the influence of social - a telecom industry perspective

© 2014 IBM Corporation

IBM Institute for Business Value

The Influence of SocialInsights from the IBM 2014 Telecom Consumer Survey

Ajit BelaniGlobal Communications Industry Marketing Leader IBM Global Business Services



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1.07 Bn Users

62% of Total Revenue through Mobile



3

IBM Institute of Business Value (IBV)

Source: Source for Consulting



IBM 2014 Global Telecommunications Consumer Survey

22,000 consumers took part in the survey in 35 countries, including:

China (1265) India (1038) Indonesia (735) Japan (964) Malaysia (506) Philippines (877) Thailand (616)

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2014IBM 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)



5

IBM conducted a consumer survey to discover spending priorities, service adoption trends and customer experience / behavior / loyalty

Customer Spending priorities for 2011 –

2013

Customers’ Adoption of, Experience with, comms

products and services

Customer Sources of Information for communi-cation products/ services

Customers’ Attitudes towards Comms Providers

Customer Advocacy and Antagonism

Customer Trust in Comms Providers

2014 Consumer Survey



Summary of Results- The good news

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• Consumers are expecting to increase spending on mobile phone usage Indian consumers expect to spend more (36-39%) on using their mobile phone•The mobile phone is now the preferred device for connecting to social channelsThis offers opportunities to increase revenue from mobile broadband

• Consumers want more self-service optionsThey seem to increasingly prefer self-service, a good move for CSPs as this can lower costs and make resources more available to high-value customer

• Consumers want to collaborate with Communications Service Providers (CSPs)They seem willing to help their provider to improve, in particular to improve products and services, and customer service

- Areas for attention• Word of mouth, the web and social media dominate traditional channels for

information about products and services• Only one third of consumers always/often contact their CSP in case of negative

experiences – but they share those bad experiences with friends & family



7

60%59%

39%37%

23%22%21%19%18%17%13%11%10%10%8%7%5%5%4%4%2%

-1%-2%-3%-6%-7%-9%-10%-14%-16%-16%-18%-18%

-39%

18%

Gre

ece

Sp

ain

Ne

the

rlan

ds

Ita

ly

Ire

lan

d

Be

lgiu

m

Po

lan

d

Fin

lan

d

Fra

nce

Ge

rma

ny

JAP

AN

UA

E

No

rwa

yU

K

Ca

na

da

US

Sw

ed

en

MA

LAY

SIA

PH

ILIP

PIN

ES

De

nm

ark

Au

stra

lia

Ne

w Z

ea

lan

d

TH

AIL

AN

DS

au

di A

rab

ia

So

uth

Afr

ica

Bra

zil

Ru

sia

IND

ON

ES

IAE

gyp

t

Me

xico

Tu

rke

y

CH

INA

IND

IAK

en

ya

Nig

eria

Net Decrease/Increase Consumer spending MOBILE phone usage (voice calls, SMS, etc.)

(2014 – 2016)

As many other emerging countries, consumers in India expect to increase spending on mobile phone usage

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?



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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

95%

91%

87%

86%

86%

86%

Mobile Phone Very Valuable

Question: How VALUABLE are the following devices for you to access the Internet?



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Three-quarters of consumers use Social Networking once a day or more to communicate with others

How often do you use the following ‘communication’ services?

86%

78%

74%

69%

69%

59%

58%

44%

43%

40%

8%

12%

14%

8%

14%

22%

14%

19%

22%

25%

6%

10%

12%

23%

17%

20%

27%

37%

34%

35%

EMAIL

MOBILE messaging (SMS, MMS)

SOCIAL NETWORKING

MOBILE voice calls

Instant Messaging / CHAT

INTERNET VIDEO streaming/download

FIXED VOICE calls

MICRO-BLOGGING

Voice over INTERNET

VIDEO CALLING

Daily Weekly Occasionally

Source: 2014 IBM Global Telecom Consumer Survey, How often do you use each of the following communications services?

use Social Networks daily to communicate with others

74%

How often do you use the following ‘communication’ services?



