20
© 2016 Cognizant © 2016 Cognizant September 22, 2016 The Future is Now: Building the CSP- Millennial Relationship
© 2016 Cognizant © 2016 Cognizant
September 22, 2016
The Future is Now: Building the CSP-
Millennial Relationship
© 2016 Cognizant
Objectives
2
Today, we will share the results of our research, highlighting the Millennial perspective and
resulting actions required for CSPs to meet their needs.
Ensure QualityQuality of service and experience are the top
influencers of Customer Satisfaction.
Be PersonalThe bar has been raised - hyper personal
experiences are now the norm.
Stay ConnectedConnectivity is of utmost importance - feed the
addiction by leveraging your services, new
partnerships, and technology advances.
3rd Annual
Communication’s
Service Provider
Customer Experience
Survey
© 2016 Cognizant 3
Survey backgroundWe surveyed 1,995 US consumers through an online quantitative survey.
Respondents were over 18 years old with at least one Communication Service
Provider (CSP) service: Pay TV, Internet, or Mobile.
Overall Satisfaction and
Drivers
Contact Channel Usage &
Preferences
Connected
Technologies
Privacy and
PersonalizationVideo and TV
Services
Core
Analysis
Consumer perspective on Digital
Millennial* / Non-Millennial differences and similarities
Year over Year trends
Survey
Themes
Services Pay TV(Cable, Satellite,
etc.)
Internet Mobile
Over-the-top
(OTT)(Netflix, Amazon,
Hulu)
Quality of Experience in a Digital
World: A CSP Action Plan for
Millennials and Beyond
* Millennial defined 18-34 years of age. Non-Millennials are those 35+ years of age
New
th
is y
ea
r
© 2016 Cognizant
Customers love over-the-top (OTT)% Satisfied with service (2015)
Service US Total 18-34 35-49 50-64 65+
Pay TV 54% 52% 51% 53% 63%
Internet 55% 51% 53% 56% 64%
Mobile* 60% 56% 56% 60% 74%
OTT** 74% 73% 72% - -
4 * Mobile service is the service used to connect devices to internet without Wi-Fi
** Examples of OTT are Netflix, Amazon Streaming, Hulu, etc.
Less Satisfied More Satisfied
Satisfaction percentages sharply contrasts
with the traditional “core” CSP services.
In total only 3 of 498 with OTT services were
not satisfied
OTT is not yet “main stream” as only 25% of
the US Total subscribe to OTT services.
Millennials subscribe to OTT at a much higher
rate (42%) vs 65+ (7%)
Millennials are least satisfied with traditional
services
YoY CSP satisfaction levels remained steady
from 2013-201540%
50%
60%
70%
80%
2013 2014 2015
Pay TV
Internet
Mobile
OTT
% Satisfied by Survey Year
© 2016 Cognizant
As they are the engine
powering our connected
lives.
This is especially true for
those under 50, with Mobile
and Internet Service being
most important.
Yet, core CSP services are still most important
Most important service to daily life
5* Mobile service is the service used to connect devices to internet without Wi-Fi
** Examples of OTT are Netflix, Amazon Streaming, Hulu, etc.
Internet, 43% Internet, 44%Internet, 52% Internet, 54%
Mobile, 26% Mobile, 27%Mobile, 20%
Mobile, 11%
Pay TV, 22%Pay TV, 25%
Pay TV, 26%Pay TV, 34%
OTT, 9%OTT, 5%
OTT, 1% OTT, 1%
18-34 35-49 50-64 65+
© 2016 Cognizant
Most influential factors affecting satisfaction
Quality is king, but technology is important to Millennials
6
37%
35%
31%
26%
7%
14%
12%
12%
8%
8%
5%
4%
0% 20% 40% 60% 80% 100%
Non-Millennial
Millennial
Quality Price Technology Usability Care Content
Quality: My service is consistent and
reliable
Price: The price I pay transparent and is
worth it for the service provided
Technology: I know I have or have
access to the latest and greatest
technology and equipment
Usability: My service is easy to use and
understand
Care: It’s easy for me to contact customer
care and get support
Content: The content and programming
available Core CSP Services: Internet, Pay TV, Mobile Service
© 2016 Cognizant
Unsatisfied customers are fueling an increase in churn
7
10%
75%
15%
13%
69%
17%
17%
65%
18%
48%55%
79%88%
25%22%
12%7%
27% 23%
8% 5%
1 8 - 3 4 3 5 - 4 9 5 0 - 6 4 6 5 +
Less than 6 months
Between 6 months and1 yr
More than 2 yrs orNever
Those younger than 50 are driving the YoY
increase in churn
There was no significant difference between Pay
TV, HSI, and Mobile services
Time since switching carriers by survey year
Between 6 months
and 1 year
More than 2
years or Never
