Consumer Survey South Africa


Published on

Telecom Consumer Survey South Africa

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Consumer Survey South Africa

  1. 1. IBM Institute for Business ValueFebruary 20122011 Global Telecom Consumer SurveyCountry Data for South Africa Communications spending priorities, perceptions, expectations and attitudes of today’s smarter consumer © 2012 IBM Corporation
  2. 2. IBM Institute for Business ValueThe digital revolution is changing the relationship betweenCommunications Service Providers (CSPs) and their customers It is a brand new game Consumers become increasingly instrumented The are using technology to get information from a multitude of sources Consumers become increasingly interconnected They are connecting with each other to exchange information Consumers become increasingly intelligent They have clearly defined expectations of what they want2 © 2012 IBM Corporation
  3. 3. IBM Institute for Business ValueThe consumers are becoming smarter ……. Instrumented Interconnected Intelligent WIKI’s BLOGS COLLABORATIVE VIRAL PRODUCE TWO-WAY FAST  1,97 billion Internet users In 2010 ON A LARGE They have clearly worldwide in 2010 - 14%  152 million blogs on the SCALE defined expectations Internet FORUMS increase since previous year of what they want from  255 million websites - 21.4  25 billion tweets sent on Twitter VIDEO their provider now and SHARING CONSUME million added websites in ’10  250 million new people on in the future Facebook  Mobile technologies has A mass of conver- increased 92% globally and is still more widely accepted in SN and Blog sites: sations, based on two- the growth markets  Total minutes increasing 82% Todays consumers are way communication,  Over 300,000 iPhone YoY It’scontrol – and they in no wonder that often without the provider applications  Average time per person are driving changes increasing 67% YoY we know industry involved so much across the  ± 60,000 iPad applications3 © 2012 IBM Corporation
  4. 4. IBM Institute for Business Value…….and now have new avenues to connect with each other and toinfluence large corporations, including CSPs 12/29/11 Press Release: “Starting January 15, a new $2 payment convenience fee will be instituted for customers who make single bill payments online or by telephone” Within 24 hours, more than 100,000 people had Greetings, signed a online petition: I am disappointed to learn that Verizon Wireless plans to institute a new $2 fee for paying bills online…. Your company should not assume that it can do anything to your customers and that we will allow it to happen… 12/30/11 Press Release: “Verizon Wireless has decided it will not institute the fee for online or telephone single payments that was announced earlier this week. The company made the decision in response to customer feedback about the plan…”4 © 2012 IBM Corporation
  5. 5. IBM Institute for Business ValueTo evaluate the impact of the age of consumerism the IBM Institutefor Business Value conducted both a Consumer ánd a CMO survey IBM Global Consumer Survey IBM Global CMO Survey (25 countries;13,237 consumers) (131 interviews with telecom CMOs)5 © 2012 IBM Corporation
  6. 6. IBM Institute for Business ValueThe vast majority of CSP CMOs believe connecting with customers,in particular through digital channels, will impact marketing most 36% More Factors impacting marketing Percent of CSP CMOs selecting as “Top 5 Factors” Telecom (CSPs) 53 69% 39 % Customer collaboration and influence %Growth of channel and device choices 65% Social media All 61% Industries CSPs Data explosion 53% Decreasing brand loyalty 51% Shifting consumer demographics 51% ROI accountability 44% Regulatory considerations 31% 38% 21% More More Emerging market opportunities 19% Financial constraints 19% Privacy considerations 16% 51 51 37 % 42 % Corporate transparency 14% % % Global outsourcing 11% All All No significant difference with ‘all industries’ Industries Industries CSPs CSPs6 6 Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? (n=131) © 2012 IBM Corporation
  7. 7. IBM Institute for Business Value The vast majority of CSPs CMOs are underprepared to manage the impact of key changes in the marketing arena Underpreparedness Percent of CMOs reporting underpreparedness Telecom (CSP) CMOs CMOs All industries 50% 50% Shifting consumer demographics 78% 63% Social media 71% 68% Financial constraints 68% 59% Emerging market opportunities 67% 56% Global outsourcing 64% 54% Decreasing brand loyalty 62% 57%Customer collaboration and influence 62% 56%Growth of channel and device choices 56% 65% Data explosion 54% 71% Regulatory considerations 53% 50% ROI accountability 52% 56% Privacy considerations 48% 55% Corporate transparency 47% 47% Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? 7 7 © 2012 IBM Corporation
