5G Unleashed: How elevated customer experience enables growth
As a Senior Marketing leader, I have the privilege of working closely with telcos across the world. I take great pleasure in spotting and sharing the latest 5G innovations, and that’s especially true when the data shows potential for new revenue streams.
I’m excited to say that opportunities are now emerging that could fuel growth for telcos and drive transformational change in our industry.
Over the past year, we have seen connectivity quality improve thanks to the maturation of 5G networks across global markets. Now, we are also witnessing an elevation in the types of experiences accessible to consumers. The early consumer adopters are leading the way, and the feedback on these experience-led propositions is encouraging, paving the way for mass market appeal.
This blog illustrates the factors that enable this elevation in the customer experience, and how the right combination can lead to customer willingness to pay a premium for a differentiated offering.
So, how can we achieve this winning combination?
Step 1. Create innovative service bundles to stimulate behaviour
Two compelling data points from our latest ConsumerLab Report, 5G Value: Turning Performance into Loyalty, highlight the impact that 5G and service bundles are having on consumer behaviour.
Firstly, 5G is driving a surge in mobile data consumption, including increased use of enhanced video formats and services. For example, 5G smartphone users are dedicating 20 extra minutes per day to 4K/HD video streaming, and 13 minutes more on AR apps compared to a year ago.
Secondly, users with access to innovative service bundles allocate over one-third of their video streaming time to enhanced video formats such as multi-view video and 360-degree videos, compared to only one-quarter without a bundle. This early evidence points to the role of marketing service bundles in incentivizing consumer use of advanced apps and enhanced video content.
Step 2. Add exceptional quality of 5G experience to increase consumer satisfaction
Whilst newer 5G users value 5G outdoor coverage and speed, in markets where 5G population coverage exceeds 80%, we are seeing a different need.
Long term 5G users are prioritising app experience metrics like video streaming quality, mobile gaming and video calling experience, together with the consistency of 5G speed. For example, for experienced 5G users, the importance of video streaming experience in driving satisfaction is 20% higher than for 5G newcomers.
When both steps are combined, that’s where the magic happens.
For consumers, gaining the ability to rely on a consistently high-quality level of connectivity, linked to specific apps that match their passions and hobbies, such as gaming, live streaming, or video calling, is a game changer.
For telcos, the growth potential is obvious. The data indicates that consumers are willing to pay a premium of 11% for elevated network performance or Quality of Service (QoS) offerings.
Now let´s look at some real-world examples from Telcos for inspiration.
An increasing number of Telcos are developing and marketing this approach, and there’s plenty to play for. Our analysis of 5G plans and packages across 105 services providers in 30 markets shows this QoS-led approach is materialising, with 13% of Telcos beginning to implement QoS services for their consumers.
One good example is Singtel, who dedicated a slice of their 5G standalone network to provide an elevated overall experience that gave consumers access to new, exclusive, immersive content at the Singapore F1 Grand Prix.
Other unique customer experience examples include 5G Stock Pro from 3 Hong Kong, which allocates more network resources and prioritized network usage to enhance the user experience of a stock trading application. Or China Unicom, offering its Super Live Streaming package with uplink prioritization, and the ProPing service by Ooredoo Kuwait that offers a premium plan with low lag for mobile gaming over 5G.
Value for consumers, growth for telcos
This unique fusion of elevated services and premium experiences presents an opportunity to both demonstrate and satisfy consumer demand for value through differentiated connectivity. For consumers, the value-add is clear and powerful – they have the opportunity to take control, to be the directors of their own experiences, and to do so with total confidence in the quality of service. For Telcos, the case equally compelling – when consumers are willing to pay 11% more for an elevated 5G premium package, the opportunities for growth are clear to see.
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