Prioritizing what matters

A preview of IBMs 2016

global consumer survey

Rob van den Dam

Global Telecom Leader
IBM Institute for Business value
2016 TM Forum | 1

Content

Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust

2016 TM Forum | 2

Telcos are not leaders in customer experiences

Telecom lowest among 7 industry groups
No CSP in Top 100
No CSP in Top 50
No CSP in Top 50

Wireless industry #44 of 50 industries

No CSPs in Top 25
Only one CSP in Top 100
No CSP in Top 50
2016 TM Forum | 3

And basic network issues still remain

Mobile Network
Customer Experience
Index

Source: Apteligent, OpenSignal,STL Partners analysis

2016 TM Forum | 4

IBM conducted a consumer survey in 42 countries

Argentina
(519)

Australia
(509)

Austria
(301)

Belgium
(313)

Brazil
(509)

Canada
(532)

China
(1061)

Czech Republic
(303)

Denmark
(301)

Egypt
(316)

France
(502)

Germany
(640)

Greece
(542)

Hungary
(309)

India
(1020)

Indonesia
(511)

Ireland
(300)

Italy
(500)

Japan
(501)

Kenya
(312)

Mexico
(511)

Netherlands
(504)

Nigeria
(538)

Norway
(302)

Pakistan
(500)

Philippines
(509)

Poland
(531)

Portugal
(308)

Romania
(380)

Russia
(514)

Saudi Arabia
(320)

Slovakia
(306)

South Africa
(527)

South Korea
(507)

Spain
(517)

Sweden
(319)

Switzerland
(321)

Thailand
(507)

Turkey
(547)

UAE
(308)

UK
(665)

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US
(1003)

The survey focused on five key topics

2016
Consumer survey

Customers Adoption of
comms services

Customer Spending
priorities for 2016 2018

Video consumption
and experience

Customer experience
and Loyalty

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Consumers Digital
Trust in CSPs

Content

Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust

2016 TM Forum | 7

Telcos arent highly valued for their video delivery

27%

Emerging countries

Mature countries

25%

22%
20%
18%

17%
13%

12%

15%

14%

9%
6%

Your Cable
Company

Your TV
Broadcaster /
Satellite Operator

Your Telecom
(Fixed) Provider

Your Telecom
Internet Video
Social Media Web
(Mobile) Provider Streaming Provider Sites (e.g. Youku
(e.g. Netflix)
Tudou)

Most valued provider of video services

2016 TM Forum | 8

Watching video using mobile broadband .

Emerging countries

35%

Mature countries

32%
28%
24%

23%

22%
19%

11%

3%

Do not use mobile

broadband for video

Less Than 15 Minutes

daily

15 - 60 Minutes daily

1 - 2 Hours daily

3%

More Than 2 Hours

daily

Watching video on a mobile device on a daily average using mobile broadband

2016 TM Forum | 9

 will significantly increase in the coming years

72% 73%

Expected Increase in watching video using Mobile

Broadband in coming years (2016 2018)
42% 43%

20%

22%

24% 24% 25%

26% 27% 27%

28% 28% 28%

30% 31%

32% 33%

34% 34%

37%
35% 36%

62%

64%

58%

45%

49%
47% 48% 48%

51% 51% 52%

53%

55%

38% 38% 39%

16%

Japan
Switzerland
Slovakia
Austria
Denmark
Australia
Belgium
Norway
Ireland
France
US
Germany
Czech Rep
Canada
Sweden
Italy
RSA
Portugal
Greece
Philippines
Netherlands
S Korea
UK
Pakistan
pain
Romenia
Mexico
KSA
UAE
Kenya
Argentina
Russia
Nigeria
Egypt
Turkey
Hungary
Poland
Brazil
India
Indonesia
China
Thailand

11%

2016 TM Forum | 10

But many experience problems while watching video

66%

of respondents
experience video
buffering and stalling
during play (very)
often or regularly

