IBM Institute for Business Value
Social Media and the Empowerment of
African Consumers
Rob van den Dam
Global Communications Industry Leader
IBM Institute for Business Value
© 2014 IBM Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
2014 IBM 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 Corporation
IBM Institute for Business Value
IBM 2014 Global Telecommunications Consumer Survey
2014
Global Telecom Consumer Survey
Australia
(652)
3
Belgium
(323)
Brazil
(671)
Canada
(594)
China
(1265)
Denmark
(319)
Egypt
(343)
Finland
(309)
France
(1343)
Germany(
831)
Greece
(738)
India
(1038)
Indonesia
(735)
Ireland
(351)
Italy
(560)
Japan
(964)
Kenya
(322)
Malaysia
(506)
Mexico
(658)
Netherlands
(548)
Nigeria
(550)
Norway
(303)
Philippines
(877)
Poland
(328)
Russia
(1003)
Saudi Arabia
(306)
South Africa
(649)
Spain
(809)
Sweden
(354)
Thailand
(616)
Turkey
(533)
UAE
(320)
UK
(657)
US
(1083)
New Zealand
(464)
© 2014 IBM Corporation
IBM Institute for Business Value
For each country we produced a ninety slides deck with countryspecific 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
How often do you access the Internet through the following?
Global (weighted average of 35 countries)
Daily
Weekly
African countries
Daily
Occasionally
100%
Weekly
Occasionally
100%
19%
30%
40%
80%
8%
55%
12%
60%
S. Africa
Kenya
Nigeria
80%
73%
73%
60%
21%
7%
25%
72%
66%
57%
20%
85% 88%
40%
20%
45%
36%
31%
20%
20%
20%
17% 20% 20%
0%
0%
Including
Home
WiFi
Mobile
Public
WiFi
Including
Home
WiFi
Mobile
Public
WiFi
Source: 2014 IBM Global Telecom Consumer Survey, How often do you access the INTERNET through the following?
5
© 2014 IBM Corporation
IBM Institute for Business Value
Consumers in African countries expect to increase spending on
accessing the mobile Internet
50%
40%
France
KENYA
NIGERIA
China
India
Thailand
Indonesia
Turkey
Egypt
SOUTH AFRICA
Brazil
Saudi Arabia
Denmark
Russia
Mexico
Australia
Norway
6%
Malaysia
5%
Canada
5%
Finland
5%
Sweden
US
3%
12% 12% 13% 13% 13%
8% 10%
New Zealand
-37%
Germany
-16% -15% -15%
-5% -4% -4% -2%
2%
UK
UAE
28%
22% 22%
19% 20% 20%
0%
-10% -8% -8%
53%
36%
Japan
Philippines
Poland
Spain
Belgium
Netherlands
Italy
Ireland
Greece
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?
6
© 2014 IBM Corporation
IBM Institute for Business Value
For accessing the Internet, the mobile phone has become the most
valuable device
How valuable is each of the following devices for you to access the Internet?
Very Valuable
Moderately valuable
Little valuable / Not applicable
80%
MOBILE PHONE
11%
74%
LAPTOP / NETBOOK
12%
9%
Mobile Phone
‘Very Valuable’
14%
92%
57%
Desktop PC
49%
TABLET
Internet-enabled TV
18%
25%
17%
32%
19%
34%
49%
GAME CONSOLE with
Internet connection
25%
17%
57%
eReader
25%
18%
57%
OTHER (e.g. Internetenabled Blu ray player)
24%
19%
57%
89%
88%
Question: How VALUABLE are the following devices for you to access the Internet?
7
© 2014 IBM Corporation
IBM Institute for Business Value
People increasingly access the Internet to communicate with others;
Social Networking is the # 2 communication channel in emerging markets
Daily usage communication channels in EMERGING markets
82%
76%
EMAIL
74%
79%
SOCIAL NETWORKING
66%
66%
MOBILE MESSAGING
65%
71%
INSTANT MESSAGING / Chat
61%
58%
MOBILE VOICE calls
50%
55%
INTERNET VIDEO streaming/download
FIXED VOICE calls
VIDEO CALLING
74%
in EMERGING
MARKETS use
Social Networks
daily to communicate with others
37%
30%
36%
MICRO-BLOGGING
VOIP (VOice over Internet)
2
1
45%
28%
26%
25%
25%
All AGES
AGE < 25
Question: How often do you use the following communications services?
