Ernst & Young Segment the Digital HouseholdSarah Shepherd
Ernst and Young has published findings into consumer and household attitudes into broadband – including both connectivity and content. The research – Segmenting the Digital Household – follows on from the Bundle Jungle study published towards the end of last year. It details how differences in attitudes might affect customer preferences and behaviours, highlighting where communications providers can engage with and provide for consumer needs more effectively.
The research places respondents into eight segments according to attitudes to technology and service provider as well as common behavioural traits and service consumption.
- Beyond the Bundle – Knowledgeable, experienced and heavy users, yet also their approach to self-selecting services and product means that they are most likely to switch.
- Premium and Proud – Where technology is a status symbol, these consumers are keen to pay for premium content and largely satisfied with their provider. Yet their satisfaction doesn’t necessarily mean loyalty as 35% are ready to move.
- Spend-aware Switchers – motivated by introductory price offers, this segment will use lower cost to switch providers and are very aware of their usage of mobile data and actively take time out from the internet.
- Digital Devotees – Both the youngest and the group that spend the most amount of time online with nearly half spending more than 40 hours a week online. Smart phones and tablets are the most popular way to access the internet and they want faster broadband speeds.
- Loyal but Lightweight – the oldest segment and the one most in favour of bundles as a way to save costs, these consumers are also unlikely to switch but equally unlikely to adopt smart home products.
- Content comes First – Willing to pay for premium TV and sports, these loyal consumers like the familiar.
- Disengaged Users – Generally frustrated, harbouring poor relations with their service provider this group is nevertheless the most likely to go for a specialist technology provider for smart home products.
- Drowning in Digital – Overwhelmed with the abundance of choice, these cautious consumers would like to see the internet tightly regulated and favour a reliable broadband connection over a fast one.
With each segment engaging to a greater and lesser degree, the challenges for service providers lie in balancing the needs between a one size fits all approach and the risks of too narrow a focus and missing out on key consumer requirements.