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 2

About this report

This report focuses on aspects of Analysys Mason’s Connected GEOGRAPHICAL COVERAGE Consumer Survey that relate to the behaviour, preferences and Developed Asia–Pacific (DVAP): plans of fixed broadband users in developed Asia–Pacific. ▪ The survey was conducted in association with Dynata between ▪ 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.

KEY QUESTIONS ANSWERED IN THIS REPORT WHO SHOULD READ THIS REPORT

▪ 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 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, 20202 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 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 ) 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 1 76% 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 20 Self-care apps are the most popular in New Zealand, particularly among customers of Spark and

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 1 self-care app (MySpark) for purchases, and 41% of this group said contacting customer service, DVAP, the UK and the USA, 2020 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

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 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 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 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. 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

PUBLISHED BY ANALYSYS MASON LIMITED IN APRIL 2021

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