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Press Release Global Consumer Survey Mwc 2012


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Press Release Global Consumer Survey Mwc 2012

  1. 1. Global Telecom Consumer Survey 2011IBM Survey Reveals that Communication Service Providers Face Growing Customer Loyalty Gap Proliferation of Technology in Growth Markets bring new customer opportunitiesMobile World Congress, Barcelona – 29 February, 2012 – According to IBM (NYSE: IBM), the global climatefor today’s communications service providers (or CSPs) is fueled by informed, connected and demandingconsumers, many of whom are growing less loyal as their expectations rise and as they take advantage ofnew channels for information. Also revealed in the survey is a consumer attitude of "love my phone, hatethe service" that has proven pervasive worldwide.IBM unveiled these findings in the “IBM Global Telecommunications Consumer Survey” polling more than13,000 consumers in 24 countries to assess general attitudes, including consumers’ spending priorities,grievances, information sources for products and services, and overall purchasing values.The results shed light on a budget-conscious, demanding consumer spending an increasing amount of timeonline, more apt to interface with their friends and family over social networking sites about their servicesrather than communicate directly with the provider. The survey also paints of picture of a sudden rise inmobile and Internet use in growth markets, indicating new opportunities for providers to target anincreasingly sophisticated and desirable customer. While these customers are loyal to many brands in theirdaily lives, there indeed remains a chasm – and opportunity – for them to become better to connected totheir service provider.“There is a gap in the marketplace in how consumers perceive their provider vs. how they perceive andvalue, for example, their actual device,“ said Bob Fox, Telecommunications Industry Leader in IBM’s GlobalBusiness Services. “The industry is facing a critical time period where reaching the consumer andunderstanding how they communicate has become paramount. Future success will belong to the CSPs thatcan amass more loyal customer, lower churn rates and acquisition and service costs matched to the valueof the customer. To gain competitive advantages, CSPs must deepen their consumer insights, encourageinteractions and create an emotional connection to their customers like we see in other industries.”A New, Global Consumer: The survey revealed that many emerging markets appear to be bouncing backmore quickly from the 2008 economic downturn than mature markets, with a higher level of overallconsumer confidence and purchasing intent, highlighted by spending on communications services.Consumer sentiment on future spending on mobile telecommunications in emerging markets exceedsmature markets by 35%.This growth for emerging market communications providers is likely to continue in the next few years, withconsumer demand, economic power and innovation shifting to rapidly developing markets such as China,IBMCopyright IBM Corp. All rights reserved.
  2. 2. Global Telecom Consumer Survey 2011India and Brazil. Part of this is due to the sheer volume of emerging market consumers in these areas: withan approximate population of 5.7 billion in 2010, emerging countries have almost five times moreconsumers than mature markets, where the population is approximately 1.2 billion. Today, mobilesubscribers in emerging markets outnumber fixed ones by more than five to one – signs pointing tosignificant potential growth areas for CSPs.The consumer in emerging markets is also interacting online at higher rates than previously assumed, associal networking has become a leading communication channel. For example, 60% of emerging marketconsumers with a fixed or mobile Internet connection access social networks daily, versus 45% in maturemarkets. At the same time, mobile growth continues to outpace fixed line, including broadband, signifyinga growing impact on the overall network in emerging markets.According to IBM, they also appear more discerning about their choices. Many of these consumers mightswitch to cheaper alternatives such as mobile VoIP, instant messaging and social networks versuscontinuing with a traditional provider.Have Problems, Won’t Call: While consumers’ perception on network services is relatively poor, IBMdiscovered most consumers do not engage with their provider on these issues. Globally, 54% do notcomplain to their provider when being disconnected from the network during a voice call or Internetsession. In the United States, a staggering 71% of unhappy customers do not complain. Though in suchinstances consumers might not be connecting with their providers, they are definitely connecting withother consumers. For example, when disconnected, more than three fourths of consumers surveyed arelikely to tell friends and family about the experience and/or avoid providers associated with poorexperiences.As key reasons for not complaining, consumers said that it is too much hassle to get through to the callcenter (overall 45%) or that complaining will not make any difference (44%). The third reason consumersgave (29%) is the fact that they have to wait too long to reach someone in the call center. In emergingcountries, 30% of consumers shared they believe networks are unreliable and that they always expect toservice to vary.Telling family and friends about poor experiences: Globally, 77% of consumers surveyed tell friends aboutpoor experiences with their provider, with the highest rate of sharing displeasure verbally is in China (93%).81% of all respondents said to avoid providers with whom their family and friends had a poor experience,with highest rate for Sweden (94%).Is there a way out?: Yes. CSPs need to find a way to shift resources from traditional channels - retail stores,advertising, promotions, own web sites - to the powerful emerging channels of social media sites,comparison shopping sites, and towards influencers in their user communities. CSPs must find ways tounderstand consumers as individuals and part of communities, and encourage - not just tolerate -interaction with them across multiple channels, identify emotional connections to their brands andproducts, and create seamless positive experiences across digital, human and physical channels.IBM© Copyright IBM Corp. All rights reserved. Page 2 of 3
  3. 3. Global Telecom Consumer Survey 2011About the IBM Institute for Business Value: The IBM Institute for Business Value has a worldwide presenceand is comprised of more than 50 consultants who conduct research and analysis across multiple industriesand functional disciplines.To learn more on the consumer survey, contact:Rob van den DamGlobal Telecommunications Leader IBM Institute for Business ValuePhone number: 31 6 51284594E-mail: IBM Corp. All rights reserved.