UNDERSTAND YOUR

TELECOM CUSTOMERS
How Marketers Can Win
Carrier Switchers and Phone Buyers
 TABLE OF CONTENTS
3 About the Telecommunications
Path to Purchase Study
CHAPTER 1
Thank you for
4 Winning Customers
contacting us!
in a Highly Competitive How can we help?
Industry
CHAPTER 2
7 Targeting
Telecom Consumers
CHAPTER 3
12 Messaging
Telecom Consumers
CHAPTER 4
17 The Future of
Telecom Marketing
CHAPTER 5
18 Marketer Key Takeaways

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permission. All trademarks or third-party names are the property of their respective owners; no endorsement is implied or should be inferred.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 2
ABOUT THE TELECOMMUNICATIONS
PATH TO PURCHASE STUDY
Understanding consumers and what leads them to switch mobile carriers, buy
a phone or add a new line is exceedingly important to mobile carrier marketers.
To learn more about these key purchase decisions, Facebook commissioned
a study providing fresh insights to help marketers (1) target, (2) message and
(3) influence US consumers during their customer journey.

Conducted by Verto Analytics, the Telecommunications Path to Purchase Study is

an online survey and a passive behavioral analysis of 784 US telecom consumers
ages 18 years or older. The data gathered from February to October 2018 defines
telecom consumers as people who have switched carriers, purchased a phone or
added a new line during the past 3 months. Using its single-source cross-platform
behavioral panel, Verto analyzed these consumers' relevant online behavior
across devices and aggregated the data into metrics to understand the
purchase journey. For example, carrier and OEM consideration sets
are determined by analyzing consumers' carrier and OEM site visits
during their research phase.

Note: All data in this report is from the Telecommunications Path

to Purchase Study unless otherwise stated.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 3
chapter 1
WINNING CUSTOMERS IN A HIGHLY
COMPETITIVE INDUSTRY
Introduction
This report will provide you with new insights and key takeaways about US telecom consumers, so you can improve the
targeting and messaging of your marketing campaigns to drive more conversions. In it, we will describe how consumers
who switch carriers or buy a new phone say they research their purchase decisions. For both of these types of highly
desirable consumers, we will provide exclusive data-based insights into their potential decision process, motivations and buying
behavior, both in store and online.
According to the research, we expect an estimated one in 5 American adults will switch carriers, purchase a new phone
or add a line this year.1

Survey respondents in the past 3 months:

18% 5% 2%
purchased a phone. switched carriers. added a line.

The challenge is that each of these three purchase decisions is limited in frequency.
Consumers are upgrading their phones less often. A person now keeps
their iPhone for nearly 3 years before trading it in, according to a separate Study
conducted in 2018.2 Additionally, an individual or household will switch carriers
only so many times. Finally, individuals and households infrequently add a new
line as our research shows.
Moreover, competition in the telecom industry has steadily increased.
Vonage, Skype and other content providers that offer apps or streaming media
to consumers via the internet have continued to gain market share in core
telecom services such as messaging and voice. As a result, the average revenue
per user (ARPU) in the telecom industry has decreased since 2006. The average
ARPU compound annual rate of change from 2006–2016 is -1%. Worse yet,
this downward trend has intensified during recent years. The average ARPU
compound annual rate of change for the five-year period from 2011–2016 is a
revenue-eroding -2%.3
Given these market trends, it is increasingly important for telecom marketers to
understand the offline and online behavior of consumers, especially the ones
who are interested in switching carriers, buying a phone or adding a new line.

1. “The Telecommunications Path to Purchase Study” by Verto Analytics (Facebook-commissioned study of people ages 18+ in US who switched carriers, purchased a phone
or added a new line during the prior 3 mos.), Feb–Oct 2018. Select percentages and figures are extrapolated projections based on 784 respondents.
2. “Q3 2018 Mobile Trade in Data: The iPhone Effect” by HYLA Mobile, Oct 2018.
3. “2017 Telecommunications Trends” by Strategy&, 2017.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 4
Understand consumers’ online and offline behavior so your
advertising campaigns can potentially influence their purchase
decisions
Our research has uncovered new insights about US telecom customer behavior, such as how they conduct their research
and where they ultimately make their purchase. Among survey respondents:

78% 90% 62%

conducted engaged with Facebook made their purchases
research online. during their research sessions. in a carrier store.