8
© 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
Daily usage communication channels
IM/Chat
91%
IM/Chat
82%
Social Networking
90%
Email
87%
Mobile Voice Call
81%
SMS/MMS
88%
76%
Social Networking
81%
Email
87%
Social Networking
Under 25
Above 25
SMS/MM
64%
Email
74%
IM/Chat
79%
Mobile Voice
57%
SMS/MMS
69%
Mobile Voice
78%
Internet video
45%
Micro-Blogging
65%
Micro-Blogging
69%
Email
96%
Mobile Voice Call
85%
SMS/MMS
91%
IM/Chat
81%
Email
84%
Email
90%
SMS/MMS
80%
Social Networking
79%
Mobile Voice
87%
Mobile Voice
69%
IM/Chat
76%
Social Networking
80%
Social Networking
67%
SMS/MMS
75%
IM/Chat
73%
Fixed Voice
57%
Internet Video
49%
Micro-Blogging
Micro-Blogging
61%
Question: How often do you use the following communications services?
9
© 2014 IBM Corporation
IBM Institute for Business Value
Because of these OTT channels, many respondents said they
decreased – or will decrease - spending on traditional communication
Reduction
SMS usage
12%
34%
40%
57%
52%
20%
Globally
34%
10
48%
60%
40%
56%
20%
33%
36%
43%
No Change
0%
South
Africa
0%
Nigeria
Global
43%
Kenya
No Change
31%
60%
South
Africa
15%
of respondents said they
have reduced – or will reduce
– SMS usage by increasingly
using alternative messaging
channels
Global
Globally
31%
Nigeria
Increase(d)
Reduction
traditional
voice calling
Reduce(d)
Increase(d)
Kenya
Reduce(d)
of respondents said they
have reduced – or will reduce
– traditional voice calling
by increasingly using
alternative voice channels
To what extent have you reduced – or will you reduced SMS usage and traditional voice calling by increasingly using alternative channels?
© 2014 IBM Corporation
IBM Institute for Business Value
The web, social media and word-of-mouth now dominate the traditional
channels for information relating to Telcos and their products/services
Sources of information on telecom providers and their products/services
72%
69%
Internet SEARCH
69%
SOCIAL MEDIA
33%
60%
56%
RECOMMENDATIONS friends/family
48%
Telco WEB sites
Telco EMAILS & promotional offers
31%
13%
28%
19%
25%
23%
Retail STORES
11
in emerging markets
access Social Media
to evaluate telecom
providers and their
products /services
34%
Traditional ADVERTISING
Shopping PORTALS/auctions
69%
Emerging Markets
Mature Markets
20%
9%
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
Social Media is a frequently used source of information in the African
countries
Sources of Information on telecom providers and their products/services
81%
SOCIAL MEDIA
75%
Internet SEARCH
65%
RECOMMEND F/F
Retail STORES
77%
58%
RECOMMEND F/F
Retail STORES
55%
49%
12
36%
50%
28%
Retail STORES
Internet SEARCH
CSP web sites
69%
CSP web sites
35%
SOCIAL MEDIA
72%
Internet SEARCH
RECOMMEND F/F
54%
CSP Websites
79%
SOCIAL MEDIA
Internet SEARCH
75%
<25
67%
SOCIAL MEDIA
57%
RECOMMEND F/F
Retail STORES
CSP websites
39%
37%
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
Global
Key moments of interaction that matter
52%
BEFORE BUYING when the provider provides information
51%
When contacting my provider for RESOLVING AN ISSUE
3
BEFORE CONSIDERING the telecom provider
(REPUTATION)
46%
Importance
Word-of-Mouth
Reputation
2 59%
43%
On first purchase or BEGINNING OF SERVICE
When my provider PROACTIVELY ask for my experience
22%
When I CONSIDER SWITCHING to a competitor
22%
2 56%
2 52%
21%
On receiving FIRST INVOICE
Close to the END OF SUBSCRIPTION period
13
15%
Question: What are the key moments in interacting with your telecom provider that matters to your?
