What gives a telco the loyalty advantage?

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By: Wise Marketer Staff |

Posted on March 13, 2015

Despite the competitive challenges from over-the-top (OTT) telecoms players, the majority of consumers still favour traditional telephone service providers, according to research from customer experience solutions provider Amdocs, which explored the 'New World of Customer Experience' - a world characterised by a rapidly changing competitive landscape and the ongoing need to compete by delivering a superior customer experience.

However, while customers value their service providers' customer experience, network quality and brand reputation, churn remains high within the industry.

The study, entitled 'Customer Experience Spotlight 2015', highlighted the importance of providing a superior customer experience in order to retain as well as attract new customers, such as including a carrier-grade Wi-Fi strategy to combat the threat of emerging players in the mobile market and offering multi-play bundles to win market share.

Key findings of the report included:

  • Churn persists within service provider industry
    While 63% of respondents stated they would recommend their service provider, citing customer care/experience (89%) and high-quality internet connection and coverage (59%) as the top reasons for their endorsement, 50% of respondents said they had been with their current service provider for less than a year.
  • Customers prefer traditional service providers
    Some 80% of respondents would not consider switching to OTT disruptors if these players offered mobile connectivity. The top reasons were: privacy & security issues, lack of trust and potential network quality issues. Global variations were significant - the majority of APAC and emerging markets were more likely to consider OTT disruptor services, while mature markets in Europe and North America proved more loyal.
  • Customers desire innovative and new personalised services
    More than half of the respondents stated that they would switch mobile subscription plans for a plan that included additional communication services (e.g. home, internet, TV) with almost the same number of respondents saying they would switch if they were able to choose the bundle components.
  • The multi-play opportunity remains unclaimed
    Although more than half (52%) of respondents subscribe to four services (broadband, TV, mobile, fixed line), only 1% has a single quad-play provider. Triple-play penetration was also low (9%).
  • Carrier-grade Wi-Fi will drive loyalty
    Among the 62% of respondents with a mobile internet plan, 71% use Wi-Fi more frequently than their mobile connection.

"With changing customer expectations and the ever-increasing threat of disruptive competitors, service providers are required to adopt a new strategy by taking a multidimensional view of customer experience," concluded Chris Williams, head of global marketing for Amdocs. "By leveraging their customer experience strengths and exciting customers with innovative, personalised and multi-play bundles, as well as shaping the quality of network experience through real-time network visibility and control carrier-grade Wi-Fi strategies, service providers have a tremendous opportunity to lead in The New World of Customer Experience."

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