SINGAPORE: In an era where competition in the telecommunications industry is fiercer than ever, Singapore's telco providers are grappling with a critical issue: retaining customers dissatisfied with their service. This goes beyond mere pricing and attractive deals.

Recent findings from a survey conducted by Rakuten Insight and GrowthOps Asia have uncovered that a staggering 52% of telecom users in Singapore would consider switching providers if faced with subpar customer service. Additionally, 33% of respondents who feel either neutral or dissatisfied with their current provider indicated that they would shift to another telco for a better customer service experience.

While competitive pricing remains a strong motivator for customers to make the switch, the survey highlights that poor customer service now ranks as the second most significant reason for customer churn. This poses a pressing need for telecom companies to reassess their customer service strategies to retain their clientele.

Moreover, the survey emphasized the growing importance of digital experience. Many users are now taking into account the quality of a company's website and mobile app capabilities when contemplating a switch. Notably, traditional influences like recommendations from family and friends have diminished in significance, with some consumers expressing a willingness to forego family bundles to find better service.

GrowthOps Asia pointed out the economic implications, stating that Singapore’s telecom market, valued at an impressive US$2.84 billion in 2024, is expected to grow at a compound annual growth rate of 1.41%, potentially reaching around US$3.04 billion by 2029. The consultancy warned that to remain competitive amid this growth, telcos in Singapore must enhance their customer service offerings to meet rising consumer expectations.

However, despite these challenges, an alarming trend is emerging: Singapore's telecom market is lagging behind other regional players in terms of digital service capabilities. Current scores indicate that Singaporean telcos average only 50% for website functionality and slightly less for mobile app performance. This positions Singapore outside the “Budding Innovators’ Circle,” which includes countries like Malaysia, Indonesia, and Thailand—regions where telecom providers have achieved scores of at least 60% in both mobile and website capabilities, reflecting a stronger readiness for digital service.

As the demand for efficient and responsive customer service escalates, the onus is now on Singapore's telcos to innovate and enhance their digital engagement strategies. The success of customer retention strategies will undoubtedly hinge on how well these providers can rise to the challenge in the coming years. The question looms large: will Singapore's telcos heed the warnings, or will they risk losing more than half their customers to competitors?