User experience the key for providers to maintain edge over OTT

DetailsEditor | 26 February 2015

With over-the-top (OTT) firms posing increasing real and present dangers to their businesses, increased churn is a reality for pay-TV providers, but research says that the operators maintain a user experience edge.

Indeed, according to the study by customer experience solutions provider Amdocs, superior customer and network experience, including carrier-grade Wi-Fi, as well as innovative and multi-play services will be the key elements to winning and maintaining customer loyalty and preventing the cord form being severed, if not nevered.

The New World of Customer Experience study states that operators are doing business in a world characterised by a rapidly changing competitive landscape and the on-going need to compete by delivering a superior customer experience.

Yet the research shows that despite the competitive challenges from OTT players, the vast majority of consumers actually still favour traditional service providers. That said, while customers value their service providers' customer experience, the report also highlighted the fact that network quality and brand reputation, churn remains high within the industry.

Nearly two-thirds (63%) of respondents stated they would recommend their service provider, citing customer care/experience (89%) and high quality Internet connection and coverage (59%) as the top reasons for their endorsement. Half of respondents said they had been with their current service provider for less than a year.

Users also showed a strong desire for innovative and new personalised services: more than half said that they would switch mobile subscription plans for a plan that included additional communication services including TV, with almost the same number of respondents saying they would switch if they were able to choose the bundle components.

Yet Amdocs found that the multi-play opportunity remains unclaimed. Even though more than half (52%) of respondents subscribe to four services, only a single percentage of users had the one quad-play provider. Triple-play penetration was also low at 9%.

"With changing customer expectations and the ever-increasing threat of disruptive competitors, service providers are required to adopt a new strategy by taking a multidimensional view of customer experience," said Chris Williams, head of global marketing at Amdocs. "By leveraging their customer experience strengths and exciting customers with innovative, personalised and multi-play bundles, as well as shaping the quality of network experience through real-time network visibility and control carrier-grade Wi-Fi strategies, service providers have a tremendous opportunity to lead in The New World of Customer Experience."