The primary motivation for visiting a carrier retail store is personalized

support during the final purchase phase. This is especially true
for customers who are 35+ years of age.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 5
5 key insights
Marketing to US mobile carrier consumers is a blend of art and science. It combines intuition, behavioral data and industry
knowledge to craft a successful marketing campaign. Here are 5 marketing insights from the study, which we’ll address
throughout this report, that can help you create top-of-mind brand awareness and increase purchases:

Influence early, influence often. Promote service plan offers.

It is important for mobile carriers to be part of a
consumer’s initial consideration set. Increase your online
presence to catch their limited attention when they are
conducting preliminary research.
Understand consumers’ online signals.
The vast majority of mobile carrier consumers conduct
research online. One of their primary destinations is
carrier websites, especially if they are considering switching
carriers. This consumer behavior, such as how often a
consumer visits a particular carrier website page and for
how long, creates signals for mobile carriers to analyze and
respond to accordingly.
Carrier switchers are swayed strongly by perks and offers.
Highlight these deal-closers in your phone plan advertising.
Emphasize a phone's technical specs.
Phone buyers upgrade largely because of a new phone’s
improved technical specifications and camera. Spotlight
these phone features in your advertising campaigns.
Drive customers to your retail store.
Most purchases, especially carrier switches, still occur in
a retail store. Guide customers to your stores via online
advertising campaigns. Also, use chatbots on messenging
apps and your website to help customers locate the
nearest store.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 6
chapter 2
TARGETING TELECOM CONSUMERS
Know consumers’ two research phases
Our research shows that 21% of the surveyed US population changed carriers, purchased a phone or added a line in the
last 3 months.

Their path to purchase often begins with a passive research period in which their online research is sparse and demonstrates
low engagement. There is little purchase intent but lots of purchase consideration.

Next, they transition to an active research period in which they significantly increase their online engagement with less time
between research sessions. They are ready to buy.

Learn more

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 7
 Passive research strongly influences
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consumers' purchase decisions MEANS FOR
Our study revealed that surveyed US consumers consider a very narrow set of MARKETERS:
brands during their research sessions. Invest in mobile marketing.
During the passive research stage, consumers considered 2 or less carrier brands Carriers need to capture a consumer’s
and phone brands. During the active research stage, consumers narrowed attention during the passive research
stage by targeting them with the
their consideration set of carrier brands but broadened their range of phones right messages on their website and
to 2 to 3 brands. social media.
Surprisingly, the passive research stage is as important as the active
research stage. Here's why:

Passive research is very common.

67% of telecom purchasers conducted passive research.

Passive research is critical to determing a customer's consideration set and it is

disproportionately happening on mobile.
Over half of all consumers researched on mobile during their passive research stage. Most consumers then continued
evaluating carrier and phone brands from the passive research stage when they moved to the active research stage.

Brands considered in passive research get more attention in active research.

Consumers spent much more time researching carriers that they visited in the passive research stage than they did researching
additional brands in the active research stage.

Know the 2 research phases:

Here is an example of a consumer research journey
showing the number of touchpoints per week.

Conversion
Week
Number of research Touchpoints

40
35
30 Passive Active
25 research research
20
15
10
5
0
20

22

23

25
1

26
24

27
10

18
15

16

19

21
17
12

13

14
11
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desktop mobile

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 8
Customer journeys
The journeys of surveyed US carrier switchers and phone purchasers are
 HAT THIS
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strikingly similar in duration and research intensity.
MEANS FOR
MARKETERS:
Carrier Switchers: Understand customers’
online signals.
81% of carrier switchers conducted online research with an average
The vast majority of telecom
journey of 164 days. Most of their research happened in the 82 days purchasers conduct online research
prior to their purchase. and one of their primary destinations
is carrier websites. This creates
Phone Purchasers: signals for telecoms to activate and
76% of phone purchasers conducted online research with an average respond to accordingly, such as
whether a consumer is revisiting a
journey of 161 days. Most of their research happened in the 81 days prior
mobile carrier’s service plan or new
to their purchase. phone deal.
Double down on
website content.
Influence a purchaser’s decision-making
78% process with site content that meets
of all purchasers their informational needs.
conducted
online research.