  8. 8. IBM Institute for Business ValueAnd underpreparedness is in particular in the areas that are key forconnecting to customers, identified as most critical for CSPs CMOs Global Marketing Priority Matrix 1 Customer collaboration and influence Underpreparedness 6 2 Growth of channel and device choices Percent of CMOs reporting underpreparedness 370 3 Social media 10 4 Data explosion 9 5 Decreasing brand loyalty 11 5 6 1 7 6 Shifting consumer demographics60 7 ROI accountability 2 8 Regulatory considerations 4 8 9 Emerging market opportunities 750 11 10 Financial constraints 12 11 Privacy considerations Factors impacting marketing 12 Corporate transparency40 Percent of CMOs selecting Telecom (CSPs) as ‘Top five factors’ 13 Global outsourcing 0 20 40 60 MeanSource: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=131 Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? 8 © 2012 IBM Corporation 8
  9. 9. IBM Institute for Business ValueIBM conducted a survey of over 13,000 consumers in 25 countriesin both the mature and emerging markets Mature Emerging B R France UK US Brazil Russia I C Greece Italy Japan India China South Korea Portugal Australia Czech Republic Poland Netherlands Spain Sweden UAE Mexico Belgium Germany Canada South Africa9 Cyprus © 2012 IBM Corporation
  10. 10. IBM Institute for Business ValueThe survey covered many topics, including spending priorities, serviceadoption trends, customer advocacy and adjacent market opportunities Customer Spending Customers’ Adoption of, Customer Sources of priorities for 2011 – Experience with, comms Information for communi- 2013 products and services cation products/ services Customers’ Attitudes Customer Advocacy Adjacent Market towards Comms Providers and Antagonism Opportunities10 © 2012 IBM Corporation
  11. 11. IBM Institute for Business ValueMore than 100 slides describe the characteristics of South Africanconsumers in the context of telecommunications Customer Spending Customers’ Adoption of, Customer Sources of priorities for 2011 – Experience with, comms Information for communi- 2013 products and services cation products/ services Customers’ Attitudes Customer Advocacy Adjacent Market towards Comms Providers and Antagonism Opportunities11 © 2012 IBM Corporation
  12. 12. IBM Institute for Business Value1000 respondents were drawn from across South Africa and subscribeto at least one service from a number of selected service providers Proportion of sample identifying one of the providers South Africa : 1000 below as their Primary Communications Provider respondents 47 % 24 % 20 % 9% *Services are  Fixed telephony (landline)  Mobile/Wireless Broadband  Mobile Telephony  Pay TV (Cable, Satellite, IPTV)   Fixed Broadband (Cable, DSL, FTTx)- Internet Telephony12 © 2012 IBM Corporation
  13. 13. IBM Institute for Business ValueGender, age and income distributions were selected such that theywere representative for South Africa Gender Age Above Below 50 25 11% 11% 40-49 19% 25-34 35-39 43% 50% 50% 16% Income Weighting 40% 35% Sample size was based on matching targeted 35% confidence level. The survey results were 30% weighted to achieve a geographical distribution 25% 22% 20% 18% representative of: 15% 15% o country population relative to population of 10% 7% all countries combined 5% 2% o consumer sample relative to country 0% Under R R 50,000 - R R 100,000 - R 25,000 - R R 5,00,000 - Over R 1 population 50,000 99,999 R 249,999 4,99,999 R 9,99,999 Million13 © 2012 IBM Corporation
  14. 14. IBM Institute for Business ValueIn our sample, Telkom had the highest proportion of OVER 40scustomers, Vodacom has the highest proportion of BELOW 35s Age distribution across South African CSPs 100% 1% 2% 7% 5% 6% 60 and above 9% 14% 23% 18% 80% 19% 50-60 16% 15% 60% 17% 30% 40-49 35-39 40% 14% 51% 41% 43% 25-34 20% 25% 16% Below 25 11% 10% 8% 0% Vodacom MTN Cell C Telkom14 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  15. 15. IBM Institute for Business Value Some Results15 © 2012 IBM Corporation
