prioritizing what matters - a preview of ibm's fall 2016 global consumer survey
TRANSCRIPT
© 2016 TM Forum | 1
Prioritizing what matters
A preview of IBM’s 2016
global consumer survey
Rob van den DamGlobal Telecom Leader
IBM Institute for Business value
© 2016 TM Forum | 2
Content
Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust
© 2016 TM Forum | 3
Telcos are not leaders in customer experience
No CSPs in Top 25
Telecom lowest among 7 industry groups
No CSP in Top 50
No CSP in Top 50
No CSP in Top 100
Wireless industry #44 of 50 industries
No CSP in Top 50
Only one CSP in Top 100
© 2016 TM Forum | 4
And basic network issues still remain
Mobile Network
Customer Experience
Index
Source: Apteligent, OpenSignal,STL Partners analysis
© 2016 TM Forum | 5
IBM conducted a consumer survey in 42 countries
China (1061)
Australia (509)
Canada (532)
Belgium (313)
Brazil (509)
India (1020)
Greece (542)
France (502)
Germany(640)
Indonesia (511)
Ireland (300)
Mexico (511)
Italy (500)
Japan (501)
Kenya (312)
Netherlands (504)
Russia (514)
Poland (531)
Philippines (509)
Saudi Arabia (320)
South Africa (527)
UAE (308)
Spain (517)
Turkey (547)
Sweden (319)
Thailand (507)
UK (665)
US (1003)
Denmark (301)
Egypt (316)
Czech Republic (303)
Argentina (519)
Austria (301)
Nigeria (538)
Norway (302)
Pakistan (500)
Romania (380)
Portugal (308)
Slovakia (306)
Hungary (309)
South Korea (507)
Switzerland (321)
© 2016 TM Forum | 6
The survey focused on five key topics
Customer Spending
priorities for 2016 – 2018
Customers’ Adoption of
comms services
Video consumption
and experienceCustomer experience
and Loyalty
Consumers’ Digital
Trust in CSPs
2016Consumer survey
© 2016 TM Forum | 7
Content
Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust
© 2016 TM Forum | 8
Telcos aren’t highly valued for their video delivery
18%
12%13%
14%
17%
25%
27%
22%
9%
6%
20%
15%
Your CableCompany
Your TVBroadcaster /
Satellite Operator
Your Telecom(Fixed) Provider
Your Telecom(Mobile) Provider
Internet VideoStreaming Provider
(e.g. Netflix)
Social Media WebSites (e.g. Youku
Tudou)
Emerging countries Mature countries
Most valued provider of video services
© 2016 TM Forum | 9
Watching video using mobile broadband ….
22%
11%
35%
28%
3%
19%
23%
32%
24%
3%
Do not use mobilebroadband for video
Less Than 15 Minutesdaily
15 - 60 Minutes daily 1 - 2 Hours daily More Than 2 Hoursdaily
Emerging countries Mature countries
Watching video on a mobile device on a daily average using mobile broadband
© 2016 TM Forum | 10
… will significantly increase in the coming years
11%
16%
20%22%
24% 24% 25% 26% 27% 27% 28% 28% 28%30% 31% 32% 33% 34% 34% 35% 36% 37% 38% 38% 39%
42% 43%45%
47% 48% 48% 49%51% 51% 52% 53%
55%
58%
62%64%
72% 73%
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Ge
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Me
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Ke
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Arg
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Ru
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Nig
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Eg
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Turk
ey
Hu
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Bra
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Ind
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Indo
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Ch
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Expected Increase in watching video using Mobile
Broadband in coming years (2016 – 2018)
© 2016 TM Forum | 11
But many experience problems while watching video
5%
5%
4%
4%
5%
4%
5%
6%
11%
14%
16%
16%
18%
18%
21%
23%
19%
26%
30%
29%
32%
35%
36%
35%
65%
55%
51%
51%
45%
43%
38%
35%
Other
OUT OF SYNC Video-Audio
NOT Able To START Video
Video/Sound STOPS Playing
FRAME FREEZE
Video QUALITY Problems
WAITING Too Long To Start
Video BUFFERING / Stalling
Very Often / All The Time Often Regularly Never/Rarely
66%of respondents
experience video
buffering and stalling
during play (very)
often or regularly
© 2016 TM Forum | 12
And many blame the telcos for these video problems
45%
7%6%
11%
25%
5%
2%
29%
12%
8%
13%
26%
7%5%
The MobileNetwork (The
Mobile Operator)
The MobileDevice
The Video App The InternetStreaming VideoProvider/Website(e.g. YouTube)
The Wifi Network The Location Myself (Do NotKnow How ToOptimize Video
Streaming)
Emerging countries Mature countries
In case of poor video experiences/problems, where do you think
is the problem?