Zain KSA
See how a Saudi Arabian telecom provider increased
app installs by 82% by running video ads on
Facebook, Instagram and Audience Network.
Learn more.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 9
When to reach telecom consumers
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Mobile carrier consumers are receptive to advertising during their passive and
MEANS FOR
active research stages, both of which often involve visits to social media. In the
MARKETERS:
case of product launches, for instance, start advertising a new phone’s technical
Start sooner.
specifications on your website and social media in the 2 weeks before the device
Our research shows US consumers
becomes available. spend more than 160 days researching
online prior to making their purchase.
Our behavioral analysis shows Facebook as the most visited digital
platform during telecom consumers' passive and active research
sessions.

% of research sessions for online purchasers:

50%
47%

29%
25% Active research Passive

11%
8% 7% 5% 8%
4% 5% 4% 1% 1%
2% 1% 1% 2% 1% 1%

Facebook YouTube Instagram Twitter Facebook Reddit Snapchat Pinterest WhatsApp LinkedIn
(main) (main) (main) (main) Messenger

% of research sessions for offline purchasers:

44%
38%

26% 25%
Active research Passive

9% 7%
5% 5% 5% 4% 6%
3% 3% 3% 4%
1% 1% 1%

Facebook YouTube Instagram Facebook Twitter Reddit Pinterest Snapchat LinkedIn

(main) (main) Messenger (main)

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 10
Where to target telecom customers
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To connect with US customers, carriers should ideally message across a diverse
MEANS FOR
set of channels.
MARKETERS:
Optimize your website to
Digital media: avoid high bounce rates.
90% of offline and 91% of online purchasers said they visited the Facebook Family Research shows that 53% of
of Apps at least once during their active research sessions. mobile site visitors leave a page
if it takes longer than 3 seconds
Carrier websites: to load.4
66% of carrier switchers’ research sessions involved a visit to a carrier’s website. Drive to stores from digital.
42% of phone purchasers’ research sessions involved a visit to a carrier’s website. Send prospects to your nearby
stores for in-person answers.
Carrier stores: Stay top of mind.
43% of carrier switchers and 41% of phone purchasers reported visiting a carrier's store Run targeted ads on the Facebook
during their research. Family of Apps to try and stay
among the top one or 2 carrier
set considered during consumers'
research stage.
Demystify your products.
Create how-to and informational
videos that answer common
questions and points of confusion.

4. “Find Out How You Stack Up to New Industry Benchmarks for Mobile Page Speed” by Google, Feb 2017.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 11
chapter 3
MESSAGING TELECOM  HAT THIS
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CONSUMERS MEANS FOR
MARKETERS:
US carrier switchers and phone purchasers have different needs and are receptive Promote phone plan perks
to distinctive types of messages. To help you deliver the right message at the right and offers.
time, here are insights from our research about these two unique audiences. Carrier switchers are strongly swayed
by money-saving perks and offers.
Highlight these dealmakers in your
Carrier switchers: Influenced by price service plan campaigns.
This group is most influenced by savings. 80% of online buyers and 60% of Highlight third-party reviews.
in-store buyers cited “a cheaper deal” from their new service provider as their Telecom consumers highly value
main motivation to switch. third-party reviews when researching
carriers and phones, so your carrier
online ads should highlight positive
To win these high-value customers, carriers should compete on price during their peer comments and direct customers
marketing campaigns. Then, to reach them, advertise heavily on social media. to a curation of favorable reviews on
your site or elsewhere.
92% of surveyed carrier switchers say they visited Facebook at least once during
their research. Moreover, when asked to choose, plan switchers more often
indicated Facebook as a social media site they regularly visited. Among respondents,
Facebook was included in more than one of every 3 research sessions.

