© 2014 IBM Corporation
IBM Institute for Business Value
Social Media and the Empowerment of
African Consumers
Rob van den ...
© 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
22,000 consumer...
© 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
3
2014
Global T...
© 2014 IBM Corporation
IBM Institute for Business Value
Africa still has the lowest telecommunication penetration rates, b...
© 2014 IBM Corporation
IBM Institute for Business Value
Africa claims to be the ‘Mobile Continent’ and the results of our
...
© 2014 IBM Corporation
IBM Institute for Business Value
6
53%
50%
40%
36%
28%
22%22%20%20%19%
13%13%13%12%12%10%8%
6%5%5%5...
© 2014 IBM Corporation
IBM Institute for Business Value
7
24% 19% 57%
25% 18% 57%
25% 17% 57%
32% 19% 49%
49% 17% 34%
57% ...
© 2014 IBM Corporation
IBM Institute for Business Value
8
Question: How often do you use the following communications serv...
© 2014 IBM Corporation
IBM Institute for Business Value
In the African countries, use of Instant Messaging and Social
Netw...
© 2014 IBM Corporation
IBM Institute for Business Value
10
12%
57%
31%
Reduce(d)Increase(d)
No Change
15%
52%
34%
Reduce(d...
© 2014 IBM Corporation
IBM Institute for Business Value
11
in emerging
markets access
Social Media to
evaluate telecom
pro...
© 2014 IBM Corporation
IBM Institute for Business Value
12
28%
50%
69%
72%
79%SOCIAL MEDIA
Internet SEARCH
RECOMMEND F/F
C...
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth is important as it has become a key factor in
condid...
© 2014 IBM Corporation
IBM Institute for Business Value
Negative word-of-mouth can have a strong negative impact on a
telc...
© 2014 IBM Corporation
IBM Institute for Business Value
15
54% 54%
42%
31%
23%
67% 66%
33% 36%
20%
66% 64%
33%
49%
23%
0%
...
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth is an effective way for consumers to seize control o...
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth can also help a telco increase brand strength in cas...
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos are not leaders in customer advocacy by any customer
advoca...
© 2014 IBM Corporation
IBM Institute for Business Value
IBM’s ‘Advocacy Index’ measures the level of advocacy by analyzing...
© 2014 IBM Corporation
IBM Institute for Business Value
The emotive and personalization aspects seem to make the
differenc...
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos should look outside their industry for leadership in provid...
© 2014 IBM Corporation
IBM Institute for Business Value
22
Groups
Individuals
Reactive Proactive
Mine
Conversations
Crowds...
© 2014 IBM Corporation
IBM Institute for Business Value
Some Telcos are even proactive in understanding services issues by...
© 2014 IBM Corporation
IBM Institute for Business Value
24
of respondents like to
interact with their
provider on improvin...
© 2014 IBM Corporation
IBM Institute for Business Value
A number of CSPs are already connecting to consumers to launch
new...
© 2014 IBM Corporation
IBM Institute for Business Value
However most CSPs don’t yet get social, only a third of the respon...
© 2014 IBM Corporation
IBM Institute for Business Value
27
Percentage underprepared
for Social Business
85%
66%
55%
Lack o...
© 2014 IBM Corporation
IBM Institute for Business Value
28
What’s the most natural way
to initiate collaboration?
Which se...
© 2014 IBM Corporation
IBM Institute for Business Value
29
Thank you
Rob van den Dam
Global Communications Industry
Leader...
