COMPETE IN ANERA OF SMARTENGAGE. INNOVATE. TRANSFORM.
IBM’s 2014 Global Telecom Consumer SurveyKen KralickIBM’s Telecom Global Solution ExecutiveCustomer Experience
COMPETE IN AN
ERA OF SMARTENGAGE. INNOVATE. TRANSFORM.
IBM’s 2014 GLOBAL TELECOM CONSUMER SURVEY
SURVEY RESULTS
More spending on mobile usage
The mobile is the device
App use continues to grow
More self-service options
Willingness to collaborate
Moderate trust with personal information
IBM’S 2014 GLOBAL TELECOM CONSUMER SURVEY
THE RESULTS
Closely followed by the laptop/netbook
The mobile phone is most valuable device to access the Internet
Mobile Phone
Desktop PC
Internet Enabled TV
Game Console with Internet Connection
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
83%
72%
51%
46%
18%
17%
14%
13%
11%
13%
15%
13%
15%
10%
12%
14%
6%
15%
33%
41%
67%
73%
74%
73%
Very Valuable Moderately Valuable Little Value/Not Applicable
OF RESPONDENTS IDENTIFIES THE MOBILE PHONE AS THE MOST VALUABLE DEVICE
Source: 2014 IBM Global Telecom Customer ViewQuestion: How valuable are the following devices for you to access the internet?
83%
Consumer sentiment in Australia is positiveAlso for spending on telecommunications comparable to the global average
Gre
ece
Spain
Nether
lands
Italy
Irela
nd
Belgiu
m
Poland
Finla
nd
France
Ger
man
y
Japan
UAE
Norway UK
Canad
aUS
Swed
en
Mal
aysi
a
Philippin
es
Denm
ark
Austra
lia
New Z
eala
nd
Thaila
nd
Saudi A
rabia
South A
frica
Brazi
l
Russia
Indones
ia
Egypt
Mex
icio
Turkey
China
India
Kenya
Niger
ia
-60%
-40%
-20%
0%
20%
40%
60%
80%
-39%
-18% -18% -16% -16% -14%-10% -9% -7% -6% -3% -2% -1%
2% 4% 4% 5% 5% 7% 8% 10% 10% 11% 13%17% 18% 18% 19% 22% 22% 23%
37% 39%
59% 60%
Source: 2014 IBM Global Telecom Customer ViewQuestion: Compared to previous years, are you likely to spend less, the same or more on mobile phone usage (Voice calls, SMS, MMS) in the next 2-3 years?
Net Increase/Decrease Consumers spending Mobile phone usage (voice calls, SMS, etc.) 2014 - 2016
This is also true for increasing spending on mobile broadband usagei.e. accessing the Internet using a mobile broadband subscription
Gre
ece
Irela
ndIta
ly
Nether
lands
Belgiu
mSpai
n
Poland
Philippin
es
Japan
UAE
France
Ger
man
yUK US
Swed
en
Finla
nd
Canad
a
Mal
aysi
a
Norway
Austra
lia
Mex
ico
Russia
Denm
ark
New Z
eala
nd
Saudi A
rabi
Brazi
l
South A
frica
Egypt
Turkey
Indones
ia
Thaila
ndIn
dia
China
Niger
ia
Kenya
-60%
-40%
-20%
0%
20%
40%
60%
-37%
-16% -15% -15%-10% -8% -8%
5%
-4% -4% -2%
0%3% 5% 5% 5% 6% 8% 10% 12%
1%
13% 13%
3%
19%
0%
20% 22% 22%
2%
36%40%
50%53%
Source: 2014 IBM Global Telecom Customer ViewQuestion: Compared to previous years, are you likely to spend less, the same or more on mobile phone usage (Voice calls, SMS, MMS) in the next 2-3 years?