© 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
Customer responses in case of NEGATIVE experiences
Always/Often
Never
START considering COMPETITIVE services from other providers
41%
49%
9%
Would TELL OTHERS about the bad experience
40%
50%
9%
55%
8%
38%
Would COMPLAIN to my telecom provider
29%
Would DISCOURAGE OTHERS to use this provider
Would use the services of my provider LESS FREQUENTLY
26%
Would STOP making PURCHASING from my provider
25%
Would post a NEGATIVE REVIEW or comment ONLINE
21%
Would COMPLAIN on SOCIAL MEDIA
20%
Would NEVER USE my telecom provider again
Global
14
Regularly/Possibly/Sometimes
NO CHANGE in behavior
50%
59%
15%
57%
46%
46%
13%
10%
21%
18%
32%
35%
62%
49%
Question: What would you do in case of a NEGATIVE experience with your telecom provider?
25%
42%
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos are not always aware that consumers have bad experiences:
less than half of consumers always/often contact them in those cases
Reasons not complaining to provider in case of negative experience
80%
South Africa
Kenya
Nigeria
70%
Always/often
complaining to
provider
60%
50%
40%
49%
30%
67% 66%
54%
54%
49%
42%
20%
45%
66% 64%
33% 33%
31%
36%
23% 20% 23%
10%
0%
44%
15
Too much
hassle to get
through to the
Call Centre
Have to wait too Don't believe it
long in queue to
make any
speak to Call
difference
Centre
Networks
unreliable
anyway
Question: If you not complain to your provider in case of a negative experience, what is the reason?
My Provider is
unable to
resolve my
problems
© 2014 IBM Corporation
IBM Institute for Business Value
Word-of-mouth is an effective way for consumers to seize control on
some business decisions
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…”
16
© 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’?
Top 6 POSITIVE experiences that make a customer LOYAL
90%
Quality COMPELLING products/services
70%
QUICK effective responses to questions
57%
Resolving issues FAIRLY
44%
PERSONALIZED & consistent service
EXCLUSIVE offers (loyalty program)
LOW PRICES relative to competitors
Always/often
recommend
provider
40%
38%
88%
Quality COMPELLING products/services
75%
QUICK effective responses to questions
55%
Resolving issues FAIRLY
72%
TRANSPARENCY & openess
45%
56%
EXCLUSIVE offers (loyalty program)
53%
LOW PRICES relative to competitors
70%
83%
Quality COMPELLING products/services
59%
QUICK effective responses to questions
63%
Resolving issues FAIRLY
69%
PERSONALIZED & consistent service
EXCLUSIVE offers (loyalty program)
44%
45%
LOW PRICES relative to competitors
17
Question: What are the most important experiences for you to STAY LOYAL to your telecom provider?
64%
© 2014 IBM Corporation
IBM Institute for Business Value
Telcos are not leaders in customer advocacy by any customer
advocacy measure
Customer Loyalty Metrices
Telecom lowest among 7 industry groups
No Telcos in Top 100
No Telcos in Top 50
No Telcos in Top 50
Wireless industry ranked 44 of 50 industries
No Telcos in Top 25
Only one Telco in Top 100, O2 at #46
No Telcos in Top 50
18
© 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
IBM’s ‘Advocacy Index’
measures the level of advocacy by analyzing responses, specifically
related to recommendation, purchase intent and staying intent
Likelyhood to
Recommend
19
Willingness to recommend one’s primary provider to
friends and family
Buying
Intent
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
Staying
Intent
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
Global average: POSITIVE experiences that make a customer LOYAL
Advocates
have a
higher
wallet
share and
are highly
complimentary of
the
provider
capability
20
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
An increasing number of Telcos are implementing social business to
understand customers and engage with them in new and different ways
Applying social approaches to ‘listen & engage’ customers
(±2/3 of telco respondents in Social Business survey)
59%
Respond to
customer questions
Capture
customer data
47%
Solicit customer
reviews and opinions
47%
Identify and manage
key influencers
Today
22
79%
Groups
Mine
Conversations
Crowdsource
Insights
Reply to
Questions
Influence
Influencers
79%
68%
35%
68%
Next two years
Individuals
Reactive
Source: Institute for Business Value, 2012 Business of Social Business Study
(% CSPs with customer-related social business activities)
Proactive
© 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
O2's Twitter team
demonstrate their
social media moves
on angry tweeters
London, July2012
O2 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
23
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
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
60%
IMPROVEMENT EXISTING Product/Service
56%
IMPROVEMENT CUSTOMER CARE
% of respondents
willing to provide
feedback or input
38%
DEVELOPMENT NEW Product/Service
FEEDBACK on COMMUNICATION to market
26%
Global
98%
97%
FEEDBACK on Overall STRATEGY
22%
IMPROVEMENT of Existing CAMPAIGN
22%
DEVELOPMENT of New CAMPAIGN
85%
24
Other 6%
21%
60%
of respondents like to
interact with their
provider on improving
an existing product
On which topics do you want to provide feedback or communicate with your Telecom Provider to help the organization to improve?