  16. 16. IBM Institute for Business Value Consumer sentiment on future spending in South Africa exceeds Mature Markets by 25% Net Increase/Decrease Net Increase/Decrease Mature Utilities Utilities 53% UtilitiesUtilities 4% Transportation Transportation 46% Food & drinks Food & drinks -15% average -3% Food & drinks Food & drinks 24% Transportation Transportation -6% Mobile Telephony Mobile Telephony 15% MobileMobile Broadband broadband -10% Mobile Broadband Mobile Broadband 11% Mobile Telepony Mobile Telephony -14% PayPay television television 10% Pay television -16% Pay television Fixed Telephony. Fixed Telephony 4% Sports -18% Sports Elect. Appliances Electrical appliances -3% -19% FixedTelephony Fixed Telephony Clothing Clothing -3% Clothing Clothing -19% Sports Sports -5% +10%average Holidays Holiday/vacation -23% Holidays Holiday/vacation -10% Elect.Electrical Appliances-24% appliances Going out -22% Going out Going out -32% Going out16 Source: 2011 IBM Global Telecom Consumer Survey, Mature countries N= 8865: South Africa N = 1000: © 2012 IBM Corporation Question: Compared to previous years, are you likely to spend less, the same or more on the following products / services in the next 2-3 years?
  17. 17. IBM Institute for Business ValueUnder 25s in South Africa communicate more using social networkingthan all other forms of communication; they also use landline less Daily Usage 1 Social Networking 90% 2 3 Mobile Telephony Email/IM/Chat 87% 90% 83% of under 25s use 4 Video Streaming 42% social networks UNDER 25s daily 5 Fixed Voice 42% 6 VoIP 24% 1 Mobile Telephony 91% 2 Email/IM/Chat 89% 42% of under 25s with 3 Social Networking 80% Internet stream or 4 Fixed Voice 65% download video ABOVE 25s daily 5 Video Streaming 32% 6 VoIP 25%17 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000 S06 How often do you use the following communications services?
  18. 18. IBM Institute for Business Value For UNDER 25s with Internet access the mobile phone is the primary means to access media and content services Q07 How often do you access the Internet via the following mechanisms? CONNECTIVITY services usage UNDER 25 ABOVE 25 Mobile broadband 71% 13% 15% Fixed broadband 67% 8% 26% through phone Mobile broadband Fixed broadband 55% 11% 33% 55% 13% 31% through phone Mobile broadband Mobile broadband through laptop/ 38% 21% 41% through laptop/ 38% 24% 38% USB USB Wireless hotspot 11% 21% 68% Wireless hotspot 8% 19% 73%18 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  19. 19. IBM Institute for Business ValueOne sixth of consumers said that they often cannot makemobile voice calls Q09a Please provide an indication of your experience of the frequency with which the following communication services are available AVAILABILITY of the Network as perceived by consumers Always Most of the time Sometimes/Never 0% 20% 40% 60% 80% 100% Mobile network availability (Can make 36% 48% 16% voice calls) Fixed Internet connection availability 44% 40% 16% (Connection) Mobile Internet connection availability 29% 46% 26% (Connection) Consumers’ perception might differ from what actual measurement indicate!19 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  20. 20. IBM Institute for Business ValueMajority of South African automatically re-dial when they aredisconnected but share such poor experience with friends / family Q10. What happens when you are disconnected from a mobile, landline or broadband during a voice call or when accessing the Internet? What happens when being disconnected? Attempt to re-dial/re-connect 52% 43% 5% 95% Avoid providers with whom friends/family had a Attempt Redial/ 30% 54% 16% poor experience Reconnect Tell friends/family about my poor experience 21% 62% 17% 84% Avoid Providers with Contact Customer Service 12% 41% 46% poor experience My Provider proactively contacts me in case of 6% 29% 65% poor network experience 83% Tell friends/family Switch network providers - e.g. replacing SIM 4% 26% 69% about their poor experience Always Most/Sometimes Never20 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  21. 21. IBM Institute for Business ValueOne third of all consumers surveyed think it is too much hassle toget through the Call Center Q12 Why do you not complain to your service provider when you are disconnected from the network during a conversation, a voice call or internet session? 