© 2014 ibm corporation ibm institute for business value social media and the empowerment of african...

© 2014 IBM Corporation

IBM Institute for Business Value

Social Media and the Empowerment of African Consumers

Rob van den DamGlobal Communications Industry Leader 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



IBM 2014 Global Telecommunications Consumer Survey

3

2014Global 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)



For each country we produced a ninety slides deck with country-specific profiles and CSP benchmarking based on consumer responses

4



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%

Ken

yaN

iger

ia

S. A

fric

a

African countries

Source: 2014 IBM Global Telecom Consumer Survey, How often do you access the INTERNET through the following?



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%

Gre

ece

Ire

lan

d

Ita

ly

Ne

the

rlan

ds

Be

lgiu

m

Sp

ain

Po

lan

d

Phi

lippi

nes

Japa

nU

AE

Fra

nce

Ge

rma

ny

UK

US

Sw

ed

en

Fin

lan

d

Ca

na

da

Ma

lays

ia

No

rwa

y

Au

stra

lia

Me

xico

Ru

ssia

De

nm

ark

Ne

w Z

ea

lan

d

Sa

ud

i Ara

bia

Bra

zil

SO

UT

H A

FR

ICA

Eg

ypt

Tu

rke

y

Ind

on

esi

a

Th

aila

nd

Ind

ia

Ch

ina

NIG

ER

IA

KE

NY

A

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

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 withInternet 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?



8Question: 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

21

People increasingly access the Internet to communicate with others; Social Networking is the # 2 communication channel in emerging markets



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

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%

So

uth

Afr

ica

Nig

eri

a

Ke

ny

a

43%36%33%

0%

20%

40%

60%

So

uth

Afr

ica

Ke

ny

a

Nig

eri

aGlobal Global



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

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?



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

ImportanceWord-of-Mouth

Reputation



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

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 muchhassle to getthrough to theCall Centre

Have to wait toolong in queue to

speak to CallCentre

Don't believe itmake anydifference

Networksunreliableanyway

My Provider isunable to

resolve myproblems

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%



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…”



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%




TRANSPARENCY & openess



64%

45%

44%

63%

59%




PERSONALIZED & consistent service





Telcos are not leaders in customer advocacy by any customer advocacy measure

18

No Telcos in Top 25No Telcos in Top 25

Telecom lowest among 7 industry groupsTelecom lowest among 7 industry groups




Wireless industry ranked 44 of 50 industriesWireless industry ranked 44 of 50 industries


Only one Telco in Top 100, O2 at #46Only one Telco in Top 100, O2 at #46

Customer Loyalty Metrices



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

BuyingIntent

StayingIntent

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



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



Telcos should look outside their industry for leadership in providing customer experiences that drive loyalty

21



22

Groups

Individuals

Reactive Proactive

Mine Conversations

CrowdsourceInsights

Reply to Questions

Influence Influencers

Today Next two years

Respond tocustomer questions

Solicit customerreviews and opinions

Capturecustomer data

Identify and managekey 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



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, July2012O2 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

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%



A number of CSPs are already connecting to consumers to launch new services based on their input

25

EE engaged with consumerson 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 TVApp 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 insightfrom consumers to envision anddevelop 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



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 MULTIPLEWAYS to interact and communicate with them

My Telecom provider LISTENS TO ME andcollects the right amount of information to meet

my communication needs

My Telecom Provider USES THE INFORMATIONit already has about me rather than asking me to

provide it repeatedly

My Telecom Provider enables me to provideFEEDBACK or to provide input to develop new

communication products and services

My Telecom Provider uses SOCIAL MEDIA in aneffective 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

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

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 ofconsumer sentimentgathered from socialmedia?

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

Thank you

Rob van den Dam Global Communications Industry Leader IBM Institute for Business [email protected]

www.ibm.com/iibv

© 2014 ibm corporation ibm institute for business value social media and the empowerment of african...

Documents

ibm corporation ibm

business value ibm

business value slide

mobile internet slide

business value africa

business value social

mobile continent

consumer responses