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Wireless Company Learns that Managing Consumer Loyalty in Two Markets Requires Two Approaches A wireless phone provider's leadership team was undecided as to how to boost consumer demand and profits in two different markets. The company was considering several alternative responses. These included changing its rate plans, improving customer service, investing in transmission quality improvements and increasing its advertising expenditures. Improving "everything" was not feasible. The company needed to focus its efforts in the areas that mattered most to consumers. Whyze Group designed, conducted and analyzed nearly 1,000 interviews with cellular users, including competitors' customers. Questions focused on perceptions of quality, price and overall value for each competing wireless carrier. Comparing customers' perceptions of each carrier enabled us to identify the company's strengths and weaknesses relative to competitors. Additionally, we were able to determine the relative importance of each quality and price attribute we explored. This was accomplished through statistical analysis. Whyze Group demonstrated how consumers in the first market were quality-sensitive. In this market, consumers perceived that our client's transmission quality was inferior to competitors. The company needed to improve consumers' perceptions of its transmission quality--but not by spending millions of dollars to put up more transmission towers. We recommended first that our client measure and compare its signal strength at key geographic points throughout this market. If our client's signal strength was on par with competitors, then the company could effectively employ marketing messages that counter the prevailing perception--and do so credibly. Consumers perceived that our client's quality, price and value were on par with competitors in the second market. Consumers were more sensitive to price than quality. We recommended that our client incorporate messages about its competitive rate plans in it marketing materials to boost its share of this market. <<Back to success stories
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