More than half of Singapore consumers say they would switch telcos if met with poor customer service

SINGAPORE: In an increasingly competitive telecom market, Singapore telco providers face a crucial challenge: retaining customers who are dissatisfied with customer service, rather than just focusing on offering more competitive deals.

Recent data from Rakuten Insight and GrowthOps Asia reveal that 52% of telco users would switch providers primarily due to poor customer service. The survey also highlights that 33% of users who feel neutral or dissatisfied with their current provider are likely to switch if they encounter better customer service elsewhere.

While attractive deals remain the primary reason customers switch, poor customer service ranks as the second-leading cause of churn, underscoring the need for telcos to go beyond pricing strategies.

Additionally, an improved digital experience, including website and mobile app capabilities, has become an influential factor for users contemplating a change. Fewer customers were swayed by recommendations from family and friends, with some considering leaving family bundles altogether in pursuit of better service experiences.

GrowthOps Asia emphasized the stakes involved, noting that Singapore’s telecom market, currently valued at an estimated US$2.84 billion in 2024, is projected to grow at a 1.41% compound annual growth rate, reaching around US$3.04 billion by 2029. “To remain competitive, Singapore telcos must elevate their customer service offerings to match market growth and consumer expectations,” the consultancy remarked.

Despite these pressures, Singapore’s telecom market trails other regional players in digital service capabilities. Singapore’s telcos collectively score 50% for website functionality and slightly lower for mobile app capabilities, placing the country outside the “Budding Innovators’ Circle,” which includes regional peers like Malaysia, Indonesia, and Thailand. This circle represents countries with telcos that have scored at least 60% on both mobile and website capabilities, showcasing stronger digital service readiness.

As the demand for seamless and responsive customer service grows, Singapore’s telcos are faced with the task of not only retaining customers but also innovating to enhance digital engagement. For the telecom sector, meeting these challenges will likely determine the success of customer retention strategies in the years ahead.

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