© 2016 TM Forum | 13
Good quality video experience is important
11%
15%
15%
21%
23%
23%
35%
29%
27%
35%
35%
34%
35%
37%
33%
31%
29%
29%
30%
29%
19%
16%
15%
13%
9%
8%
10%
6%
12%
12%
9%
5%
5%
3%
4%
Accept ADVERTISING Interruptions if TARGETED Based on Interest
Will PAY EXTRA For Assurance On The Quality Of Video Service
Accept ADVERTIZING Interruptions For FREE Or Discounted Access
I SWITCH To Other Provider if My Provider cannot Give Video Quality
Exclusive Video Content Key Incentive To Stay LOYAL With Provider
Video Buffering/Stalling On Device Is UNACCEPTABLE
Important To Have GOOD QUALITY Video Streaming Experience
Strongly Agree Moderately Agree Neither Agree/Disagree Moderately Disagree Strongly Disagree
© 2016 TM Forum | 14
Content
Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust
© 2016 TM Forum | 15
NPS is still very low for telcos
36%
37%
27%
Global
44%32%
39%
31%
39%35%
25% 29% 26%
18-25 26-45 Above 45
27%
40%
41%
34%
32%25%
Emergingcountries
Maturecountries
Promoters
Passives
Detractors
NPS-9 -19 -3 -13 +5 -15
NPS = Net Promoter Score
© 2016 TM Forum | 16
Key reason to switch is not being happy with the network
12%
17%
19%
19%
24%
27%
29%
42%
Better CONTENT And Applications By Rival Competitor
Not Satisfied with VIDEO Streaming Quality
PROMOTIONAL Offer With Rival Provider
INVOICE/Payment Issues
Bad TECHNICAL SUPPORT
Not Happy with CUSTOMER SERVICE/ Ease OfContacting
LOWER COST Package By Rival Provider
Not Satisfied with NETWORK (Coverage, Reliability,Speed, etc.)
If you have switched
provider, what were
the key reasons?
(select up to 4)
© 2016 TM Forum | 17
Quick and ’Fair' problem resolution is key for loyalty
Given equal network performance, quality and price between providers, what are the
most important aspects to stay LOYAL to your provider (select up to 4)?
19%
22%
21%
27%
34%
41%
38%
42%
23%
18%
26%
35%
27%
24%
40%
45%
Openness and TRANSPARENCY
MOTIVATED and Friendly Staff
Ability to DIRECT Me to Right Call Center Representative
Identify and MEET MY NEEDS
EXCEEDING My Expectations
REWARD LOYALTY by Exclusive Offers for Products/Events/etc
Shows Sincere INTEREST In My Satisfaction
Quick and FAIR Resolution of PROBLEMS
Emerging markets
Mature markets
© 2016 TM Forum | 18
Ideal customer experience equals service and speed
15%
16%
27%
28%
35%
39%
40%
52%
55%
24%
28%
21%
41%
29%
33%
38%
42%
51%
PERSONALIZED Advice To Improve My Experience
User Friendly Mobile APP for ONLINE PURCHASE / SELF-SERVICE
Enable Me to TAILOR Products/Services To My Needs
COMPELLING Products/Services ,Transforming the Experience
EXCEEDING My Expectations
EASE And Speed Of CONTACTING My Provider
FAIR Resolution of Complaints And Problems
OUTSTANDING SERVICE From Knowledgeable Motivated Staff
PROMPT And EFFECTIVE Responses To Queries
Emerging countries
Mature countries
Thinking of the IDEAL CUSTOMER EXPERIENCE, which of the following are
most important for you (select up to 4)?
