My presentation at the International Conference of Social Media Marketing. This presentation is about key insights from the 2014 IBM Telecom Consumer Survey and how social behavior of consumers is impacting the Communication Service Providers. Event URL --> www.icsmm2014.com

1. © 2014 IBM Corporation
IBM Institute for Business Value
The Influence of Social
Insights from the IBM 2014 Telecom Consumer Survey
Ajit Belani
Global Communications Industry Marketing Leader
IBM Global Business Services

2. © 2014 IBM Corporation
IBM Institute for Business Value
2
1.07 Bn
Users
62% of Total Revenue
through Mobile

3. © 2014 IBM Corporation
IBM Institute for Business Value
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IBM Institute of Business Value (IBV)
Source: Source for Consulting

4. © 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
22,000 consumers
took part in the
survey in 35
countries, including:
 China (1265)
 India (1038)
 Indonesia (735)
 Japan (964)
 Malaysia (506)
 Philippines (877)
 Thailand (616)
4
2014
IBM 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)

5. © 2014 IBM Corporation
IBM Institute for Business Value
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IBM conducted a consumer survey to discover spending priorities,
service adoption trends and customer experience / behavior / loyalty
Customer Spending
priorities for 2011 –
2013
Customers’ Adoption of,
Experience with, comms
products and services
Customer Sources of
Information for communi-
cation products/ services
Customers’ Attitudes
towards Comms Providers
Customer Advocacy
and Antagonism
Customer Trust in
Comms Providers
2014 Consumer Survey

6. © 2014 IBM Corporation
IBM Institute for Business Value
Summary of Results
- The good news
6
• Consumers are expecting to increase spending on mobile phone usage
Indian consumers expect to spend more (36-39%) on using their mobile phone
•The mobile phone is now the preferred device for connecting to social
channels
This offers opportunities to increase revenue from mobile broadband
• Consumers want more self-service options
They seem to increasingly prefer self-service, a good move for CSPs as this can lower costs
and make resources more available to high-value customer
• Consumers want to collaborate with Communications Service Providers (CSPs)
They seem willing to help their provider to improve, in particular to improve products and
services, and customer service
- Areas for attention
• Word of mouth, the web and social media dominate traditional channels for
information about products and services
• Only one third of consumers always/often contact their CSP in case of negative
experiences – but they share those bad experiences with friends & family

7. © 2014 IBM Corporation
IBM Institute for Business Value
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60%59%
39%37%
23%22%21%19%18%17%
13%11%10%10%8%7%5%5%4%4%2%
-1%-2%-3%-6%-7%-9%-10%
-14%-16%-16%-18%-18%
-39%
18%
Greece
Spain
Netherlands
Italy
Ireland
Belgium
Poland
Finland
France
Germany
JAPAN
UAE
Norway
UK
Canada
US
Sweden
MALAYSIA
PHILIPPINES
Denmark
Australia
NewZealand
THAILAND
SaudiArabia
SouthAfrica
Brazil
Rusia
INDONESIA
Egypt
Mexico
Turkey
CHINA
INDIA
Kenya
Nigeria
Net Decrease/Increase Consumer spending
MOBILE phone usage (voice calls, SMS, etc.)
(2014 – 2016)
As many other emerging countries, consumers in India expect to
increase spending on mobile phone usage
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?

8. © 2014 IBM Corporation
IBM Institute for Business Value
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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
95%
91%
87%
86%
86%
86%
Mobile Phone
Very Valuable
Question: How VALUABLE are the following devices for you to access the Internet?

9. © 2014 IBM Corporation
IBM Institute for Business Value
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Three-quarters of consumers use Social Networking once a day or
more to communicate with others
How often do you use the following ‘communication’ services?
86%
78%
74%
69%
69%
59%
58%
44%
43%
40%
8%
12%
14%
8%
14%
22%
14%
19%
22%
25%
6%
10%
12%
23%
17%
20%
27%
37%
34%
35%
EMAIL
MOBILE messaging (SMS, MMS)
SOCIAL NETWORKING
MOBILE voice calls
Instant Messaging / CHAT
INTERNET VIDEO streaming/download
FIXED VOICE calls
MICRO-BLOGGING
Voice over INTERNET
VIDEO CALLING
Daily Weekly Occasionally
Source: 2014 IBM Global Telecom Consumer Survey, How often do you use each of the following communications services?
use Social
Networks daily to
communicate with
others
74%
How often do you use the following ‘communication’ services?