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CEM&Loyalty johannesburg_aug2014

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Presentation at Customer Experience, Loyalty & retention in Telecom in Johannesburg, 4-5 August 2014

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CEM&Loyalty johannesburg_aug2014

  1. 1. © 2014 IBM Corporation IBM Institute for Business Value Social Media and the Empowerment of African Consumers Rob van den Dam Global Communications Industry Leader IBM Institute for Business Value
  2. 2. © 2014 IBM Corporation IBM Institute for Business Value IBM 2014 Global Telecommunications Consumer Survey 22,000 consumers in 35 countries took part in the survey, covering:  Customer Spending priorities  Adoption of Comms services  Sources of Information  Customers’ attitudes towards CSPs  Customer Advocacy  Customer Trust 2 2014 IBM Global Telecommunications Consumer Survey
  3. 3. © 2014 IBM Corporation IBM Institute for Business Value IBM 2014 Global Telecommunications Consumer Survey 3 2014 Global Telecom Consumer Survey 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)
  4. 4. © 2014 IBM Corporation IBM Institute for Business Value Africa still has the lowest telecommunication penetration rates, but is experiencing the fastest growth in mobile and internet users worldwide 4 Mobile Penetration: 71% Internet Users: 39% Mobile Penetration: 73% Internet Users: 38% Mobile Penetration: 147% Internet Users 49% Mobile/Cellular Penetration 69%, but HIGHEST (‘13/’14) Growth: 5,2% Internet Users 19%, but HIGHEST (‘13/’14) Growth: 13% Mobile Broadband Penetration 19%, but HIGHEST (‘13/’14) Growth: 43% 43% 21% 19% 16% 15% 12% AFRICA Asia& Pacific Arab states Americas CIS Europe Asia&Pac: 920 Mio Americas: 577 Mio Europe: 399 Mio Africa: 172 Mio CIS: 138 Mio Arab: 92 Mio ITU Statistical data base Nigeria Kenya S. Africa
  5. 5. © 2014 IBM Corporation IBM Institute for Business Value Africa claims to be the ‘Mobile Continent’ and the results of our consumer survey confirm this statement 5 How often do you access the Internet through the following? 73% 57% 25% 20% 8% 12% 21% 7% 19% 30% 55% 73% 0% 20% 40% 60% 80% 100% Daily Weekly Occasionally Including Home WiFi Public WiFi Mobile Global (weighted average of 35 countries) Including Home WiFi Public WiFi Mobile 66% 72% 20% 17% 0% 20% 40% 60% 80% 100% Daily Weekly Occasionally 36% 88% 20% 20% 45% 85% 31% 20% Kenya Nigeria S.Africa African countries Source: 2014 IBM Global Telecom Consumer Survey, How often do you access the INTERNET through the following?
  6. 6. © 2014 IBM Corporation IBM Institute for Business Value 6 53% 50% 40% 36% 28% 22%22%20%20%19% 13%13%13%12%12%10%8% 6%5%5%5%3%2%0% -2%-4%-4%-5% -8%-8%-10% -15%-15%-16% -37% Greece Ireland Italy Netherlands Belgium Spain Poland Philippines Japan UAE France Germany UK US Sweden Finland Canada Malaysia Norway Australia Mexico Russia Denmark NewZealand SaudiArabia Brazil SOUTHAFRICA Egypt Turkey Indonesia Thailand India China NIGERIA KENYA Net Decrease/Increase Consumer spending MOBILE BROADBAND usage (Internet from Mobile) (2014 – 2016) 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? Consumers in African countries expect to increase spending on accessing the mobile Internet
  7. 7. © 2014 IBM Corporation IBM Institute for Business Value 7 24% 19% 57% 25% 18% 57% 25% 17% 57% 32% 19% 49% 49% 17% 34% 57% 18% 25% 74% 12% 14% 80% 11% 9%MOBILE PHONE LAPTOP / NETBOOK Desktop PC TABLET Internet-enabled TV GAME CONSOLE with Internet connection eReader OTHER (e.g. Internet- enabled Blu ray player) Very Valuable Moderately valuable Little valuable / Not applicable How valuable is each of the following devices for you to access the Internet? For accessing the Internet, the mobile phone has become the most valuable device 92% 89% 88% Mobile Phone ‘Very Valuable’ Question: How VALUABLE are the following devices for you to access the Internet?
