Amdocs Survey: Teenagers Have a Digital Lifestyle That Service Providers Should Adjust to

Global study maps unique digital DNA of teens as they become the next generation of paying customers

ST. LOUIS, June 21, 2016 (GLOBE NEWSWIRE) — Amdocs (NASDAQ:DOX), the leading provider of customer experience solutions, today announced the results of a global study1 into the digital DNA, behavior and expectations of today’s teenagers (aged 15-18 years old). The study reveals a fragile relationship between communications service providers (CSPs) and teens, and the role digital technology will play in the lives of a generation who see their future as digital beings as much as human beings.

According to the study, only 12 percent of teenagers feel service providers understand their lifestyle and offer services to match it. 30 percent report experiencing bad customer service from their CSP over the past year, and 46 percent say they will not use that CSP again. A third of respondents then shared this information with families and friends.

The study, commissioned by Amdocs, was conducted by Vanson Bourne, a technology market researcher provider, and advised by leading generational expert and sociologist Dr. Paul Redmond.

Additional key findings unveiling teens’ unique digital DNA and what services they want:

  • Digital is the lens through which teens view themselves and others: 43 percent believe their smartphone makes them smarter and “cooler”; 52 percent check their social media accounts first thing in the morning; over 30 percent say they would probably not meet someone again if they lacked a Facebook or WhatsApp account.
  • Emojis are worth a thousand words: Almost half of respondents say they prefer using emojis (47%) and posting photos (45%) to sending emails as emojis express how they feel more clearly than words.
  • Internet connectivity is teens’ most vital sixth sense: Teens require constant Internet connectivity, with respondents saying they are more likely to feel anxious and alone if separated from the Internet (56 percent) than when separated from their family (52 percent). The value of Internet access is so significant that the majority (55 percent) strongly believe fast Internet access to be a human right.
  • Free content streaming is a way of life: A majority stream movies (53 percent streaming; 17 percent downloading), TV (51 percent versus 11 percent) and music (47 percent versus 29 percent); and they are typically doing so for free with less than a third saying they ever pay for any content.
  • Teens perceive content and app providers as “service providers” and love them more: Although 82 percent know who their service provider is, they perceive over-the-top (OTT) players and internet giants, including Google (51 percent), Facebook (38 percent), WhatsApp (42 percent) and Apple (38 percent) as CSPs, when they are not. However, when asked which companies they love, teens rank Google first at 60 percent (Facebook: 48 percent; WhatsApp: 42 percent) while only 36 percent said they loved their CSP.
  • Teens want technology to allow them to design their own experiences: 54 percent want interactive services that offer design options they can play with; 59 percent expect to be offered 3D printing technology to create their tech accessories and 55 percent expect to be able to visit new countries using virtual reality. Teenagers’ connection to technology is so strong that 66 percent say they would want to be Bill Gates when they grow up, more than a YouTube star (50 percent) or a pop star (38 percent).
  • Teens expect future technology to allow them to become digital beings as much as human beings: 78 percent would like to have an Internet-connected device embedded in their arm, with 38 percent seeing it replacing their smartphone; 66 percent believe many jobs will be taken by robots, 24 percent even believe a robot will become their best friend.

“It’s fascinating how ‘digital’ is defining how teens are viewing both themselves and others, how they express themselves, how they learn,” said Dr. Paul Redmond. “They require constant access and connectivity, and consume content differently than older generations. This is a ‘free content’ generation who love streaming and have no need for ownership, calling upon service providers to look into new business models that can improve teen affinity to their brands.”

“It’s striking that half of teens today already have a firm opinion as to which service provider they will not use once they have to start paying their own bills,” said Chris Williams , head of global marketing for Amdocs. “But we cannot disregard the immediate teen impact on a service provider’s business and brand perception given their influence on paying parents and wide reaching audiences through their prolific use of social media. With digital so integral to teen life the need to transition to a digital service provider is immediate.  Service providers must act now to establish and build teen affinity, exploring new monetization models to address the demand for free content and adopting engagement strategies that provide immersive experiences across customer journeys. Whether or not service providers will succeed in adopting these new models will determine their ability to remain relevant in future societies and economies.”

Amdocs is already working with multiple customers to help deliver these new models. One example is a project with a large North American service provider to implement a self-service platform to deliver new engaging, digital touch points and services.

The study surveyed 4,250 respondents aged 15-18 from the UK, USA, Canada, Brazil, India, Germany, Russia, Mexico, Philippines, and Singapore.

1 “A message from your future customer”, Vanson Bourne, 2016

Supporting Resources

About Amdocs
Amdocs is the market leader in customer experience software solutions and services for the world’s largest communications, entertainment and media service providers. For more than 30 years, Amdocs solutions, which include BSS, OSS, network control, optimization and network functions virtualization, coupled with professional and managed services, have accelerated business value for its customers by simplifying business complexity, reducing costs and delivering a world-class customer experience.

The Amdocs portfolio enables service providers to capture the world of digital immediacy by operating across digital dimensions to engage customers with personalized, omni-channel experiences; creating a diversified business to capture new revenue streams; becoming data empowered to make business and operational decisions based on insight-based and predictive analytics; and achieving service agility to accelerate the fast rollout of new technologies and hybrid network services.

Amdocs and its 24,000 employees serve customers in over 90 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.6 billion in fiscal 2015.

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Amdocs’ Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2015 filed on December 10, 2015 and our quarterly 6-K form furnished on February 16 and May 17, 2016.

Media Contact:
Sara Preto
Fusion PR for Amdocs
Tel: +1-212-651-4214