2011 Consumer Survey France

IBM Institute for Business Value
February 2012

2011 Global Telecom Consumer Survey
Country Data for France
Communications spending priorities,
perceptions, expectations and attitudes of
today’s smarter consumer

© 2012 IBM Corporation


The digital revolution is changing the relationship between
Communications Service Providers (CSPs) and their customers

Consumers become
increasingly instrumented
The are using technology to get
information from a multitude of sources

Consumers become
increasingly interconnected
They are connecting with each other to
exchange information

Consumers become
increasingly intelligent
They have clearly defined expectations
of what they want
2 © 2012 IBM Corporation


Consumers are becoming smarter and have new avenues to connect
with each other to influence large corporations, including CSPs

12/29/11 Press Release:
“Starting January 15, a new $2 payment
convenience fee will be instituted for
customers who make single bill
payments online or by telephone”

Within 24 hours, more
than 100,000 people had
Greetings, signed a online petition:
I am disappointed to learn that Verizon Wireless
plans to institute a new $2 fee for paying bills
online…. Your company should not assume that
it can do anything to your customers and that we
will allow it to happen…

12/30/11 Press Release:
“Verizon Wireless has decided it will not institute the
fee for online or telephone single payments that was
announced earlier this week.
The company made the decision in response to
customer feedback about the plan…”


To evaluate the impact of the age of consumerism the IBM Institute
for Business Value conducted both a Consumer ánd a CMO survey

IBM Global Consumer Survey IBM Global CMO Survey
(25 countries;13,237 consumers) (131 interviews with telecom CMOs)



CSP CMOs indicated they feel underprepared particularly in areas that
are key for connecting to customers, identified as most critical for them

Global Marketing Priority Matrix
1 Customer collaboration and influence
Underpreparedness 6
2 Growth of channel and device choices
Percent of CMOs reporting
underpreparedness 3
70
3 Social media
10 4 Data explosion
9
5 Decreasing brand loyalty
11 5
6 1
7 6 Shifting consumer demographics
60
7 ROI accountability
2 8 Regulatory considerations
4
8 9 Emerging market opportunities
7
50
11 10 Financial constraints
12
11 Privacy considerations
Factors impacting
marketing 12 Corporate transparency
40 Percent of CMOs selecting
Telecom (CSPs) as ‘Top five factors’ 13 Global outsourcing

0 20 40 60 Mean

Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=131 Q8 How prepared
are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
5


To understand consumers’ attitudes towards CSPs in the world of today
IBM conducted a survey of over 13,000 consumers in 25 countries
Mature Emerging

B
R
France UK US Brazil Russia
I
C
Greece Italy Japan India China

South Korea Portugal Australia Czech Republic Poland

Netherlands Spain Sweden UAE Mexico

Belgium Germany Canada South Africa

6
Cyprus © 2012 IBM Corporation


The survey covered many topics, including spending priorities, service
adoption trends, customer advocacy and adjacent market opportunities

Customer Spending Customers’ Adoption of, Customer Sources of
priorities for 2011 – Experience with, comms Information for communi-
2013 products and services cation products/ services

Customers’ Attitudes Customer Advocacy Adjacent Market
towards Comms Providers and Antagonism Opportunities


More than 100 slides describe the characteristics of US consumers
in their perception of CSPs and their products and services

Customer Spending Customers’ Adoption of, Customer Sources of
priorities for 2011 – Experience with, comms Information for communi-
2013 products and services cation products/ services

Customers’ Attitudes Customer Advocacy Adjacent Market
towards Comms Providers and Antagonism Opportunities

951 respondents were drawn from across France and subscribe to
at least one service from a wide range of service providers
France : 951 Proportion of sample identifying one of the providers
respondents; 9.3% of below as their Primary Communications Provider
total sample (weighted
distribution 4.6%)
38 % 31 %

18 % 9%

3% 1%

<1 %
*Services are
 Fixed telephony (landline)  Mobile/Wireless Broadband
 Mobile Telephony  Pay TV (Cable, Satellite, IPTV)
 
Fixed Broadband (Cable, DSL, FTTx)- Internet Telephony



Some Results


Consumer sentiment on future spending in France is much lower
than the average of the emerging markets surveyed
Net Increase/Decrease Emerging Net Increase/Decrease

