;
crowd
sourced
testing
and
market
research
community
for
mobile
apps.
By
incorporating
user
feedback
and
in
market
testing
to
developers,
we
help
make
mobile
apps
and
websites
better.
Mob4Hire
significantly
reduces
mobile
application
testing
costs
and
reduces
time
to
market
by
connecting
developers
with
eager,
lower
priced,
crowd
sourced
testers
and
focus
groups.
Mob4Hire
also
provides
their
unique
micro-­‐payment
crowd-­‐sourced
MAAP
technology
(Mob4Hire
as
a
Platform)
to
developer
networks
and
app
stores
such
as
O2
Litmus
to
allow
for
private
labeled
communities
to
be
added
to
Carrier
and
Handset
Manufacturer
enterprise
systems.
Founded
in
2007,
Mob4Hire
is
headquartered
in
Calgary,
Alberta,
Canada
with
offices
in
Victoria,
British
Columbia
and
London,
U.K.