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© 2016 TM Forum | 1 Prioritizing what matters A preview of IBM’s 2016 global consumer survey Rob van den Dam Global Telecom Leader IBM Institute for Business value

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Page 1: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 2: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 2016 TM Forum | 2

Content

Introduction

Video consumption and experience

Customer experience and loyalty

Digital trust

Page 3: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 4: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 2016 TM Forum | 4

And basic network issues still remain

Mobile Network

Customer Experience

Index

Source: Apteligent, OpenSignal,STL Partners analysis

Page 5: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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)

Page 6: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 7: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 2016 TM Forum | 7

Content

Introduction

Video consumption and experience

Customer experience and loyalty

Digital trust

Page 8: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 9: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 10: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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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Expected Increase in watching video using Mobile

Broadband in coming years (2016 – 2018)

Page 11: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 12: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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?

Page 13: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 14: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 2016 TM Forum | 14

Content

Introduction

Video consumption and experience

Customer experience and loyalty

Digital trust

Page 15: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 16: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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)

Page 17: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

Page 18: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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)?

Page 19: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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?

Page 20: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 2016 TM Forum | 20

Content

Introduction

Video consumption and experience

Customer experience and loyalty

Digital trust

Page 21: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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?

Page 22: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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

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Eg

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Pa

kis

tan

UA

E

Page 23: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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)?

Page 24: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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?

Page 25: Prioritizing what matters - A preview of IBM's Fall 2016 Global Consumer survey

© 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