5% Utilities
Utilities
Electric/Gas Utilities
Utilities 40%

Fixed Telephony.
Fixed Telephony
-13%
average
0% Food & drinks
Food & drinks 30%

Food & drinks
Food & drinks -1% Transportation
Transportation 22%

Transportation
Transportation -4% Mobile Telephony
Mobile Telephony 21%

Mobile Broadband
Mobile broadband -11% Clothing
Clothing 16%

Mobile Telephony
MobileTelephony -11% Holidays
Holiday/vacation 7%

Pay television
Pay television -15% Mobile Broadband
Mobile Broadband 6%

Clothing
Clothing -18% Pay television
Pay television 6%

Holidays
Holidays/vacations -19% Elect. Appliances
Electrical appliances 3%

Sports
Sports -21% Fixed Telephony 2%
Fixed Telephony.
Elect. Appliances
Electrical appliances -28% Going out
Going out -7%

Going out -29%
Going out Sports
Sports -10%

11 Source: 2011 IBM Global Telecom Consumer Survey, Mature countries N= 8865: France N = 951: © 2012 IBM Corporation
Question: Compared to previous years, are you likely to spend less, the same or more on the following products / services in the next 2-3 years?

As in most mature markets, more than less consumers in France
expect to reduce spending on mobile telephony and broadband

Netherlands
Germany
Net Increase/Decrease

Australia

Canada.
Portugal

Belgium

Sweden
Greece

Cyprus

France

Japan
Spain
38% 40% 44%

USA
Italy

UK 31%
20% 22% 25% 25%
16%
1%

Czech R.

Russia
UAE

China
South Africa

Poland
India

Korea
Brazil
Mexico
-9% -9% -8% -8% -7% -5% -4%
-17% -12%
-22% -19% -18%
-30% -29%

-56%
Spending MOBILE Telephony
(Voice, SMS, etc) (2012 – 2014)
Emerging
Markets

Netherlands
Germany
Czech R.

Australia
Canada.
Portugal

Belgium

Sweden
45%
Greece
Net Increase/Decrease

France
Cyprus

Japan
Spain

35%
USA

31%
Italy

UK

12% 15% 15%
5% 6% 8%

-7% -7% -6% -6% -3% -2%

South Africa
-10% -9%

Mexico

Russia
UAE

China
Poland

India

Korea
Brazil
-15% -13% -12%
-20% -16%
-25%
-32%
-43%

Spending MOBILE Broadband
(2012 – 2014)
Source: 2011 IBM Global Telecom Consumer Survey, Global N= 13237; Mature Countries N=8865; Emerging Countries N=4372

For under 25s social networking has become the number 3
communication channel
Daily
Usage

1 Mobile Telephony 72%

2
3
Email/IM/Chat
Social Networking
70% 62%
62% of under 25s use
4 Fixed Voice 43% social networks
UNDER 25s daily
5 Video Streaming 26%
6 VoIP 8%

1 Email/IM/Chat 62%
2 Mobile Telephony 51% 26%
of under 25s with
3 Fixed Voice 49%
Internet stream or
4 Social Networking 39% download video
ABOVE 25s daily
5 Video Streaming 14%

6 VoIP 7%
Source: 2011 IBM Global Telecom Consumer Survey, France N=951 S06 How often do you use the following communications services?

In the category ‘High Media users’ one third claims to access a
variety of rich content services through a mobile device
High
Q08. Which of the following do you use to access the media/content services Media/Content
in the last question users
100% 2% 2% 2%
Other smart
3% 3% 4% 4% 2%
6% 5% 3% 8% 3% phone
6% 6%
1% 5% 3% 4%
5% 3% 3% 1% 6%
2% 3% 4% 5% 2% 11% 10% Android device
12% 4%
80% 15% 11% 9%
16%
12% 8%
10% 8% 18% Blackberry
8%
7% 7% 8%
60% Tablet PC

iPhone
40%
68% 72%
62% 63% 66% 66% 63%
62% Laptop/Netbook
via Mobile
20% Broadband
Via Fixed
Broadband

Fixed
0%
Online Live video User Online Online Online TV Full movie
audio broadcast generated Music video News video sports Programs
content video clips clips videos

Source: 2011 IBM Global Telecom Consumer Survey, France N=951

Almost half of French consumers do NOT complain to their
CSP when disconnected from the network
Do you ever complain to your service provider when you are disconnected
from the network during a conversation, a voice call or internet session?
100%

90% 25%
33% 31%
80% 38% 35% 35% No
45% 44%
50% 48% 48% 47%
54%
70% 59% 57% 56%
63% 61% 61% 60%
67% 67%
71% 69%
60%

50% Yes
40% 75%
67% 69%
62% 65% 65%
30% 55% 56%
50% 52% 52% 53%
46%
20% 41% 43% 44%
37% 39% 39% 40%
33% 33%
29% 31%
10%

0%
Mexico
USA

UAE
Italy
Germany

India
Japan
Australia

Greece
South Africa
UK

Netherlands

Poland

Spain

Korea
France

China
Russia

Brazil
Sweden
Canada

Czech
Portugal

Belgium

Source: 2011 IBM Global Telecom Consumer Survey, Global N= 13237; Mature Countries N=8865; Emerging Countries N=4372

More than half of consumers surveyed don’t believe that complaining
will make any difference, or said that it is too much hassle to get
through to the call center
Q12 Why do you not complain to your service provider when you are disconnected
40%
from the network during a conversation, a voice call or internet session?

