Recent research conducted by The BIO Agency argues that transformation is essential for telecom companies that want to remain competitive; without it, they risk being overtaken by new market entrants.
For the study, The BIO Agency surveyed 1,500 UK residents and found that many customers view their telecom provider as little more than a utility. The decision to stay with the same provider often stems from apathy rather than genuine loyalty. Although 76.6% of respondents said they would not feel free to switch providers if given the option, only 27% indicated they would be likely to recommend their provider to friends or family.
The survey also showed limited appetite for switching to technology firms: 72.6% of respondents said they were not interested in moving their telecom services to companies such as Google or Apple. In addition, 37.4% described their interactions with their telecom provider as neither good nor bad, and 64% felt there was little to no meaningful difference between telecom companies.
Based on these findings, the research concluded that telcos must invest significantly in improving customer engagement if they want to secure true loyalty. Justin Small, Chief Strategy Officer at The BIO Agency, commented: “Telcos need to transform to survive. The key differentiator is customer experience. Those who build new services around the customer will find themselves best positioned for success.”
In a separate study, The BIO Agency examined preferred support channels for broadband issues among more than 300 Irish respondents. That research found that calling the provider’s call centre remains the most popular choice—61% of people said they phoned their broadband provider to resolve problems—while 20% preferred web chat as their primary support channel.
Overall, both studies highlight the urgent need for telecom companies to rethink their approach: improving customer experience, offering genuinely differentiated services, and making support channels more responsive and convenient are critical steps to convert passive customers into advocates and to defend market position against agile new entrants.