© 2014 ibm corporation ibm institute for business value social media and the empowerment of african...
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© 2014 IBM Corporation
IBM Institute for Business Value
Social Media and the Empowerment of African Consumers
Rob van den DamGlobal Communications Industry Leader IBM Institute for Business Value
© 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
22,000 consumers in 35 countries took part in the survey, covering:
Customer Spending priorities Adoption of Comms services Sources of Information Customers’ attitudes towards CSPs Customer Advocacy Customer Trust
2
2014 IBM Global Telecommunications Consumer Survey
© 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
3
2014Global 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)
© 2014 IBM Corporation
IBM Institute for Business Value
For each country we produced a ninety slides deck with country-specific profiles and CSP benchmarking based on consumer responses
4
© 2014 IBM Corporation
IBM Institute for Business Value
Africa claims to be the ‘Mobile Continent’ and the results of our consumer survey confirm this statement
5
How often do you access the Internet through the following?
73%57%
25% 20%
8%
12%
21%
7%
19%30%
55%
73%
0%
20%
40%
60%
80%
100%
Daily Weekly Occasionally
Including Home WiFi
Public WiFi
Mobile
Global (weighted average of 35 countries)
Including Home WiFi
Public WiFi
Mobile
66%72%
20% 17%
0%
20%
40%
60%
80%
100%
Daily Weekly Occasionally
36%
88%
20% 20%
45%
85%
31%20%
Ken
yaN
iger
ia
S. A
fric
a
African countries
Source: 2014 IBM Global Telecom Consumer Survey, How often do you access the INTERNET through the following?
© 2014 IBM Corporation
IBM Institute for Business Value
6
53%50%
40%36%
28%
22%22%20%20%19%
13%13%13%12%12%10%8%6%5%5%5%3%2%0%
-2%-4%-4%-5%-8%-8%-10%
-15%-15%-16%
-37%
Gre
ece
Ire
lan
d
Ita
ly
Ne
the
rlan
ds
Be
lgiu
m
Sp
ain
Po
lan
d
Phi
lippi
nes
Japa
nU
AE
Fra
nce
Ge
rma
ny
UK
US
Sw
ed
en
Fin
lan
d
Ca
na
da
Ma
lays
ia
No
rwa
y
Au
stra
lia
Me
xico
Ru
ssia
De
nm
ark
Ne
w Z
ea
lan
d
Sa
ud
i Ara
bia
Bra
zil
SO
UT
H A
FR
ICA
Eg
ypt
Tu
rke
y
Ind
on
esi
a
Th
aila
nd
Ind
ia
Ch
ina
NIG
ER
IA
KE
NY
A
Net Decrease/Increase Consumer spending MOBILE BROADBAND usage (Internet from Mobile)
(2014 – 2016)
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?
Consumers in African countries expect to increase spending on accessing the mobile Internet
© 2014 IBM Corporation
IBM Institute for Business Value
7
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
92%
89%
88%
Mobile Phone ‘Very Valuable’
Question: How VALUABLE are the following devices for you to access the Internet?
© 2014 IBM Corporation
IBM Institute for Business Value
8Question: How often do you use the following communications services?
Daily usage communication channels in EMERGING markets
in EMERGING MARKETS use Social Networks daily to communi-cate with others
74%
28%
25%
45%
26%
25%
36%
37%
50%
61%
65%
66%
74%
82%
30%
55%
58%
71%
66%
79%
76%EMAIL
SOCIAL NETWORKING
MOBILE MESSAGING
INSTANT MESSAGING / Chat
MOBILE VOICE calls
INTERNET VIDEO streaming/download
FIXED VOICE calls
MICRO-BLOGGING
VOIP (VOice over Internet)
VIDEO CALLING
All AGES
AGE < 25
21
People increasingly access the Internet to communicate with others; Social Networking is the # 2 communication channel in emerging markets
© 2014 IBM Corporation
IBM Institute for Business Value
In the African countries, use of Instant Messaging and Social Networks to communicate with others is high
9
Daily usage communication channels
Question: How often do you use the following communications services?
Mobile Voice
Social Networking
SMS/MM
Internet video
Social Networking
Fixed Voice
87%
91%
76%
57%
45%
64%
96%
80%
81%
69%
57%
67%
IM/Chat
SMS/MMS
Mobile Voice
IM/Chat
IM/Chat
Mobile Voice Call
Micro-Blogging
SMS/MMS
Social Networking
Social Networking
Internet Video
IM/Chat
Mobile Voice Call
81%
82%
81%
69%
65%
74%
85%
79%
84%
76%
49%
75%SMS/MMS
Mobile Voice
Social Networking
SMS/MMS
Micro-Blogging
IM/Chat
Social Networking
88%
90%
87%
78%
69%
79%
91%
87%
90%
80%
61%
73%
SMS/MMS
Mobile Voice
IM/Chat
Micro-BloggingMicro-Blogging
Under 25
Above 25
© 2014 IBM Corporation
IBM Institute for Business Value
10
12%
57%
31%
Reduce(d)Increase(d)
No Change
15%
52%
34%
Reduce(d)Increase(d)
No Change
Reduction SMS usage
Reduction traditional voice calling
of respondents said they have reduced – or will reduce – SMS usage by increasingly using alternative messaging channels
34% of respondents said they have reduced – or will reduce – traditional voice calling by increasingly using alternative voice channels
31% GloballyGlobally
Because of these OTT channels, many respondents said they decreased – or will decrease - spending on traditional communication
To what extent have you reduced – or will you reduced SMS usage and traditional voice calling by increasingly using alternative channels?