30%
Reasons for NOT complaining

20%

28%
25%
10%
12% 14% 12%
6%
0% 3%
Telco Don't believe it Too much Have to wait My Provider My Provider is Don’t know
networks make any hassle to get too long in charge for unable to how to contact
unreliable, difference through to the queue to calls to Call resolve my my Provider to
variable Call Centre speak to Call Centre problems complain
service Centre
expected

Another 14% said that it takes too
long to reach someone in the call
16
center © 2012 IBM Corporation

However, the majority of consumers exchange these
experiences with their friends/family
Q10. What happens when you are disconnected from a mobile, landline
or broadband during a voice call or when accessing the Internet?

What happens when being disconnected?
Attempt to re-dial/re-
53% 42% 5%
connect
95%
Avoid providers Attempt Redial/
friends/family have poor 29% 56% 15% Reconnect
experiences with

Tell friends/family about
my poor experience
14% 61% 25%
85%
Avoid Providers with
Contact customer poor experience
5% 42% 53%
service

Switch providers – e.g.
use different SIM
3% 23% 74% 75%
Tell friends/family
My provider contacts me about their poor
when I have a poor 3% 18% 79% experience
network experience
Always Most/Sometimes Never


Internet Search and Friends/Family have become the preferred
sources of information in France, social media as source is growing
What are you preferred sources of information when you are looking
for communication products and services?

67%
Internet search 72%

54%
Recommendations/ advice 50%

37%
Websites of communication providers 28%

33%
Social media 25%

22%
Retail stores 28%

21%
Traditional advertising 12%

15%
Emails/ promotional offers 11% All 25 countries
France
10%
Shopping portals/ auctions 7%

Source: IBM Institute for Business value 2011 IBM Global Telecom Consumer Survey, France N=951
18 Question: What are you preferred sources of information when you are looking for communication products and services? © 2012 IBM Corporation


CSPs should focus on this new trend and mine digital channels, such
as blogs, tweets, social networks and peer reviews

• Get in tune with today’s digital consumers
by listening to the digital dialogue
• Become part of the dialogue and to be
Blogs
prepared to proactively respond to
negative chatter
Social Tweets
Networks • Encourage a two-way dialogue and
Peer embrace customer input by building online
Reviews and offline communities
• Find the influencers, and target them with
appropriate messaging

By capturing viewer insights from social media sources, RTL
Nederland was able to gather timely feedback from viewers
on the television programmes 'X Factor' and 'So You Think
You Can Dance'. This helped the entertainment company to
better understand audience needs and preferences and
increase viewer satisfaction and involvement.


To establish a stable or growing market share, or to improve margins,
CSPs should focus on customer binding

In a world where people
• are becoming increasingly informed, empowered
and demanding
Key Questions • trust family, friends and peers more than their CSP
• have a wide range of providers to choose from
how can CSPs

Improve Customer Binding?
• What does a true Advocate look like?
• How valuable are they?
• Which elements of the customer experience are
most important to consumers?
• How well is the CSP positioned when it comes to
being focused on what the customer wants?
• How can providers use Advocacy to drive growth
and customer loyalty?


A new approach for Customer Advocacy:
Customer Focused Insight Quotient (CFiq)

The Net Promoter Score (NPS) is the traditional measure of word of mouth
NPS advocacy. The score is calculated by simply asking consumers on a scale of 1 to
10 their likelihood to recommend a specific company or brand.

The IBM Customer Focused Insight Quotient (CFiq) utilize an approach that looks
at key client perceptions and organizes them in a manner that captures more than
demographic or behavioral data. Using statistical analysis and multiple regression
CFiq techniques it isolates predictive attributes that are highly correlated with positive
commercial behaviors. The CFiq measures the level of advocacy of a customer by
analyzing customer responses to three key statements as stated in the next slide.

CFiq categories:
– Advocates: loyal clients who refer new business, consolidate more of their
portfolios with their primary provider, and resist competitive offers
– Antagonists harbor negative opinions about their provider, and potentially will
bad-mouth the company
– Apathetics: could be described as those who show no strong feelings either
way, and may be prime candidates to “sweeten” into advocacy. Or, they may
leave their firm if a more appealing option comes along.


