Reconfiguring Telecoms: PwC’s 2023 Sentiment Index Calls for Customer-Centric Strategies

The telecommunications industry in South Africa, like much of the world, is in a constant state of transformation. As we navigate through 2023, the industry continues to evolve, driven by rapid technological advancements and shifting consumer expectations. PwC’s latest South African Telecommunications Sentiment Index , in collaboration with DataEQ, sheds light on consumer sentiment across major telecom operators, highlighting critical areas for improvement and growth.

Key Findings and Strategic Insights

• Customer Experience: There was minimal improvement in customer experience, emphasizing the need for telecoms to focus on this area. While marketing and promotional campaigns generated positive sentiment, the fundamental issues in customer service remain largely unaddressed.
• Call Center Complaints: The majority of consumer complaints were directed at call centers. Despite the rise of digital channels, the heavy reliance on telephonic support indicates a gap in seamless customer service experiences.
• Mobile Application Support: Investing in mobile application support could differentiate telecoms’ contact experiences. Mobile apps were the least negative channel, suggesting an opportunity for growth in this area.
• Network Coverage: Consistent complaints about network coverage highlight the critical need to address operational risks linked to load shedding and other infrastructural challenges.
• Product and Service Gaps: Enhancing mobile data reliability, simplifying SIM card processes, and improving contract management systems are crucial to addressing consumer dissatisfaction.
• Financial Services: Telecoms’ financial services offerings, particularly mobile money, present a mixed bag. While mobile money services like MTN MoMo are popular, insurance products have been a source of complaints. This sector offers significant potential for growth if managed effectively.

A Spotlight on Success: Rain and MTN

Amidst widespread challenges, rain and MTN emerged as noteworthy performers. Rain’s superior customer service led to a Net Sentiment score that was 30 percentage points higher than its competitors, driven largely by positive reviews on platforms like Hellopeter. Meanwhile, MTN’s proactive social initiatives, such as the #Made4U campaign, successfully enhanced their reputational standing and connected positively with the youth demographic.

As South Africa’s telecommunications sector continues to adapt to an ever-changing environment, the importance of prioritizing customer satisfaction cannot be overstated. The insights from PwC’s 2023 Sentiment Index provide a roadmap for telecom operators to not only understand their current standing but also to strategically navigate the future. By focusing on AI-driven customer service improvements, leveraging social impact initiatives, and addressing fundamental service issues, telecom companies can close the sentiment gap and align their operations with the essential role they play in modern life.

Customer Sentiment: A Crucial Imperative

Telecommunications is more than just connecting people; it’s about enabling daily life in an increasingly digital world. The sentiment index underscores the pressing need for telecom companies to bridge the gap between service provision and customer expectations. In a landscape where customer satisfaction is paramount, understanding and responding to consumer sentiment is not just beneficial but essential for sustainable success.

The 2023 sentiment index analyzed over 1.6 million public mentions of South Africa’s leading telecom operators – Cell C, MTN, rain, Telkom, and Vodacom – from January 1 to December 31, 2023. The findings reveal a sector struggling to meet customer service expectations, with telecom sentiment significantly more negative compared to other industries like retail, banking, and insurance.

Persistent Challenges in Customer Service

Customer service remains a persistent pain point within the telecommunications industry. The sentiment analysis shows that customer service discussions accounted for 27.7% of all telecom conversations, with a staggering negative sentiment score of -87.7%, slightly improved from the previous year’s -90.6%. This highlights ongoing dissatisfaction with call center interactions, where inefficiencies in feedback and issue resolution dominate consumer grievances.

External Pressures and Network Quality

2023 was marked by unprecedented levels of load shedding in South Africa, exacerbating issues with network quality. The index indicates a direct correlation between the intensity of load shedding and the volume of complaints regarding network reliability. Additionally, failures in subsea cables further aggravated connectivity issues, leading to a surge in negative sentiment around network performance.

Opportunities for Innovation and Improvement

Despite these challenges, there are clear opportunities for telecom companies to enhance customer experience and operational efficiency. Leveraging artificial intelligence (AI) can be a game-changer in customer service, enabling companies to handle routine inquiries more effectively and provide instant assistance. AI-driven tools can streamline support processes, ultimately boosting customer satisfaction.

Furthermore, the industry can benefit from emphasizing their social impact initiatives. Showcasing efforts in community development and sustainability can foster positive reputational sentiment, building trust and loyalty among customers. This approach was notably successful for MTN, whose #Made4U campaign, focusing on youth employment, drove a significant portion of positive conversations.