Reducing Churns With Moblogs

NewBay Software (which makes mobile community applications) has released the results of a 12-month survey of two million subscribers on four operators which were using its FoneBlog mobile blogging and multimedia album solution.
The results give statistics to what has been an intuitive asssumption for a while — that moblogging services run by operators create improved customer loyalty.

  • Mobile Blogging generates an immediate reduction of up to 70% in the propensity of a user to churn.
  • Over a 12 month period mobile blog users are, on average, 50% less likely to churn compared with other operator subscribers (1.2% compared to 2.4%). A user that utilizes their mobile blog twice a month has a 50% decrease in their propensity to churn, whereas a user who uses the service four times a month has an 80% decrease.
  • Higher usage of mobile blogs greatly reduces the propensity of subscribers to churn.
  • MMS was the most popular method of usage for posting to mobile blogs.

According to NewBay the increased loyalty is a result of the personal nature of the content stored on the moblog — if a user changes carrier they have to figure out how to move the content or just discard it. Naturally, the more content that is in the blog the more valuable it becomes to the user. It also improves the loyalty to the brand of the actual blog — there are many photo albums on the net, but many people will stay with Flickr simply because that’s what they know. In its report Newbay touts the white-label nature of its service so that carriers can use their own brand.
Newbay claims the biggest problem operators have is getting their customers to use the service — the reduction in churn only applies to people who use moblogs so if only 1 in 20 customers actually use the service it’s not going to have much effect. So the service has to be easy to use, as cheap as possible (the actual service should be free, in my opinion, maybe with charges for the MMS) and be interactive. That is, it needs a comment section and so on.
I posted yesterday about the increasing cost of customer acquisition… services such as moblogging — for which the carrier has a natural advantage in the marketplace — is probably the best way to keep customers. Exclusive content is one thing: Unique personalized content something else entirely.
Of course, if someone asked about starting a moblog I would recommend they look at a solution that can be accessed from any service in case they want to switch carriers…
Related stories:
MoBlogging In India
Digital vs. Actual Memories
Messaging Win For Mobile Bloggers