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The mobile maze: Segmenting customer attributes - EY - Global

The mobile maze

Segmenting customer attributes

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Factors influencing market segmentation for mobile services

Overall, segmentation approaches in terms of attitudinal and behavioral factors will need to evolve if operators are to understand customers better and meet their needs.

Operators can drive additional value from specific customer groups.

Young urban consumers are the highest users of mobile services

Some 70% of those who are under 35 and live in an urban environment own smartphones, compared with 54% of the remainder of the population. This young urban segment uses an average of 5 mobile internet services, compared to just 3.6 among other consumer segments.

Within the urban population, 25- to 30-year-old postpaid smartphone users are the highest usage group.

Prepaid 3G smartphone customers are a high-value segment

Operators should look for consistent value among the prepaid 3G smartphone user base. In mature European markets, total mobile spend by prepaid 3G smartphone users is comparable to that of postpaid customers. In China, prepaid 3G smartphone users actually spend more than postpaid 3G smartphone users.

However, micro-segments vary in different markets, underlining the value of having operators conduct segmental analytics at a local level.

36 to 45-year-olds have high potential

The 36–45 age group has the highest average total monthly telecom spend in our global sample, spending an average of US$52 per month — US$4 more than the population as a whole. Smartphone ownership in the 36–45 age group is relatively high.

While service usage is not as high among them as in the younger age groups, a significant proportion are keen to try services. This emphasizes the potential for operators to use information and education to increase usage.

Behavioral and attitudinal factors significantly impact service usage

We find a clear and direct linear relationship between how well consumers understand data pricing and how many services they use.

Those who understand data pricing perfectly use an average of twice the number of services of those who don’t know whether they understand.

Segmentation will need to evolve

Accurate and effective segmentation of the customer base is becoming both more challenging and more important for operators seeking to drive take-up of new mobile services.

Service providers will need to become highly responsive to the market, by gaining the ability to identify high-potential segments and develop offerings rapidly to meet their needs. Attitudinal and behavioral segmentation will be increasingly important, as will more granular micro-segmentation to pinpoint and target opportunities.

Factors influencing market segmentation for mobile services

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