56%48%43%
0%
20%
40%
60%
So
uth
Afr
ica
Nig
eri
a
Ke
ny
a
43%36%33%
0%
20%
40%
60%
So
uth
Afr
ica
Ke
ny
a
Nig
eri
aGlobal Global
© 2014 IBM Corporation
IBM Institute for Business Value
11
in emerging markets access Social Media to evaluate telecom providers and their products /services
69%
9%20%
25%
28%
34%
48%
60%
69%
72%
23%
19%
13%
31%
56%
33%
69%Internet SEARCH
SOCIAL MEDIA
RECOMMENDATIONS friends/family
Telco WEB sites
Telco EMAILS & promotional offers
Traditional ADVERTISING
Retail STORES
Shopping PORTALS/auctions
Emerging Markets
Mature Markets
Sources of information on telecom providers and their products/services
The web, social media and word-of-mouth now dominate the traditional channels for information relating to Telcos and their products/services
Question: What are your preferred sources of information when you are evaluating telecom providers and their products/services?
© 2014 IBM Corporation
IBM Institute for Business Value
12
28%
50%
69%
72%
79%SOCIAL MEDIA
Internet SEARCH
RECOMMEND F/F
CSP web sites
Retail STORES
36%
49%
55%
58%
77%Internet SEARCH
RECOMMEND F/F
SOCIAL MEDIA
CSP web sites
Retail STORES
35%
54%
65%
75%
81%SOCIAL MEDIA
Internet SEARCH
RECOMMEND F/F
CSP Websites
Retail STORES
37%
39%
57%
67%
75%Internet SEARCH
SOCIAL MEDIA
RECOMMEND F/F
Retail STORES
CSP websites
<25
Social Media is a frequently used source of information in the African countries
Sources of Information on telecom providers and their products/services
Question: What are your preferred sources of information when you are evaluating telecom providers and their products/services?
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth is important as it has become a key factor in condidering a provider for products and services
13
15%
21%
22%
22%
43%
46%
51%
52%BEFORE BUYING when the provider provides information
When contacting my provider for RESOLVING AN ISSUE
BEFORE CONSIDERING the telecom provider(REPUTATION)
On first purchase or BEGINNING OF SERVICE
When my provider PROACTIVELY ask for my experience
When I CONSIDER SWITCHING to a competitor
On receiving FIRST INVOICE
Close to the END OF SUBSCRIPTION period
3 59%
56%
52%
2
2
2
Key moments of interaction that matter
Question: What are the key moments in interacting with your telecom provider that matters to your?
Global
ImportanceWord-of-Mouth
Reputation
© 2014 IBM Corporation
IBM Institute for Business Value
Negative word-of-mouth can have a strong negative impact on a telco’s reputation and, consequently, its business performance
14
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
© 2014 IBM Corporation
IBM Institute for Business Value
15
54% 54%
42%
31%23%
67% 66%
33% 36%
20%
66% 64%
33%
49%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Too muchhassle to getthrough to theCall Centre
Have to wait toolong in queue to
speak to CallCentre
Don't believe itmake anydifference
Networksunreliableanyway
My Provider isunable to
resolve myproblems
South Africa Kenya Nigeria
Always/often complaining to
provider
Reasons not complaining to provider in case of negative experience
Question: If you not complain to your provider in case of a negative experience, what is the reason?
Telcos are not always aware that consumers have bad experiences: less than half of consumers always/often contact them in those cases
49%
45%
44%
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth is an effective way for consumers to seize control on some business decisions
16
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 signed a online petition: …. 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…”
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth can also help a telco increase brand strength in case of a positive experience, but what do customers perceive as ‘positive’?
17
Always/often recommend
provider
72%
70%
69%
Top 6 POSITIVE experiences that make a customer LOYAL
Question: What are the most important experiences for you to STAY LOYAL to your telecom provider?
