Consumer Survey South Africa

IBM Institute for Business Value
February 2012

2011 Global Telecom Consumer Survey
Country Data for South Africa
Communications spending priorities,
perceptions, expectations and attitudes of
today’s smarter consumer

© 2012 IBM Corporation


The digital revolution is changing the relationship between
Communications Service Providers (CSPs) and their customers

It is a brand new game

Consumers become increasingly instrumented
The are using technology to get information from a multitude of sources

Consumers become increasingly interconnected
They are connecting with each other to exchange information

Consumers become increasingly intelligent
They have clearly defined expectations of what they want

2 © 2012 IBM Corporation


The consumers are becoming smarter …….

Instrumented Interconnected Intelligent
WIKI’s
BLOGS
COLLABORATIVE

VIRAL
PRODUCE
TWO-WAY

FAST
 1,97 billion Internet users In 2010 ON A LARGE
They have clearly
worldwide in 2010 - 14%  152 million blogs on the SCALE
defined expectations
Internet FORUMS
increase since previous year of what they want from
 255 million websites - 21.4  25 billion tweets sent on Twitter VIDEO
their provider now and
SHARING CONSUME
million added websites in ’10  250 million new people on in the future
Facebook
 Mobile technologies has A mass of conver-
increased 92% globally and is
still more widely accepted in SN and Blog sites: sations, based on two-
the growth markets  Total minutes increasing 82% Todays consumers are
way communication,
 Over 300,000 iPhone YoY It’scontrol – and they
in no wonder that
often without the provider
applications  Average time per person are driving changes
increasing 67% YoY
we know industry
involved so much
across the
 ± 60,000 iPad applications


…….and now have new avenues to connect with each other and to
influence large corporations, including CSPs

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
Greetings, signed a online petition:
I am disappointed to learn that Verizon Wireless
plans to institute a new $2 fee for paying bills
online…. 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…”


To evaluate the impact of the age of consumerism the IBM Institute
for Business Value conducted both a Consumer ánd a CMO survey

IBM Global Consumer Survey IBM Global CMO Survey
(25 countries;13,237 consumers) (131 interviews with telecom CMOs)



The vast majority of CSP CMOs believe connecting with customers,
in particular through digital channels, will impact marketing most
36%
More
Factors impacting marketing
Percent of CSP CMOs selecting as “Top 5 Factors”

Telecom (CSPs) 53
69% 39 %
Customer collaboration and influence
%
Growth of channel and device choices 65%
Social media All
61% Industries CSPs
Data explosion 53%
Decreasing brand loyalty 51%
Shifting consumer demographics 51%
ROI accountability 44%
Regulatory considerations 31% 38% 21%
More More
Emerging market opportunities 19%
Financial constraints 19%
Privacy considerations 16% 51 51
37 % 42 %
Corporate transparency 14%
% %
Global outsourcing 11%
All All
No significant difference with ‘all industries’ Industries Industries
CSPs CSPs
6 6
Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? (n=131) © 2012 IBM Corporation


The vast majority of CSPs CMOs are underprepared to manage the
impact of key changes in the marketing arena

Underpreparedness
Percent of CMOs reporting underpreparedness
Telecom (CSP) CMOs CMOs All industries
50% 50%
Shifting consumer demographics 78% 63%
Social media 71% 68%
Financial constraints 68% 59%
Emerging market opportunities 67% 56%
Global outsourcing 64% 54%
Decreasing brand loyalty 62% 57%
Customer collaboration and influence 62% 56%
Growth of channel and device choices 56% 65%
Data explosion 54% 71%
Regulatory considerations 53% 50%
ROI accountability 52% 56%
Privacy considerations 48% 55%
Corporate transparency 47% 47%

Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
7 7 © 2012 IBM Corporation


And underpreparedness is in particular in the areas that are key for
connecting to customers, identified as most critical for CSPs CMOs