10. © 2014 IBM Corporation
IBM Institute for Business Value
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83%82%80%78%78%77%76%74%73%72%70%70%66%66%63%63%61%59%58%56%55%51%49%49%46%
31%
19%
50%
55%
0%
20%
40%
60%
80%
100%
Kenya
Thailand
Nigeria
Philippines
Egypt
Malaysia
Mexico
India
Indonesia
Brazil
RSA
Turkey
Russia
Greece
Poland
Spain
Italy
KSA
N.Zealand
US
Australia
China
Canada
France
UAE
Germany
UK
Japan
Ireland
84%84%78%77%75%75%73%71%71%69%
61%60%60%60%60%57%56%53%
44%
37%34%30%27%26%22%19%
9%
27%
31%
0%
20%
40%
60%
80%
100%
China
RSA
Spain
Nigeria
Mexico
Kenya
KSA
Indonesia
Malaysia
India
Thailand
Egypt
Brazil
Turkey
Philippines
Italy
UAE
Russia
Germany
Greece
Canada
UK
Australia
Poland
US
N.Zealand
France
Japan
Ireland
Daily access of SOCIAL
NETWORKING sites
Daily using IM/Chat
In the list of all countries surveyed India ranks high for consumers
using Social Networking and IM/Chat to communicate...

11. © 2014 IBM Corporation
IBM Institute for Business Value
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Source: 2014 IBM Global Telecom Consumer Survey, To what extent have you reduced – or will you reduce - the following by using alternative channels?
…and many respondents said they have decreased – or will decrease –
spending on traditional communications because of the OTT channels,
15%
23%
37%
26%
Significantly
Reduce(d)
Moderately
Reduce(d)
Increase(d)
No
Change
of respondent said
they have reduced –
or will reduce – SMS
usage by increasingly
using alternative
messaging channels
38%
9%
21%
46%
24%
Significantly
Reduce(d)
Moderately
Reduce(d)
Increase(d)
No
Change
of respondent said they
have reduced – or will
reduce – traditional voice
calling by increasingly
using alternative voice
channels
30%
SMS USAGE Traditional VOICE CALLING

12. © 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
12
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

13. © 2014 IBM Corporation
IBM Institute for Business Value
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CSPs are already engaging on social...

14. © 2014 IBM Corporation
IBM Institute for Business Value
CSPs should become more proactive in understanding services issues
by trolling social networks to understand sources of dissatisfaction
14
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.

15. © 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?
15
15%
19%
31%
32%
33%
41%
44%
50%
57%
77%Providing high quality COMPELLING products/services
Giving QUICK effective responses to questions/issues
Resolving issues FAIRLY
LOW PRICES even at the cost of quality/service
Giving EXCLUSIVE offers (loyalty program)
Providing TRANSPARENCY & openness
ENABLING CUSTOMIZATION of products/services
PERSONALIZED & consistent service
PROACTIVELY trying to improve user experience
SEEKING OPINION to develop product/services
Always/often
recommend provider
54%
45%
43%
28%
46%
Positive experiences that make a customer loyal
Global
Question: What are the most important experiences for you to STAY LOYAL to your telecom provider?

16. © 2014 IBM Corporation
IBM Institute for Business Value
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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
Source: Institute for Business Value, 2012 Business of Social Business Study
(% CSPs with customer-related social business activities)
Generating positive word-of-mouth, or better ‘influence the influencers’,
is a clear ambition for many CSPs to increase brand strength

17. © 2014 IBM Corporation
IBM Institute for Business Value
17
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
98%
97%
97%
97%
95%
93%
66%
And the good news is that almost all respondents said they are willing
to provide feedback or engage to help them to improve and/or innovate
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?

18. © 2014 IBM Corporation
IBM Institute for Business Value
However, most telcos don’t use social in an effective way to engage
customers or enable them to provide feedback/input
18
19%
16% 16% 14% 14%
8%
2%
25%
35% 33%
42%
38%
41%
16%
Strongly Agree Moderately Agree
Agree/Disagree:
My telecom provider uses Social Media in an effective way to engage with me
Chat Me, Tweet Me, Call Me.
Consumers want choice for
contacting their telecom provider
Question: Indicate to which agree/disagree with the following statements on your Primary Telecom provider?

19. © 2014 IBM Corporation
IBM Institute for Business Value
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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?;

20. © 2014 IBM Corporation
IBM Institute for Business Value
Questions
20
• What approaches is your organization using to listen to, engage with
and influence customers?
• How do your marketing, sales, and customer service functions
coordinate around your social initiatives?
• What are your plans to make it easier for customers to interact with
your call centers?
• How could you better involve customers in your innovation efforts?
• Do you exploit social network analytics to understand how your
customers perceive your product and services?

21. © 2014 IBM Corporation
IBM Institute for Business Value
To Sum it Up…
1.You are important
2.Your social interactions will drive better
experience for you
3.You have the power to change the way
CSPs work
21

22. © 2014 IBM Corporation
IBM Institute for Business Value
IBM Advanced Social Analytics Platform
22
IBM Advanced Social Analytics Platform
You Tube Video
Create socially inspired and personalized
recommendations for your customers with
Advanced Social Analytics Platform. It
mines and harvests the consumer’s
social footprint and integrates business
intelligence to serve personalized
recommendations.
Psycholinguistic Analytics

23. © 2014 IBM Corporation
IBM Institute for Business Value
Connect with Us
Download the full IBM IBV study – The Influence of Social
Visit the IBM Institute of Business Value (IBV) - www.ibm.com/iibv
23
@ajitbelani
@ibmsmartercomms
in.linkedin.com/in/ajitbelani/

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IBM Institute for Business Value
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www.ibm.com/iibv

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