MALAYSIAN consumers are not likely to promote their primary banks and telco service providers to others, compared with their insurance peers, but all three sectors need to improve on the customer experience front, according to a Frost & Sullivan study.
The research firm looked at the Net Promoter Score (NPS) for companies in the banking, telco, and health and life insurance sectors. NPS is calculated as the percentage of promoters (customers likely to promote a brand) deducted from the percentage of detractors.
Telcos fared the worst, with an average NPS score of -17%, while banks and insurance providers had average scores of -8% and -6%, respectively. Yes, all three sectors are in the negative zone.
In the banking industry, CIMB Bank Bhd led with 9% while RHB Bank Bhd had the lowest NPS score of -21%.
In the telco space, U Mobile Sdn Bhd scored the highest at -1%, with Maxis Bhd the worst at -29%. In between were Telekom Malaysia Bhd (-7%) at No 2, followed by Digi.com Bhd (-18%) and Celcom Axiata Bhd (-19%).
“However, it should be noted that U Mobile has a smaller subscriber base compared with the other telco brands like Maxis, Celcom and Digi,” said Frost & Sullivan partner and head of consulting for Asia Pacific Nitin Bhat. […]
In the telco sector, operators are struggling to cope with competition and will have to innovate on more personalised products or services to suit various market segments, he suggested.
“Telco providers that fail to cope with the demands of the market will eventually lose their subscribers as competition is really stiff,” he said.
Based on the Frost survey, the top three reasons consumers for switching their current mobile operators are: Better rates from another (51%); better choice of products and services (43%); and poor network data connections (42%).
Source: Digital News Asia