A consumers’attitude is shaped by cumulative experience and
directs future behavior and suggestions for improvement
Consumer Attitude

Advocates Apathetics Antagonists

An Advocate is defined by three criteria

A willingness to recommend one’s
Likelihood to Recommend
primary provider to friends and family

AND
A willingness to increase one’s
purchases if one’s primary provider
Purchase Intent expanded its assortment and offered
products currently found only at other
providers
AND
A willingness to stay with one’s primary
Staying Rate provider, even if other providers begin
offering competitive products or services



Understanding who is an Advocate and who an Antagonist, and why,
is important for driving growth and improving customer retention

Advocates have a higher
“I have recommended my Higher
wallet share and are highly
provider to several people” Shareholder
Value complimentary of the
“They have amazing customer
service”
provider capability
“They are more expensive but
I hardly get disconnected or
have calls dropped” Advocates Apathetics are generally
Apathetics
passive participants
susceptible to competitor
offerings
“I think my telco over-charges me
Antagonists
but how can I prove it; my credit
runs out too quickly after I top-up”
“The promotions lack any Antagonists have low
relevance to me” Lower wallet share and high
“ I am looking to switch to the new
Shareholder support costs and are
provider offering cheaper rates” Value prone to bad-mouth the
provider


Though one of the highest advocacy levels of the countries surveyed,
French CSPs still have too few advocates
100%
4% 4% 3%
9%
13%
19% 17% 17% 17% 17% 16%
22% 20% 19% 20% 19%
26% 25% 24% 23% 19%
36% 34% 25%
80% 22%
14%
19% 25%
14% 16% 20% 23% 23% 25% 22% 56%
26% 31%
21% 23% 29% 36%
Advocates 60%
Apathetics 17%
18%
22% 25%

40% 77%
Antagonists 70% 69% 71%
62% 61% 64% 62%
60% 53% 52%
59% 58%
55%
58% 57% 60%
52%
49% 49%
46%
20% 39% 41%

0%

Canada
Netherlands

China
Japan
Germany

Australia
South Korea
Czech Republic

Brazil
Portugal
Mexico
Spain

Poland
France
Russia
Sweden
South Africa

Belgium
UK
US

Italy
Greece

Source: 2011 IBM Global Telecom Consumer Survey, 25 countries, N = 13235 © 2012 IBM Corporation

In France, Free has the highest proportion of advocates and the
lowest proportion of antagonists
26%
53%
21%
100%

25% 21% 25%
80% 36%

21% 14%
24% Advocates
60%
18%

Apathetics
40%

58% 62%
51% Antagonist
46%
20%

0%
France Telecom / Neuf Cegetel / SFR Bouygues Telecom Free / Iliad
Orange


CSPs do not account for the extreme gap in attitude of their
customer base
Advocates Gap Antagonists
% strongly agree % strongly agree
74% Prompt correction of errors when they occur 30%

69% Listens and proactively follows-up on issues 27%

63% Offers me relevant products and services 21%

59% Listens and collects information necessary to meet 17%
communication needs
57% Displays consistent level of knowledge 19%
Give the CSP Find
credit for 52% Resolves problems fairly 16% fault
doing with
“everything” 66% Allows me to customize products and services 31% “everything
right ” CSP
49% Values me as a customer 14% does

47% Provide advice to improve my user experience 14%

81% Allows multiple ways to interact with them 49%
Seeks input to develop new communication
46% 14%
Products/services
68% Does not request for existing information repeatedly 40%


The survey did uncover a number telecom-enabled services majority
of consumers are willing to use /pay for
Retail/Shopping Banking/Insurance Healthcare

#1 all consumers
Nbr 1: Detailed Product Nbr 1: Location-based Nbr 1: Remote health monitoring
info on mobile (44%) insurance claims (55%) (47%)

Public Services Travel & Transport Utilities

Nbr 1: Find nearest public/ Nbr 1: Time table for public Nbr 1: Receive notifications of
government offices (46%) transportation (56%) electric/gas/water service
outages (46%)
Source: 2011 IBM Global Telecom Consumer Survey, France N= 951

February 2012

Contacts

Bob Fox Rob van den Dam
Global Telecom Industry Leader Global Telecom Industry Lead,
Global Business Services IBM Institute for Business Value
robertfox@us.ibm.com rob_vandendam@nl.ibm.com

WWW.IBM.COM/IIBV


2011 Consumer Survey France

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