© 2016 TM Forum | 19
Overall, telcos are only rated ’average-to-good’
12%
12%
12%
13%
12%
15%
16%
17%
17%
31%
33%
34%
36%
41%
38%
38%
40%
40%
43%
42%
41%
42%
38%
37%
37%
35%
35%
14%
13%
12%
8%
8%
9%
9%
8%
8%
EXCEEDING My Expectations
PERSONALIZED Advice To Improve Customer Experience
Enable me to TAILOR Products/Services To My Needs
User Friendly Mobile APP for ONLINE PURCHASE / SELF-SERVICE
COMPELLING products/services, Transforming my Experiences
FAIR Resolution of Complaints And PROBLEMS
OUTSTANDING SERVICE From Knowledgeable Motivated Staff
EASE And Speed Of CONTACTING Provider
PROMPT And EFFECTIVE Responses To Queries
Excellent Good Average Poor (Extremely Poor, Not Good)
How do you RATE your communications provider on the following?
© 2016 TM Forum | 20
Content
Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust
© 2016 TM Forum | 21
Consumers trust telcos more than other companies ...
41%
41%
39%
36%
34%
34%
34%
33%
33%
31%
30%
29%
38%
36%
31%
31%
33%
36%
35%
36%
24%
30%
30%
21%
24%
33%
34%
32%
30%
32%
30%
45%
40%
SOCIAL MEDIA Companies
New DISRUPTIVE Players As Uber And Airbnb
APP Developers
ONLINE RETAIL Stores
Q36.9: - Internet Service Providers
PHYSICAL RETAIL Stores
INTERNET VIDEO Streaming Providers (e.g. Netflix)
PAY TV Providers
DEVICE Manufacturers
BANK And CREDIT CARD Companies
TELECOM Companies Including your Primary Provider
Feel uncomfortable No Opinion / Don't Know Comfortable
How COMFORTABLE do you feel about the following providers/companies
handling your personal data?
© 2016 TM Forum | 22
…but overall digital trust in telcos has decreased
How do you feel your trust in Telecom companies
– including your primary provider – to handle your
personal data has CHANGED in the last 3 years?
12%11%
10%
7%5%
4% 4% 4%3%
2%1%
0%
-3%
-8%
-11%-11%-11%-11%-11%-13%-13%-13%-13%-13%
-14%-15%
-17%-18%
-20%-21%-21%
-22%-22%-24%-24%
-25%-26%
-27%-28%
-29%
-33%-34%
Nig
eria
Indo
ne
sia
Tha
iland
India
Ch
ina
Ke
nya
Ru
ssia
Bra
zil
Ph
ilip
pin
es
Eg
ypt
Pa
kis
tan
UA
E
© 2016 TM Forum | 23
Consumers worry that telcos sell their data to 3rd parties
7%
16%
23%
25%
33%
34%
46%
63%
4%
19%
22%
21%
38%
38%
44%
60%
No Concerns
Receive Offers From BRANDS I DON'T KNOW
Personal Info Gathered From Mobile Data BEYOND MYCONTROL
DON'T Want To TARGET Me With Offers
WORRIED How The Info MIGHT BE USED
DON'T Want Them To KNOW That Much About Me
Will NOT Keep Personal Info SECURE
SELL Personal Info To Third Party
Emerging countries
Mature countries
What are your biggest concerns about sharing personal information with your
communications provider (select up to 3)?
© 2016 TM Forum | 24
Customers want knowledge and control
4%
4%
12%
16%
13%
7%
17%
22%
29%
28%
38%
37%
26%
26%
22%
18%
27%
35%
10%
7%
Extent I Like CONTROL Over How Personal Data IsStored/Used
Importance Of TELLING ME How They Store/UsePersonal Data
Experienced That a Company TOOKUNACCEPTABLE ADVANTAGE Of Your Data
TRUST Companies With Regard To Personal DataUsage / Not selling to 3rd Parties
Not at all A lot
Never Frequently
Not at all
Not at all
Extremely
A lot
Questions about how you experience companies handling your personal data and to
what extent you want to have control?
© 2016 TM Forum | 25
Conclusions
Many consumers are not very satisfied with the video streaming
experience over mobile broadband
Telecom providers are still failing at customer experience management
Customer experience can be improved by leveraging personal data, but
trust in their provider is a prerequisite to share this data
Telecom providers rank high in trust for handling personal data, but
consumers want more control and knowledge how their data is used
© 2016 TM Forum | 26
Content
Rob van den Dam
Global Telecom Industry Leader
IBM Institute for Business Value
www.ibm.com/iibv