0
COMPETE IN AN
ERA OFSMARTENGAGE.INNOVATE.TRANSFORM.
IBM’s 2014
Global Telecom Consumer Survey
Ken Kralick
IBM’s Telecom Global Solution Executive
Customer Experience
COMPETEI...
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
...
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
83%
72%
51%
46%
18%...
Consumer sentiment in Australia is positive
Also for spending on telecommunications comparable to the global average
-39%
...
This is also true for increasing spending on
mobile broadband usage
i.e. accessing the Internet using a mobile broadband s...
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...
Consumers like to interact with their provider
using a wide range of channels
Although the phone still is prominent in cas...
Seven out of ten consumers said they are willing
to provide feedback or engage with them to help
them to improve
Especiall...
This raises a few questions
Would consumers
appreciate proactive help
managing their devices?
Who’s going to capture that
...
HOW COMPREHENSIVE IS THIS SURVEY?
IBM Survey
In Q4’13 / Q1’14, close to
22,000 consumers took
part in the survey in 35
countries - in both mature
and emergi...
IBM survey- Australia
− 652 respondents
− 3% of total sample
Australia
− Mobile/Wireless Broadband
− Pay TV (Cable, Satell...
IBM Survey
17% 17%
28%
5%
22%
35%
36%
24%
20%
19%
26%
24%
41%
29%
10%
48%
0%
20%
40%
60%
80%
100%
50 and above
35-49
25-34...
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
Trad...
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 WAYS
to interact and communicate with them
My T...
Would TELL OTHERS about the bad experience
START considering COMPETITIVE services from other providers
Would COMPLAIN to m...
IBM’s ‘Advocacy Index’ measures the level
of advocacy by analysing responses
Specifically related to recommendation, purch...
Advocates and Antagonists
Understanding who is an Advocate and who an Antagonist, and why, is important
for driving growth...
Advocacy in the telecommunications
industry
Advocacy level in the telecommunications industry is very low
and Australia is...
People like to be in control, and to be
informed, about their personal data
However, getting higher value products/service...
And again, more questions arise
How significant is the
shift to data usage; will
it require a new
business model?
What’s t...
Takeaways
Get social Be transparent about
privacy
Work on deeper
insights
Experiment with
value exchanges
For more information or discussion,
please contact:
Ken Kralick
IBM’s Telecom Global Solution Executive - Customer Experie...
COMPETEINAN
ERAOFSMARTENGAGE.INNOVATE.TRANSFORM.
Thank You
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IBM's Ken Kralick at CommsDay Summit 2014

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Transcript of "IBM's Ken Kralick at CommsDay Summit 2014"

  1. 1. COMPETE IN AN ERA OFSMARTENGAGE.INNOVATE.TRANSFORM.
  2. 2. IBM’s 2014 Global Telecom Consumer Survey Ken Kralick IBM’s Telecom Global Solution Executive Customer Experience COMPETEINAN ERAOFSMARTENGAGE.INNOVATE.TRANSFORM.
  3. 3. IBM’s 2014 GLOBAL TELECOM CONSUMER SURVEY
  4. 4. 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
  5. 5. IBM’S 2014 GLOBAL TELECOM CONSUMER SURVEY THE RESULTS
  6. 6. Closely followed by the laptop/netbook The mobile phone is most valuable device to access the Internet 83% 72% 51% 46% 18% 17% 14% 13% 11% 13% 15% 13% 15% 10% 12% 14% 6% 15% 33% 41% 67% 73% 74% 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mobile Phone Laptop/Netbook Desktop PC Tablet Internet Enabled TV eReader Game Console with Internet Connection Other (e.g. Internet enabled BluRay Player) 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 View Question: How valuable are the following devices for you to access the internet? 83%
  7. 7. Consumer sentiment in Australia is positive Also for spending on telecommunications comparable to the global average -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% -60% -40% -20% 0% 20% 40% 60% 80% Source: 2014 IBM Global Telecom Customer View Question: 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
  8. 8. This is also true for increasing spending on mobile broadband usage i.e. accessing the Internet using a mobile broadband subscription -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% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Source: 2014 IBM Global Telecom Customer View Question: 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
  9. 9. 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 Survey Please 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%
  10. 10. Consumers like to interact with their provider using a wide range of channels Although the phone still is prominent in case of complaints 0 10 20 30 40 50 60 Product/Service Information Personal Info/Service Changes Complaints/Problem Solution Special Offers/Loyalty Programs Feedback on experiences Phone call with Call Centre In-Person (Face-to-Face) Email 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 View Question: What is your preferred channel of interacting with your telecom provider 54%
  11. 11. Seven out of ten consumers said they are willing to provide feedback or engage with them to help them to improve Especially related to existing products and services 0% 10% 20% 30% 40% 50% 60% 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 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 View Question: On which topics do you want to communicate with your Telecom Provider to help the organisation to improve? 48%
  12. 12. 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?
