Connected Consumer Survey 2018: fixed broadband retention and satisfaction in Europe and the USA

Transcription

1 Connected Consumer Survey 2018: fixed broadband retention and satisfaction in Europe and the USA Inigo Barker

2 2 About this report This report focuses on aspects of Analysys Mason s Connected Consumer Survey that relate to the behaviour, preferences and plans of consumers in Europe and the USA. In particular, it focuses on the behaviour, preferences and future plans of fixed broadband users. The survey was conducted in association with Survey Sampling International (SSI) between July and September The survey groups were chosen to be representative of the broader online consumer population in Europe and the USA. We set quotas on age, gender and geographical spread to that effect. There were a minimum of 1000 respondents per country. Western Europe: France Germany Italy Spain UK North America: USA GEOGRAPHICAL COVERAGE Central and Eastern Europe: Poland Turkey KEY QUESTIONS ANSWERED IN THIS REPORT What are the most significant drivers of Net Promoter Score (NPS) for fixed broadband operators and which operators are particularly effective at scoring highly and why? What are the most significant drivers of fixed broadband churn and how can operators most effectively approach customer retention? Which value-added services have a measurable effect on customer satisfaction and churn intention? WHO SHOULD READ THIS REPORT Product managers and strategy teams working for fixed operators that are launching new broadband products aimed at the retail market, or operators designing their response to those of their competitors. Marketing executives and product managers for operators that are making decisions about service design and its impact on customer retention of broadband bundles.

3 8 Operators should prioritise speed and customer service improvements to boost satisfaction metrics Assessing customer satisfaction is complex. NPSs, which measure consumers willingness to recommend a service to their colleagues, are one way to assess this. However, in order to understand consumer priorities more deeply, we not only examined customer satisfaction with various different service aspects but we also performed statistical regressions to determine the relationship between satisfaction with these aspects and willingness to recommend. In our analysis, three primary points emerged. We found that consumers understanding of the reliability of a broadband service is intrinsically tied to the speed of the service customer scores for these aspects of the service were often the same (that is, responses were collinear). We identified that operators top priorities may not be to improve the elements of a service that customers claim they are least happy with: improved levels of price and usage restriction satisfaction were not correlated with the highest uplifts in willingness to recommend. Speed/reliability, customer service and price were more decisive NPS drivers. The importance of improving bandwidths and customer service are now of equal importance. In previous years of the Connected Consumer Survey, we identified customer service as having a higher correlation with overall NPS than speed (coefficients of 0.67 and 0.58). This time both were Figure 3: Satisfaction with specific aspects of fixed broadband services 1 Reliability Speed Customer service Usage restrictions Price Figure 4: Results of statistical regressions on satisfaction with specific aspects of service against willingness to recommend a service provider 1 Reliability Neutral Speed Customer service Usage restrictions Price Collinear with speed Satisfied Source: Analysys Mason Increase in willingness to recommend with 1-point increase in satisfaction with fixed broadband aspect Source: Analysys Mason 1 These values represent the coefficients of a regression of fixed broadband service characteristics against willingness to recommend the service (on a scale of 0 10). Service characteristics are scored 1 5. The correct way to interpret this chart is to say that a 1-point increase in price satisfaction correlates with a 0.38 increase in willingness to recommend. As with Figure 3, please refer to the appendix for sample size and relevant survey questions.

4 17 Churn intention declines in the higher the speed bracket but the dynamics vary by country As the previous slide established, churn intention was correlated with speed for all countries. When we isolated Turkey and France, where this relationship is the strongest and weakest respectively, some interesting points stood out. In Turkey, the churn intention differential between those on less than 8Mbps and those on more than 200Mbps was 23 percentage points. A tension between low market speeds and strong appetite for data forms the market background. The absence of high speeds is largely a supply side issue and this was reflected in the fact that less than 9% of respondents reported speeds of more than 100Mbps despite data habits warranting take-up of these. Turkish operators should see this as strong validation for further high-speed investment. In France, video consumption habits (for example, in terms of YouTube, catch-up TV) are not as a whole firmly established enough to spur high-speed demand hence the weaker speedchurn relationship. Nonetheless, consumer behaviour appeared to change for respondents with more than 100Mbps. For these respondents, engagement with online content (such as YouTube) was significantly higher than for those on lower speeds, and churn dropped more sharply. However, it is difficult to establish whether there is a relationship based on causation, it is notable that increased speeds may have the potential to ultimately engineer a speed-churn relationship where there otherwise is not a very strong one. Figure 14: Churn intention by speed bracket, by country grouping 1 Intention to churn 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% <24Mbps Mbps >100Mbps Europe and the USA (excluding France and Turkey) Turkey France Linear (Europe and the USA (excluding France and Turkey)) Linear (Turkey) Linear (France) Source: Analysys Mason 1 Please refer to the appendix for sample size and relevant survey questions.

5 Contents Executive summary Speed and customer service correlate with improved satisfaction Speed increases correlate with the greatest churn improvements The presence of VAS corresponds with improvements in satisfaction Methodology and panel information About the author and Analysys Mason

6 30 About the authors 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.

7 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.

8 32 Research from Analysys Mason

9 33 Consulting from Analysys Mason

10 PUBLISHED BY ANALYSYS MASON LIMITED IN APRIL 2019 Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0) Registered in England and Wales No Analysys Mason Limited 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.