Net Increase/Decrease Consumers spending MOBILE BROADBAND usage (Internet from Mobile) 2014 - 2016
Customers prefer to help themselves
46% 54%
48% 52%
58% 42%
61% 39%
65% 35%
67% 33%
72% 28%
72% 28%
77% 23%
81% 19%
81% 19%
81% 19%
83% 17%
83% 17%
86% 14%
87% 13%Pay bills & recharge accounts
Track usage & get detailed bills
Set alerts & limits
Know outstanding bills/amounts
Contact history
Status checks
Information on buy products
Change administrative information
Dealer/retail store location enquiries
Know current plan / change it
Info on comms products/services
Start/stop subscription services
Get offers customised for you
Registration
Best plan based on your usage pattern
Raise service issues & track them
Self Service Human interaction (live agent)
Source: 2014 IBM Global Telecom Consumer SurveyPlease indicate your preference for either self service or human interference (live agent)?
A good move for both customers and the service provider as this can lower support costs while improving customer satisfaction
PREFER TO BE SELF SERVICE
46-87%
Consumers like to interact with their provider using a wide range of channels Although the phone still is prominent in case of complaints
Product
/Ser
vice I
nform
atio
n
Perso
nal In
fo/S
ervic
e Chan
ges
Complai
nts/P
roblem
Solu
tion
Special
Offe
rs/L
oyalty
Pro
gram
s
Feedbac
k on ex
perien
ces
0
10
20
30
40
50
60
Phone call with Call Centre
In-Person (Face-to-Face)
SMS
Online via CSP website
Mobile APP
Social Network
OF RESPONDENTS PREFER TO CALL THE CALL CENTRE TO DISCUSS COMPLAINTS AND PROBLEM RESOLUTION
Source: 2014 IBM Global Telecom Customer ViewQuestion: What is your preferred channel of interacting with your telecom provider
54%
Seven out of ten consumers said they are willing to provide feedback or engage with them to help them to improveEspecially related to existing products and services
Improvement Existing Product/Service
Improvement Customer Care
Development New Product/Service
Feedback on Communication to Market
Feedback on Overall Strategy
Improvement of Existing Campaign
Development of New Campaign
Other
0% 10% 20% 30% 40% 50% 60%
Topics customers are prepared to communicate on with their provider
OF RESPONDENTS LIKE TO INTERACT WITH THEIR PROVIDER ON IMPROVING AN EXISTING PRODUCT/SERVICE
Source: 2014 IBM Global Telecom Customer ViewQuestion: On which topics do you want to communicate with your Telecom Provider to help the organisation to improve?
48%
This raises a few questions
Would consumers appreciate proactive help managing their devices?
Who’s going to capture that additional spend?
How can revenue grow with App usage?
Which self-service option is the best investment?
What’s the most natural way to initiate collaboration?
Could efforts to build more trust actually backfire?
HOW COMPREHENSIVE IS THIS SURVEY?
IBM SurveyIn Q4’13 / Q1’14, close to 22,000 consumers took part in the survey in 35 countries - in both mature and emerging marketsThese countries account for 67% of the worlds population and 84% of global GDP
China (1265)
Australia (652)
Canada (594)
Belgium (323)
Brazil (671)
Denmark (319)
Egypt (343)
India (1038)
Finland (309)
Greece (738)
France (1343)
Germany (831)
Indonesia (735)
Ireland (351)
Mexico (658)
Italy (560)
Malaysia (506)
Japan (964)
Kenya (322)
Netherlands (548)
New Zealand
(464)
Russia (1003)
Nigeria (550)
Poland (328)
Norway (303)
Philippines (877)
Saudi Arabia (306)
South Africa (649)
UAE (320)
Spain (809)
Turkey (533)
Sweden (354)
Thailand (616)
UK (657)
US (1083)
2013/2014 CONSUMER SURVEY
IBM survey- Australia
−652 respondents
−3% of total sample
Australia
− Mobile/Wireless Broadband− Pay TV (Cable, Satellite, IPTV)− Internet Telephony
− Fixed telephony (landline)− Mobile Telephony− Fixed Broadband (Cable, DSL, FTTx)
*SERVICES ARE
50% 30%
13% 6%
652 respondents were drawn from across Australia and subscribe to at least one service from a range of CSPs
IBM Survey
Series1
0%
20%
40%
60%
80%
100%
17% 17%28%
5%
22%35%
36%
24%
20%
19%
26%
24%
41%29%
10%
48%
50 and above
35-49
25-34
Below 25
Age distribution across Australia CSPs
CSP analyses have been restricted to those for which results can be considered to be statistically relevant (confidence level 95% or higher)
In our sample, Vodafone had the highest proportion of BELOW 35s iinet had the highest 35+ proportion
SO WHAT ARE THE KEY “AREAS FOR IMPROVEMENT”?
