2011 consumer survey france

© 2012 IBM Corporation

2011 Global Telecom Consumer Survey Country Data for France

IBM Institute for Business Value

February 2012

Communications spending priorities, perceptions, expectations and attitudes of today’s smarter consumer


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


2

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


Consumers are becoming smarter and have new avenues to connect with each other 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”

Greetings,

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…

Within 24 hours, more

than 100,000 people had

signed a online petition:

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…”


3


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

4

IBM Global Consumer Survey

(25 countries;13,237 consumers)

IBM Global CMO Survey

(131 interviews with telecom CMOs)


© 2012 IBM Corporation 5

CSP CMOs indicated they feel underprepared particularly in areas that are key for connecting to customers, identified as most critical for them

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?

Global outsourcing

Decreasing brand loyalty

Customer collaboration and influence

Growth of channel and device choices

Data explosion

Regulatory considerations

ROI accountability

Privacy considerations

Corporate transparency

Shifting consumer demographics

Social media

Financial constraints

Emerging market opportunities

Mean

5

6

7

8

9

10

11

12

13

1

2

3

4

11

50

60

70

40

20 40 60 0

Global Marketing Priority Matrix

Factors impacting

marketing Percent of CMOs selecting

as ‘Top five factors’

Underpreparedness Percent of CMOs reporting

underpreparedness

8 7

11 12

6

3

7

6

1

2 4

5

10 9

Telecom (CSPs)


5


To understand consumers’ attitudes towards CSPs in the world of today IBM conducted a survey of over 13,000 consumers in 25 countries

6

Mature

France UK US

Greece Italy Japan

South Korea Australia Portugal

Netherlands Sweden Spain

Belgium Germany Canada

Emerging

Brazil

Mexico

Poland Czech Republic

India China

UAE

Russia

South Africa

B R I C

Cyprus



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

7

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

Adjacent Market

Opportunities



More than 100 slides describe the characteristics of US consumers in their perception of CSPs and their products and services

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

Adjacent Market

Opportunities



951 respondents were drawn from across France and subscribe to at least one service from a wide range of service providers

Mobile/Wireless Broadband

Pay TV (Cable, Satellite, IPTV)

Internet Telephony

Fixed telephony (landline)

Mobile Telephony

Fixed Broadband (Cable, DSL, FTTx)-

*Services are

38 % 31 %

18 % 9 %

3 % 1%

<1 %

Proportion of sample identifying one of the providers

below as their Primary Communications Provider France : 951

respondents; 9.3% of

total sample (weighted

distribution 4.6%)


Some Results



0%

-1%

-4%

-11%

-11%

-15%

-18%

-19%

-21%

-28%

-29%

5%Electric/Gas Utilities

Fixed Telephony

Food & drinks

Transportation

Mobile broadband

MobileTelephony

Pay television

Clothing

Holidays/vacations

Sports

Electrical appliances

Going out

Mobile Telephony

Mobile Broadband

Transportation

Pay television

Utilities

Elect. Appliances

Fixed Telephony.

Source: 2011 IBM Global Telecom Consumer Survey, Mature countries N= 8865: France N = 951:

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?

Consumer sentiment on future spending in France is much lower

than the average of the emerging markets surveyed

Holidays

Food & drinks

Clothing

Going out

Sports

average

-13%

11

40%

30%

22%

21%

16%

7%

6%

6%

3%

2%

-7%

-10%

Utilities

Food & drinks

Transportation

Mobile Telephony

Clothing

Holiday/vacation

Mobile Broadband

Pay television

Electrical appliances

Fixed Telephony

Going out

Sports

Mobile Telephony

Mobile Broadband

Transportation

Pay television

Utilities

Elect. Appliances

Fixed Telephony.

Net Increase/Decrease

Holidays

Food & drinks

Clothing

Going out

Sports

Emerging Net Increase/Decrease

© 2012 IBM Corporation 12 12

44%40%38%31%

25%25%22%20%16%

-4%-5%-7%-8%-8%-9%-9%-12%-17%-18%-19%-22%

-29%-30%

-56%

1%

Sw

ed

en

UK

Gre

ece

Ita

ly

Po

rtu

ga

l

Fra

nce

Ne

the

rla

nd

s

Sp

ain

Be

lgiu

m

Ge

rma

ny

Au

str

alia

US

A

Ja

pa

n

Ca

na

da

.

Cyp

rus

Cze

ch

R.

Pola

nd

Ru

ssia

Ind

ia

Ch

ina

Bra

zil

UA

E

Me

xic

o

South

Afr

ica

Kore

a

45%

35%31%

15%15%12%8%6%5%

-3%-6%-6%-7%-7%-9%-10%-12%-13%-15%-16%-20%

-25%-32%

-43%

-2%S

we

de

n

UK

Gre

ece

Ita

ly

Po

rtu

ga

l

Fra

nce

Ne

the

rla

nd

s

Spain

Cze

ch

R.

Belg

ium

Germ

any

Au

str

alia

US

A

Ja

pa

n

Ca

na

da

.

