Customer service seen as key to telco loyalty, study finds

Five in 10 users will switch providers due to poor customer service.

Telco players aiming to retain their customers must not rely solely on offering better deals, as the true key to customer retention lies in improved customer service.

According to Rakuten Insight and GrowthOps Asia, 52% of telco users say they would switch providers due to poor customer service.

Additionally, 33% of users feeling neutral or dissatisfied with their telco provider will switch to superior customer service.

Poor customer service was the second leading reason for switching, behind offers of better deals.

An improved digital experience was also a reason for some to switch.

Fewer users were influenced by family and friends, whilst some reported plans to leave their family bundle.

"With the Singapore telecom market size estimated at US$2.84b in 2024, and expected to reach US$3.04b  by 2029, growing at a CAGR of 1.41%, telcos in Singapore must elevate their customer service offerings to stay ahead," GrowthOps Asia said.

The report shows Singapore’s web capabilities at 50%, with app capabilities slightly below. It ranks just outside the "Budding Innovators’ Circle," which includes Malaysia, Indonesia, and Thailand.

The "Budding Innovators’ Circle" comprises countries with telcos scoring at least 60% in both mobile and website capabilities.