In addition, studies suggest that communications services will be spared the brunt of consumer spending cutbacks. When asked what kinds measures they would take if required to reduce personal expenditures in 2009, extremely few respondents said they would stop using their mobile phone or switch to a cheaper mobile service, according to a survey of 2,400 consumers across France, Germany and the U.K. conducted by research firm Canalys in March. Almost 40 percent of respondents told Canalys they would be more cautious about their spending in 2009 or that the economic downturn was already forcing them to reassess their plans for the future—21 percent said they would cut spending by going out less often to restaurants, bars and cinemas, 17 percent said they would plan a more inexpensive vacation and 14 percent said they would delay purchase of new consumer electronics products. But only 1 percent said they would stop using their phones to save money, and an additional 4 percent said they would switch to a cheaper mobile service plan. 

So for service providers mulling whether to introduce new services, there is no time like the present. And with Oracle riding shotgun, operators can launch those services now, not later.

“What’s interesting is that at [February 2009 wireless industry trade event] Mobile World Congress, the message I heard consistently is that times like these are the times when it’s most important to continue to invest in your business and continue to grow,” Oracle’s Pereyra says. “When you look back at the Great Depression, companies that continued their advertising spend came out much better ahead than the ones that didn’t because they stayed front and center in the mindset of their customers. The companies that disappeared in terms of marketing and promotion were perceived to be in trouble. The reality is the economy will turn around, and companies that have prepared themselves for the upturn will be in a better position to capitalize even quicker. It’s a great time to continue to invest in your business.”

 

FOOTNOTES  http://www.gallup.com/poll/117391/ Consumer-Spending-Appears-Stabilizing.aspx  http://www.canalys.com/pr/2009/r2009034.htm

DRIVING CUSTOMER-
CENTRIC BUSINESS IN A
STRUGGLING ECONOMY

THE TELECOMMUNICATIONS INDUSTRY has come a long way since the days when AT&T offered all of its subscribers nothing but the same clunky, black Western Electric Model 500 rotary-dial telephones. Today’s consumers not only have their choice among myriad providers, devices, pricing plans and service bundles, but with the advent of location-based mobile technologies, video on demand, targeted advertising, social networking and other user-spe-cific services, customers now enjoy a more personalized and relevant communications experience than ever before.

The promise of a more customizable and flexible user experience is now central to subscriber acquisition and retention efforts, and in response many service providers are evolving from a network-cen-tric to a customer-centric mindset to offer superior customer service, build brand loyalty and maximize profitability. But despite far richer and deeper insight into their subscribers’ behaviors, preferences