Two Perspectives on Customer Experience
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1 Two Perspectives on Customer Experience Hakon Jacobsen VP Digital, Asia Pacific May 18 th 2016
2 Digital disruption came to almost all sectors of the economy Impact of digitalization MEDIA RETAIL TELECOM, INSURANCE AND BANKING CONSUMER PACKAGED GOODS AUTOMOTIVE LOGISTICS HEALTH CARE ENERGY (BCG, How to Jump-Start a Digital Transformation, Sep 2015) Point on digitalization journey 2
3 Innovation 3
4 Power 4
5 Personal 5
6 Digital lowers the barrier to new competitive entrances In January 2016, Netflix reached 130 countries Launched in April 2015 Waze: since Mn users, acquired by Google in 2013 for ~$1Bn Apple SIM is available in more than 90 countries Available in North America, so far, with a potential to have a presence in over 60 HBO`s markets Allowing digital disruptive players to engage and communicate directly with customers 6
7 Consumers seek a new world of customer experience
8 Customer Experience Spotlight 2016: Global consumer survey of 7,000 customers in 14 markets The global survey includes: In Asia Pacific we surveyed: NA 15% 15% CALA Singapore 17% 17% Thailand Europe APAC Philippines India 37% 34% 22% 22% 22% Indonesia Conducted by 451 Group between November- December
9 Who are today`s digital customers in APAC? 59% are years old (50% globally) 96% have a smartphone (94% globally) Hyper Connected 22% (17% globally) Self-Service- Driven 16% (15% globally) 87% have a mobile internet plan (85% globally) Business Elite 18% (21% globally) Entertainers 16% (17% globally) Price conscience 12% (15% globally) 9 Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300
10 Digital has unleashed a flurry of consumer demands 63% highly value the ability to control and personalize their experiences (52% globally) 58% want to get only relevant offers, which are specifically tailored to their needs and interests (50% globally) 59% prefer to use self-service to avoid calling a customer service agent (48% globally) Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,
11 shifting the balance of power to customers 61% check prices on comparison sites before making a decision (59% globally) 60% are the go-to-person for advice on mobile devices and services to purchase among their family and friends 70% are willing to pay more for innovative products and services (56% globally) (75% globally) More Informed More choice More opportunities 11 Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300
12 ...whose appetite for digital alternatives is increasing 79% would consider replacing their current service provider with companies such as Google, Apple or Facebook if they offered wireless connectivity (73% globally) 25% are likely to switch their service provider in the next 12 months (24% globally) 12 Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300
13 Why makes consumers switch in? Q. What are primary factors that could lead you to consider switching from your current service provider? 58% 52% 40% 61% globally 48% globally 36% globally A price increase Network Outages Customer experience 13 Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300
14 What makes them stay? Q. Which are the three most important factors that will ensure your loyalty? 46% 44% 42% 42% 36% 45% globally 42% globally 38% globally 39% globally 36% globally Rewards for being a loyal customer Being able to solve issues through self-service channels Being notified about network outages Being notified before exceeding data allowance Provide relevant offers based on usage Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300 14
15 What makes them recommend you? Q. Why would you recommend your service provider to friends and family? 65% 62% 57% Network quality vs 61% globally Service providers` trusted brand and reputation vs 59% globally Excellent customer support vs 55% globally Customer Experience Spotlight 2016, Amdocs Research APAC: India, Thailand, Philippines, Indonesia, Singapore; N= 2,300 15
16 This digital era will dwarf what s occurred if you don t transform and use this technology differently if you don t reinvent yourself you are going to get disrupted. And it ll be a brutal disruption, where the majority of companies will not exist in a meaningful way years from now. John Chambers - Executive Chairman Cisco Gartner predicts that by 2017, 20% of all market leaders will lose their number one position to a company founded after the year 2000 because of a lack of digital business advantage There s no other way. If we don t go digital, we won t survive Phil Jordan - Global CIO, Telefónica We don t want to be a telco, we want to be an internet company Roger Sole - CMO,TIM Brasil. There is no doubt that the future is a digital one. Those who are fast to adapt to the new reality stand to gain the most. Chua Sock Koong,- Group CEO, Singtel 16
17 Do you have what it takes to win the battle for your customers? 17
18 Service Providers
19 47% of Service Providers in Asia Pacific predict digital transformation will take more than 5 years to complete 19
20 76% believe telecoms will be outpaced by other industries 20
21 61% of IT respondents says: No digital strategy while 64% of the business respondents says: Clear digital strategy 21
22 90% recognize the importance of a Chief Digital Officer to lead and drive digital transformation strategy only 29% have a Chief Digital Officer 22
23 As a result 80% of digital transformation projects in APAC telcos are executed as standalone initiatives 23
24 24
25 Digital is already benefiting many service providers US $343Mn, +139% YoY Singtel Group Digital L!fe s 2015 revenues In January 2016, Digital Life reached 84 AT&T markets 3.7Bn,+ 24% YoY Telefonica s Digital Services 2015 revenues 75% of Vodafone Group s customer interactions are already digital AT&T blog Jan 2016, Telefonica 4Q15, Vodafone 2015 Annual report, SingTel 2015 Annual report 25
26 Clear Strategy Digital Skills Agile Business Innovation Collaboration 26
27 Thank You
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