Time since switching providers by age
2 in 4 Millennials vs. 2 in 16 Age 65+ change carriers at
least once a year
2015 Survey data
Less than
6 months
2013
2014
2015
© 2016 Cognizant
It’s undisputed… consumers want to be connected
Steady climb in desirability
of Connected Technologies
Smart Home and Smart Car
technologies most desirable by
Millennials (46%)
Non-Millennials, all categories
hovered in same range:
Health Care 22%
Smart Car 23%
Smart Devices 23%
Smart Home 23%
Wearables 17%
YoY Desirability of Connected Technologies
8
13%
22%
48%
70%
41%
42%
34%
23%
45%
36%
19%
7%
0% 20% 40% 60% 80% 100%
18-34
35-49
50-64
65+
Connected Technologies
Not Desireable
Somewhat Desireable
Very Desireable
19%
24%
29%
22%
26%
30%
20%
26%
32%
15%
20%
25%
30%
35%
2013 2014 2015
Connected Healtcare
Connected Home
Connected Devices
© 2016 Cognizant
31%
10%
19%
19%
45%
44%
15%
19%
30%
31%
45%
53%
Nothing
Product Offers
Product Selection
Alerts
Technical Support
Rewards / Rebates
Millenials
Non-Millenials
Millennials are more interested in the personal touch
Top personalized experiences
54%
42%
38%
47%
8%
11%
2014
2015Agree
Neutral
Disagree
36%
38%
32%
31%
15%
16%
6%
10%
Service
Products65+
50-64
35-49
18-34
Better
Product
Offerings
Better
Customer
Service
YoY, customers are less concerned with CSPs using
data to provide a personalized experience.
Younger customers see more value in sharing
personal data
Millennials are more interested in a personal
experience
9
I have privacy concerns
Sharing personal information is worth it for …
© 2016 Cognizant
Connected Technologies are a key improving satisfaction
Reliability (71%)
Data Privacy (70%)
Ease of Use (67%)
Percentage who said it was very important, ranking
was consistent across age groups.
Factors creating a great connected
experience
To Millennials
42% say it would improve their overall satisfaction
39% say they would be less likely to churn
43% say they would be more likely to recommend their
supplier
But not to those over 65 years old
8% say it would improve their overall satisfaction
12% say they would be less likely to churn
9% say they would be more likely to recommend their
supplier
Connected Technologies are important …
10
© 2016 Cognizant 11
Status quo is not going to work
Recognize CSP core services are critical to their
daily lives
Are largely not satisfied with CSP cores services,
and are churning more frequently
Say quality of service is primary influencer of
satisfaction, yet also value technology more than
older customers
Favor personalization when it benefits them
Love their connected lives, and say it would
improve overall satisfaction
Millennials are:CSPs must:
Ensure Quality
Be Personal
Stay Connected
© 2016 Cognizant 12
Ensure quality through proactivityCSPs must first and foremost provide consistent, reliable core services, and become
pro-active in meeting customer needs.
Opportunity 1Streamline & automate
Automate network and operations planning
processes using new technologies and
explore build vs. buy options
Opportunity 2Integrate
Create an Agile and intelligent network plan by
automating a feedback loop between Capacity
planning (Sales & Marketing) and Equipment
planning & (Construction & Engineering)
Opportunity 3Forecast better
Leverage predictive analytics to forecast
capacity requirement trends using aggregated
and anonymous demographics data, OTT App
usage data and telco product usage data.
Opportunity 5Be nimble
Leverage SDN & NFV to improve network
operations and maintenance flexibility,
reduce operations costs , support analytics
and introduce new services faster.
Opportunity 4Anticipate failures
Use analytics to predict equipment failure
and proactively repair or replace the
equipment before it impacts the customer.
© 2016 Cognizant 13
Be PersonalCSPs have a wealth of information available, however organizational silos must be
crossed to create the customer centric view.
Account Information: Current / past plans, upgrade/downgrade
Service History: Outages, disruptions, dropped calls, buffering
Usage History: How much, how often, when, and what
Customer Profile: Age, demographics, location
CSP Contacts: Contact reason, method/channel,
result
Personal Experience
© 2016 Cognizant 14
Tailor contactScenario
New snazzy
Wi-Fi router now compatible
with your network!