  8. 8. © 2014 IBM Corporation IBM Institute for Business Value 8 Question: How often do you use the following communications services? Daily usage communication channels in EMERGING markets in EMERGING MARKETS use Social Networks daily to communi- cate with others 74% 28% 25% 45% 26% 25% 36% 37% 50% 61% 65% 66% 74% 82% 30% 55% 58% 71% 66% 79% 76%EMAIL SOCIAL NETWORKING MOBILE MESSAGING INSTANT MESSAGING / Chat MOBILE VOICE calls INTERNET VIDEO streaming/download FIXED VOICE calls MICRO-BLOGGING VOIP (VOice over Internet) VIDEO CALLING All AGES AGE < 25 2 1 People increasingly access the Internet to communicate with others; Social Networking is the # 2 communication channel in emerging markets
  9. 9. © 2014 IBM Corporation IBM Institute for Business Value In the African countries, use of Instant Messaging and Social Networks to communicate with others is high 9 Daily usage communication channels Question: How often do you use the following communications services? Mobile Voice Email Social Networking SMS/MM Internet video Email Social Networking Fixed Voice 87% 91% 76% 57% 45% 64% 96% 80% 81% 69% 57% 67% IM/Chat SMS/MMS Mobile Voice IM/Chat IM/Chat Mobile Voice Call Micro-Blogging SMS/MMS Social Networking Email Social Networking Internet Video IM/Chat Mobile Voice Call Email 81% 82% 81% 69% 65% 74% 85% 79% 84% 76% 49% 75%SMS/MMS Mobile Voice Email Social Networking SMS/MMS Micro-Blogging IM/Chat Email Social Networking 88% 90% 87% 78% 69% 79% 91% 87% 90% 80% 61% 73% SMS/MMS Mobile Voice IM/Chat Micro-BloggingMicro-Blogging Under 25 Above 25
  10. 10. © 2014 IBM Corporation IBM Institute for Business Value 10 12% 57% 31% Reduce(d)Increase(d) No Change 15% 52% 34% Reduce(d)Increase(d) No Change Reduction SMS usage Reduction traditional voice calling of respondents said they have reduced – or will reduce – SMS usage by increasingly using alternative messaging channels 34% of respondents said they have reduced – or will reduce – traditional voice calling by increasingly using alternative voice channels 31% GloballyGlobally Because of these OTT channels, many respondents said they decreased – or will decrease - spending on traditional communication To what extent have you reduced – or will you reduced SMS usage and traditional voice calling by increasingly using alternative channels? 56%48%43% 0% 20% 40% 60% South Africa Nigeria Kenya 43%36%33% 0% 20% 40% 60% South Africa Kenya Nigeria Global Global
  11. 11. © 2014 IBM Corporation IBM Institute for Business Value 11 in emerging markets access Social Media to evaluate telecom providers and their products /services 69% 9% 20% 25% 28% 34% 48% 60% 69% 72% 23% 19% 13% 31% 56% 33% 69% Internet SEARCH SOCIAL MEDIA RECOMMENDATIONS friends/family Telco WEB sites Telco EMAILS & promotional offers Traditional ADVERTISING Retail STORES Shopping PORTALS/auctions Emerging Markets Mature Markets Sources of information on telecom providers and their products/services The web, social media and word-of-mouth now dominate the traditional channels for information relating to Telcos and their products/services Question: What are your preferred sources of information when you are evaluating telecom providers and their products/services?
  12. 12. © 2014 IBM Corporation IBM Institute for Business Value 12 28% 50% 69% 72% 79%SOCIAL MEDIA Internet SEARCH RECOMMEND F/F CSP web sites Retail STORES 36% 49% 55% 58% 77%Internet SEARCH RECOMMEND F/F SOCIAL MEDIA CSP web sites Retail STORES 35% 54% 65% 75% 81%SOCIAL MEDIA Internet SEARCH RECOMMEND F/F CSP Websites Retail STORES 37% 39% 57% 67% 75%Internet SEARCH SOCIAL MEDIA RECOMMEND F/F Retail STORES CSP websites <25 Social Media is a frequently used source of information in the African countries Sources of Information on telecom providers and their products/services Question: What are your preferred sources of information when you are evaluating telecom providers and their products/services?