Cyp

rus

Pola

nd

Ru

ssia

Ind

ia

Ch

ina

Bra

zil

UA

E

Me

xic

o

So

uth

Afr

ica

Kore

a

Emerging

Markets

Spending MOBILE Telephony (Voice, SMS, etc) (2012 – 2014)

Spending MOBILE Broadband (2012 – 2014)

As in most mature markets, more than less consumers in France expect to reduce spending on mobile telephony and broadband

Ne

t In

cre

ase

/Decre

ase

N

et

Incre

ase

/Decre

ase

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

© 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, France N=951 S06 How often do you use the following communications services?

Mobile Telephony

Email/IM/Chat

Social Networking

VoIP

Video Streaming

Fixed Voice

62%

70%

72%

43%

8%

26%

Daily

Usage

ABOVE 25s

Mobile Telephony

Email/IM/Chat

Social Networking

VoIP

Video Streaming

Fixed Voice

51%

62%

49%

39%

7%

14%

UNDER 25s

1

2

4

3

5

6

2

1

4

5

3

6

62% of under 25s use

social networks daily

26% of under 25s with

Internet stream or

download video daily

13

For under 25s social networking has become the number 3 communication channel


62% 63% 66% 66% 68%62%

72%63%

7% 7%10% 8% 8%

8%

8%18%

16% 15%

12%11% 9%

12%

11% 10%2% 3%3%

4% 5%

4%

3% 4%5%

1% 5% 1%

6%

2% 3% 3% 4%

3%

2%

5%6% 3%2%3%

6%

6%

2%2%8%

4%

0%

20%

40%

60%

80%

100%

Online

audio

content

Live video

broadcast

User

generated

video

Online

Music video

clips

Online

News video

clips

Online

sports

videos

TV

Programs

Full movie

Other smart

phone

Android device

Blackberry

Tablet PC

iPhone

Laptop/Netbook

via Mobile

Broadband

Via Fixed

Broadband

Q08. Which of the following do you use to access the media/content services

in the last question

High

Media/Content

users

In the category ‘High Media users’ one third claims to access a variety of rich content services through a mobile device

Source: 2011 IBM Global Telecom Consumer Survey, France N=951

Fixed


29% 31% 33% 33%37% 39% 39% 40% 41% 43% 44% 46%

50% 52% 52% 53% 55% 56%62% 65% 65% 67% 69%

75%

71% 69% 67% 67%63% 61% 61% 60% 59% 57% 56% 54%

50% 48% 48% 47% 45% 44%38% 35% 35% 33% 31%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

US

A

UK

Austr

alia

Neth

erlands

Sw

eden

Canada

Japan

Pola

nd

Germ

any

Port

ugal

South

Afr

ica

Spain

Czech

Belg

ium

Kore

a

Fra

nce

Mexic

o

Russia

Italy

Chin

a

Gre

ece

UA

E

Bra

zil

India

No

Yes

15

Do you ever complain to your service provider when you are disconnected

from the network during a conversation, a voice call or internet session?

Almost half of French consumers do NOT complain to their CSP when disconnected from the network

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


More than half of consumers surveyed don’t believe that complaining will make any difference, or said that it is too much hassle to get through to the call center

12%

28%25%

14% 12%6%

3%0%

10%

20%

30%

40%

Telco

networks

unreliable,

variable

service

expected

Don't believe it

make any

difference

Too much

hassle to get

through to the

Call Centre

Have to wait

too long in

queue to

speak to Call

Centre

My Provider

charge for

calls to Call

Centre

My Provider is

unable to

resolve my

problems

Don’t know

how to contact

my Provider to

complain

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?

Reasons for NOT complaining

Another 14% said that it takes too

long to reach someone in the call

center Source: 2011 IBM Global Telecom Consumer Survey, France N=951


53%

29%

5%

3%

42%

56%

61%

42%

23%

18%

5%

15%

25%

53%

74%

79%

14%

3%

Attempt to re-dial/re-

connect

Avoid providers

friends/family have poor

experiences with

Tell friends/family about

my poor experience

Contact customer

service

Switch providers – e.g.

use different SIM

My provider contacts me

when I have a poor

network experience

Always Most/Sometimes Never

Q10. What happens when you are disconnected from a mobile, landline

or broadband during a voice call or when accessing the Internet?

95% Attempt Redial/

Reconnect

75% Tell friends/family

about their poor

experience

85% Avoid Providers with

poor experience

What happens when being disconnected?


However, the majority of consumers exchange these experiences with their friends/family


67%

54%

37%

33%

22%

21%

15%

10%

72%

50%

28%

25%

28%

12%

11%

7%

Internet search

Recommendations/ advice

Websites of communication providers

Social media

Retail stores

Traditional advertising

Emails/ promotional offers

Shopping portals/ auctions

All 25 countries

France

What are you preferred sources of information when you are looking

for communication products and services?

Source: IBM Institute for Business value 2011 IBM Global Telecom Consumer Survey, France N=951

Question: What are you preferred sources of information when you are looking for communication products and services?

