Brian Tong breaks down 10 trends reshaping communications based on Salesforce research of 500 experts and 6,000 customers. Tech companies are eating into telecom's territory, customers will switch providers for better experience, and 5G and fiber investments are accelerating. Providers need seamless digital experiences or lose ground.
Questions this video answers
Interviews with 500 global experts and surveys of 6,000 customers.
78% of wireless customers and 76% of cable customers.
80%.
62%.
44%.
Chapters
What's up, everybody? Brian Tong here, your guide to all things Salesforce. And today we're gonna look at the fast shifting landscape of the communications industry. It's 2022 and we're not tethered to our services anymore like we were during the pandemic when we were spending almost 247 in a virtual environment. And the days of artificially low levels of customer churn, they're over. You know, people are looking more closely at the value they receive for their dollars spent. And customers are open to testing new communication service providers willing to switch for better rates, more transparent service agreements, and better self service options. You know, the competition is stiff and the pressure is on. So you know what, you know what? Yeah. Salesforce is all over it with data pulled from interviews with 500 global experts and 6,000 customers. So let's get right into it. Here are the top 10 trends affecting the communications industry today. Number one, legitimate alternatives are emerging. Tech companies are making serious moves into the communications industry because the tech industry offers solutions to everyday problems. With apps that provide directions to your favorite restaurant. They let you listen to music or just buy groceries. People use communications providers as a way to access these services. But as alternatives emerge, traditional communications companies are no longer the default and people are open to switching. 78% of wireless customers and 76% of cable customers said that they are at least somewhat likely to switch to a tech provider. What's more, a growing number of cable customers are cutting the cord altogether, opting to rely on streaming entertainment services and wireless Internet access. I would be one of those people. OK. At number two, customers are willing to explore new alternatives. 80% of customers say they will ditch a retailer after just three bad experiences, meaning there's not much room for error. And customers say price and speed are top priorities. Reliability is also a big factor. In fact, more than one in 10 consumers say they'd consider changing their Internet providers for either better reliability or improved customer service. So what can companies do about it? Well, that brings us to number three, customer experience matters. Only 62% of customers feel satisfied with their current providers. What's more is that 88% of customers say the experience a company provides is as important as its products or services. Now, of those, the vast majority expect a company to understand and anticipate their unique needs and expectations. Digital transformation and streamlining operations are really key steps to meeting these expectations and providing personalization at scale. Digital transformation doesn't just benefit the customer because 91% of provider employees said reimagining operations would reduce bottlenecks and redundant processes while also helping their companies save money. Okay, coming in at number four, Improve both in store and online customer experience. Customers want the best of both worlds, so providers need to prioritize the joining of online and offline experiences. The ones who don't could see significant repercussions. 41% of consumers use self service tools to make a purchase, activate services, or make account changes. And those same customers need to be able to seamlessly transition to an in store purchase when the situation calls for it. That's because 40% of customers also visited the store and 35% say they prefer to do business online and in stores. Okay, we are now at the halfway point of our top 10 trends in the communications industry. So and number five, customers want to feel like they matter. 50% of wireless customers and 47% of cable customers believe they get the best service when they threaten to switch to a different provider. And I'm not the only one that has had that same experience. So that means more work needs to be done to address customer satisfaction and not just when people threaten to leave. Providers that are able to gain insight into their customer base and provide better service at every touch point could gain a significant edge. And it also means good insights into consumer behavior are absolutely invaluable because they enable providers to tell which customers are about to cancel and could help guide next best actions to decrease that likelihood. Customers also want to do business with companies that share their values. 66% of customers have stopped buying from a company whose values didn't align with theirs. They that's up from 62% in 2020 on issues such as environmental practices and economic and racial injustice. So what about investment into new technology? Well, that's a good segue to number six, customers will pay for 5G. Even though communication service providers have done a not so hot job communicating the value of 5G, with many customers unsure of the opportunities it provides, people are still willing to pay for it. 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. But then wait, 5G isn't just for you and me, because businesses want it too. Which takes us to number seven on our list. 5G will open B2B opportunities B2B opportunities could be a game changer when it comes to 5G, and most providers are exploring opportunities and investing in this area. Service providers are exploring a broad range of monetization strategies, including B2B applications network as a service offerings and digital marketplaces with ecosystem partners. Now, many communications providers agree that 5G infrastructure would encourage partnerships and building opportunities across multiple industries from from streaming platforms to agriculture equipment manufacturers. Okay, onto number eight, there's value in fiber. It's widely accepted that fiber is a faster, more reliable choice when it comes to wired connectivity. And the influx of investment in this area from private equity shows both public and private enterprise are eager to get into the game. Traditional providers are prioritizing fiber infrastructure investment. 86% of respondents said their company invested in fiber optic connectivity and and solutions in 2021 and 87% say they plan to increase that investment in 2022 and 2023. Okay, two more to go here. Number nine is communications providers are investing in hyperscaler partnerships. If you're like, what the heck is a hyperscaler? Hey, give me a second to break it down. Because now that networks are being modernized, the challenge becomes attracting developers who know how to build and connect applications with devices. Hyperscalers, okay, those are companies like Amazon Web Services or Google Cloud that can scale computing resources on demand. They have dedicated developer communities that can be great assets to traditional providers. These companies are also already delivering infrastructure as a service. Better, faster and cheaper. Many providers see value in partnering with hyperscalers to increase efficiencies and and in 2021 and 2022, 88% of providers invested in hyperscaler data centers, with 85% saying they will increase their investment in 2023. Okay everybody, you still with me because I need a drum roll for our final trend here at number 10. Business 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 are key to delivering excellent service. However, B2B respondents are dissatisfied with their online experiences. B2B users reported frustration when trying to manage accounts online, make large purchases and request changes in service. B2B users also reported frustration when using assisted digital services and self service tools. So let's just wrap this up, you know, tied up with a nice little bow because the winds of change are definitely blowing. In the communications industry, providers are focusing on differentiating themselves by creating enhanced customer experiences, finding new avenues for revenue and increasing efficiency. Now, as David Fan, Communications industry VP and general manager at Salesforce, put it, the future of telecommunications industry relies on strategic investment in new opportunities as well as commitment to digital technologies that will improve customer experience. Business agility and operational efficiency. So for more insights into the communications industry, you can check out Salesforce's new trends report by clicking the link in the description below. And don't forget to subscribe to our channel. We'll see you guys next time.
