Mobile service providers battle to meet customer expectations – survey

Mobile service providers battled to meet consumer expectations during the last half of 2020, according to the latest South African Customer Satisfaction Index (SA-csi) for mobile telecommunications services.

Customer expectations increased during the pandemic, when people were forced to work from home and therefore became more dependent on their mobile data and connectivity.

Research firm Consulta conducted the survey for the index among just over 2,200 customers who use voice and data solutions from Cell C, MTN, Vodacom and FNB Connect, to determine customer satisfaction with the overall service, quality and value received from their mobile service providers. 

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Customer expectations and satisfaction

Cell C and FNB Connect were identified as the leaders in the overall customer satisfaction stakes for 2020, while the two largest providers, Vodacom and MTN, scored in line with the average after struggling to get on top of declining customer satisfaction trends over a five-year period. 

FNB Connect was the overall leader among the mobile service providers with the highest customer satisfaction score of 79.2, closely followed by Cell C at 77.1 with an improvement of almost seven index points in overall customer satisfaction score compared to 2019.The scores for  Vodacom (74.4) and MTN (73.2) were on par with the industry.

This should be cause for concern for Vodacom and MTN because declines in customer expectations have been proven to predict inevitable drops in perceived quality, value and ultimately, overall customer satisfaction.

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Customer loyalty

FNB Connect had the most loyal customers at 71.1%, followed by Cell C at 70%.

“A consistent decline in customer satisfaction and loyalty left the industry vulnerable to new entrants and substitutes as consumers increasingly look for alternatives and especially simplicity, a streamlining of mobile service providers and service channels and value for money.

“This has certainly played out in the latest index, with a banking brand, FNB Connect, taking the top spot in customer satisfaction instead of one of the large traditional providers,” says Ineke Prinsloo, head of customer insights at Consulta.  

FNB Connect’s lead in customer satisfaction suggests that customers are choosing to turn to trusted providers they already have a deep relationship with to streamline the number of service providers they use.

This simplifies their billing and payments and enables them to get instant top-ups through their existing banking apps, integrate their banking rewards and get preferential mobile deals and prices.

Prinsloo says considering the depth of data and analytics banks have of their customers, the opportunity to offer value added products, such as data and airtime, that are uniquely tailored to customer needs is significant.

The trend to work, learn and be entertained online and remotely is not expected to change anytime soon.

“In effect, customers are less concerned with the quality of voice networks, placing more emphasis on mobile data offerings, services and value for money. FNB Connect seized on this opportunity by fully integrating mobile offerings with their customers’ existing banking apps and rewards programme,” she says. 

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Perceived quality in customer expectations

Perceived quality is the measure of what customers expect as opposed to what they experience in terms of delivery from mobile service providers. Here, FNB Connect was the leader with a score of 81.5, exceeding customer expectations by a significant margin, while all the other brands come in on industry par of 78.0.

Perceived value in consumer expectations

Tangible value has a very strong impact on customer loyalty in the mobile phone industry. FNB Connect was in the lead here with a score of 81.5, followed by Cell C with 79.2, MTN with 72,9 and Vodacom on 72.8. The average score for perceived value was 74.0.

Complaints

The average score for the frequency of complaints was 28.2% and for complaint handling 52.4%, indicating that complaint resolution from mobile service providers has a significant impact on customer satisfaction and loyalty. The frequency of mobile complaints at 28.2% is especially high compared to other industries, with complaints ideally below 10%.

The frequency of complaints at Cell C was 22.3%, but the company also had the highest complaint handling score of 60.9% which probably had a positive effect on overall customer satisfaction. FNB Connect, on the other hand, had the lowest frequency of complaints across the industry at 14.2% while its complaint handling was slightly below par.

Vodacom, with a score of 27.4 and MTN, with a score of 32.5, had the highest frequency of complaints, while their complaint handling was also just below par, which suggests that a large proportion of customer complaints are resolved poorly.

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Net promoter score 

The Net Promoter Score (NPS) measures the likelihood of customers recommending a brand to their family and friends, compared to customers who would actively discourage a relationship with the brand.

The average net promoter score for the industry is 23.1%. FNB Connect scored 35,8% and Cell C 33.1%, while Vodacom scored 21.7% and MTN 19.6%.

Who missed the boat in meeting customer expectations?

Prinsloo says the results of the index show that mobile service providers have missed the boat to differentiate themselves at a time when consumers were and remain heavily reliant on their mobile providers. 

“In a data-driven world, the dominant providers are struggling to satisfy their customer needs. It is interesting to note that a relative outsider in the financial services sector has now usurped the leader position in what is essentially a value-added service and not yet a core business offering.

“It will be interesting to watch the developments as financial services providers increasingly move to provide more value-added services for their customers, backed by sophisticated digital and data and analytical capabilities,” adds Ineke.