  13. 13. © 2014 IBM Corporation IBM Institute for Business Value Word-of-mouth is important as it has become a key factor in condidering a provider for products and services 13 15% 21% 22% 22% 43% 46% 51% 52%BEFORE BUYING when the provider provides information When contacting my provider for RESOLVING AN ISSUE BEFORE CONSIDERING the telecom provider (REPUTATION) On first purchase or BEGINNING OF SERVICE When my provider PROACTIVELY ask for my experience When I CONSIDER SWITCHING to a competitor On receiving FIRST INVOICE Close to the END OF SUBSCRIPTION period 3 59% 56% 52% 2 2 2 Key moments of interaction that matter Question: What are the key moments in interacting with your telecom provider that matters to your? Global Importance Word-of-Mouth Reputation
  14. 14. © 2014 IBM Corporation IBM Institute for Business Value Negative word-of-mouth can have a strong negative impact on a telco’s reputation and, consequently, its business performance 14 10% 49% 42% 13% 62% 25% 20% 46% 35% 21% 46% 32% 25% 57% 18% 26% 59% 15% 29% 50% 21% 38% 55% 8% 40% 50% 9% 41% 49% 9%START considering COMPETITIVE services from other providers Would TELL OTHERS about the bad experience 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 Always/Often Regularly/Possibly/Sometimes Never Customer responses in case of NEGATIVE experiences Question: What would you do in case of a NEGATIVE experience with your telecom provider? Global
  15. 15. © 2014 IBM Corporation IBM Institute for Business Value 15 54% 54% 42% 31% 23% 67% 66% 33% 36% 20% 66% 64% 33% 49% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% Too much hassle to get through to the Call Centre Have to wait too long in queue to speak to Call Centre Don't believe it make any difference Networks unreliable anyway My Provider is unable to resolve my problems South Africa Kenya Nigeria Always/often complaining to provider Reasons not complaining to provider in case of negative experience Question: If you not complain to your provider in case of a negative experience, what is the reason? Telcos are not always aware that consumers have bad experiences: less than half of consumers always/often contact them in those cases 49% 45% 44%
  16. 16. © 2014 IBM Corporation IBM Institute for Business Value Word-of-mouth is an effective way for consumers to seize control on some business decisions 16 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 signed a online petition: …. 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…”
  17. 17. © 2014 IBM Corporation IBM Institute for Business Value Word-of-mouth can also help a telco increase brand strength in case of a positive experience, but what do customers perceive as ‘positive’? 17 Always/often recommend provider 72% 70% 69% Top 6 POSITIVE experiences that make a customer LOYAL Question: What are the most important experiences for you to STAY LOYAL to your telecom provider? 38% 40% 44% 57% 70% 90% Quality COMPELLING products/services QUICK effective responses to questions Resolving issues FAIRLY PERSONALIZED & consistent service EXCLUSIVE offers (loyalty program) LOW PRICES relative to competitors 53% 56% 45% 55% 75% 88% Quality COMPELLING products/services QUICK effective responses to questions Resolving issues FAIRLY TRANSPARENCY & openess EXCLUSIVE offers (loyalty program) LOW PRICES relative to competitors 64% 45% 44% 63% 59% 83% Quality COMPELLING products/services QUICK effective responses to questions Resolving issues FAIRLY PERSONALIZED & consistent service EXCLUSIVE offers (loyalty program) LOW PRICES relative to competitors
  18. 18. © 2014 IBM Corporation IBM Institute for Business Value Telcos are not leaders in customer advocacy by any customer advocacy measure 18 No Telcos in Top 25 Telecom lowest among 7 industry groups No Telcos in Top 50 No Telcos in Top 50 No Telcos in Top 100 Wireless industry ranked 44 of 50 industries No Telcos in Top 50 Only one Telco in Top 100, O2 at #46 Customer Loyalty Metrices
  19. 19. © 2014 IBM Corporation IBM Institute for Business Value IBM’s ‘Advocacy Index’ measures the level of advocacy by analyzing responses related to recommendation, buying and staying intent 19 IBM’s ‘Advocacy Index’ measures the level of advocacy by analyzing responses, specifically related to recommendation, purchase intent and staying intent Likelyhood to Recommend Buying Intent Staying Intent Willingness to recommend one’s primary provider to friends and family 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 A willingness to stay with one’s primary provider, even if other provider begin offering competitive producers or Services
  20. 20. © 2014 IBM Corporation IBM Institute for Business Value The emotive and personalization aspects seem to make the difference between advocates and antagonists, not low prices 20 Global average: POSITIVE experiences that make a customer LOYAL Advocates have a higher wallet share and are highly compli- mentary of the provider capability Antagonists have low wallet share and high support costs and are prone to bad-mouth the provider
  21. 21. © 2014 IBM Corporation IBM Institute for Business Value Telcos should look outside their industry for leadership in providing customer experiences that drive loyalty 21
  22. 22. © 2014 IBM Corporation IBM Institute for Business Value 22 Groups Individuals Reactive Proactive Mine Conversations Crowdsource Insights Reply to Questions Influence Influencers Today Next two years Respond to customer questions Solicit customer reviews and opinions Capture customer data Identify and manage key influencers 79% 79% 47% 68% 47% 68% 35% 59% Applying social approaches to ‘listen & engage’ customers (±2/3 of telco respondents in Social Business survey) Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with customer-related social business activities) An increasing number of Telcos are implementing social business to understand customers and engage with them in new and different ways
  23. 23. © 2014 IBM Corporation IBM Institute for Business Value Some Telcos are even proactive in understanding services issues by trolling social networks to understand sources of dissatisfaction 23 O2's Twitter team demonstrate their social media moves on angry tweeters London, July2012 O2 UK experienced widespread network problems affecting hundreds of thousands of its customers in July 2012, user anger was boiling over, with many customers expressing their dissatisfaction on Twitter. O2, however, turned the tides, by using Twitter to deliver fast, professional customer response and was able to maintain their brand image by adding humor and personality to their tweets Having the official verified Twitter profile @Airtel_Presence, Airtel scan for every tweet containing the word “airtel” in it and giving appropriate replies to customers and solving their issues. Airtel uses social network analysis to determine customers’ facing problems. Any mention on social media (Facebook, Orkut, Twitter, etc.) is captured and they get in touch with the customer to get issues resolved.
