Leading the Way is a column written by PricewaterhouseCoopers professional staff. It appears in the Business section of the Bangkok Post twice each month. The column provides specialised advice to corporate decision-makers in Thailand on global and local business trends.
This article appeared in the June 19, 2007 issue of the Bangkok Post.
By Verasa Attanun
This is the second of a two-part series on the rise of converged technologies, based on a survey of 8,000 PricewaterhouseCoopers staff in 17 countries. In Part I published on June 5, we examined digital home technology trends in Thailand and the Asia Pacific region, including the rise of broadband, the virtual community, socialising in cyberspace, the downloading phenomenon, and the future of mobile TV. As we talk about consumers throughout this article, we stress that we are referring to our survey population as opposed to the general population of consumers at large.
The myriad of product offerings in the converging digital world are fighting for their share of the consumer's mind and wallet. New technologies are providing new ways of accessing and buying content and opening up new markets; but in the fight for market share, many providers are forced to market their services before they are either technically or operationally mature.
Many complexities exist in the converging world, and getting customer service right will become an even more critical success factor for the winning providers as consumers are presented with more options and less time.
Convenience first
Our survey reports that customers in Thailand, like other countries in the region, would like to have one bill for all services. Seventy-four percent of respondents in Thailand prefer to have one bill for telephone service, Internet, and television, compared to the regional average of 70%, and global average of 67%.
Customers are generally happy with the clarity and accuracy of their billing. Sixty-five percent of respondents in Asia Pacific cited quality of billing as a key factor for choosing a new service provider, while 52% of Thai respondents cited this as an important issue.
Excellent customer service is crucial
Almost half of the respondents indicated they are unhappy with the level of customer service they receive. More interesting, nearly half the respondents indicated they were willing to pay an additional US$6 to $9 per month for higher than standard levels of customer service, including service around the clock, quicker response times to fix infrastructure or hardware problems and help with software problems and extended warranty schemes.
Security is a top concern
Our survey reveals that respondents in Asia Pacific are concerned about service provider reliability, with 78% of respondents either in strong agreement or agreement. Among Asia Pacific countries, Korea has the smallest number of respondents who are concerned about the importance of trust in service provider reliability, with 70% of respondents in strong agreement or agreement, as compared to around 90% for other countries in Asia Pacific.
Moreover, the survey shows that the Asia Pacific region has the highest percentage of users who are concerned about the security of personal information on the Internet. Thai respondents rate security concerns highest, with 91% of respondents either in strong agreement or agreement.
Apprehension about this issue may limit the extent to which consumers use the full range of Internet capabilities, although, looking at broadband penetration, it does not stop them from going online.
Keeping it simple
Asia Pacific has the largest number of users who worry about the complexity of the Internet and some devices, hardware, and software. Forty percent of respondents were in strong agreement or agreement with the statement "I find the Internet and some devices, hardware and software to be complex", while the global average was 34%. In Thailand, 46% of respondents were concerned about this issue.
Not surprisingly, older groups are more concerned about complexity than are those under age 35. The theme was consistent with that of consumer focus groups PricewaterhouseCoopers conducted recently in the US, which found older adults to be more overwhelmed by the choices and challenges of technology than are younger consumers. An integrated service offering is bound to add to the perceived complexity of the service, so there is an opportunity for service providers to offer quick and easy installation.
Looking forward
For consumers, the possibilities are endless, an unprecedented explosion of choices and new services where they can call the shots. Often they can access content anywhere, anytime, on any device. They can entertain themselves and others and communicate with each other and with content and service providers in whole new ways. They can customise anything, from their music playlists to their television lineups. They can use weblogs, create their own content, and share that content on a growing number of social networks. All this points to a consumer who, increasingly has the power to influence others, the organisation, and the marketplace.
For the organisations that provide the content and distribution services, the growing complexity of their businesses is driven by new revenue opportunities, cost pressures, and a need to be much more transparent while developing offerings to meet consumer lifestyles. Capturing the potential within the complexity requires a new marketing approach, and a new mindset, both reflecting the new expectations of consumers.
The key for providers is to make their products simple and seamless for customers to use and to offer a range of effective options for help when things go wrong.
