Using the analysis of 30 countries around the world, Ovum created a Global Broadband Experience Scorecard to compare the quality of the consumer broadband experience. The analysis demonstrates the importance of how customers actually feel about their overall broadband experience, and how a poor experience can lead to customer churn.
The research, which surveyed 15,000 fixed broadband consumers in 30 countries (including Malaysia), found that Sweden scored the highest level of Broadband Experience globally, while regionally Europe came out on top. The analysis showed that levels and growth in broadband penetration were not the only drivers of an excellent experience, high penetration that was coupled with poorer perception of the broadband experience pulled some countries back.
The Ovum Global Broadband Experience Scorecards reveals that Malaysia has a score of 49% for current connectivity, higher than Thailand (44%), Philippines(42%), India (31%), Indonesia (29%), however much lower than Singapore (89%), South Korea (86%), Japan (84%), Australia (71%), China (62%), Vietnam (51%). Malaysia has one of the lowest customer network score in the region at 31% while the average score stands at 52%. For service & application experience, Malaysia has the lowest score in the region at 31% (average 53%). The overall score for Malaysia is 45% (Singapore has the highest score in the region at 77%).
The market research firm said that the best consumer experience is supported by three key factors: a download speed of at least 10Mbps; a stable and reliable network that delivers content no more than 3 seconds; and outstanding customer service that can resolve customer issues at the first point of contact.
Key discoveries (Global Broadband Experience Scorecards):
- There are significant gaps in current customer experience. 30% of customers churned in the last 12 months due to the desire for faster speed and better customer service.
- More than half of consumers are dissatisfied if the network response time is longer than 3 seconds. Zero response (waiting) time is the customer’s desirable experience.
- Customers in mature markets rate their network performance 10% worse than it actually is.
- 33% of customers claim that their broadband service didn’t meet their expectations based on the service they signed up for.
- Video becomes the basic service. Nearly 80% and 50% of customers watch short and long videos frequently among the common applications.
- Video experience is not performing well in most (80%) of the surveyed countries.
- Customers use average of four (4) devices in the household in mature markets.
According to Michael Philpott, Practice Leader, Consumer Services and co-author of the report, “Demands on broadband service provided to consumers is compounded by the rise in connected devices. Homes in mature markets were found to typically have up to four devices connected to the network, all of which have the potential to support a wide range of applications.”
“Ever since broadband services were launched, there has been discussion on what is the definition of broadband and how much speed do consumers really need? In 2015, the answer is at least 10Mbps if you wish to receive a good-quality broadband experience, and a significant number of households, even in well-developed broadband countries, are well shy of this mark. With a clear link between poor user experience and customer churn, broadband service providers need to continue to invest in broadband infrastructure in order to provide their customers with the best broadband experience and maintain a satisfied customer base,” concludes Philpott.
[Download PDF]– Ovum Global Broadband Experience Scorecards