Traditional Cable & Wireless Brands Are Catching Up to Big Tech & Digital Brands in Terms of Customer Affinity, According to ...
December 11 2019 - 7:59AM
Business Wire
Customer affinity toward traditional communications and media
companies is closing the gap with that for big tech and digital
companies, according to a new report from Accenture (NYSE:ACN).
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For its “2019 Global Keep Me Index: Are you a keeper?” report
Accenture surveyed nearly 24,000 consumers in 18 countries on their
likeliness to stay with a brand long-term based on how they think,
feel and talk about that brand. A key finding: The gap between
consumer affinity for digital brands and that for traditional
cable, satellite and wireless brands shrunk by more than two-thirds
since 2017.
Specifically, the gap between affinity for digital brands and
that for traditional cable and satellite brands is now just 23%,
compared with 75% in 2017. The gap between the affinity for digital
brands and that for traditional wireless brands is now just 9%,
compared with 28% in 2017.
According to the survey, customer perception of service quality
from traditional communications and wireless companies increased
10% over the past two years, driven by more-personalized services,
better control over personal data, and more fun and engaging user
experiences. Perception of service quality from digital platform
companies, which include big technology and digital brands,
decreased by 10% during that time, though they remain the highest
ranked providers.
“Digital platforms continue to lead in customer affinity
ratings, but this survey shows that traditional communications and
wireless companies are stepping up their game in the fierce
competition for digital mindshare,” said Dawn Anderson, who leads
management consulting in Accenture’s Communications, Media &
Technology practice in North America. “Our research suggests that
all these brands need to keep a sharp focus on building trust,
investing in personalized experiences and offering more variety of
service.”
Among the study’s other findings:
- Multiple, integrated service offerings matter. Customers with
three or more services from a provider are twice as likely as
single-service customers to stay with their service provider.
Additionally, only 14% of customers want to manage multiple
on-demand video services with different providers.
- Price is not a leading influencer this year on customers’
likeliness to stay with a brand.
- Innovative offerings matter. Brands that embrace ecosystem
partnerships are better able to provide value for customers in
unique ways. One example is with the connected home, as companies
that offer digital home monitoring services drive 30% more customer
“stickiness” than providers that don’t offer it.
- Personal data sharing and trust are aligned. Customers who
trust a brand highly are three times more likely than those who
distrust a brand to stay with it for the next 12 months. They are
also likely to share four times more personal data than those who
do not trust a brand.
“Gaining or losing ground with your ‘Keep Me Index’ score is a
big deal,” said Anderson. “In fact, on average, increasing a ‘Keep
Me Index’ score by 5 percent decreases customer churn risk by 4-5
percent.”
For Accenture’s complete “2019 Global Keep Me Index: Are you a
keeper?” report, visit: www.accenture.com/keepmeindex.
Methodology Accenture Research conducted an online survey
of 23,930 consumers in 18 countries: Australia, Canada, China,
France, Germany, India, the Netherlands, Italy, Japan, Malaysia,
Saudi Arabia, Singapore, South Africa, Spain, Sweden, the United
Arab Emirates, the United Kingdom and the United Sates. The sample
in each country was based on which brands were prioritized in each
region according to number of subscribers and tiered based on
comparative relative sizes for each brand. Ages of respondents
ranged from 18 to over 55. The survey and Accenture’s proprietary
algorithms apply weighted values to five relationship factors to
calculate brand-level Keep Me Index scores that correlate to
customers’ likelihood to stay with a brand for the next 12
months.
About Accenture Accenture is a leading global
professional services company, providing a broad range of services
and solutions in strategy, consulting, digital, technology and
operations. Combining unmatched experience and specialized skills
across more than 40 industries and all business functions —
underpinned by the world’s largest delivery network — Accenture
works at the intersection of business and technology to help
clients improve their performance and create sustainable value for
their stakeholders. With 492,000 people serving clients in more
than 120 countries, Accenture drives innovation to improve the way
the world works and lives. Visit us at www.accenture.com.
Copyright © 2019 Accenture. All rights reserved. Accenture and
its logo are trademarks of Accenture.
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version on businesswire.com: https://www.businesswire.com/news/home/20191211005018/en/
Melissa Curtis Accenture +1 617 480 8590
melissa.curtis@accenture.com
Accenture (NYSE:ACN)
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