A carrier’s website is a chief online destination for 70% of carrier switchers, so

your social media advertising should feature creative that promotes deals and
special offers to drive these likely switchers to your website.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 12
Phone purchasers: Influenced by tech
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Surveyed US phone buyers’ key reason for purchasing a new phone is improved
MEANS FOR
technical specifications, such as better storage or battery life, according to our
MARKETERS:
respondents. Nearly 70% cited this factor as their main purchase motivation,
Bring phone specs to life
followed by 33% who mentioned a better-quality camera and 29% who named
during product launches.
improved design features. Phone buyers upgrade because of
a new phone’s improved technical
To win these ready-to-buy customers, carriers can focus on advertising before, abilities and camera. During product
during and after phone launches and highlighting a new phone’s technical launches, spotlight phone features
capabilities. To reach them, advertise on social media so they can learn about a and show them in action on your
website and in social media.
new phone’s innovative features.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 13
Message according to where they buy
Offline vs. online buyers:
Our research also indicated significant differences in age and income among surveyed US
customers according to whether they made their plan or phone purchase in store or online.

78% 71% 85%

of all purchasers of offline purchasers of online purchasers
researched online. researched online. researched online.

Offline purchasers:
These buyers tend to be older and wealthier than online
purchasers, according to our respondents.

Offline purchasers prefer buying in-store because they want

someone to help set up their phone, answer questions, or
didn’t want to wait for their phone or SIM card to be delivered.

71% of offline purchasers researched online. In fact, 49%

of offline buyers started their research sessions online and
71% ended their research sessions online. And 84% of offline
buyers Included Facebook in their research.

To win offline purchasers, carriers should consider

promoting the ease of their in-store customer experience,
retail product availability and same-day pickup on social
media, particularly Facebook.

62%
of buyers made their
purchase in a store.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 14
Online purchasers:
These buyers, who tend to be younger than offline buyers, prefer making  HAT THIS
W
purchases on the web due to its ease and convenience. MEANS FOR
MARKETERS:
Both carrier switches and phone purchases are primarily desktop-driven Promote website capabilities.
journeys. 85% of surveyed US carrier switchers and 62% of phone buyers use a To win consumers who research
online, run ad campaigns touting your
laptop or desktop computer to complete their sale. website’s helpful content and the ease
and convenience of the information,
To win online purchasers, carriers should make their website experiences as as opposed to visiting a store and
seamless as possible. They should also prominently feature helpful content on waiting for assistance.
their website as a majority of consumers value it as an information resource. Deploy chatbots on
your website.
Then, to reach online purchasers, incorporate social media like Facebook Carrier changers and phone buyers
into your advertising campaigns so you can reach them with relevant ads during visit carrier websites seeking
information. Utilize chatbots to
their customer journey and get them to convert faster.
answer consumers’ questions,
promote attention-grabbing offers
91% of surveyed US online purchasers said they researched online and of these, and guide visitors to your nearest
89% said they visited Facebook at least once during their customer journey. retail store.
Again, when asked to choose, 44% of surveyed US online purchasers most
often indicated Facebook as a social media site they visited during multiple
research sessions along their purchase journey.

38%
of buyers
made their
purchase
online.

Choose a plan

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 15
Advertising recall effectiveness: Social media ads work
Both online and offline purchasers are likely to recall relevant cellular service plan or mobile device advertising during their
customer journey.

In fact, of those advertising channels considered, after TV commercials, social media or messaging ads resulted in the second
highest ad recall among US consumers surveyed for both cellular service plans and mobile devices.

