Mobile Loyalty Background
The mobile telephone system is part of a global communication sector that has a number of distinct but interlinked elements. Whether one talks on a telephone, searches the net, emails, sends texts or downloads and participates in web-generated data sharing, one is using the mobile telephone network more and more, to the point where it and some of the competing companies appear to be reaching their service capacities. Or at least this seems to be the case when it comes to doing what these large providers should be best at: adding and keeping customers. Maintaining a loyal buyer base -- one that truly likes and advocates for the provider -- or at least happily retaining one beyond a small contract period is critical for any company that wants to be able to serve the global marketplace (Sharpley, 2009).
Underlying many of the customer service practices and promises is the notion that customers tend to be loyal and to retain their contract allegiance when they are treated fairly in relation to the promises made by their contract agreement (WDS, 2011). If these companies are going to keep their core base of customers, they have to demonstrate a capacity for giving them some of the basic elements that have been previously thought to be less important in the high-technology communication sector. But the truth is now hitting home. Customers want something more when it comes to personal treatment; they want it quickly, and they want it to come along with good prices, a fair representation of what they are buying and all of the newest of hardware (like handset) appeals (Tecmark, 2011). And if they don't get it, they are very likely to switch to another service, big or small, no matter where their previous allegiance was -- churning moves that are keeping the larger companies actively pursuing their buyers and that cost those companies a good deal of money (Genesys, 2009).
While these issues are important across nearly all segments of the telecom industry, they are particularly relevant to those in certain markets. Most significantly, established markets that have a grand selection of recognized and large companies that rely on an existing infrastructure for service and customer interaction seem most vulnerable to loyalty and retention concerns. It seems that customers in these markets are less willing to stay as happy as they used to be as the advantages jump from one company to another (Tecmark, 2011).
The United Kingdom is a premiere example of an established market. It has a number of well-known and large mobile sector providers, and it is restricted to some extent by the limitations of the carrying capacities and expectations of its infrastructure. As such, can serve as a positive example of where this market as a whole it heading in regard to what customer loyalty and retention means for the future.
MAJOR UK PROVIDERS
To understand the position of the UK, it is first necessary to review the infrastructure that already exists, including some of the specifics of where the major providers stand -- who they serve and what they are trying to do to keep their base. It should be noted that much of what they are doing changes quickly and can be seen by looking at contemporary online postings and similar resources. While these sites may not always be reliable, collectively the present a consistent picture of what is likely happening in the UK region (MobiThinking, 2012). Other resources, such as academic and corporate studies, offer insights too, many of which will be reviewed in the literature section that follows.
Each of the major five (now four since a significant merger has happened) carriers has its own approaches for generating loyalty or retaining buying customers, as will be discussed below. Overall, however, it can be said the all of the leading companies are learning that a key element of success in the future will be a requirement that they take very seriously their responsibility for learning about what these millions of individual consumers want -- and treating them respectfully through this learning process. The evidence appears to suggest that the main core of loyalty and satisfaction in an established market is very much "contract loyalty," which is more about companies living up to their promises more than a buyer's allegiance to a given corporate entity. This issue is becoming even more important in the face of "next generation access" where large and small companies alike are fighting to use their sensitivity to advancing capabilities to attract or keep their buyers (BuddeCom, 2012; Telecom, 2012). Yet, in return for this interest, there appears to be much more interest in judging whether the companies are actually doing...
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