1

What Influences trust in a brand:

Communications vs Customer

Experience

Subho Mukherjee

World Communications Forum Davos, March 11th 2015

2

The truth in the communications service provider industry today

3

Communication about mobile telephony is all around us

4

Advertising & marketing costs to acquire new subscribers are increasing -in US over $300 for a single subscribers. -In India operators spend $2 billion/ year

5

But are the consumers impressed?

6

What really get mobile telecom consumers loyal A Customer Experience worth remembering

40% thinks they should

leave their operator

Loyalty leaders excelling in

network and service quality

41% think an operator must offer excellent network quality even if it cost more

Messaging and internet service quality continues to be important to subscribers with 60% having problems with data usage

Retention drivers

Customer

care

Service

& device

portfolio

Cost &

billing

Network

& service

quality

12

29

44

15

Source: Nokia 2014 Acquisition and Retention Study across ~12,000 interviews in 11 countries

7

Reflecting on challenges of communication vs longevity of customer

experience

8

Story of Nokia mobile phones in India

dichotomy of market share vs. trust in brand

2008 2010 2012 2014 2015

Market

share

in %

10%

32.9% 54%

56.2%

9

1871 1965 1987 1992 2006

A long history of successful change

2014

HERE

Nokia Technologies

Nokia Networks

10

US UK

China

The challenge of brand communication

Reliability and quality are positive associations, but the link to mobile

phones is no longer relevant

“What four words come to mind when you think of Nokia?”

Source: Lippincott Brand Study 2014

11

What builds trust in Nokia brand in today’s environment

Integrity of design and execution in mobile networks

Busan Fireworks Festival in

Korea

1 km length, 1.5 million people,

all LTE (4G) network

100% LTE network availability,

99.4% Voice over LTE calls

Source: Nokia Networks Customer Experience Survey

Our B2B reputation continues to strengthen:

Customer perceived value is on a rising trend, and recently overtook

Ericsson

In B2B Customer Perceived Value is the strongest driver for trust

Medium Low High

Mediu

m

Low

H

igh

Cu

sto

me

r P

erc

eiv

ed

Va

lue

Relative Investment

Your

company

Competition

Features Quality Time Price Relationship

13

A unique moment of opportunity