38%
40%
44%
57%
70%
90%Quality COMPELLING products/services
QUICK effective responses to questions
Resolving issues FAIRLY
PERSONALIZED & consistent service
EXCLUSIVE offers (loyalty program)
LOW PRICES relative to competitors
53%
56%
45%
55%
75%
88%Quality COMPELLING products/services
QUICK effective responses to questions
Resolving issues FAIRLY
TRANSPARENCY & openess
EXCLUSIVE offers (loyalty program)
LOW PRICES relative to competitors
64%
45%
44%
63%
59%
83%Quality COMPELLING products/services
QUICK effective responses to questions
Resolving issues FAIRLY
PERSONALIZED & consistent service
EXCLUSIVE offers (loyalty program)
LOW PRICES relative to competitors
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos are not leaders in customer advocacy by any customer advocacy measure
18
No Telcos in Top 25No Telcos in Top 25
Telecom lowest among 7 industry groupsTelecom lowest among 7 industry groups
No Telcos in Top 50No Telcos in Top 50
No Telcos in Top 50No Telcos in Top 50
No Telcos in Top 100No Telcos in Top 100
Wireless industry ranked 44 of 50 industriesWireless industry ranked 44 of 50 industries
No Telcos in Top 50No Telcos in Top 50
Only one Telco in Top 100, O2 at #46Only one Telco in Top 100, O2 at #46
Customer Loyalty Metrices
© 2014 IBM Corporation
IBM Institute for Business Value
IBM’s ‘Advocacy Index’ measures the level of advocacy by analyzing responses related to recommendation, buying and staying intent
19
IBM’s ‘Advocacy Index’ measures the level of advocacy by analyzing responses, specifically
related to recommendation, purchase intent and staying intent
Likelyhood to Recommend
BuyingIntent
StayingIntent
Willingness to recommend one’s primary provider to friends and family
A willingness to increase one’s purchases if one’s primary provider expanded its assortment and offered products currently found only at the other providers
A willingness to stay with one’s primary provider, even if other provider begin offering competitive producers or Services
© 2014 IBM Corporation
IBM Institute for Business Value
The emotive and personalization aspects seem to make the difference between advocates and antagonists, not low prices
20
Global average: POSITIVE experiences that make a customer LOYAL
Advocates have a higher wallet share and are highly compli-mentary of the provider capability
Antagonists have low wallet share and high support costs and are prone to bad-mouth the provider
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos should look outside their industry for leadership in providing customer experiences that drive loyalty
21
© 2014 IBM Corporation
IBM Institute for Business Value
22
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 (±2/3 of telco respondents in Social Business survey)
Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with customer-related social business activities)
An increasing number of Telcos are implementing social business to understand customers and engage with them in new and different ways
© 2014 IBM Corporation
IBM Institute for Business Value
Some Telcos are even proactive in understanding services issues by trolling social networks to understand sources of dissatisfaction
23
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.
© 2014 IBM Corporation
IBM Institute for Business Value
24
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
Social approaches also help to solicit ideas from consumers to improve products or services or create new ones
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?
98%
97%
85%
© 2014 IBM Corporation
IBM Institute for Business Value
A number of CSPs are already connecting to consumers to launch new services based on their input
25
EE engaged with consumerson its Orange brand to co-create the clone phone1
EE needed inspirational mobile service ideas that people would love
EE collaborated directly with their customers and experts outside of their own field for more than six weeks to co-create the clone phone
Telenet developed a mobile TVApp with support customers2
Telenet invited users to participate in the development of Yelo, an application for digital TV on mobile devices
Participants were recruited to join a three-week closed pre-launch community to allow collaboration on improvements
http://www.inc.com/diane-hessan/mobile-giant-used-consumer-collaboration-to-innovate.html
http://www.insites.eu/researchcommunities/telenet/yelo-community.aspx
China Telecom analyses insightfrom consumers to envision anddevelop new services3
An innovation platform enables marketing teams connect to consumers to gather new intelligence directly from con-sumers to launch new services
Publication of the first idea a mere ten minutes after launch
http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/China%20Telecom.pdf
© 2014 IBM Corporation
IBM Institute for Business Value
However most CSPs don’t yet get social, only a third of the respondents feel their provider uses social media effectively to engage with them
26
10% 25%
11% 27%
13% 31%
14% 32%
23% 38%My Telecom Provider allows me MULTIPLEWAYS to interact and communicate with them
My Telecom provider LISTENS TO ME andcollects the right amount of information to meet
my communication needs
My Telecom Provider USES THE INFORMATIONit already has about me rather than asking me to
provide it repeatedly
My Telecom Provider enables me to provideFEEDBACK or to provide input to develop new
communication products and services
My Telecom Provider uses SOCIAL MEDIA in aneffective way to engage with me
Strongly agree Moderately agree
of respondents agree that CSPs use Social Media in an effective way to engage with them
Globally, only
35%
How good is your primary telecom provider in interacting with you?
Indicate to which agree/disagree with the following statements on your Primary Telecom provider?
© 2014 IBM Corporation
IBM Institute for Business Value
27
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?;
© 2014 IBM Corporation
IBM Institute for Business Value
28
What’s the most natural way
to initiate collaboration?
Which self-service option is the best investment?
What channels will deliver the best ROI?
How can you understand consumer frustrations even when they don’t call about it?
What’s the weight ofconsumer sentimentgathered from socialmedia?
How Social are you?
What are the best
means to get deeper insight about your customers?
Which elements of the customer experience are most important for your customers and how do you measure those?
Questions for you
top related