Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand
Connected Consumer Survey
2019: fixed broadband
retention and satisfaction in
Australia and New Zealand
Inigo Barker
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 2
About this report
This report focuses on aspects of Analysys Mason’s Connected GEOGRAPHICAL COVERAGE
Consumer Survey that relate to the behaviour, preferences and
▪ Australia
plans of fixed broadband users in Australia and New Zealand.
▪ New Zealand
The survey was conducted in association with Dynata between
July and August 2019. The survey groups were chosen to be
representative of the broader online consumer population in
Australia and New Zealand. We set quotas on age, gender and
geographical spread to that effect. There were a minimum of
1000 respondents per country.
KEY QUESTIONS ANSWERED IN THIS REPORT WHO SHOULD READ THIS REPORT
▪ What are the most significant drivers of Net Promoter Score (NPS) for ▪ Product managers and strategy teams working for fixed operators that
fixed broadband operators, and which operators are particularly are launching new broadband products aimed at the retail market, or
effective at scoring highly and why? operators designing their response to those of their competitors.
▪ What are the most significant drivers of fixed broadband churn and how ▪ Marketing executives and product managers for operators that are
can operators most effectively approach customer retention? making decisions about service design and its impact on customer
▪ What is the effect of customers’ use of digital channels on customer retention of broadband bundles.
satisfaction and retention? ▪ Regulatory authorities and associated bodies tasked with overseeing
▪ Do value-added services have a measurable effect on customer competition in the fixed broadband market.
satisfaction and churn intention? If so, which value-added services?
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 9
There is evidence that digital channels can be used to boost customer satisfaction,
but the best performers in New Zealand depend largely on traditional channels
Figure 5: Net Promoter Score (NPS) and customer service The link between customer service satisfaction and willingness to
satisfaction score, by operator, New Zealand, 20191 recommend is stronger in New Zealand than in Australia, but
understanding exactly what leads to superior customer service
experiences is complex. There is compelling support for investing
in traditional channels in New Zealand, but digital channels
emerged as having a positive effect on customer satisfaction in
our regression analysis for the region as a whole.
Many of the customers of the strongest performers in terms of
customer service satisfaction in New Zealand use traditional
channels. In our survey, panellists that were customers of
2degrees were more likely to make a purchase in store or via the
telephone than those of Spark and Vocus. Traditional elements
are central to 2degrees’s customer service experience; these
include its domestic call centre operations (‘Kiwi customer care’),
its outage guarantee and its free installation offer. These help to
explain its superior customer service performance. As such, we
believe that Vodafone’s NZD10 million investment in X Squad, a
domestic customer service team, has the potential to improve its
relatively low customer service satisfaction scores.
However, for the region as a whole, using digital channels for
making a purchase or for customer service correlated with a 0.20-
point increase in willingness to recommend. This provides strong
support for operators’ efforts to digitise customer touchpoints
(such as Telstra’s plans to roll out digital platforms as part of its
Telstra2022 initiative). We believe that the greatest benefits can
1 Please
be had from investing in both digital and traditional channels.
refer to the appendix for sample sizes and relevant survey questions.
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 11
Customer satisfaction with DSL is falling in Australia; alternatives are contributing to
better experiences
Figure 7: Satisfaction scores for speed, reliability, customer Satisfaction with DSL is falling in Australia (Figure 7), while
service and price, by access technology, Australia, 2018–20191 consumers that use non-nbn cable and wired nbn say that they
are more satisfied overall than in 2018, suggesting good
conditions for operators to drive migration to NGA services. It is
likely that the consumers that still use DSL were covered later by
the nbn given the 18-month lag from any particular area being
‘ready for service’ to the decommissioning of nbn alternatives.
▪ The satisfaction scores given by panellists using wired nbn
for speed, reliability and price increased following the nbn
wholesale tariff cuts in late 2017, which resulted in
50Mbit/s tariffs being cheaper than 25Mbit/s tariffs. This
change enabled Telstra to upgrade customers on 25Mbit/s
plans to higher speeds for free in 2018. The increase in
price satisfaction may also be because the prices have gone
up since the panellists took out their plans. The increase in
nbn customer service satisfaction in 2019 can be linked to
the decrease in the number of complaints, the increase in
first-time installation success rates and improved fault
resolution times.2
▪ Satisfaction scores of non-nbn cable subscribers increased
significantly between 2018 and 2019, largely due to leading
cableco Telstra’s activities. Telstra upgraded around
500 000 non-nbn cable subscribers to unthrottled
100Mbit/s for free in May 2019, and it cut prices by AUD20
per month for existing customers on 100Mbit/s plans.
1 Please refer to the appendix for sample sizes and relevant survey questions.
2nbn co (2019), Monthly Progress Report June 2019. Available at
https://www.nbnco.com.au/content/dam/nbnco2/2019/documents/how-we-are-tracking/nbn-june-2019-monthly-progress-report-v2.pdf.
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand
Contents Executive summary
Speed upgrades have the potential to deliver the most-
significant uplifts to customer satisfaction
Speed upgrades are likely to yield the greatest reduction in
intention to churn
Value-added services are not providing churn- or satisfaction-
related benefits to operators
Methodology and panel information
About the author and Analysys Mason
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 30
About the author
Inigo Barker (Analyst) is a member of the Consumer Services research team in London and works on the Video Strategies research programme.
He previously worked in trade publishing and editing. He holds a first-class BA (Hons) degree in Classics from the University of Cambridge.Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 31
Analysys Mason’s consulting and research are uniquely positioned
Analysys Mason’s consulting services and research portfolio CONSULTING
We deliver tangible benefits to clients across the telecoms
industry:
▪ communications and digital service providers, vendors,
financial and strategic investors, private equity and
infrastructure funds, governments, regulators, broadcasters,
and service and content providers.
Our sector specialists understand the distinct local challenges
facing clients, in addition to the wider effects of global forces.
We are future-focused and help clients understand the challenges
and opportunities that new technology brings.
RESEARCH
Our dedicated team of analysts track and forecast the different
services accessed by consumers and enterprises.
We offer detailed insight into the software, infrastructure and
technology delivering those services.
Clients benefit from regular and timely intelligence, and direct
access to analysts.Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 32 Research from Analysys Mason
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand 33 Consulting from Analysys Mason
Connected Consumer Survey 2019: fixed broadband retention and satisfaction in Australia and New Zealand
PUBLISHED BY ANALYSYS MASON LIMITED IN APRIL 2020
Bush House • North West Wing • Aldwych • London • WC2B 4PJ • UK
Tel: +44 (0)20 7395 9000 • Email: research@analysysmason.com • www.analysysmason.com/research • Registered in England and Wales No. 5177472
© Analysys Mason Limited 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic,
mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher.
Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any
client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only.
Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the
normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark.
Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for
loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.You can also read