  13. 13. HOW COMPREHENSIVE IS THIS SURVEY?
  14. 14. IBM Survey In Q4’13 / Q1’14, close to 22,000 consumers took part in the survey in 35 countries - in both mature and emerging markets These 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
  15. 15. 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
  16. 16. IBM Survey 17% 17% 28% 5% 22% 35% 36% 24% 20% 19% 26% 24% 41% 29% 10% 48% 0% 20% 40% 60% 80% 100% 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
  17. 17. SO WHAT ARE THE KEY “AREAS FOR IMPROVEMENT”?
  18. 18. 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
  19. 19. LET’S LOOK AT SOME MORE OF THE ACTUAL SURVEY RESULTS
  20. 20. 4% 16% 7% 27% 9% 31% 10% 31% 21% 46%My Telecom Provider allows me MULTIPLE WAYS to interact and communicate with them My Telecom provider LISTENS TO ME and collects the right amount of information to meet my communication needs My Telecom Provider USES THE INFORMATION it already has about me rather than asking me to provide it repeatedly My Telecom Provider enables me to provide FEEDBACK or to provide input to develop new communication products and services My Telecom Provider uses SOCIAL MEDIA in an effective way to engage with me Strongly agree Moderately agree Telecom providers don’t yet get social Only one out of five consumers feel their provider uses social media effectively to engage with them How 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 them20% Source: 2014 IBM Global Telecom Consumer Survey Indicate to which agree/disagree with the following statements on your Primary Telecom provider? Only
  21. 21. Would TELL OTHERS about the bad experience START considering COMPETITIVE services from other providers Would COMPLAIN to my telecom provider Would DISCOURAGE OTHERS to use this provider Would use the services of my provider LESS FREQUENTLY Would 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 experiences50% 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 Survey Indicate to which agree/disagree with the following statements on your Primary Telecom provider?
  22. 22. IBM’s ‘Advocacy Index’ measures the level of advocacy by analysing responses Specifically 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
  23. 23. Advocates and Antagonists Understanding 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
  24. 24. Advocacy in the telecommunications industry Advocacy level in the telecommunications industry is very low and Australia is no exception 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% 0% 20% 40% 60% 80% 100% SouthAfrica Germany Russia Denmark Egypt India Mexico Philippines Turkey Finland Indonesia Norway Poland Sweden China Belgium US Italy NewZealand Australia France Greece Netherlands Ireland Brazil UK SaudiArabia Malaysia Spain Canada Thailand UAE Antagonists Apathetics Advocates Source: 2014 IBM Global Telecom Consumer Survey Which of the following Loyalty statements Recommendation, buying, staying intent about your provider do you agree/disagree with? ADVOCACY RATE IN AUSTRALIA 18%
  25. 25. People like to be in control, and to be informed, about their personal data However, getting higher value products/services for a lower price and getting free/ discounted products are the key stimuli to provide personal information 0 5 10 15 20 25 30 35 40 45 50 Demographic Data (age, ethnic group etc.) Lifestyle Data (e.g. % or devices owned) Media Usage Habits (e.g. TV viewing) Identification Data (name, address etc.) Location Related (e.g. Where you were/go) Medical Data Financial Data (e.g. Creditcard nbr/type) 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 View Question: 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%
  26. 26. 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?
  27. 27. Takeaways Get social Be transparent about privacy Work on deeper insights Experiment with value exchanges
  28. 28. For more information or discussion, please contact: Ken Kralick IBM’s Telecom Global Solution Executive - Customer Experience ken.kralick@us.ibm.com +1.703.371.3598 mobile linkedin.com/in/kralick twitter.com/KennethCKralick
  29. 29. COMPETEINAN ERAOFSMARTENGAGE.INNOVATE.TRANSFORM. Thank You
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