Areas to improve – worth investigating
OTT usage up; SMS and traditional mobile voice down
Poor social media presence
Traditional channels not being used
Unreported negative experiences get shared
Why bother calling them – it won’t help
Customer advocacy is very low
LET’S LOOK AT SOME MORE OF THE ACTUAL SURVEY RESULTS
4% 16%
7% 27%
9% 31%
10% 31%
21% 46%My Telecom Provider allows me MULTIPLE WAYSto interact and communicate with them
My Telecom provider LISTENS TO ME and collectsthe right amount of information to meet my
communication needs
My Telecom Provider USES THE INFORMATION italready has about me rather than asking me to
provide it repeatedly
My Telecom Provider enables me to provideFEEDBACK or to provide input to develop new
communication products and services
My Telecom Provider uses SOCIAL MEDIA in aneffective way to engage with me
Strongly agree
Moderately agree
Telecom providers don’t yet get socialOnly one out of five consumers feel their provider uses social media effectively to engage with themHow good is your primary telecom provider in interacting with you?
of respondents agree that CSPs use Social Media in an effective way to engage with them
20%
Source: 2014 IBM Global Telecom Consumer SurveyIndicate to which agree/disagree with the following statements on your Primary Telecom provider?
Only
Would TELL OTHERS about the bad experienceSTART considering COMPETITIVE services from other
providersWould COMPLAIN to my telecom provider
Would DISCOURAGE OTHERS to use this providerWould use the services of my provider LESS
FREQUENTLYWould STOP making PURCHASING from my provider
Would post a NEGATIVE REVIEW or comment ONLINE
Would COMPLAIN on SOCIAL MEDIA
Would NEVER USE my telecom provider again
NO CHANGE in behavior
50%
49%
46%
36%
29%
28%
17%
15%
10%
7%
47%
45%
49%
53%
60%
58%
45%
40%
68%
53%
4%
6%
5%
11%
11%
13%
38%
45%
23%
40%
Always/Often Regularly/Possibly/Sometimes Never
Response to negative experience
of respondents will tell others – always or often – about NEGATIVE experiences
50% Responses in case of negative experiences
After a negative experience, consumers are likely to tell others, discourage them to use the provider, but do not complain to their provider
Source: 2014 IBM Global Telecom Consumer SurveyIndicate to which agree/disagree with the following statements on your Primary Telecom provider?
