WHY NIGERIAN CONSUMERS USE MULTIPLE SERVICE PROVIDERS — ACCENTURE REPORT

By Laju Iren

Despite the constant battle among mobile telecommunication operators for supremacy in the Nigerian market, consumers are still careful to use more than one service provider to meet their communication needs. However, according to an Accenture 2015 Digital Consumer Survey, this is not a popular trend around the world.

The survey revealed that globally, consumers engage the use of a single service provider to manage communication and entertainment products because they believe that this aids security. Tom Loozen, Accenture’s Managing Director at the recently concluded Mobile World Congress said: “Consumers’ preferences for a single, trusted provider also place Service Providers in the spotlight.

This can be a distinct advantage for SPs, because they can combine their expertise in building and managing IP networks with their increased capabilities to develop and deliver new, customer-focused services that incorporate data analytics for highly personalized services. As a result, SPs are positioned to do well in the digital ecosystem.”

Loozen added: “However, in Nigeria this is not the case as individuals and organisations use different SPs on their different devices. Businesses may stand on the fact that the use of different SPs makes it easier to connect with their customers. Also connected to this is the issue of signals in different areas in Nigeria. Due to the terrain of the country, the networks provided by some SPs may or may not work in some locations. Thus it may be wise to employ the services of more than one SP in order to be within reach at all times.”

In line with this, Group Managing Director Accenture Digital, Jim Bailey, at the 2015 MWC opined that “with the potential of digital technology to transform business and thus the economy at large, a unique partnership with mobile manufacturers and service providers should be considered. Though it may seem like the functions of mobile manufacturers and service providers are clearly different in the business of digital technologies, collaboration with both parties can transform not just individual lives but the face of business.”

According to Bailey,“Mobile manufacturers should continually design, manufacture and sell wireless technological equipment that allow for seamless business transactions and interactions. And on the other hand, service providers should ensure that information is efficiently and effectively transmitted. The benefits of this partnership are innumerable with some including the ability to create new revenue opportunities, increase product and service development speed, an increase in customer engagement and also help create new markets for business.”