Very Often / All The Time

Often

Video BUFFERING / Stalling

6%

35%

WAITING Too Long To Start

5%

Video QUALITY Problems 4%

FRAME FREEZE

5%

23%

21%

Regularly

Never/Rarely
35%

36%

18%

38%

35%

18%

43%

32%

45%

Video/Sound STOPS Playing 4%

16%

29%

51%

NOT Able To START Video 4%

16%

30%

51%

OUT OF SYNC Video-Audio

5%

Other 5%

14%
11%

2016 TM Forum | 11

26%
19%

55%
65%

And many blame the telcos for these video problems

45%

In case of poor video experiences/problems, where do you think

is the problem?
29%

Emerging countries

25%

26%

13%

12%
7%

Mature countries

11%
8%

7%

6%

5%

5%
2%

The Mobile
Network (The
Mobile Operator)

The Mobile
Device

The Video App

The Internet The Wifi Network The Location

Streaming Video
Provider/Website
(e.g. YouTube)

2016 TM Forum | 12

Myself (Do Not

Know How To
Optimize Video
Streaming)

Good quality video experience is important

Strongly Agree

Moderately Agree

Neither Agree/Disagree

Important To Have GOOD QUALITY Video Streaming Experience

35%

Moderately Disagree

37%

Strongly Disagree

19%

6% 4%

Video Buffering/Stalling On Device Is UNACCEPTABLE

23%

35%

29%

10% 3%

Exclusive Video Content Key Incentive To Stay LOYAL With Provider

23%

34%

30%

8% 5%

I SWITCH To Other Provider if My Provider cannot Give Video Quality

21%

29%

9% 5%

Accept ADVERTIZING Interruptions For FREE Or Discounted Access

15%

Will PAY EXTRA For Assurance On The Quality Of Video Service

15%

Accept ADVERTISING Interruptions if TARGETED Based on Interest

11%

2016 TM Forum | 13

35%

35%

27%

29%

29%

31%

33%

13%

9%

15%

12%

16%

12%

Content

Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust

2016 TM Forum | 14

NPS is still very low for telcos

NPS = Net Promoter Score

-9
27%

37%

36%

Global

-19

-3

-13

25%

29%

26%

31%

32%

44%
32%

26-45

-15
25%

34%

35%
39%

18-25

+5

41%

40%

39%

27%

Above 45

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Emerging
countries

Mature
countries

NPS
Promoters

Passives

Detractors

Key reason to switch is not being happy with the network

Not Satisfied with NETWORK (Coverage, Reliability,
Speed, etc.)

42%

LOWER COST Package By Rival Provider

29%

Not Happy with CUSTOMER SERVICE/ Ease Of

Contacting

27%

Bad TECHNICAL SUPPORT

24%

INVOICE/Payment Issues

19%

PROMOTIONAL Offer With Rival Provider

19%

Not Satisfied with VIDEO Streaming Quality

Better CONTENT And Applications By Rival Competitor

2016 TM Forum | 16

17%

12%

If you have switched

provider, what were
the key reasons?
(select up to 4)

Quick/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?
49%

Quick And FAIR Resolution Of PROBLEMS

38%

REWARD LOYALTY by Exclusive, Discounted/Free, Upgraded

And/Or Relevant Offers To Products,

26%
37%
44%

Shows Sincere INTEREST In My Satisfaction

34%
30%
31%

EXCEEDING My Expectations

39%

Identify And MEET MY NEEDS

Ability to DIRECT Me To Right Call Center Representative
MOTIVATED And Friendly STAFF
Openness And TRNSPARENCY

2016 TM Forum | 17

24%
29%
19%
20%
20%

Emerging countries
25%

17%

Mature countries

Ideal customer experience equals service and speed

Thinking of the IDEAL CUSTOMER EXPERIENCE, which of the following are
most important for you?
55%

PROMPT And EFFECTIVE Responses To Queries

50%
46%
48%

OUTSTANDING SERVICE From Knowledgeable Motivated Staff

41%

FAIR Resolution of Complaints And Problems

37%
36%
36%

EASE And Speed Of CONTACTING My Provider

31%
32%

EXCEEDING My Expectations

45%

COMPELLING Products/Services ,Transforming the Experience

26%
23%
25%

Enable Me to TAILOR Products/Services To My Needs

User Friendly Mobile APP for ONLINE PURCHASE / SELF-SERVICE

PERSONALIZED Advice To Improve My Experience

2016 TM Forum | 18

30%
15%

Emerging countries
26%

14%

Mature countries

Telco are only rated average-to-good

How do you RATE your communications provider on the following?
Excellent

Good

Average

Poor (Extremely Poor, Not Good)