IBM’s ‘Advocacy Index’ measures the level of advocacy by analysing responsesSpecifically related to recommendation, purchase intent and staying intent
LIKELIHOOD TO
RECOMMEND
Willingness to recommend one’s primary provider to friends and family
PURCHASE INTENT
A willingness to increase one’s purchases if one’s primary provider expanded its assortment and offered products currently found only at the other providers
STAY RATE
A willingness to stay with one’s primary provider, even if other provider begin offering competitive producers or services
Advocates and AntagonistsUnderstanding who is an Advocate and who an Antagonist, and why, is important for driving growth and improving customer retention
Advocates
Apathetics
Antagonists
Higher Shareholder Value
Lower Shareholder Value
Advocates have a higher wallet share and are highly complimentary of the provider capability
Apathetics are generally passive participants susceptible to competitor offerings
Antagonists have low wallet share and high support costs and are prone to bad-mouth the provider
“I have to recommend my provider to several people”
“They have amazing customer service”
“They are more expensive but I hardly get disconnected or have calls dropped”
“I think my telco over-charges me but how can I prove it; my credit runs out too quickly after I top-up”
“The promotions lack any relevance to me”
“I am looking to switch to the new provider offering cheaper rates”
IN GENERAL THE ADVOCATE % IS SHRINKING, IT’S GETTING HARDER TO DEVELOP ADVOCATES
Advocacy in the telecommunications industryAdvocacy level in the telecommunications industry is very low and Australia is no exception
Sou
th A
fric
a
Germ
an
y
Ru
ssia
Den
mark
Eg
yp
t
Ind
ia
Mexic
o
Ph
ilip
pin
es
Tu
rkey
Fin
lan
d
Ind
on
esia
Norw
ay
Pola
nd
Sw
ed
en
Ch
ina
Belg
ium US
Italy
New
Zea..
.
Au
str
ali
a
Fra
nce
Gre
ece
Neth
erl
...
Irela
nd
Bra
zil
UK
Sau
di
Ar.
..
Mala
ysia
Sp
ain
Can
ad
a
Th
ail
an
d
UA
E
0%
20%
40%
60%
80%
100%
36% 37% 40%46%
19%27%
39%
28%34%
40% 40%47% 46%
52%
35%
45%51%
46%52% 56%
44% 44% 48%53% 52% 54%
31%37%
56%63%
44% 47%
36% 35%33%
27%
55%46%
37%
49%43%
39% 39%32% 34%
28%
47%
37%31% 36%
30% 27%
39% 38%35%
31% 32% 31%
55%49%
30%24%
44% 41%
28% 28% 27% 27% 26% 26% 24% 23% 23% 21% 21% 21% 20% 20% 19% 19% 19% 18% 18% 18% 17% 17% 17% 16% 15% 15% 14% 14% 14% 13% 12% 12%
Source: 2014 IBM Global Telecom Consumer SurveyWhich of the following Loyalty statements Recommendation, buying, staying intent about your provider do you agree/disagree with?
ADVOCACY RATE INAUSTRALIA
18%
People like to be in control, and to be informed, about their personal dataHowever, getting higher value products/services for a lower price and getting free/ discounted products are the key stimuli to provide personal information
Demographic Data (age,
ethnic group etc.)
Lifestyle Data (e.g. % or de-vices owned)
Media Usage Habits (e.g. TV
viewing)
Identification Data (name, address etc.)
Location Re-lated (e.g. Where you were/go)
Medical Data Financial Data (e.g. Creditcard
nbr/type)
0
10
20
30
40
50
Willingness to provide information to a provider if it improves the quality of services/recommendations
Strongly Object Serious Concerns Depends on Benefits Some Concerns No Objections
OF RESPONDENTS HAVE STRONG OR SERIOUS COCERNS ON PROVIDING FINACIAL INFORMATION TO THEIR PROVIDER
Source: 2014 IBM Global Telecom Customer ViewQuestion: What is your willingness to provide information for each of the following items to a provider you trust if it improves the quality of service and/or recommendations.
66%
And again, more questions arise
How significant is the shift to data usage; will it require a new business model?
What’s the risk of an increased social media presence?
What channels will deliver the best ROI?
What’s the weight of consumer sentiment gathered from social media?
How is it possible to understand consumer frustrations when they don’t call about it?
What’s the relationship between Customer Advocacy and NPS?
Takeaways
Get social Be transparent about privacy
Work on deeper insights
Experiment with value exchanges
For more information or discussion, please contact:
Ken KralickIBM’s Telecom Global Solution Executive - Customer
Experience
[email protected]+1.703.371.3598 mobilelinkedin.com/in/kralick
twitter.com/KennethCKralick
COMPETE IN AN
ERA OF SMARTENGAGE. INNOVATE. TRANSFORM.
Thank You
Top Related