TCS Digital Mobile Consumer Study


Tata Consultancy Services recently conducted a major study to understand how large organizations in North America, Europe, Asia-Pacific and Latin America have been revamping their strategies, products and processes to win the loyalty of consumers who use mobile devices to do business with them– the so-called “Digital Mobile Consumer”. The Study focused on how companies are coping with this mobile consumer. Some key findings are summarized here.

  • While most industries reported making some amount of changes to their offerings and processes by which they market, sell and service them, the industries reporting the greatest degree of change were Telecommunications, Airlines, Healthcare services, Retail and Travel/Hospitality. The lowest degree of change came from Industrial Manufacturers, Government and Pharmaceuticals. Marketing processes are changing the most, but sales and service procedures are too.
  • The average company in the four regions of the world will spend between $13 million and $22 million this year in technologies, business process changes, and other expenses to respond to digital mobile consumers
  • Airlines, Telcos and Energy companies report the highest proportion of marketing, sales and service interactions with consumers using mobile devices and spending the most this year to win them over ($27 – $31 million)
  • Marketing, Sales and Service functions are taking the lead in shaping their organizations overall strategy for serving the digital mobile consumer  – but the IT function is integrally involved
  • Consumers in Asia-Pacific and Latin America conduct more business through mobile devices than consumers in Europe and North America
  • Companies in Asia-Pacific spend more to respond to digital mobile consumers: $2.41 million per $1 Billion in revenue (versus $1.43 million in North America, $1.59 million in Europe, and $1.63 million in Latin America
  • Three success factors were found in effectively responding to digital mobile consumers: developing mobile apps that were useful and easy to use, getting Marketing, Sales and Service to collaborate; and optimizing the mobile sites or apps for local searches.
  • By 2015, the airline and Telecommunication industries foresee more than half of consumer purchases being conducted through mobile devices. The lowest: Government, Pharmaceuticals, Transportation, and consumer Products
  • Airlines and Telcos expect to devote at least 50% of their total marketing campaigns for mobile devices in three years
  • By 2015, 61% of survey responders mobile Apps will be designed to run on both Smartphones and tablets
  • 16% of M&E content is consumed on Smartphones and tablet devices. By 2015, that will move to 25%
  • Travel, Retail, Pharmaceuticals and Telcos are most interested in mobile payment data

Case Studies Explored

  • A major entertainment company has increased its number of purchases through mobile devices by six-fold in one year
  • Increasing revenue by pricing more accurately – U.S. auto insurer Progressive Insurance predicts a $100 million increase in lifetime premiums per annum by placing a mobile device in customers’ cars that tracks their driving habits
  • Pleasing impatient consumers by speeding their purchases – Starbucks’ store customers scanned 45 million payment transactions through their mobile devices in the 14 months ended in May; same-store sales rose 8% in 2011
  • Helping consumers research their purchases – A large cable operator and a major entertainment company provide mobile users with lots of information to help them decide what to purchase
  • More effective marketing and sales by reminding busy consumers of time-sensitive purchases -Entertainment company has increased by six-fold the number of concert purchases by consumers using its mobile app
  • Providing a highly differentiated consumer experience in the usage of a product – Large airline’s iPad apps for flight attendants are boosting passenger satisfaction scores
  • Providing superior assistance when the customer needs help -The mobile apps and websites of auto insurance companies such as State Farm and Progressive enable consumers to deal with accidents quickly and effectively

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