Consumers Won't Cut Media Spending
Buyers even willing to pay more for good service amid recession, survey says
By Marisa Guthrie -- Broadcasting & Cable, 12/7/2008 8:00:00 PM
Despite the darkening economic forecast—and the official word last week that the United States is indeed in a recession—U.S. consumers have no plans to reduce spending on Internet, wireless, cable and satellite services. That's according to a new study from Amdocs, a customer experience consultancy.
According to Amdocs' second annual Experience Matters Index, 66% of U.S. consumers do not plan to cut service-related costs and a majority (67%) would pay more for a better customer experience. That may be good news for cable providers, which have worked to overcome their dismal customer service image encapsulated by the Comcast worker who fell asleep on a customer's couch and became a YouTube sensation.
"We were pleasantly surprised by some of the findings," says Anthony Piniella, director of corporate communications for Amdocs. "Ultimately, what it's really saying is that customers are willing to pay for value. If there's a perceived value, even in difficult times, they're willing to pay for it."
The survey, which polled 2,003 consumers of wireless, cable and satellite services in the U.S. and the United Kingdom, also found that more consumers report they have had a "very good" customer experience and would "definitely" recommend their service providers. That's up 8% compared to Amdocs' first EMI study, released last February. Amdocs' clients include Comcast, Dish Network and AT&T (IPTV, wireless and wireline).
Taking the long view, what the Amdocs survey spells out is that service providers need to continue to improve customer experience, be it service, content or user interface, in order to differentiate themselves. Today's consumer is technologically empowered with more choices than ever.
"Consumers' access to information is critical," Piniella says. "In an economy where every day in the news you're hearing, 'Tighten your budget and don't spend money on lattes,' these services are no longer luxuries. They're requirements."
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So why is Comcast's churn rate triple what it was in the 1st qtr.? Why do you guys just take the hand-out? And who paid for this study? You're the "bible" of the business... please give us chapter AND verse.
Adam Smith - 12/8/2008 2:45:00 PM EST -
Looks like the Scare Media is doing a great job!
People willing to spend tons of money on Cable and Satellite every month, but afraid to spend $50-100 to put up a small antenna and get free broadcasts.
Is it any wonder that we don't see Comcast execs at the local country club?
(They're back in the trenches, figuring out how to make a killing off the "Digital Transition", even if it means "Tell the FCC No! Stay analog with Cable TV.")
Ken W. English - 12/8/2008 7:22:00 AM EST -
I Discontinued my Subscription to Cable TV two years ago. Over the previous years I had seen the programming quality get worse and worse. Many decent shows were cancelled and replaced with shoddy "Reality" Game and News Shows, along with Infomercials. At the same time the amount of Advertising has increased to insane levels, with as much as 40 percent of the hour consisting of Commercials! Now you do not have to wait for the Commercials to start before having an ad tossed at you, during the show itself various forms of Advertising, in the form of Pop-Ups, Banners and Scrolls will "Butt-In" to whatever you are watching! (But not during the Commercial!) I finally decided if the Networks are going to make their money by showing more Advertising they obviouly no longer need my Subscription Dollars, so I use them to get my Entertainment elsewhere.
William Hughes - 12/8/2008 6:33:00 AM EST
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