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Mobile data disappoints once again

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 20 Oct 2016
Customer loyalty trends have shown a consistent decline over the past three annual South African Customer Satisfaction Indexes.
Customer loyalty trends have shown a consistent decline over the past three annual South African Customer Satisfaction Indexes.

South African consumers express low levels of loyalty to their mobile data service providers and are generally disappointed with the service they receive from them.

This is according to the latest South African Customer Satisfaction Index (SAcsi) for mobile data service providers.

The study was conducted by Consulta Research, a customer insights consultancy firm. The 2016 SAcsi for Mobile Data Service Providers benchmarks customer satisfaction through an internationally recognised model to achieve an overall result out of 100.

The index provides a weighted average of the various aspects of a customer's experience with the mobile data service provider, and the degree to which the product or service has met, fallen short of, or exceeded their expectations.

The data returned in this index reveals some of the lowest sets of scores across the SAcsi industries surveyed by Consulta this year.

Customer loyalty trends have shown a consistent decline over the past three annual indices, with the industry average declining from 71.1% in 2014 to 59.2% in 2016.

#DataMustFall

MTN's customers show the lowest loyalty to their brand with a score of 54.7%, down almost 10% from 2015, followed by Telkom Mobile at 59.2% compared to 67.7% last year.

Cell C and Vodacom compare well with the customer loyalty industry average (59.2%) with scores of 61% and 61.6% respectively, albeit low in comparison to other industries measured in the SAcsi.

The study comes at a time some South Africans, irked by the exorbitant data prices, have engaged on the #DataMustFall social media campaign in a bid to force the country's mobile network operators to lower data prices.

Leader of the campaign, radio personality Thabo Molefe, known as Tbo Touch, has since taken the case to Parliament after giving the operators a 30-day ultimatum to make a change.

The ultimatum has since lapsed and there have been no further updates from mobile networks, which has led Tbo Touch to turn to his attention to "plan B".

Another recent report done by Tarffic shows SA has the second highest data contract prices among Brics countries.

"South Africans are limited to a handful of mobile data service providers who are among the most expensive in the world. This frustration is evident in the ongoing #DataMustFall movement that adds impetus to the views that South Africans have held for years - they feel ripped off by high data costs, and will move to a more cost-effective service provider without hesitation," says professor Adr'e Schreuder, CEO of Consulta.

This is further indicated in the Net Promoter Score (NPS), which is calculated as the difference between the percentage of promoters or customers who recommended your brand, and detractors or customers who did not recommend your brand. The NPS yielded an industry average of 1%. Telkom received the lowest sentiment with a score of -9%, followed closely by MTN at -4%, with Cell C narrowly above the industry average at 2%. Vodacom received a score of 9%.

Blame the infrastructure

Schreuder believes a major contributor to the high cost of mobile is the current network infrastructure.

"The demand for high-speed quality data exceeds the current infrastructure which also results in customers paying higher rates for better quality data. Another potential theory is that because network providers were forced to bring down the costs of voice calls due the persistent customer complaints challenging these costs, they may potentially have increased the costs of data in order to compensate for the losses accrued on voice calls.

"South African customers on average spend approximately 30 times more than what Russian customers spend on data per month. They also spend 12 times more than Chinese customers and 24 times as much as Israeli customers. Not only do South African customers pay more for their data bundles, they also have to deal with a much slower Internet compared to that of other countries."

The average industry score for the 2016 SAcsi Mobile Data Service Providers is 67.8 out of a score of 100. A score below 70 on the SAcsi is deemed low. The SAcsi score has continued declining over the past three years. This year, MTN received the lowest score at 65.9 followed by Cell C (66.2), Telkom Mobile (68.2), with Vodacom marginally leading the industry average with a score of 69.7.

When it comes to customer expectations, the index reveals Vodacom customers expect the most of their supplier with a score of 76, above the industry average of 74.2. Telkom Mobile and MTN are on par with the industry average, while Cell C customers expect a lower level of service at 70.4.

Looking at the ability of mobile network providers to deliver the services they promise, Cell C came the closest to delivering on this. Cell C also obtained the lowest percentage of customer complaints and the highest score for successfully handling customer problems and complaints. Telkom Mobile and MTN customers experienced the largest service delivery gap, indicating that these service providers are not living up to customers' expectations to the degree that Cell C customers reported.

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