Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document

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Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific

                 Connected Consumer Survey
                 2020: fixed broadband
                 retention and satisfaction in
                 developed Asia–Pacific

                 Inigo Barker
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific                                                                    2

About this report

This report focuses on aspects of Analysys Mason’s Connected                                                       G E O G RAPHICAL C O V ERAG E
Consumer Survey that relate to the behaviour, preferences and
                                                                                               Developed Asia–Pacific (DVAP):
plans of fixed broadband users in developed Asia–Pacific.
                                                                                               ▪ Australia
The survey was conducted in association with Dynata between                                    ▪ New Zealand
August and September 2020. The survey groups were chosen to                                    ▪ South Korea
be representative of the broader online consumer population in
developed Asia–Pacific. We set quotas on age, gender and
geographical spread to that effect. There were a minimum of
1000 respondents per country.

             K E Y Q U E S T I O N S A N S W ERE D I N T HI S R E P O RT                                       W HO S H O UL D R E A D T HI S R E P O RT

 ▪ What are the most significant factors that affect Net Promoter Scores                       ▪ Product managers and strategy teams working for fixed operators that
   (NPSs) for fixed broadband operators? Which operators score highly and                        are launching new broadband products aimed at the retail market, or
   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 customers’
 ▪ Which value-added services have a measurable effect on customer                               retention of broadband bundles.
   satisfaction and churn intention?                                                           ▪ Regulatory authorities and associated bodies tasked with overseeing
 ▪ What is the penetration of different channels for customer service and                        competition in the fixed broadband market.
   making a purchase and how does the channel mix influence satisfaction
   and churn?
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific                                                      10

Strong performers in terms of customer service satisfaction often employ traditional
customer care elements, but are also fairly digitally advanced
Good customer service is important, especially in New Zealand.                                Figure 5: Customer service satisfaction and NPS, DVAP, 2020 2
The following players performed particularly well.
    ▪ TPG Telecom’s customer service satisfaction score is
      significantly higher than its competitors’. TPG Telecom
      panellists use a broader variety of customer service
      channels than the rest of the Australian sample, and digital
      channels such as the website, social media and the self-
      care app are popular. TPG Telecom’s ability to serve
      different customers’ needs through different brands (TPG,
      iiNet, Internode, Adam Internet) may also be important.
    ▪ 2degrees uses traditional customer service elements (‘Kiwi
      customer care’ and call centres) and customer-friendly
      policies (free installation, outage guarantees and extended
      payment terms during the pandemic). The share of
      2degrees panellists that go in-store for purchases and
      customer care is greater than the New Zealand average, and
      the share that use self-care apps and social media is below-
      average. This is unusual, because the use of self-care apps
      and social media is associated with higher customer service
      satisfaction than that of most traditional channels.
    ▪ SK Telecom panellists are less likely to use telephones for
      purchases (32%) and customer service (30%) than KT and
      LG U+ panellists. Positive experiences with SK Telecom’s
      mobile loyalty scheme, T Membership, may play a role in
      boosting fixed broadband customer service satisfaction.1
176% of SK Telecom broadband customers in our panel were also SK Telecom mobile customers. For more on T Membership, see
Analysys Mason’s Loyalty programme strategies for operators: case studies and analysis. 2 Please refer to the methodology and
panel information section for the sample size and relevant survey questions.
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific                                                             20

Self-care apps are the most popular in New Zealand, particularly among customers
of Spark and Vodafone
We asked respondents about the channels that they use for                                           Figure 16: Digital and traditional channel penetration for
purchases and customer service. The types of channels used by                                       making a purchase, DVAP, the UK and the USA, 20201
customers varies by country, which may be partly explained by the
differing severity and duration of COVID-19-related lockdowns.
The proportion of respondents that use digital channels is the
lowest in South Korea, primarily because of the popularity of
telephones in the country.
Self-care apps are the most popular in New Zealand: 8% of
respondents in the country said that self-care apps are their first
port of call for purchases (versus 5% and 6% in Australia and
South Korea, respectively). More than a third of self-care app
users in New Zealand said that self-care apps are the first
channel they use. Self-care app usage is particularly high among
customers of Spark and Vodafone. 24% of Spark users use the                                         Figure 17: Digital and traditional channel penetration for
self-care app (MySpark) for purchases, and 41% of this group said                                   contacting customer service, DVAP, the UK and the USA, 2020 1
that the self-care app is their first port of call. 27% of Vodafone
panellists use the self-care app (My Vodafone) for purchases, and
28% of this group said that the app is their first choice channel.
Fibre and cable users in DVAP tend to have a greater preference
for self-care apps than DSL users, which reflects the relative
sophistication of NGA broadband adopters. 25% of fibre users in
New Zealand and South Korea use self-care apps for purchases
(compared to 23% of cable users and 20% of DSL users), and
25% of those on nbn fibre in Australia said that they use self-care
apps (compared to 20% on DSL).
1   Please refer to the methodology and panel information section for the sample size and relevant survey questions.
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific

               Contents                             Executive summary

                                                    Satisfaction and willingness to recommend

                                                    Intention to churn

                                                    Value-added services and channels for contacting operators

                                                    Appendix

                                                    Methodology and panel information

                                                    About the author and Analysys Mason
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia-Pacific - Analysys Mason document
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific                                                                  31

About the author

                       Inigo Barker (Analyst) is a member of the Consumer Services research team in London, contributing primarily to the Digital Services research
                       programme. His main interests are in adtech, mobile financial services and digital healthcare. He has also contributed to various other
                       programmes in the Consumer Services portfolio and he manages the multi-play and mobile handset pricing trackers. He has a BA in Classics
                       from the University of Cambridge.
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific                                                               32

Analysys Mason’s consulting and research are uniquely positioned

Analysys Mason’s consulting services and research portfolio                                   Consulting
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                                                                                              facing clients, in addition to the wider effects of global forces.
                                                                                              We are future-focused and help clients understand the challenges
                                                                                              and opportunities new technology brings.

                                                                                              Research
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                                                                                              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
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Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific   33

Research from Analysys Mason
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific   34

Consulting from Analysys Mason
Connected Consumer Survey 2020: fixed broadband retention and satisfaction in developed Asia–Pacific

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