1、Trends in the Communications IndustryStreamlined experiences,network monetization and better service has never been more important.vWhen it comes to choosing a communications service provider for wireless services and home internet,customers have more options than ever before.The days of 24/7 virtua

2、l living are over.People have ceased their constant use of provider services,and artificially low levels of churn are waning as they begin to explore new options.This is compounded by inflation,which is forcing people to look more closely at the value they receive for every dollar spent.What does th

3、is mean for the telecommunications industry?If providers want to remain competitive,they need to give customers a reason to stay.Customers are increasingly open to testing new providers,and are willing to switch for better rates,more transparent service agreements,and better self-service options.Cus

4、tomers now have the option to get internet service from the tech companies that often offer simpler,contract-free services.This is contributing to rising churn rates,and is leading many providers to include third-party offerings like streaming,banking,and cybersecurity services to their bundled home

5、 services in the hopes of improving stickiness.The pressure is on.Customers increasingly view communications providers services as commodities.Providers realize they need the ability to create value beyond the network,and many are thinking about new ways to monetize network investments.These efforts

6、 will allow them to offer more than just a base layer of connectivity.However,this is only the beginning.How else can providers satisfy customers,unlock new revenues,and streamline operations?To learn how these trends are impacting the industry,Salesforce conducted global research,interviewing 500 i

7、ndustry experts and 6,000 consumers.The responses help us to better understand the changing face of the communications industry,and provide insight into how providers are taking action to maximize return on investment(ROI),enhance customer experiences,and increase opportunities for revenue growth.Ov

8、erviewResearch Background6,000 Consumers Surveyed Across the Following Geographic Locations U.S.(46%),Canada(6%),Mexico(5%),Brazil(5%),U.K.(5%),Germany(4%),Italy(5%),France(5%),Spain(5%),Japan(5%),Australia(8%),and New Zealand(2%).SALESFORCE RESEARCH3TRENDS IN THE COMMUNICATIONS INDUSTRYSubscriber C

9、ount DistributionPanel of CSP experts with the following Professional TitleDepartment/Function500+experts across the communications industry with the following company and professional backgroundsSALESFORCE RESEARCH4TRENDS IN THE COMMUNICATIONS INDUSTRYChapter 1:Focusing on customer satisfaction wil

10、l help build trust and reduce churnTechnology companies are showing signs of healthy growth in some early moves into the communications industry.This is pushing traditional providers to rethink customer experiences.Consumers view technology companies as solutions providers who help them accomplish t

11、he tasks of daily living.They enhance customers lives with services and hardware that they use multiple times throughout their day.Apps,services,and hardware have become part of customers routines and forge a deep loyalty with big tech brands.When people want to listen to their favorite song,get dir

12、ections to their favorite restaurant,or buy a gift for their best friend,they turn to big tech solutions to get things done.This is despite the fact that in most cases,people are using a communications service provider in order to access these services.SALESFORCE RESEARCH5TRENDS IN THE COMMUNICATION

13、S INDUSTRYWith more choices,the incumbent communications service providers are no longer the default.As alternatives emerge,people are ready and willing to explore choices beyond their traditional providers.Seventy-eight percent of wireless customers and 76%of cable customers said they are at least

14、somewhat likely to switch to a tech provider.Whats more,a growing number of cable customers are cutting the cord altogether,opting to rely on streaming entertainment services(33%)and wireless internet access(20%).Customer Satisfaction Reduces ChurnLearn how Salesforce can help communications service

15、 providers deliver the connected future,faster.Learn moreWhen it comes to customer satisfaction,communications service providers ranked behind both technology and ecommerce,barely edging out financial services and pharmaceuticals.In a world where the vast majority of customers(80%)will abandon a ret

16、ailer after just three negative experiences,providers dont have much room for error.SALESFORCE RESEARCH6TRENDS IN THE COMMUNICATIONS INDUSTRYSatisfaction with providers across different industries Showing%very or extremely satisfiedWhen asked about what might make them consider switching internet se

17、rvice providers,respondents cite price and speed at the top.Unsurprisingly,with hybrid work models growing in popularity,reliability is also a big factor.In fact,more than 1 in 10 consumers say theyd consider changing internet providers for either better reliability(13%)or improved customer service(

18、12%).Customers are willing to change providers for Showing%willing to switchSALESFORCE RESEARCH7TRENDS IN THE COMMUNICATIONS INDUSTRYHow can traditional providers increase satisfaction?How do they separate themselves from the pack?Both online and in-store experiences leave much to be desired.Over ha

19、lf of respondents(51%)prefer to do business online;in fact,64%reported using their providers website over the last month.However,that doesnt paint the whole picture.Forty percent of customers also visited the store over the same time period,and 35%say they prefer to do business online and in stores.