18


Internet Search and Friends/Family have become the preferred sources of information in France, social media as source is growing


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

Blogs

Tweets

Peer

Reviews

Social

Networks

• Get in tune with today’s digital consumers

by listening to the digital dialogue

• Become part of the dialogue and to be

prepared to proactively respond to

negative chatter

• Encourage a two-way dialogue and

embrace customer input by building online

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.



In a world where people

• are becoming increasingly informed, empowered

and demanding

• 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?

Key Questions

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



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

The Net Promoter Score (NPS) is the traditional measure of word of mouth

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

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.

NPS

CFiq


21


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

Likelihood to Recommend A willingness to recommend one’s

primary provider to friends and family

Purchase Intent

AND A willingness to increase one’s

purchases if one’s primary provider

expanded its assortment and offered

products currently found only at other

providers

Staying Rate

AND

A willingness to stay with one’s primary

provider, even if other providers begin

offering competitive products or services

An Advocate is defined by three criteria

Antagonists Apathetics Advocates

Consumer Attitude


© 2012 IBM Corporation 23 23

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

“I have recommended my provider to several people”

“They have amazing customer service”

“They are more expensive but I hardly get disconnected or have calls dropped”

“I think my telco over-charges me but how can I prove it; my credit runs out too quickly after I top-up”

“The promotions lack any relevance to me”

“ I am looking to switch to the new provider offering cheaper rates”

Antagonists

Advocates

Apathetics

Higher Shareholder

Value

Lower Shareholder

Value

Advocates have a higher

wallet share and are highly

complimentary of the

provider capability

Apathetics are generally

passive participants

susceptible to competitor

offerings

Antagonists have low

wallet share and high

support costs and are

prone to bad-mouth the

provider


© 2012 IBM Corporation Source: 2011 IBM Global Telecom Consumer Survey, 25 countries, N = 13235

Antagonists

60%

Advocates

18% Apathetics

22%

39%

49%53% 52%

62% 61%

49%

59% 58%55%

58%

46%

57% 60%64%

70%

52%

62%69% 71%

77%

41%

25%

17%

21% 23%

14% 16%

29%

20% 23%26%

23%

36%

25% 22%19%

14%

31%

25%

22%25%

19%

56%

36% 34%

26% 25% 24% 23% 22% 20% 19% 20% 19% 19% 17% 17% 17% 17% 16%13%

9%4% 4% 3%

0%

20%

40%

60%

80%

100%

Sw

ed

en

So

uth

Afr

ica

Fra

nce

Ru

ssia

Me

xic

o

Sp

ain

Gre

ece

Be

lgiu

m

UK

US

Ne

the

rla

nd

s

Cze

ch

Re

pu

blic

Ita

ly

Po

lan

d

Po

rtu

ga

l

Bra

zil

Ge

rma

ny

Ca

na

da

Au

str

alia

So

uth

Ko

rea

Ja

pa

n

Ch

ina

Though one of the highest advocacy levels of the countries surveyed, French CSPs still have too few advocates


51%58% 62%

46%

24%21% 14%

18%

25% 21% 25%36%

0%

20%

40%

60%

80%

100%

France Telecom /

Orange

Neuf Cegetel / SFR Bouygues Telecom Free / Iliad

Advocates

Apathetics

Antagonist

In France, Free has the highest proportion of advocates and the lowest proportion of antagonists

21%

26%

53%



CSPs do not account for the extreme gap in attitude of their customer base

Advocates % strongly agree % strongly agree Antagonists

Give the CSP

credit for

doing

“everything”

right

Find

fault

with

“everything

” CSP

does


Prompt correction of errors when they occur 30% 74%

Listens and proactively follows-up on issues 27% 69%

Offers me relevant products and services 21% 63%

Listens and collects information necessary to meet

communication needs 17% 59%

Displays consistent level of knowledge 19% 57%

Resolves problems fairly 16% 52%

Allows me to customize products and services 31% 66%

Values me as a customer 14% 49%

Provide advice to improve my user experience 14% 47%

Allows multiple ways to interact with them 49% 81%

Seeks input to develop new communication

Products/services 14% 46%

Does not request for existing information repeatedly 40% 68%

Gap


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

Retail/Shopping Banking/Insurance Healthcare

Public Services Travel & Transport

Nbr 1: Detailed Product

info on mobile (44%)

Nbr 1: Location-based

insurance claims (55%)

Nbr 1: Remote health monitoring

(47%)

Nbr 1: Find nearest public/

government offices (46%)

Nbr 1: Time table for public

transportation (56%)

Utilities

Source: 2011 IBM Global Telecom Consumer Survey, France N= 951

#1

all c

onsum

ers


27

Nbr 1: Receive notifications of

electric/gas/water service

outages (46%)



February 2012

Bob Fox

Global Telecom Industry Leader

Global Business Services

[email protected]

Rob van den Dam

Global Telecom Industry Lead,


[email protected]

Contacts

WWW.IBM.COM/IIBV

mailto:[email protected]

mailto:[email protected]

2011 consumer survey france

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