Global Marketing Priority Matrix
1 Customer collaboration and influence
Underpreparedness 6
2 Growth of channel and device choices
Percent of CMOs reporting
underpreparedness 3
70
3 Social media
10 4 Data explosion
9
5 Decreasing brand loyalty
11 5
6 1
7 6 Shifting consumer demographics
60
7 ROI accountability
2 8 Regulatory considerations
4
8 9 Emerging market opportunities
7
50
11 10 Financial constraints
12
11 Privacy considerations
Factors impacting
marketing 12 Corporate transparency
40 Percent of CMOs selecting
Telecom (CSPs) as ‘Top five factors’ 13 Global outsourcing

0 20 40 60 Mean

Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=131 Q8 How prepared
are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
8


IBM conducted a survey of over 13,000 consumers in 25 countries
in both the mature and emerging markets
Mature Emerging

B
R
France UK US Brazil Russia
I
C
Greece Italy Japan India China

South Korea Portugal Australia Czech Republic Poland

Netherlands Spain Sweden UAE Mexico

Belgium Germany Canada South Africa

9
Cyprus © 2012 IBM Corporation


The survey covered many topics, including spending priorities, service
adoption trends, customer advocacy and adjacent market opportunities

Customer Spending Customers’ Adoption of, Customer Sources of
priorities for 2011 – Experience with, comms Information for communi-
2013 products and services cation products/ services

Customers’ Attitudes Customer Advocacy Adjacent Market
towards Comms Providers and Antagonism Opportunities


More than 100 slides describe the characteristics of South African
consumers in the context of telecommunications

Customer Spending Customers’ Adoption of, Customer Sources of
priorities for 2011 – Experience with, comms Information for communi-
2013 products and services cation products/ services

Customers’ Attitudes Customer Advocacy Adjacent Market
towards Comms Providers and Antagonism Opportunities


1000 respondents were drawn from across South Africa and subscribe
to at least one service from a number of selected service providers
Proportion of sample identifying one of the providers
South Africa : 1000 below as their Primary Communications Provider
respondents

47 % 24 %

20 % 9%

*Services are
 Fixed telephony (landline)  Mobile/Wireless Broadband
 Mobile Telephony  Pay TV (Cable, Satellite, IPTV)
 
Fixed Broadband (Cable, DSL, FTTx)- Internet Telephony



Gender, age and income distributions were selected such that they
were representative for South Africa
Gender Age
Above Below
50 25
11% 11%
40-49
19%

25-34
35-39 43%
50% 50% 16%

Income Weighting
40%
35%
Sample size was based on matching targeted
35% confidence level. The survey results were
30%
weighted to achieve a geographical distribution
25% 22%
20% 18% representative of:
15%
15% o country population relative to population of
10% 7% all countries combined
5% 2% o consumer sample relative to country
0%
Under R R 50,000 - R R 100,000 - R 25,000 - R R 5,00,000 - Over R 1 population
50,000 99,999 R 249,999 4,99,999 R 9,99,999 Million



In our sample, Telkom had the highest proportion of OVER 40s
customers, Vodacom has the highest proportion of BELOW 35s

Age distribution across South African CSPs
100% 1% 2%
7% 5% 6% 60 and above
9%
14% 23% 18%
80% 19% 50-60
16%
15%
60% 17% 30% 40-49

35-39
40% 14%
51% 41%
43%
25-34
20% 25%

16% Below 25
11% 10% 8%
0%
Vodacom MTN Cell C Telkom

Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000


Some Results



Consumer sentiment on future spending in South Africa exceeds
Mature Markets by 25%
Net Increase/Decrease Net Increase/Decrease
Mature
Utilities
Utilities 53% UtilitiesUtilities 4%

Transportation
Transportation 46% Food & drinks
Food & drinks
-15% average -3%

Food & drinks
Food & drinks 24% Transportation
Transportation -6%

Mobile Telephony
Mobile Telephony 15% MobileMobile
Broadband
broadband
-10%

Mobile Broadband
Mobile Broadband 11% Mobile Telepony
Mobile Telephony -14%

PayPay television
television 10% Pay television -16%
Pay television
Fixed Telephony.
Fixed Telephony 4% Sports -18%
Sports
Elect. Appliances
Electrical appliances -3% -19%
FixedTelephony
Fixed
Telephony
Clothing
Clothing -3% Clothing
Clothing -19%