Oops! Car
accident took
out an RT
Customer’s
contract is
about to expire
Passive communication: through
post to website showing new
equipment as option when placing
order (center, store, customer)
Personalize contact: using
appropriate channel based on
individual tendency and
preferences
Targeted audience: information
sent just specific customers e.g.
with highest data plans, recently
browsed equipment on website,
asked to be notified of
availability of upgraded
equipment.
CSP Reacts: customers call in to inquire about lack of
service.
Call volume spikes: with calls Center reps “see an issue” but
have no estimate to resolution.
Customer repeatedly calls: to find out updates
Automated detection: network alarms alert field of an issue
Real-time routing: the closest technician is re-routed to site,
technician schedules automatically adjusted in real-time
Proactive contact: impacted customers notified (via right channel)
of dispatched
Information Disseminated: across organization, so if customer
does call, check account status, the latest status is clearly available
Generic emails sent to notify customer of upcoming contract
and pricing change.
Customer ignores them … until they receive a new bill, then
call in to complain.
Personal contact: via right channel with specific
message containing offers and new plans based on
the customer’s actual usage
Easy to take action: through digital channels with
included link to complete upgrade through web or App.
New worldOld world
© 2016 Cognizant 15
Stay ConnectedTake advantage of the millennial attachment to connectivity be an active participant in the connection, not just a pipe.
Collaborate
Develop repeatable process to work
with new businesses to bring new
connected products and services to
market.
Inquire
Listen and talk to customers using
their own social media resources in
order to understand what they want.
Innovate & advertise
Feed the thirst for the new and
improved. Make the improvements
known and easy to obtain.
Be Proud
Flaunt the services the CSP provides
and how it is truly the backbone of
the connected world.
Help the customer
Make it easy for the customer to set up
and troubleshoot connectivity with add on
devices and services.
Millennial
Opportunity
© 2016 Cognizant
Meeting millennial needs now will serve to prepare CSPs for the next wave of customers and
competitors
16
Looking ahead
Ensure Quality
As more important services become
connected. Quality and resiliency will
become increasingly important.
Be Personal
Expectations continue to grow as
consumers want companies to anticipate
and meet needs (before even the customer
knows it himself!)
Stay Connected
There’s no turning back on our
connected world. CSPs must
be an active player to stay in
the game.
© 2016 Cognizant 17
Appendix
© 2016 Cognizant
World Headquarters European Headquarters India Operations Headquarters
500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road
Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam
Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India
Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000
Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060
18
Cognizant Technology Solutions
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business
process services, dedicated to helping the world’s leading companies build stronger businesses.
Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction,
technology innovation, deep industry and business process expertise, and a global, collaborative workforce
that embodies the future of work.
With over 100 global development and delivery centers worldwide and approximately 233,000 employees as
of March 31, 2016, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and
the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit
us online at www.cognizant.com or follow us on Twitter: Cognizant.
© 2016 Cognizant 19
Benefits and considerationsOpportunity Benefits Considerations
Streamline &
Automate
Improved product/ service time to market
Improved agility in responding to changes through reduced lag
across planning processes
Reduced planning and reporting overheads caused by manual
processes
• Prioritizing automation opportunities
• Deciding Build versus Buy
• Finding the best solution fit
• Integrating the solution and supporting SDN/NFV
• Supporting future products/technologies
• Streamline processes before automation
Integrate
• Minimize stranded capital due to timely and accurate exchange of
information
• Improved accuracy of capital forecasts.
• Early insights into performance across market areas and product
categories
• Identifying baseline information to share
• Managing data ownership
• Identifying and rationalizing redundant datasets, reports
and systems
Forecast
better Improved demand forecast accuracy
• Protecting consumer privacy
• Navigating legal constraints around using consumer
data
Anticipate
failures
• Customer impact prevented, churn reduction
• Reduction of customer service calls/tech visits
• Improved negotiation/contracting with equipment suppliers
• Deciding Build versus Buy
• Finding best solution fit
• Integrating the solution and supporting SDN/NFV
• Identifying all data sources
Be nimble• Operating expense savings
• Capital expense savings
• Improved network agility
• Quantifying benefits and savings.
• SDN/NFV opportunity prioritization
• Finding best solution fit
© 2016 Cognizant
Thank you
20
Sara Mihan
LinkedIn: https://www.linkedin.com/in/saramihan
Richard Rizo
LinkedIn: https://www.linkedin.com/in/richardrizo
