Webscale and transmission network operators' interests are aligning as the 5G era dawns
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Matt Walker / MTN Consulting
Webscale and transmission network operators' interests are aligning as the 5G era dawns
The launch of 5G by South Korean operators serves as a first benchmark for other operators around the world
How mobile operators can make a difference to customer experience
Many telecoms operators are placing customer experience at the heart of their strategies, and are seeking to differentiate themselves from competitors by better meeting the needs of their customer base. In many cases, a focus on customer experience is also helping to reduce costs through, for example, customer-driven capex programs. Customer experience itself has many aspects including network performance, interactions with customer services and perceptions around value-for-money.
This article draws on primary research from across 21 countries to highlight how different factors are perceived by customers. Understanding how and where these factors apply can help operators to better achieve their aims to be customer-centric, and can help to set expectations for investment decisions.
Many factors contribute to mobile operator NPS
The standard industry metric for measuring customer satisfaction is the Net Promoter Score (NPS). It is widely used by telecoms operators (and players in other sectors) to assess their performance against their peers on an ongoing basis. Customers are asked how willing they are to promote their service provider on a scale from 0 to 10 (where 0 is not at all willing, and 10 is very willing). The percentage of detractors (scoring 0 to 6) is subtracted from the percentage of promoters (scoring 9 or 10) to give an NPS between –100 and +100. The scores for telecoms operators vary widely. The highest score among the major mobile operators included in our 2017 survey was +29 for Free (France).
Some aspects of mobile services have a greater impact on individuals’ willingness to promote (and, therefore, the NPS) than others. We performed statistical regressions to assess the effect that a one-point improvement in satisfaction rating for different service elements has on the willingness to recommend, with all other things being equal. The results show the main factors that make a difference to NPS in various countries. Many factors interrelate, but the contributions show which factors are more important in different countries. For example, in Spain, a one-point improvement in one customer’s satisfaction with network coverage (on a scale of 1 to 5) correlates with an average increase in willingness to recommend of nearly 0.6. This could potentially lead to a large increase in NPS (by as much as 10 to 15 points) if the benefits were fully realized across the customer base.
Source: Analysys Maso
Network coverage is the single most decisive factor globally, but there are plenty of local variations
The results highlight many differences between countries and regions. The specific roles played by the various service elements are as follows.
The relative importance of the drivers of customer satisfaction in different countries can act as a guide to operators’ strategies to gain advantage. The analysis of our consumer survey data points towards the potential trade-offs in investment for price competitiveness, improved network performance and addressing shortcomings in customer service, among other things. The results show what operators can do to really make a difference to their customers.
Further details on the drivers of customer experience can be found in our series of reports on mobile customer satisfaction and churn, available for Europe and the USA, MENA, emerging APAC and SSA. The fieldwork for the next round of primary research is being undertaken in July 2018.
Stephen Sale is a research director for consumer services at Analysys Mason
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