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TeleconferenceVoIP: Price And Features Slowly Win Over ConsumersSally M. Cohen
Analyst
Forrester Research
April 2, 2007. Call in at 12:55 p.m. Eastern Time
2Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Theme
To win, VoIP marketers must market their services closer to the phone, while
calling out features
3Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Consumers haven’t warmed up to VoIP.
• Survey says: Who needs VoIP when PSTN is good enough?
• Drive penetration with customer segmentation and feature marketing.
• VoIP will change the voice market with better services and bundling.
4Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Consumers haven’t warmed up to VoIP.
• Survey says: Who needs VoIP when PSTN is good enough?
• Drive penetration with customer segmentation and feature marketing.
• VoIP will change the voice market with better services and bundling.
5Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Fierce competition puts the squeeze on VoIP
• Incumbent telcos retain the majority of the residential voice market.
• Home use of mobile service threatens residential landlines.
• Cable’s digital voice makes a strong leap into the market.
6Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Traditional telephony and mobile dominate the residential voice market
7Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Even among online households, VoIP adoption remains low
8Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Consumers haven’t warmed up to VoIP.
• Survey says: Who needs VoIP when PSTN is good enough?
• Drive penetration with customer segmentation and feature marketing.
• VoIP will change the voice market with better services and bundling.
9Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Despite desire for lower-cost telephony, most consumers won’t switch
10Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Consumers are satisfied with cost, reliability
11Entire contents © 2007 Forrester Research, Inc. All rights reserved.
A frugal consumer does not a VoIP user make
Consumers who plan to switch home voice service:
• Want more than lower prices.
• Are most likely to switch to another traditional telco . . .
• . . . but are also open to emerging voice providers.
12Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cost is not the sole driver of home voice churn
13Entire contents © 2007 Forrester Research, Inc. All rights reserved.
VoIP is low on voice churners’ lists
14Entire contents © 2007 Forrester Research, Inc. All rights reserved.
VoIP doesn’t conform to expectations about voice
• Consumers want a handset, not a headset.
• Legacy features like directory assistance are important.
• Above all else, reliability and quality of service matter.
15Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Consumers haven’t warmed up to VoIP.
• Survey says: Who needs VoIP when PSTN is good enough?
• Drive penetration with customer segmentation and feature marketing.
• VoIP will change the voice market with better services and bundling.
16Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Today’s VoIP users are typically early adopters
17Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Long-distance calling habits illuminate VoIP’s market opportunity
• Chatters will use VoIP to make hours of long-distance calls from home.
• Distance Dialers will value VoIP’s cheap international rates.
• Stop Gappers will adopt VoIP when VoIM is no longer an adequate solution.
18Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Chatters spend hours calling long distance from home
19Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Distance Dialers call internationally
20Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Stop Gappers use VoIM to save money
21Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Theme
To win, VoIP marketers must market their services closer to the phone, while
calling out features
22Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Focus on features to inject interest into the mainstream
• Consumers want — established premium features included in a monthly flat fee.
• Consumers show interest in — mobile and landline interoperability.
• Consumers respond to — what they are already familiar and comfortable with.
23Entire contents © 2007 Forrester Research, Inc. All rights reserved.
VoIP offers features that consumers want
24Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Consumers haven’t warmed up to VoIP.
• Survey says: Who needs VoIP when PSTN is good enough?
• Drive penetration with customer segmentation and feature marketing.
• VoIP will change the voice market with better services and bundling.
25Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Leaders will market VoIP close to the phone
Increased awareness and adoption of VoIP will:
• Drive desire for landline-mobile interoperability.
• Force hardware-makers to improve product usability.
• Encourage partnerships to drive new service bundles.
26Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Sally M. Cohen
+1 617/613-6127
www.forrester.com
Thank you
