Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Malaysian consumers have 'no qualms’ in switching telcos: Frost & Sullivan

AvantiKumar | March 31, 2015
Telcos are under increasing pressure to deliver as 83% of consumers say they will switch telcos due to unclear pricing alone: Malaysia Telecommunications Services Customer Experience study.

F&S_Hazmi Y

Photo - Hazmi Yusof, Country Head & Senior Vice President, Asia Pacific, Frost & Sullivan.

According to analyst firm Frost & Sullivan, 83 percent of Malaysian consumers said that if there is a lack of transparency in Malaysian pricing and subscription plans will drive them to switch telco providers.

Frost & Sullivan's country head & senior vice president Hazmi Yusof said that the 83 percent data was based on Frost & Sullivan's Malaysia Telecommunications Services Customer Experience study.

Drawing on results from an online survey, conducted from October to November 2014 of 1,300 respondents, randomly selected from consumer online panels in Malaysia, Hazmi said that 66 per cent of respondents surveyed also demand for higher speed connectivity and they have no qualms ending their subscription from the current service provider due to low speed.

"The lack of customer experience from telecom service providers is the fourth highest reason at 58 per cent for Malaysians to stop their subscription," he said.

Based on data analysed by Frost & Sullivan, Celcom is ahead of the industry average (57 percent) at 66 percent in terms of customer loyalty, said Hazmi. "When asked if they would recommend their current telecommunication service provider to their friends and colleagues, U Mobile is the clear winner with 65 per cent, which is higher than the industry average of 51 per cent," he added.

Malaysian telecommunication service providers' customer rewards program leave much to be desired, said Hazmi. "More than one-third of the consumers reported not receiving any rewards from their service providers, and even among those who did, almost half get a celebratory token on their special days, which could be considered a bare minimum by the consumers."

 Net promoter score

In addition to Frost & Sullivan's Customer Experience Index, respondents were also polled with a "commonly-used methodology called Net Promoter Score (NPS), which is calculated as the percentage of promoters (likely to promote brand) deducting the percentage of detractors (likely to shift brand)," said Hazmi.

"Net Promoter Score is considered a predictor of customer behaviour that spurs a telecoms service provider's growth, as recommendation is a good indicator of current and future behaviour," he said. "Again, U Mobile rates significantly higher for Net Promoter Score as compared to other service providers with a NPS score of 54 per cent."

He said that a comprehensive view has been taken to assess company performance by channels across the customers' journey at the pre-purchase, purchase and post-purchase stage. In summary, companies that have scored over industry average on a scale of 1-5 find a place in the "Band of Champions".

"These companies are the ones that have been voted highest by their own customers when it comes to delighting them," said Hazmi.  "Therefore, there are instances where there are more than one company recognised for Excellence in Customer Experience in the same category," he said, adding that therefore, there are other categories where no company made it to the "Band of Champions" based on their scores.

Below are the Malaysian telecommunication service providers that have been recognised in Excellence in Customer Experience Management, Telecommunications Industry by their customers based on a survey conducted by Frost & Sullivan.

Overall Experience                           - U Mobile
In Store Experience                          - Maxis Communications
Self-Service/Online Experience     - Telekom Malaysia
Contact Centre Experience             - U Mobile  / Maxis Communications
Mobile Experience                            - U Mobile
Net Promoter Score                          - U Mobile


Sign up for CIO Asia eNewsletters.