40% Reasons for NOT complaining 30% 20% 33% 24% 24% 10% 10% 3% 4% 3% 0% Telco Dont believe it Too much Have to wait My Provider My Provider is Don’t know networks make any hassle to get too long in charge for unable to how to contact unreliable, difference through to the queue to calls to Call resolve my my Provider to variable Call Centre speak to Call Centre problems complain service Centre expected 24% think that complaining doesn’t make any difference and another 24% said they have to wait too long in queue to speak to an employee of the Call Center21 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  22. 22. IBM Institute for Business ValueInternet search, Family/Friends and Social Media have becomethe preferred sources of information What are you preferred sources of information when you are looking for communication products and services? 72% Internet search 63% 66% Recommendations/ advice 71% 58% Social media 78% 48% Websites of communication providers 33% 41% Emails/ promotional offers 29% 36% Traditional advertising 34% 35% Retail stores 37% All Ages Under 25s 18% Shopping portals/ auctions 16% Source: IBM Institute for Business value 2011 IBM Global Telecom Consumer Survey, South Africa N= 100022 Question: What are you preferred sources of information when you are looking for communication products and services? © 2012 IBM Corporation
  23. 23. IBM Institute for Business ValueCSPs should focus on this new trend and mine digital channels, suchas blogs, tweets, social networks and peer reviews • Get in tune with today’s digital consumers by listening to the digital dialogue • Become part of the dialogue and to be Blogs prepared to proactively respond to negative chatter Social Tweets Networks • Encourage a two-way dialogue and Peer embrace customer input by building online Reviews and offline communities • Find the influencers, and target them with appropriate messaging By capturing viewer insights from social media sources, RTL Nederland was able to gather timely feedback from viewers on the television programmes X Factor and So You Think You Can Dance. This helped the entertainment company to better understand audience needs and preferences and increase viewer satisfaction and involvement.23 © 2012 IBM Corporation
  24. 24. IBM Institute for Business ValueBharti Airtel understands how important it is to participate in thedigital dialogue and how it can help solving problems Having the official verified Twitter profile @Airtel_Presence, they are scanning for every tweet which contains the word “airtel” in it and giving appropriate replies to the customers and solving the issues. Airtel uses social network analysis to determine customers facing problems. Any mention on social media is captured and they get in touch with the customer to get the issue resolved.Abhilasha Hans, CSO “We take the business of customer satisfaction very seriously. Source: © 2012 IBM Corporation
  25. 25. IBM Institute for Business ValueTo establish a stable or growing market share, or to improve margins,CSPs should focus on customer binding In a world where people • are becoming increasingly informed, empowered and demanding Key Questions • trust family, friends and peers more than their CSP • have a wide range of providers to choose from how can CSPs Improve Customer Binding? • What does a true Advocate look like? • How valuable are they? • Which elements of the customer experience are most important to consumers? • How well is the CSP positioned when it comes to being focused on what the customer wants? • How can providers use Advocacy to drive growth and customer loyalty?25 © 2012 IBM Corporation
  26. 26. IBM Institute for Business ValueA new approach for Customer Advocacy:Customer Focused Insight Quotient (CFiq) The Net Promoter Score (NPS) is the traditional measure of word of mouthNPS advocacy. The score is calculated by simply asking consumers on a scale of 1 to 10 their likelihood to recommend a specific company or brand. The IBM Customer Focused Insight Quotient (CFiq) utilize an approach that looks at key client perceptions and organizes them in a manner that captures more than demographic or behavioral data. Using statistical analysis and multiple regressionCFiq techniques it isolates predictive attributes that are highly correlated with positive commercial behaviors. The CFiq measures the level of advocacy of a customer by analyzing customer responses to three key statements as stated in the next slide. CFiq categories: – Advocates: loyal clients who refer new business, consolidate more of their portfolios with their primary provider, and resist competitive offers – Antagonists harbor negative opinions about their provider, and potentially will bad-mouth the company – Apathetics: could be described as those who show no strong feelings either way, and may be prime candidates to “sweeten” into advocacy. Or, they may leave their firm if a more appealing option comes along.26 © 2012 IBM Corporation
