SA telcos feeling impact of social disruption
South African mobile operators are feeling the impact of social disruption, and need to overhaul how they communicate with their own customers, finds a new report.
IBM released the results of an Institute for Business Value (IBV) survey of 22,000 consumers in 35 countries, including South Africa, looking at telecommunication consumer behaviour.
The results show that the disruptive impact of social conversation channels from giants such as Facebook and Google are not only offering alternative communication options, but also giving consumers a way to seize control of Telcom companies’ reputations and even some business decisions, IBM said.
In South Africa two thirds of consumers (66%) use social networking once a day or more, while 37% use specific apps, including WhatsApp, daily to communicate with others.
More than a third have or will cut traditional voice calling. In South Africa, nearly 60% said they had or would reduce SMS usage because of alternative messaging tools, and around 40% had or would cut mobile voice use because of new alternatives.
“The survey findings tell us that social media is literally soaring,” said Craig Holmes, VP for communications industries at IBM. “Its now the primary communication vehicle for an increasing number of digitally-aware consumers, giving consumers unprecedented power to build or demolish brand strength as they blog, text and comment via social media.”
“The influence of peers on peers has a radical impact on telcoms providers,” said Homes.
The survey revealed that 55% of South African respondents will always or often share negative experiences with others, and 44% will discourage others to use the provider. As many as one-out-of-three respondents will post a negative comment online or will complain on social media.
This peer influence is damaging as 39% said a key reason not to buy from or subscribe to a provider is discouragement from others.
“Telecom providers have transformed how the world communicates, but they are essentially lagging in how they communicate with their own customers,” Homes said.
“Consumers in South Africa tell us they buy on trust and relationships, that they want one-on-one social-style communications and will be more loyal on the back of good experiences, yet telcoms providers locally continue to experience declining revenues. They have to do more – really tune in to digital consumers, better at understand their wants and needs, then responding with compelling user experiences,” Holmes said.
For consumers this equates to getting high quality and compelling products and services.
“Receiving quick effective responses to questions and issues, getting exclusive offers for their loyalty – these are the aspect in creating loyal customers that Telcoms players must get to grips with.” Holmes said.
Loading ...