After TV commercials, ads most often recalled:

46%

34%

29%

18%
13%
9%

2%

Online Social Media or Online Online Print AM/FM Online Other

Messaging Ads Video Ads Banner Ads Advertisements Radio Ads Radio Ads

Source:
“The Telecommunications Path to Purchase Study” by Verto Analytics (Facebook-commissioned study of people ages 18+ in US who switched carriers, purchased a phone
or added a new line during the prior 3 mos.), Feb–Oct 2018.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 16
chapter 4
THE FUTURE OF TELECOM MARKETING
The accepted wisdom among telecom marketers is that consumers prefer making their purchases
in a store because carrier websites can be challenging to navigate. This is especially accurate when
a person is trying to view a service plan’s in-depth terms and conditions on a phone’s small screen.
As noted earlier, our research shows that consumers actually prefer a carrier’s store because they
can receive personalized service.

Although 6 in 10 telecom purchases are made in-store, online touchpoints are still important
to consumers because they help them compare plans and phones, weigh their options,
and ultimately make an informed decision.

The future of telecom marketing will involve providing consumers with a blended
experience of offline and online touchpoints. Carriers should provide more
human touchpoints for consumers, especially early in the customer journey.
Consumers visit retail stores for personalized support, so social advertising
should spotlight in-store customer experiences. Social ads should also
drive in-store traffic by enabling consumers to find the nearest store
or book an appointment.

You will need to foster brand awareness so you’re a prominent

player in a customer’s initial consideration set. Then, you will
need to guide a consumer along the path of purchase, taking into
consideration whether the consumer’s online signals indicate
they are evaluating carrier plans or phone specs. And, to seal
the deal, you will need to entice consumers with smile-inducing
prices in the case of carrier switchers or relevant product
details and branded content for phone buyers.

Provide best-in-class retail experiences.

Telecom consumers flock to carrier stores because,
again, they want personalized service. Offer them a superior
customer experience in a welcoming, modern retail setting.

In this blended journey of online and offline touchpoints,

consider these 5 strategies:
Offer “buy online” and
“get same day in-store
pickup” for phones
and SIM cards.
Drive online purchases
by understanding what
pain points hamper
consumers’ carrier
website experiences.
Offer personalized P romote deals for Leverage
online experiences via phones that are not Facebook’s Store
live chat with one of available in store to Sales Optimization
your representatives. drive online purchases. solution with offline-
specific messaging
to target consumers
who are more likely
to buy offline.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 17
chapter 5

MARKETER KEY TAKEAWAYS

As consumers are not naturally inclined to switch carriers or purchase a new phone unless sufficiently motivated, you need to
ensure you are foremost in a customer’s mind when they go online and embark upon their passive research stage.

To identify and reach these consumers, pay attention to their online behavior, both on websites and social media. Remember: Most
surveyed US telecom consumers’ research sessions involve a visit to the Facebook Family of Apps during their path to purchase, so
you can boost your odds of winning these consumers’ business with brand awareness campaigns on the right platforms.

Influence early, influence often. Highlight technical specs during

It is vital for you to be part of a customer’s initial
consideration set. Keep in mind that consumers consider
less than 2 carriers in their passive research stage and narrow
this candidate pool even further in their active research
stage. Advertise on social media to catch consumers’ limited
attention when they are researching online.
Understand customers’ online signals.
Most surveyed US telecom consumers research online. One
of their primary destinations is carrier websites, especially
to switch carriers. This customer behavior creates signals
for you to activate and respond to.
product launches.
Again, phone buyers upgrade largely because of a new
phone’s improved technical specifications and camera.
Spotlight these phone features during product launches on
your website and social media advertising.
Direct customers to your store.
Most purchases, especially carrier switches, still occur in a
carrier’s retail store. Guide consumers to your stores via
your online advertising campaigns and use chatbots on your
website and in click-to-Messenger ads to help consumers
locate your nearest store.

Promote phone plan perks and offers.

Potential switchers may be influenced by carriers' deals that
save them money. Highlight these dealmakers in your service
plan campaigns.

Understand Your Telecom Customers | How Marketers Can Win Carrier Switchers and Phone Buyers 18