  27. 27. IBM Institute for Business ValueA consumers’attitude is shaped by cumulative experience anddirects future behavior and suggestions for improvement Consumer Attitude Advocates Apathetics Antagonists An Advocate is defined by three criteria A willingness to recommend one’s Likelihood to Recommend primary provider to friends and family AND A willingness to increase one’s purchases if one’s primary provider Purchase Intent expanded its assortment and offered products currently found only at other providers AND A willingness to stay with one’s primary Staying Rate provider, even if other providers begin offering competitive products or services27 © 2012 IBM Corporation
  28. 28. IBM Institute for Business ValueUnderstanding who is an Advocate and who an Antagonist, and why,is important for driving growth and improving customer retention Advocates have a higher “I have recommended my Higher wallet share and are highly provider to several people” Shareholder Value complimentary of the “They have amazing customer service” provider capability “They are more expensive but I hardly get disconnected or have calls dropped” Advocates Apathetics are generally Apathetics passive participants susceptible to competitor offerings “I think my telco over-charges me Antagonists but how can I prove it; my credit runs out too quickly after I top-up” “The promotions lack any Antagonists have low relevance to me” Lower wallet share and high “ I am looking to switch to the new Shareholder support costs and are provider offering cheaper rates” Value prone to bad-mouth the provider28 © 2012 IBM Corporation
  29. 29. IBM Institute for Business ValueSouth African CSPs score well with respect to the proportion ofadvocates (34%), but nearly half (49%) remain antagonists 100% 4% 4% 3% 9% 13% 19% 17% 17% 17% 17% 16% 22% 20% 19% 20% 19% 26% 25% 24% 23% 19% 36% 34% 25% 80% 22% 14% 19% 25% 14% 16% 20% 23% 23% 25% 22% 56% 26% 31% 21% 23% 29% 36% Advocates 60% Apathetics 17% 18% 22% 25% 40% 77% Antagonists 70% 69% 71% 62% 61% 64% 62% 60% 53% 52% 59% 58% 55% 58% 57% 60% 52% 49% 49% 46% 20% 39% 41% 0% Canada Netherlands China Japan Germany Australia South Korea Czech Republic Brazil Portugal Mexico Spain Poland France Russia Sweden South Africa Belgium UK US Italy Greece29 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, Global N= 13237; Mature Countries N=8865; Emerging Countries N=4372
  30. 30. IBM Institute for Business ValueCSPs do not account for the extreme gap in emotive attributesof their customer base Advocates Gap Antagonists % strongly agree % strongly agree 79% Offers me relevant products and services 37% 68% Values me as a customer 32% 63% Provide advice to improve my user experience 30% 60% Resolves problems fairly 28% Listens and collects information necessary to meet 67% 35% Give the CSP communication needs Find credit for 64% Listens and proactively follows-up on issues 32% fault doing with “everything” 65% Allows me to customize products and services 33% “everything right ” CSP 66% Displays consistent level of knowledge 37% does 82% Allows multiple ways to interact with them 54% Seeks input to develop new communication 49% 21% Products/services 61% Prompt correction of errors when they occur 34% 76% Doesn’t request for existing information repeatedly 49%30 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  31. 31. IBM Institute for Business ValueThe survey did uncover a number telecom-enabled services majorityof consumers are willing to use /pay for Retail/Shopping Banking/Insurance Healthcare #1 all consumers Nbr 1: Receive Mobile Nbr 1: Location-based Nbr 1: Reminders for coupons/Discounts (65%) insurance claims (66%) medications/appointments (70%) Public Services Travel & Transport UtilitiesNbr 1: Pay for local services Nbr 1: Geolocalization (61%) Nbr 1: Alert when monthly usage (e.g. car parking) (58%) reaches pre-set threshold (69%)31 © 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000
  32. 32. IBM Institute for Business ValueFebruary 2012Contacts Robert Fox Rob van den Dam Global Telecom Industry Leader Global Telecom Industry Lead, Global Business Services IBM Institute for Business Value WWW.IBM.COM/IIBV IBM Confidential32 © 2012 IBM Corporation