Sports
Sports -5%
+10%average
Holidays
Holiday/vacation -23%

Holidays
Holiday/vacation -10%
Elect.Electrical
Appliances-24%
appliances

Going out -22%
Going out
Going out -32%
Going out

16 Source: 2011 IBM Global Telecom Consumer Survey, Mature countries N= 8865: South Africa N = 1000: © 2012 IBM Corporation
Question: Compared to previous years, are you likely to spend less, the same or more on the following products / services in the next 2-3 years?


Under 25s in South Africa communicate more using social networking
than all other forms of communication; they also use landline less
Daily
Usage
1 Social Networking 90%

2
3
Mobile Telephony

Email/IM/Chat
87% 90%
83% of under 25s use
4 Video Streaming 42% social networks
UNDER 25s daily
5 Fixed Voice 42%
6 VoIP 24%

1 Mobile Telephony 91%
2 Email/IM/Chat 89% 42%
of under 25s with
3 Social Networking 80%
Internet stream or
4 Fixed Voice 65% download video
ABOVE 25s daily
5 Video Streaming 32%

6 VoIP 25%
Source: 2011 IBM Global Telecom Consumer Survey, South Africa N=1000 S06 How often do you use the following communications services?


For UNDER 25s with Internet access the mobile phone is the primary
means to access media and content services

Q07 How often do you access the Internet via the following mechanisms?

CONNECTIVITY services usage
UNDER 25 ABOVE 25
Mobile broadband
71% 13% 15% Fixed broadband 67% 8% 26%
through phone

Mobile broadband
Fixed broadband 55% 11% 33% 55% 13% 31%
through phone

Mobile broadband Mobile broadband
through laptop/ 38% 21% 41% through laptop/ 38% 24% 38%
USB USB

Wireless hotspot 11% 21% 68% Wireless hotspot 8% 19% 73%



One sixth of consumers said that they often cannot make
mobile voice calls

Q09a Please provide an indication of your experience of the frequency with which the following
communication services are available

AVAILABILITY of the Network as perceived by consumers
Always Most of the time Sometimes/Never

0% 20% 40% 60% 80% 100%

Mobile network
availability (Can make 36% 48% 16%
voice calls)

Fixed Internet
connection availability 44% 40% 16%
(Connection)

Mobile Internet
connection availability 29% 46% 26%
(Connection)

Consumers’ perception might differ from what actual measurement indicate!



Majority of South African automatically re-dial when they are
disconnected but share such poor experience with friends / family
Q10. What happens when you are disconnected from a mobile, landline
or broadband during a voice call or when accessing the Internet?

What happens when being disconnected?
Attempt to re-dial/re-connect 52% 43% 5%

95%
Avoid providers with whom friends/family had a Attempt Redial/
30% 54% 16%
poor experience Reconnect

Tell friends/family about my poor experience 21% 62% 17%
84%
Avoid Providers with
Contact Customer Service 12% 41% 46% poor experience

My Provider proactively contacts me in case of
6% 29% 65%
poor network experience
83%
Tell friends/family
Switch network providers - e.g. replacing SIM 4% 26% 69% about their poor
experience
Always Most/Sometimes Never


One third of all consumers surveyed think it is too much hassle to
get through the Call Center
Q12 Why do you not complain to your service provider when you are disconnected from
the network during a conversation, a voice call or internet session?
40%

Reasons for NOT complaining
30%

20%
33%
24% 24%
10%

10%
3% 4% 3%
0%
Telco Don't believe it Too much Have to wait My Provider My Provider is Don’t know
networks make any hassle to get too long in charge for unable to how to contact
unreliable, difference through to the queue to calls to Call resolve my my Provider to
variable Call Centre speak to Call Centre problems complain
service Centre
expected
24% think that complaining doesn’t make any difference
and another 24% said they have to wait too long in
queue to speak to an employee of the Call Center


Internet search, Family/Friends and Social Media have become
the preferred sources of information
What are you preferred sources of information when you are looking
for communication products and services?

