Amex Study

In August 2010, American Express fielded a research study that found that telecom services – landline phone, wireless phone and data/Internet – are one of the top pain points for middle market companies. Specifically, it learned that selecting and managing telecom services can be confusing and time-consuming, and pricing can be unclear.

The survey polled senior leaders from approximately 600 U.S. middle market companies (with annual revenues between $4 million and $250 million) and asked them about a range of purchasing decisions and business issues. Participants did not know American Express was sponsoring the study. It found:

• Overall, middle market companies are interested in help with sourcing telecom services for their business, with approximately 76 percent indicating that they would like extra help selecting providers from an independent and trusted source.

• Approximately 50 percent of respondents indicated that they were dissatisfied with the cost of their existing telecom services, including wireless, landline and data/Internet.

American Express also interviewed a number of decision makers to obtain more in-depth insight into their buying processes and how middle market companies feel about purchasing telecom services. Interviewees indicated major challenges buying telecom services, and described it as a time-consuming and complex process that normally takes them months. In particular, they said pricing for telecom services is often confusing and unclear. Those interviewees also said they often resort to using search engines to source providers, as they don't have time to navigate the complexity. Finally, they said they feel lost in the shuffle among vendors – they're too large to be a small business account and often too small to garner enterprise-level treatment.