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Insights Mission
NPD Insights® is a newsletter of The NPD Group, Inc. NPD Insights presents vital information on key market trends and features the NPD services, which help our clients understand, anticipate and capitalize on these trends to build their businesses.
New From NPD Mobile Consumer Track

wireless

By Drew Hull,
Research Director,
Mobile Content and Services

NPD’s wireless information products are comprehensive and easy to understand
and use. Our growing list of product offerings report on who’s buying mobile
devices, what mobile applications and services they are using, and why they
are using them. One of the products in our Wireless suite is Mobile Consumer Track,
the industry’s most comprehensive tracking service. It delivers detailed
market size, market share, channel, and category information for mobile services and content.

Mobile Consumer Track tells our clients what they need to know about consumer adoption, consumption, and use of mobile services and downloaded content. Here’s how your company
could use it to uncover – and capitalize on – a significant marketplace opportunity.

Handset Manufacturer A is ranked third among companies supplying handsets to a major wireless carrier. Its goal is to increase sales and become the carrier’s leading supplier. Using Mobile Consumer Track data, Manufacturer A identifies an opportunity to achieve its goal.

Share of Carrier's Base
Manufacturer A 21%
Manufacturer B 33%
Manufacturer C 25%
Manufacturer D 7%
Manufacturer E 6%
All other manufacturers 9%

Manufacturer A learns subscribers on Family/Shared plans are the carrier’s most valuable customers, worth $4.32 per month more than the next-best customer group.

Average Monthly Voice Revenue Per User
Family/Shared $48.07
Monthly $43.75
Pay As You Go $29.27
Pre-Paid $21.52

The information shows this carrier has 13% more subscribers on Monthly plans than the industry average, and 5% fewer on Family/Shared plans. It has a total of almost 27 million subscribers. Manufacturer A determines that if the carrier can shift 13% of its subscribers from Monthly plans to Shared/Family plans, it could increase its most important customer group by nearly 3.5 million subscribers. At a value of more than $51 per year, this represents an annual opportunity of more
than $177 million for the carrier!

Handset Manufacturer A checks the data to see if any of the top 5 handset suppliers seem to be driving Family/Shared plans. It finds itself among the top 3 manufacturers driving Family/Shared
plans for the carrier.

Manufacturers Driving Family/Shared Plans for This Carrier
  Family/Shared
Plan Index
Monthly Plan
Index
Manufacturer E 129 88
Manufacturer C 128 86
Manufacturer A 128 86
Manufacturer D 118 90
Manufacturer B 51 126

Handset Manufacturer A identifies the demographic profile of the carrier’s Family/Shared plan subscribers, owners of its handsets, and owners of Manufacturers E and C handsets (the other
leading drivers of Family/Shared plans). The result? Manufacturer A’s own handsets provide the
best demographic profile match.

Demographic Profiles
  Female Married HH Income
$75k+
Family/Shared plan subscribers 52% 64% 43%
Manufacturer A 53% 56% 42%
Manufacturer C 48% 51% 42%
Manufacturer E 51% 43% 36%

Based on Mobile Consumer Track information, Manufacturer A can demonstrate to the carrier how its handsets can generate incremental revenue for the carrier by attracting more customers likely to sign up for Family/Shared plans. Increased demand for the manufacturer’s handsets and growth in the carrier’s customer base and revenue – that's a win for everyone!

To find out how Mobile Consumer Track can benefit your business, contact us at 1-866-444-1411 (contactnpd@npd.com) or call your NPD account representative.

COPYRIGHT NOTICE: Copyright The NPD Group, Inc. 2006. All rights reserved.
Contents may not be reproduced in whole or in part without permission from The NPD Group, Inc.

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