SINGAPORE: In an era where customer satisfaction is paramount, Singapore’s telecom providers find themselves grappling with a significant challenge—keeping their customers happy amid fierce competition.

A recent survey conducted by Rakuten Insight and GrowthOps Asia revealed a staggering fact: 52% of Singaporean telco users would readily switch providers due to unsatisfactory customer service.

An alarming trend in customer loyalty.

But that's not all! An additional 33% of customers expressed that they would likely make a move if they found a provider offering superior service, hinting at an alarming trend that telcos need to pay attention to. Although enticing deals certainly motivate customers to change providers, poor customer service now emerges as the second most common reason for churn. This shift indicates that pricing alone is no longer sufficient to capture or retain customers in today's market.

The importance of a robust digital experience.

Moreover, the study underscores the rising importance of a robust digital experience. Features like user-friendly websites and efficient mobile applications are now crucial factors that can influence a customer’s decision to switch. Interestingly, traditional sources of influence such as family and friends have less sway in this digital age, with many customers contemplating abandoning family plans in their quest for better service.

Market Growth and Expectations.

The stakes are high; Singapore’s telecom market, currently valued at approximately US$2.84 billion in 2024, is expected to grow at a compound annual growth rate of 1.41%, reaching an estimated US$3.04 billion by 2029. According to GrowthOps Asia, if Singapore’s telcos wish to thrive in this expanding landscape, they must prioritize elevating their customer service to meet rising consumer expectations.

A digital service capabilities gap.

Shockingly, Singapore’s telcos lag behind their regional counterparts when it comes to digital service capabilities. Collectively, they have achieved a mere 50% rating for website functionality, while their mobile app capabilities are slightly lower. This places Singapore outside the 'Budding Innovators' Circle,' a group that demonstrates commendable service readiness, including countries like Malaysia, Indonesia, and Thailand, which boast scores of at least 60% in both categories.

The challenge ahead.

As customer demands for responsive and effective service grow stronger, Singapore’s telecom industry must rise to the occasion. The key challenge for these providers will be not only retaining their existing customers but also reshaping their digital engagement strategies to ensure they meet and exceed customer expectations. If they fail to adapt, they could face an exodus of dissatisfied users in the years to come. Will they heed the warning before it's too late?