Don't ignore the biggest group of mobile users
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There are now more than 66m mobile phone subscriptions in the UK. Yet networks and handset manufacturers still need to get to grips with what consumers want from their phones.
Most new connections come from people switching networks rather than being new to the market. Consequently, networks' main challenge is both to retain customers and attract those from other networks. Over half (54%) of all mobile owners have switched network at some point, and one in six owners (16%) have done so in the past 12 months.
Continental Research has identified four consumer groups within the mobile market. Group 1 wants style and technology. They represent 18% of users, 7.8m people. Their average bill is £29 and 55% are male. 50% are 16-24, 26% are 25-34. 30% use their handsets to access the internet, 5% have watched TV and 43% listen to MP3s on their phone. They say: "The phone is an important part of my life. I'm prepared to pay for style and technology."
Group 2 wants technology but isn't interested in style. These 2.6m, 6% of users, are 70% male. Their average bill is £24. 35% are aged 35-44, 26% 25-34. 22% access the internet, less than 1% watch TV and 19% listen to MP3s. They "love technology and gadgets" but aren't interested in their phone looking stylish.
Group 3 wants style not technology. Of these 2.5m, 64% are female, 36% are 25-34, 18% 35-44. Their average bill is just under £20, 11% access the internet, less than 1% watch TV and 11% listen to MP3s. They say: "My phone has to look good, technology isn't important to me."
Lastly, Group 4 form the overwhelming majority of mobile owners - 28.4m or 68% of users. They won't pay extra for style or latest technology. 53% are female, their average bill is £16. 6% access the internet, less than 1% watch TV, and 7% listen to MP3s. They say: "I just want my phone to be a phone, can't they keep it simple?"
The first three groups have all been the focus of significant marketing efforts, as they have the highest spend. However, it does appear that the biggest potential market - those who want a simple phone and have minimal interest in paying extra for the latest style - is relatively untapped and could provide a significant source of revenue and growth.
Tim Barber is associate director of Continental Research