72%
Internet search 63%

66%
Recommendations/ advice 71%

58%
Social media 78%

48%
Websites of communication providers 33%

41%
Emails/ promotional offers 29%

36%
Traditional advertising 34%

35%
Retail stores 37% All Ages
Under 25s
18%
Shopping portals/ auctions 16%

Source: IBM Institute for Business value 2011 IBM Global Telecom Consumer Survey, South Africa N= 1000
22 Question: What are you preferred sources of information when you are looking for communication products and services? © 2012 IBM Corporation


CSPs should focus on this new trend and mine digital channels, such
as blogs, tweets, social networks and peer reviews

• Get in tune with today’s digital consumers
by listening to the digital dialogue
• Become part of the dialogue and to be
Blogs
prepared to proactively respond to
negative chatter
Social Tweets
Networks • Encourage a two-way dialogue and
Peer embrace customer input by building online
Reviews and offline communities
• Find the influencers, and target them with
appropriate messaging

By capturing viewer insights from social media sources, RTL
Nederland was able to gather timely feedback from viewers
on the television programmes 'X Factor' and 'So You Think
You Can Dance'. This helped the entertainment company to
better understand audience needs and preferences and
increase viewer satisfaction and involvement.


Bharti Airtel understands how important it is to participate in the
digital dialogue and how it can help solving problems

Having the official verified Twitter profile @Airtel_Presence,
they are scanning for every tweet which contains the word
“airtel” in it and giving appropriate replies to the customers and
solving the issues.

Airtel uses social network analysis to determine customers
facing problems. Any mention on social media is captured and
they get in touch with the customer to get the issue resolved.
Abhilasha
Hans,
CSO “We take the business of customer satisfaction very
seriously.
Source:http://www.buzzom.com/2011/07/airtel-adopts-social-media-strongly-customers-can-live-chat-in-facebook-and-orkut/
24 http://telecomtalk.info/airtel-impact-on-social-media/51645/ © 2012 IBM Corporation


To establish a stable or growing market share, or to improve margins,
CSPs should focus on customer binding

In a world where people
• are becoming increasingly informed, empowered
and demanding
Key Questions • trust family, friends and peers more than their CSP
• have a wide range of providers to choose from
how can CSPs

Improve Customer Binding?
• What does a true Advocate look like?
• How valuable are they?
• Which elements of the customer experience are
most important to consumers?
• How well is the CSP positioned when it comes to
being focused on what the customer wants?
• How can providers use Advocacy to drive growth
and customer loyalty?


A new approach for Customer Advocacy:
Customer Focused Insight Quotient (CFiq)

The Net Promoter Score (NPS) is the traditional measure of word of mouth
NPS advocacy. The score is calculated by simply asking consumers on a scale of 1 to
10 their likelihood to recommend a specific company or brand.

The IBM Customer Focused Insight Quotient (CFiq) utilize an approach that looks
at key client perceptions and organizes them in a manner that captures more than
demographic or behavioral data. Using statistical analysis and multiple regression
CFiq techniques it isolates predictive attributes that are highly correlated with positive
commercial behaviors. The CFiq measures the level of advocacy of a customer by
analyzing customer responses to three key statements as stated in the next slide.

CFiq categories:
– Advocates: loyal clients who refer new business, consolidate more of their
portfolios with their primary provider, and resist competitive offers
– Antagonists harbor negative opinions about their provider, and potentially will
bad-mouth the company
– Apathetics: could be described as those who show no strong feelings either
way, and may be prime candidates to “sweeten” into advocacy. Or, they may
leave their firm if a more appealing option comes along.