© 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
Telenet developed a mobile TV
App 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 prelaunch community to allow
collaboration on improvements
http://www.insites.
eu/researchcommunities/telenet/yelo-community.aspx
25
China Telecom analyses insight
from consumers to envision and
develop new services3
EE engaged with consumers
on its Orange brand to cocreate the clone phone1
 An innovation platform enables
marketing teams connect to
consumers to gather new
intelligence directly from consumers to launch new services
 EE needed inspirational
mobile service ideas that
people would love
 Publication of the first idea a mere
ten minutes after launch
http://www.businesstimes.com.sg/sites/
businesstimes.com.sg/files/China%20Telecom.pdf
 EE collaborated directly with
their customers and experts
outside of their own field for
more than six weeks to cocreate the clone phone
http://www.inc.com/diane-hessan/mobile-giantused-consumer-collaboration-to-innovate.html
© 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
How good is your primary telecom provider in interacting with you?
Strongly agree
My Telecom Provider allows me MULTIPLE
WAYS to interact and communicate with them
My Telecom provider LISTENS TO ME and
collects the right amount of information to meet
my communication needs
26
23%
14%
My Telecom Provider USES THE INFORMATION
it already has about me rather than asking me to
provide it repeatedly
13%
My Telecom Provider enables me to provide
FEEDBACK or to provide input to develop new
communication products and services
11%
My Telecom Provider uses SOCIAL MEDIA in an
effective way to engage with me
10%
Moderately agree
38%
32%
31%
Globally, only
35%
of respondents agree
that CSPs use Social
Media in an effective
way to engage with them
27%
25%
Indicate to which agree/disagree with the following statements on your Primary Telecom provider?
© 2014 IBM Corporation
IBM Institute for Business Value
Lack of a cohesive social media plan and problems with measuring
ROI are the two biggest barriers to doing more in the digital space
Challenges Telecom CxOs to
implementing a digital strategy
Lack of a cohesive
social media plan
64%
Difficulty measuring
investment returns
59%
Competing priorities
or initiatives
52%
Legal and security
concerns
39%
Lack of appropriate
technology
34%
Lack of leadership
support
Concerns about
inappropriate use
27
Percentage underprepared
for Social Business
25%
15%
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
Source IBM 213 Global C-suite study (218 telecom CxOs) –How strong is your collaboration with customers?;
85%
66%
55%
© 2014 IBM Corporation
IBM Institute for Business Value
Questions for you
Which elements of the customer
experience are most important for
your customers and how do you
measure those?
What are the best
means to get deeper
insight about your
customers?
How can you understand
consumer frustrations even
when they don’t call about it?
What channels
will deliver the
best ROI?
What’s the weight of
consumer sentiment
gathered from social
media?
Which self-service option is
the best investment?
What’s the most natural way
to initiate collaboration?
28
Social
How
are you?
© 2014 IBM Corporation
IBM Institute for Business Value
Thank you
www.ibm.com/iibv
29
Rob van den Dam
Global Communications Industry
Leader
IBM Institute for Business Value
rob_vandendam@nl.ibm.com
© 2014 IBM Corporation