PROMPT And EFFECTIVE Responses To Queries

17%

40%

35%

8%

EASE And Speed Of CONTACTING Provider

17%

40%

35%

8%

FAIR Resolution of Complaints And Problems

15%

38%

37%

9%

OUTSTANDING SERVICE From Knowledgeable Motivated Staff

16%

38%

37%

9%

38%

8%

COMPELLING products/services, Transformating my Experiences

12%

User Friendly Mobile APP for ONLINE PURCHASE / SELFSERVICE

13%

Enable me to TAILOR Products/Services To My Needs

12%

34%

PERSONALIZED Advice To Improve Customer Experience

12%

33%

EXCEEDING My Expectations

12%

31%

2016 TM Forum | 19

41%
36%

42%
41%
42%
43%

8%
12%
13%
14%

Content

Introduction
Video consumption and experience
Customer experience and loyalty
Digital trust

2016 TM Forum | 20

Consumers trust telcos more than other companies ...

How COMFORTABLE do you feel about the following providers/companies
handling your personal data?
Feel uncomfortable

TELECOM Companies Including your Primary Provider

30%

BANK And CREDIT CARD Companies

31%

DEVICE Manufacturers

33%

PAY TV Providers

33%

INTERNET VIDEO Streaming Providers (e.g. Netflix)

34%

PHYSICAL RETAIL Stores

34%

Q36.9: - Internet Service Providers

34%

ONLINE RETAIL Stores

36%

APP Developers

39%

New DISRUPTIVE Players As Uber And Airbnb

41%

SOCIAL MEDIA Companies

41%

2016 TM Forum | 21

No Opinion / Don't Know

30%

Comfortable

40%

24%

45%
36%

30%

35%

32%

36%

30%

33%

32%

31%

34%

31%

33%

36%
38%
29%

24%
21%
30%

but in general digital trust in telcos has decreased

12%

11%

10%
7%
5%

4% 4% 4%

3%
0%

Nigeria
Indonesia
Thailand
India
China
Kenya
Russia
Brazil
Philippines
Pakistan
UAE

1%

-2%

-3%

-8%
-11%-11%-11%-11%-11%
-13%-13%-13%-13%-13%
-14%
-15%
-17%
-18%

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?

-20%
-21%-21%
-22%-22%
-24%-24%
-25%
-26%
-27%
-28%
-29%
-33%
-34%

2016 TM Forum | 22

Consumers worry that telcos sell their data to 3rd parties

What are your biggest concerns about sharing personal information with your
communications provider?
62%
60%

SELL Personal Info To Third Party

46%
44%

Will NOT Keep Personal Info SECURE

40%

DON'T Want Them To KNOW That Much About Me

32%
40%

WORRIED How The Info MIGHT BE USED

31%
22%
24%

DON'T Want To TARGET Me With Offers

Personal Info Gathered From Mobile Data BEYOND MY
CONTROL

23%
22%
20%

Receive Offers From BRANDS I DON'T KNOW

No Concerns

15%
4%
7%

2016 TM Forum | 23

Emerging countries
Mature countries

Customers want knowledge and control

Questions about how you experience companies handling your personal data and to
what extent you want to have control?
Not at all

TRUST Companies With Regard To Personal Data

Usage / Not selling to 3rd Parties

A lot

16%

22%

37%

18%

Never
Experienced That a Company TOOK
UNACCEPTABLE ADVANTAGE Of Your Data

12%

7%

Frequently
17%

38%

22%

10%

Not at all
Importance Of TELLING ME How They Store/Use
4% 7%
Personal Data

Very
28%

26%

35%

Not at all
Extent I Like CONTROL Over How Personal Data Is
4% 13%
Stored/Used

2016 TM Forum | 24

A lot
29%

26%

27%

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 | 25

Content

Rob van den Dam

Global Telecom Industry Leader
IBM Institute for Business Value
rob_vandendam@nl.ibm.com

www.ibm.com/iibv

2016 TM Forum | 26