87% of consumers will spend more on their Telecom and Media products and services if offered advanced personalized experiences: the Philippines’ survey
Manila, Philippines, 6 August 2021: Communications service providers’ (CSPs) consumers are increasingly expecting a highly personalized and seamless experience like what they get from digital apps and services, such as online shopping, digital banks, payment apps, OTT platforms etc. According to a study conducted by Coleman Parkes on behalf of Amdocs, almost 87% of consumers in the Philippines would increase their spend to engage in such experiences, while 74 percent would likely switch providers for a customer experience that adapts to their changing needs. This translates into millions of dollars of upselling opportunities for CSPs, as well as opportunities to attract millions of new consumers.
The six- market survey interviewed 3600 consumers and 550 CMOs and direct reports, along with some deep conversations with CMOs in six countries in the Philippines, Singapore, South Korea, Australia, Japan, and Indonesia.
The survey found that 75% (APAC- 66%) consumers in the Philippines would be happy to share even more personal information for highly personalized experiences, however, they would be unforgiving about poorly designed personalized experiences. If the experiences do not match consumers’ expectations, they can lead to frustration negatively impacting the brand and perhaps even attrition.
The survey further revealed that despite the stated benefits of personalization, when it comes to delivering holistic personalized experiences, CMOs find internal silos within their companies the greatest challenge to overcome – rather than access to emerging technologies or money to invest in marketing activities. According to the survey, nearly 75% (APAC-60% ) of CMOs in the Philippines believe a lack of senior stakeholder buy-in, resistance to change, and a belief that here is no need to further invest in advanced personalization, are hindering more comprehensive personalization efforts and impeding overall marketing objective of delivering compelling brand experience across all touchpoints.
“Today’s digital consumers keep evolving their benchmark experiences against the best apps and service experiences. All apps are a click away, so consumers do not distinguish between industries- the last best app you used sets your expectation benchmark for the next one,” said Gil Rosen, chief marketing officer at Amdocs. “CSPs do not compete within their category; they compete against all apps and amazing experiences being provided every day by new and existing players. Even dating and gaming apps serve as a benchmark as well as the obvious suspects from the online shopping, banks or any other incumbent service providers – it creates the need for service providers to constantly strive to match those experiences.”
For Amdocs, the solution is for CMOs to work towards the unified goal of leveraging data more effectively and holistically for better product and service design, seamlessly collaborating with multiple stakeholders –CIO, CTO, Customer Service, Operations and creating a cross-functional team to quickly deploy, test, and run applications across all customer interfaces with the brand.
The survey also revealed CMOs in the Philippines, are being too cautious in leveraging consumer data to enhance their personalized products and service design efforts. Survey results revealed 70% (APAC-76%) of CMOs assume that consumers feel digital interactions are just a way to get more data about them, however, only 48% of consumers are concerned about it. This impedes CMOs’ own ability to leverage the right amount and depth of consumer data required to deliver a holistic experience that a digital-age customer wants.
“Communication service providers (CSPs) must take advantage of the fact that consumers are willing to share their data to get an advanced personalized experience tailored to their expectations. However, before this happens, they must improve their quality of service and instill trust in their customers about how their data will be used, and break down internal silos between marketing, sales, and customer care,” said Stephen Saw, Director at Coleman Parkes.
FURTHER KEY FINDINGS FROM THE SURVEY
A highly personalized experience, leveraging consumer data, attracts consumers and will make them spend more: 62% of Filipino consumers want their CSPs to provide similar experiences like that of online shopping platforms. 87% of consumers are likely to spend more if they have a personalized experience that adapts to their changing preferences. 74% might switch service providers for such experiences.
Consumers want data-driven personalized experiences but will only share data with whom they trust: More than 73% ( APAC-64%) of Filipino respondents want their service provider to deliver advanced personalized experience, however, 74% of the Filipino respondents want their CSPs to be clearer and more honest with the personal data they are collecting and how they are using it.
A poorly designed personalized experience may backfire: Though most consumers want a compelling personalized experience, they are unforgiving, if not done right. Almost half (48%) of the respondents think that personalized interactions are just a way to get more data about them. 45% are frustrated with chatbots and live chats.
CMOs recognise the benefits of personalized experiences but are not capitalising on the opportunity: 91% of CMOs recognise data-driven products and services tailored to individual needs positively impact customer retention, yet only 20% of them are delivering holistic personalized experiences. 78% of the CMOs believe CSPs are currently not offering holistic personalized experience across sales, marketing, and customer care.
Technology and cultural barriers impede CMOs’ ability to design and offer highly personalized and seamless experiences: For most CMOs, money is not an issue, only 40% (APAC-32% ) of CMO respondents in the Philippines mention budget as the main barrier. 77% believe that technology is the main barrier. While a substantial amount of their marketing budget in 2021 will go into marketing technologies, less than 40% of marketers are using their advanced personalisation Martech stacks effectively.