A consumers’attitude is shaped by cumulative experience and
directs future behavior and suggestions for improvement
Consumer Attitude

Advocates Apathetics Antagonists

An Advocate is defined by three criteria

A willingness to recommend one’s
Likelihood to Recommend
primary provider to friends and family

AND
A willingness to increase one’s
purchases if one’s primary provider
Purchase Intent expanded its assortment and offered
products currently found only at other
providers
AND
A willingness to stay with one’s primary
Staying Rate provider, even if other providers begin
offering competitive products or services



Understanding who is an Advocate and who an Antagonist, and why,
is important for driving growth and improving customer retention

Advocates have a higher
“I have recommended my Higher
wallet share and are highly
provider to several people” Shareholder
Value complimentary of the
“They have amazing customer
service”
provider capability
“They are more expensive but
I hardly get disconnected or
have calls dropped” Advocates Apathetics are generally
Apathetics
passive participants
susceptible to competitor
offerings
“I think my telco over-charges me
Antagonists
but how can I prove it; my credit
runs out too quickly after I top-up”
“The promotions lack any Antagonists have low
relevance to me” Lower wallet share and high
“ I am looking to switch to the new
Shareholder support costs and are
provider offering cheaper rates” Value prone to bad-mouth the
provider



South African CSPs score well with respect to the proportion of
advocates (34%), but nearly half (49%) remain antagonists
100%
4% 4% 3%
9%
13%
19% 17% 17% 17% 17% 16%
22% 20% 19% 20% 19%
26% 25% 24% 23% 19%
36% 34% 25%
80% 22%
14%
19% 25%
14% 16% 20% 23% 23% 25% 22% 56%
26% 31%
21% 23% 29% 36%
Advocates 60%
Apathetics 17%
18%
22% 25%

40% 77%
Antagonists 70% 69% 71%
62% 61% 64% 62%
60% 53% 52%
59% 58%
55%
58% 57% 60%
52%
49% 49%
46%
20% 39% 41%

0%

Canada
Netherlands

China
Japan
Germany

Australia
South Korea
Czech Republic

Brazil
Portugal
Mexico
Spain

Poland
France
Russia
Sweden
South Africa

Belgium
UK
US

Italy
Greece

Source: 2011 IBM Global Telecom Consumer Survey, Global N= 13237; Mature Countries N=8865; Emerging Countries N=4372


CSPs do not account for the extreme gap in emotive attributes
of their customer base
Advocates Gap Antagonists
% strongly agree % strongly agree
79% Offers me relevant products and services 37%

68% Values me as a customer 32%

63% Provide advice to improve my user experience 30%

60% Resolves problems fairly 28%
Listens and collects information necessary to meet
67% 35%
Give the CSP communication needs Find
credit for 64% Listens and proactively follows-up on issues 32% fault
doing with
“everything” 65% Allows me to customize products and services 33% “everything
right ” CSP
66% Displays consistent level of knowledge 37% does

82% Allows multiple ways to interact with them 54%
Seeks input to develop new communication
49% 21%
Products/services
61% Prompt correction of errors when they occur 34%

76% Doesn’t request for existing information repeatedly 49%


The survey did uncover a number telecom-enabled services majority
of consumers are willing to use /pay for
Retail/Shopping Banking/Insurance Healthcare

#1 all consumers
Nbr 1: Receive Mobile Nbr 1: Location-based Nbr 1: Reminders for
coupons/Discounts (65%) insurance claims (66%) medications/appointments (70%)

Public Services Travel & Transport Utilities

Nbr 1: Pay for local services Nbr 1: Geolocalization (61%) Nbr 1: Alert when monthly usage
(e.g. car parking) (58%) reaches pre-set threshold (69%)

February 2012

Contacts

Robert Fox Rob van den Dam
Global Telecom Industry Leader Global Telecom Industry Lead,
Global Business Services IBM Institute for Business Value
robertfox@us.ibm.com rob_vandendam@nl.ibm.com

WWW.IBM.COM/IIBV

IBM Confidential

Consumer Survey South Africa

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (19)

Similaire à Consumer Survey South Africa

Similaire à Consumer Survey South Africa (20)

Plus de Rob Van Den Dam

Plus de Rob Van Den Dam (20)

Consumer Survey South Africa