T-Mobile’s Flext gets customers excited, but only bargain hunters churn

Consumer reaction to T-Mobile UK’s new Flext tariffs, which were launched in February this year, has been overwhelmingly positive and is generating substantial positive word of mouth for T-Mobile.

Research into online buzz about T-Mobile conducted by WaveMetrix during May 2006 shows that fully 74% of all T-Mobile UK discussion online was about Flext. More than three quarters of online comments about Flext were positive, with customers impressed by the generosity of Flext tariffs as well as their flexibility and the attractive data plans.

WaveMetrix also conducted an attitudinal segmentation of online posters and identified three unique segments based on the needs and attitudes expressed in online conversation.

Bargain hunters were driven by a desire to obtain the best deal going. These people were very favourable towards Flext and showed a strong inclination to change to T-Mobile. A net 34% of these posters indicated they would choose T-Mobile because of superior value for money.

Service seekers just wanted their mobile to work and were most concerned about network quality and customer service. They were just as impressed with the value for money of Flext as bargain hunters were, but worried about T-Mobile’s spotty network coverage and long call centre wait times. Strikingly therefore only a net 5% indicated an intention to choose T-Mobile because of Flext.

Phone heads put the network second and focus on the device. For them the 18 month Flext contract was a put-off as it restricted their ability to have the latest and greatest phone. They were also disappointed by T-Mobile’s range of handsets. Whilst they agreed Flext is great value for money, the handset was most important and a net -10% intended to choose T-Mobile because of Flext.

”T-Mobile have captured consumer’s attention with Flext and is enjoying strong positive word of mouth driven by a perception of unrivalled value for money”, commented WaveMetrix CEO Anders Schönberg, “However, only bargain hunters are churning to T-Mobile at the moment and to take full advantage of Flext T-Mobile need to improve their network, customer service and handset range. Service seekers and phone heads are staying put with their existing operators and they make up more than two thirds of the market”.

Monitoring online discussion is a growing approach to understanding consumer opinion. Online discussion contains powerful and candid feedback from customers about what they really think, not what they say in surveys. WaveMetrix’ unique approach combines proprietary WaveRunner 3.0 technology and expert analysis. This combination allows collection and interpretation of customer opinion in any language and almost any topic. The findings are summarised into clear, actionable insights allowing WaveMetrix clients and partners to instantly understand the issues and implications.

The report is freely available via the WaveMetrix website:
http://www.wavemetrix.com/index.php?option=com_content&task=view&id=10&Itemid=15

About WaveMetrix:
Our focus is purely on understanding online opinion and helping our clients assess its impact. We believe that businesses have much to learn by following what consumers say online. We also believe that consumers deserve to be heard. WaveMetrix was founded in 2003 and is headquartered in the UK. WaveMetrix clients include some of the world’s largest organisations.

For more information contact: Alan Ault, COO, WaveMetrix on +44 7976 649 456.
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