20、This means that optimization of physical experiences cannot be ignored.Customers want the best of both worlds.Providers need to plan for,and support,the joining of online and offline experiences.The ability to move from one channel to another is a key customer success factor.Providers who dont make

21、this easy could see significant repercussions.Forty-one percent of consumers use self-service tools to make a purchase,activate services,or make account changes.Those same customers need to be able to seamlessly transition to an in-store purchase when the situation calls for it.Customers prefer to u

22、se a combination of self-service and assisted services Percentage of customers who use self-service versus assisted-services to make a purchase,activate services,or make account changesHowever,only 22%of respondents reported that self-service options were excellent.With so much room for improvement,

23、providers with superior digital self-service channels could gain a competitive edge.In-store experiences also need attention.Only 25%of respondents said store associates were knowledgeable,and 23%said they received efficient service.SALESFORCE RESEARCH8TRENDS IN THE COMMUNICATIONS INDUSTRYCustomers

24、want to feel like they matter throughout the customer lifecycle.Fifty percent of wireless customers and 47%of cable customers believe they get the best service when they threaten to switch to a different provider.This indicates that more work needs to be done at addressing customer satisfaction thro

25、ughout the lifecycle not just when people threaten to leave.Providers who are able to gain insight into their customer base and provide better service at every touchpoint could gain a significant edge in meeting customer needs and expectations.Good insights into consumer behavior are invaluable.They

26、 enable providers to tell which customers are about to cancel,and could help guide next best actions to decrease their likelihood of leaving.When asked what(other than reducing the monthly bill)might increase customer satisfaction,many customers prioritize transparency(no hidden fees),discounts on s

27、treaming services,and personalized offers/deals.Ways in which cable carriers can improve customer satisfaction Showing options selected most frequentlySALESFORCE RESEARCH9TRENDS IN THE COMMUNICATIONS INDUSTRYCustomers care about the values of the companies they buy from.Sixty-six percent of customer

28、s have stopped buying from a company whose values didnt align with theirs up from 62%in 2020.This is particularly true for issues surrounding environmental practices(78%),economic injustice(75%),and racial injustice(73%).Here,providers are delivering,with many employees stating that their companies

29、think carbon accounting(79%),closing the digital divide(84%),social responsibility(80%),and supporting underrepresented minorities(79%)are extremely or very important.Values,and transparency,matter.SALESFORCE RESEARCH10TRENDS IN THE COMMUNICATIONS INDUSTRYChapter 2:Providers are investing in network

30、 modernizationAs more of our personal and professional lives move online,its imperative that providers meet business and consumer needs for greater bandwidth with faster throughput,lower latency,and improved reliability.Next-generation technologies like 5G and fiber have companies across multiple se

31、ctors excited about the opportunities these services may provide to meet consumer needs and expectations.SALESFORCE RESEARCH11TRENDS IN THE COMMUNICATIONS INDUSTRYMaking the most of your 5G network investmentCustomers will pay more for 5G.Communications service providers have had a difficult time co

32、mmunicating the value of 5G and,as a result,many customers are still unsure as to the opportunities it provides.Our research found only 44%of respondents were“very familiar”or“extremely familiar”with 5G technology.However,67%of respondents said they would be willing to pay more for 5G.5G infrastruct

33、ure will open B2B opportunities inside and outside of the industry.The B2B opportunities could be a game changer when it comes to 5G,and most providers are exploring opportunities and investing in this area.As David Fan,Communications Industry Vice President and General Manager at Salesforce,explain

34、ed,“Service providers know there is no single killer app for 5G and are exploring a broad range of monetization strategies including new B2B applications,network-as-a-service(NaaS)offerings,and digital marketplaces with ecosystem partners.”When asked about how they believe investment in 5G infrastru

35、cture might enhance ROI,many communications providers agreed that it would encourage partnerships and bundling opportunities across multiple industries.This would allow providers to meet B2B customers needs by offering a broad range of value-added service propositions from multiple providers with em

36、bedded connectivity.Percentage of customers willing to pay more for wireless services offering 5G.SALESFORCE RESEARCH12TRENDS IN THE COMMUNICATIONS INDUSTRYThe vast majority of providers believe businesses would be interested in partnering with communications service providers investing in 5G infras

