The common metric used for measuring customer satisfaction is the Net Promoter Score (NPS). It is extensively used by telecom operators (and in other sectors) to assess performance against their peers on an ongoing basis.
The calculation for NPS is simple. The customers are asked how likely they would recommend a service provider on a scale of 0-10 (not at all likely being 0, and 10 being highly likely). Customers are classified as detractors, neutral and promoters according to the score they give. The detractors are those giving a 6 or less, the neutral are those giving a 7 or 8, and finally, the promoters are those giving a 9 or 10. The NPS is calculated by taking the percentage of respondents that are promoters, subtracting the percentage of respondents that are detractors, and multiplying the result by 100.
A negative NPS means that there are more detractors (less likely to recommend a service/product) than promoters; contrarily, a positive score shows that there are more promoters than detractors.
The scores for telecom operators vary widely. Some elements of mobile services have a greater effect on individuals' willingness to promote than others. These factors might vary among different countries, including:
The development of the internet and mobile apps is driving an important shift in what customers expect from their operators. For instance, studies have shown the decrease in the importance of physical channels; with only 8% of consumers considering the existence of stores as a must-have for mobile operators.
As these changes continue taking place in the industry, consumers across countries and age groups are increasingly captivated by a different kind of provider: a digital-only operator. More than 50% of customers surveyed in the US and Europe are willing to switch to a digital-only operator.
A digital telecom operator:
Focuses on real-time and mobile-first interactions
Creates a digital culture
Simplifies value proposition and customer relationship
Changes relationships from transactional to personalized
Simplifies the customer experience and the processes
Builds digital organization where business and technology groups seamlessly collaborate.
Telcos' Digital Customer Experience - harvesting the benefits
The deficient image of the mobile industry in terms of customer satisfaction can explain why small players who adopt a digital-only or hybrid operating model (with a greater focus on digital channels) are achieving high NPS in comparison with large incumbents (who tend towards a physical or hybrid operating model).
Several studies have shown a correlation between the use of digital channels and the NPS of mobile operators – operators with consumers using offering services through digital channels generally achieve higher NPS; and a higher NPS increases a customer’s willingness to pay (WTP).
A Mason Analysis (2019), shows that there is a clear inverse relationship between a customer's likelihood to recommend their provider and their inclination to churn: 26% of the detractors will change providers, compared to 11% for neutrals and 8% promoters.
The industry average for Telecommunications/ Wireless Carrier is 28. Our customers who have transformed to offer a digital-only experience are reporting NPS around 40 (and growing) resulting in significant growth of their customer base.
The Moflix Onboarding Platform offers a fully-digital solution for telcos:
Moflix develops and launches digital telecommunications offers at low risk, at low cost and within only 100 days - without the need of an expensive and complex IT transformation. Are you ready?