Insight
The latest global report from Salesforce sheds light on customer’s shifting priorities and why communication service providers (CSPs) must adapt to improve customer retention
In 2024, it is easier than ever for customers to jump from service provider to service provider in search of the best deal and the best experience. In fact, the latest report from Salesforce suggests that constantly being on the lookout for a better offer is deeply ingrained in the CSP customer mindset, with 76% of wireless customers considering switching, while 78% of broadband customers said they were at least somewhat likely to use tech provider instead of their current provider, if available.
To make matters worse, the report also notes that 50% of wireless customers and 47% of fixed broadband customers feel that threatening to switch providers is actually an effective way of ensuring that they get the best deals from their existing providers.
So, why is customer loyalty seemingly so low in the telecoms sector? And how can CSPs and reduce churn?
The answers, of course, are deeply nuanced. Customer expectations have increased enormously as their lives have grown increasingly digitalised. Not only do customers today demand greater speeds and reliability from their CSP, they also want a more seamless and flxible relationship with their provider.
Automated interactions are becoming the norm, providing the CSPs with a huge boost in efficiency and potentially cost-reduction, but these automated services are often failing to deliver the excellent quality customers demand. The report suggests that only 22% of B2C customers would describe their provider’s automated services as ‘excellent’, while over half admitted to never having used their providers self-service.
This is not solely an online issue either. In fact, expectations for excellent service are only increased when it comes to in-store interactions, with the report finding that less than a quarter of B2C customers would describe their experience as pleasing or efficient.
Ultimately, this report reflects an industry in which customers remain sceptical of their provider’s ability to meet their needs and CSPs must work diligently to change their mindset when it comes to defining excellence in customer service.
You can access the full Salesforce report, which surveyed 500 telecoms experts and 6,000 customers, here: Trends in the Communications Industry.
This report is being published at a pertinent time for the UK connectivity market, with industry discussions beginning to move beyond infrastructure rollout and towards full fibre and 5G adoption. Indeed, the country’s fibre market, which at its peak contained more than one hundred altnets, is starting to consolidate, making customer experience and service differentiation more important than ever in ensuring a positive ROI.
Against this backdrop, achieving excellence in customer service is expected to be at the forefront of next month’s Connected North conference live in Manchester, with specialists from throughout the telecoms industry coming together to discuss key issues and the shifting connectivity landscape.
Get the full report here Trends in the Communications Industry and join the discussion at Connected North now.
Also in the news:
BT wins £26m contract to connect UK schools
Apple fined €1.8bn by European Commission over Spotify row
Japan to reduce regulatory pressure on incumbent NTT