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83%82%80%78%78%77%76%74%73%72%70%70%66%66%63%63%61%59%58%56%55%51%49%49%46%31%

19%

50%

55%

0%

20%

40%

60%

80%

100%

Ken

ya

Tha

iland

Nig

eria

Phi

lippi

nes

Egy

pt

Mal

aysi

a

Mex

ico

Indi

a

Indo

nesi

a

Bra

zil

RS

A

Tur

key

Rus

sia

Gre

ece

Pol

and

Spa

in

Italy

KS

A

N. Z

eala

ndUS

Aus

tral

ia

Chi

na

Can

ada

Fra

nce

UA

E

Ger

man

y

UK

Japa

n

Irel

and

84%84%78%77%75%75%73%71%71%69%61%60%60%60%60%57%56%53%

44%37%34%30%27%26%22%19%9%

27%

31%

0%

20%

40%

60%

80%

100%

Chi

na

RS

A

Spa

in

Nig

eria

Mex

ico

Ken

ya

KS

A

Indo

nesi

a

Mal

aysi

a

Indi

a

Tha

iland

Egy

pt

Bra

zil

Tur

key

Phi

lippi

nes

Italy

UA

E

Rus

sia

Ger

man

y

Gre

ece

Can

ada

UK

Aus

tral

ia

Pol

and

US

N. Z

eala

nd

Fra

nce

Japa

n

Irel

and

Daily access of SOCIAL NETWORKING sites

Daily using IM/Chat

In the list of all countries surveyed India ranks high for consumers using Social Networking and IM/Chat to communicate...



11Source: 2014 IBM Global Telecom Consumer Survey, To what extent have you reduced – or will you reduce - the following by using alternative channels?

…and many respondents said they have decreased – or will decrease – spending on traditional communications because of the OTT channels,

15%

23%

37%

26%

SignificantlyReduce(d)

ModeratelyReduce(d)

Increase(d)

NoChange

of respondent said they have reduced – or will reduce – SMS usage by increasingly using alternative messaging channels

38%

9%

21%

46%

24%

SignificantlyReduce(d)

ModeratelyReduce(d)

Increase(d)

NoChange

of respondent said they have reduced – or will reduce – traditional voice calling by increasingly using alternative voice channels

30%

SMS USAGE Traditional VOICE CALLING



Negative word-of-mouth can have a strong negative impact on a telco’s reputation and, consequently, its business performance

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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



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CSPs are already engaging on social...



CSPs should become more proactive in understanding services issues by trolling social networks to understand sources of dissatisfaction

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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.



Word-of-mouth can also help a telco increase brand strength in case of a positive experience, but what do customers perceive as positive?

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15%

19%

31%

32%

33%

41%

44%

50%

57%

77%Providing high quality COMPELLING products/services

Giving QUICK effective responses to questions/issues

Resolving issues FAIRLY

LOW PRICES even at the cost of quality/service

Giving EXCLUSIVE offers (loyalty program)

Providing TRANSPARENCY & openness

ENABLING CUSTOMIZATION of products/services

PERSONALIZED & consistent service

PROACTIVELY trying to improve user experience

SEEKING OPINION to develop product/services

Always/often recommend provider

54%

45%

43%

28%

46%

Positive experiences that make a customer loyal

Global

Question: What are the most important experiences for you to STAY LOYAL to your telecom provider?



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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

Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with customer-related social business activities)

Generating positive word-of-mouth, or better ‘influence the influencers’, is a clear ambition for many CSPs to increase brand strength



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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

98%

97%

97%

97%

95%

93%

66%

And the good news is that almost all respondents said they are willing to provide feedback or engage to help them to improve and/or innovate

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?



However, most telcos don’t use social in an effective way to engage customers or enable them to provide feedback/input

18

19% 16% 16% 14% 14%8%

2%

25%35% 33%

42%38%

41%

16%

Strongly Agree Moderately Agree

Agree/Disagree: My telecom provider uses Social Media in an effective way to engage with me

Chat Me, Tweet Me, Call Me. Consumers want choice for

contacting their telecom provider

Question: Indicate to which agree/disagree with the following statements on your Primary Telecom provider?



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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?;



Questions

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• What approaches is your organization using to listen to, engage with and influence customers?

• How do your marketing, sales, and customer service functions coordinate around your social initiatives?

• What are your plans to make it easier for customers to interact with your call centers?

• How could you better involve customers in your innovation efforts?

• Do you exploit social network analytics to understand how your customers perceive your product and services?



To Sum it Up…

1.You are important

2.Your social interactions will drive better experience for you

3.You have the power to change the way CSPs work

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IBM Advanced Social Analytics Platform

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IBM Advanced Social Analytics Platform

You Tube Video

Create socially inspired and personalized recommendations for your customers with Advanced Social Analytics Platform. It mines and harvests the consumer’s social footprint and integrates business intelligence to serve personalized recommendations.

Psycholinguistic Analytics



Connect with Us

Download the full IBM IBV study – The Influence of Social

Visit the IBM Institute of Business Value (IBV) - www.ibm.com/iibv

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@ajitbelani

@ibmsmartercomms

in.linkedin.com/in/ajitbelani/



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www.ibm.com/iibv


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