37、tructure Percentage of providers who think 5G would attract more partnerships and bundling options in the following areasSALESFORCE RESEARCH13TRENDS IN THE COMMUNICATIONS INDUSTRYProviders see value in fiber investmentIts widely accepted that fiber is a faster,more reliable choice when it comes to w

38、ired connectivity.Both public and private enterprise are eager to get into the game as evidenced by the influx of investment in this area from private equity,in particular.Traditional providers are prioritizing fiber infrastructure investment,and taking advantage of subsidies to bring greater access

39、 to communities worldwide.Eighty-six percent of respondents said their company invested in fiber optic connectivity and solutions in 2021,and 87%say they plan to increase that investment in 2022 and 2023.Despite the competition in the market,incumbent providers are well-positioned to maximize their

40、market share across the fiber broadband market due to their existing rights-of-way with municipalities and regulatory authorities.Majority of providers are investing in hyperscaler partnershipsNow that networks are being modernized and made accessible via APIs,the challenge becomes attracting develo

41、pers who know how to build and connect applications with devices.Hyperscalers(companies,like AWS or Google Cloud,with the ability to scale computing resources on demand)have dedicated developer communities that could be great assets to traditional providers.These companies are also already deliverin

42、g infrastructure-as-a-service(IaaS)better,faster,and cheaper.Many providers see value in partnering with hyperscalers in order to increase efficiencies.In 2021 and 2022,88%of providers invested in hyperscaler data centers,with 85%saying they will increase their investment in 2023.Leveraging these pa

43、rtnerships has the potential to offset infrastructure costs for service providers,enabling them to focus investments in core capabilities like the network and network monetization opportunities.SALESFORCE RESEARCH14TRENDS IN THE COMMUNICATIONS INDUSTRYChapter 3:Digital transformation unlocks efficie

44、ncy and customer satisfactionWhile 90%of employees agree or strongly agree that their company makes it easy to communicate internally to resolve customer cases faster,this is not having a strong enough impact on overall customer satisfaction.Only 62%of customers feel satisfied with their current pro

45、viders.Eighty-eight percent of customers say the experience a company provides is as important as its products or services.Of those,the vast majority expect a company to understand(73%)and anticipate(62%)their unique needs and expectations.Digital transformation and streamlining operations are key s

46、teps to meeting these expectations and providing personalization at scale.Digital transformation doesnt just benefit the customer;91%of provider employees said reimagining operations would reduce bottlenecks and redundant processes,while also helping their companies save money.SALESFORCE RESEARCH15T

47、RENDS IN THE COMMUNICATIONS INDUSTRYBusiness decision makers crave intuitive tools and better online experiences.B2B digital experiences continue to be more important than ever.In fact,63%of B2B customers say they prefer to engage through digital channels.Powerful self-service tools(like customer po

48、rtals)that enable activities like large-capacity transactions,orders,purchases,and MACD(Move,Add,Change,Disconnect)events anytime,from anywhere,are key to delivering excellent service.However,B2B respondents are dissatisfied with the totality of online experiences offered by providers.B2B users repo

49、rt experiencing frustration when trying to manage accounts online(39%),make large purchases(36%),and request changes in service(36%).B2B users also reported frustration when using assisted digital services(31%)and self-service(34%)tools.Also concerning is that only half(53%)of procurement employees

50、said they felt comfortable managing their enterprise accounts online without sales agent assistance.Next steps in the evolution of the communications industryThe winds of change are blowing in the communications industry.To avoid commoditization,providers are focusing on differentiating themselves b

51、y creating enhanced customer experiences,finding new avenues for revenue,and increasing efficiency.As David Fan put it,“The future of the telecommunications industry relies on strategic investment in new opportunities,as well as commitment to digital technologies,that will improve customer experienc

52、e,business agility,and operational efficiency.”SALESFORCE RESEARCH16TRENDS IN THE COMMUNICATIONS INDUSTRYThe information provided in this report is strictly for the convenience of our customers and is for general informational purposes only.Publication by does not constitute an endorsement.S does no

53、t warrant the accuracy or completeness of any information,text,graphics,links,or other items contained within this guide.S does not guarantee you will achieve any specific results if you follow any advice in the report.It may be advisable for you to consult with a professional such as a lawyer,accountant,architect,business advisor,or professional engineer to get specific advice that applies to your specific situation.Copyright 2022,S,Inc.All rights reserved.SALESFORCE RESEARCH17TRENDS IN THE COMMUNICATIONS INDUSTRY