  24. 24. © 2014 IBM Corporation IBM Institute for Business Value 24 of respondents like to interact with their provider on improving an existing product 60% 60% 56% 38% 26% 22% 22% 21% 6% 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 Social approaches also help to solicit ideas from consumers to improve products or services or create new ones Topics customers are willing to communicate on with their provider % of respondents willing to provide feedback or input Global On which topics do you want to provide feedback or communicate with your Telecom Provider to help the organization to improve? 98% 97% 85%
  25. 25. © 2014 IBM Corporation IBM Institute for Business Value A number of CSPs are already connecting to consumers to launch new services based on their input 25 EE engaged with consumers on its Orange brand to co- create the clone phone1  EE needed inspirational mobile service ideas that people would love  EE collaborated directly with their customers and experts outside of their own field for more than six weeks to co- create the clone phone Telenet developed a mobile TV App with support customers2  Telenet invited users to participate in the development of Yelo, an application for digital TV on mobile devices  Participants were recruited to join a three-week closed pre- launch community to allow collaboration on improvements http://www.inc.com/diane-hessan/mobile-giant- used-consumer-collaboration-to-innovate.html http://www.insites. eu/researchcommunities/telenet/yelo-community.aspx China Telecom analyses insight from consumers to envision and develop new services3  An innovation platform enables marketing teams connect to consumers to gather new intelligence directly from con- sumers to launch new services  Publication of the first idea a mere ten minutes after launch http://www.businesstimes.com.sg/sites/ businesstimes.com.sg/files/China%20Telecom.pdf
  26. 26. © 2014 IBM Corporation IBM Institute for Business Value However most CSPs don’t yet get social, only a third of the respondents feel their provider uses social media effectively to engage with them 26 10% 25% 11% 27% 13% 31% 14% 32% 23% 38%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 of respondents agree that CSPs use Social Media in an effective way to engage with them Globally,only 35% How good is your primary telecom provider in interacting with you? Indicate to which agree/disagree with the following statements on your Primary Telecom provider?
  27. 27. © 2014 IBM Corporation IBM Institute for Business Value 27 Percentage underprepared for Social Business 85% 66% 55% Lack of a cohesive social media plan Lack of appropriate technology Legal and security concerns Lack of leadership support Concerns about inappropriate use Competing priorities or initiatives Difficulty measuring investment returns 64% 34% 39% 25% 15% 52% 59% Underprepared for the necessary cultural changes Unsure about impact of social business over next three years Limited understanding of the business value we intend to obtain Challenges Telecom CxOs to implementing a digital strategy Lack of a cohesive social media plan and problems with measuring ROI are the two biggest barriers to doing more in the digital space Source IBM 213 Global C-suite study (218 telecom CxOs) –How strong is your collaboration with customers?;
  28. 28. © 2014 IBM Corporation IBM Institute for Business Value 28 What’s the most natural way to initiate collaboration? Which self-service option is the best investment? What channels will deliver the best ROI? How can you understand consumer frustrations even when they don’t call about it? What’s the weight of consumer sentiment gathered from social media? How Social are you? What are the best means to get deeper insight about your customers? Which elements of the customer experience are most important for your customers and how do you measure those? Questions for you
  29. 29. © 2014 IBM Corporation IBM Institute for Business Value 29 Thank you Rob van den Dam Global Communications Industry Leader IBM Institute for Business Value rob_vandendam@nl.ibm.com www.ibm.com/iibv

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