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VoIP Awareness on the Rise, But More Can Be Done, Study Says
TMCnet Associate Editor
A new research study commissioned by Level 3 Communications indicates that although awareness of VoIP is on the rise, more consumers would switch to VoIP from regular phone service if VoIP service providers were more aggressive in promoting the value of their services and offering guarantees for quality, as well as demonstrating their desire to build customer loyalty.
According to published reports, Level 3’s “VoIP consumer research study” shows that consumer awareness of VoIP increased from 40 percent in 2004 to 66 percent in 2005. However, as Cynthia Carpenter, vice president of marketing for Level 3, explained in a news release, “it did uncover that less than half of the respondents consider themselves familiar with VoIP.”
“This highlights that the industry may be creating confusion among consumers, and we need to deliver clear messages about the benefits of VoIP, plus more compelling promotional offers to accelerate adoption,” Carpenter said.
The research shows that with new promotions aimed at strongly motivating consumers, VoIP providers could increase interest in switching by as much as 39 percent.
Level 3 tested 39 promotional offers and found that only five - none of which are currently available - increased consumer interest in switching. Common to those promotional campaigns were three elements: first, they had a perceived value to consumers of at least $100; second, they included satisfaction guarantees; third, they contained an element to motivate longer-term loyalty.
Carpenter said in order to increase consumer adoption of VoIP, service providers need to entice consumers who are content with their current service to try something new.
“To encourage them to switch, far more progressive and innovative promotional offerings – which go beyond discounted prices – are required,” she said.
For highlights from the research study, visit www.level3.com.
Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.
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