Customer experience management: managing all phases of the customer lifecycle

Transcription

1 MENA Summit 2013: Enabling innovation, driving profitability Customer experience management: managing all phases of the customer lifecycle 6 November 2013 Patrick Kelly EVENT PARTNERS:

2 What is customer experience management, and more importantly how do you improve it? Customer experience management attempts to understand all aspects of the customer lifecycle and the moments of truth between the customer and the operator to increase loyalty. Software systems are critical to the three key stages of the customer lifecycle. Customer experience metrics must measure and report on three phases of the customer lifecycle: join the process of ordering a service on-board the process of activating and training the customer to use the service support the process of resolving problems in the delivery of services, including accurate billing. 2

3 A recent survey indicates a mismatch between CSPs perception and how customers rate services Operators perception of how well they are doing in regards to customer experience is relatively high. However, two thirds of operator respondents either do not have a 360-degree view of their customers or do not know. The obvious conclusion is that operators perception of how well they are managing the customer experience is not grounded in reality. 61% of operators responded that CEM is either treated as a distinct discipline in their organisations or important to some parts of the business. CSPs perception of whether they have a complete view of the customer experience Yes 33% Do not know 21% Source: European Communications No 46% 3

4 4 Customer acquisition and retention strategy dimensions Customer lifecycle value Add customers Profit Sell more products and services Prevent churn Net new subscribers Keep customers longer Sell more services Loss Customer acquisition Time Customer lifecycle Customer acquisition cost in developed countries: Postpaid: 15 40% of first-year revenue for fixed and mobile services Prepaid: 8 17% of first-year services revenue Customer churn in mature saturated markets is 12 24% per year, with no improvements over the past 3 years.

5 Moments of truth will create positive or negative experiences 5 The loyalty loop Awareness Advertisement or recommendation from a friend Before Does it fulfill my needs? Price/value assessment Advocate Reaffirm commitment, recommend and buy more Research Online or retail store During Buying experience Usage experience Did it fulfill my needs? Commitment Long-term usage Purchase Evaluate and trial period After Was I billed correctly?

6 6 Moments of truth strengthen or weaken customer loyalty Experiences that increase or decrease Net Promoter Score Technician arrives at scheduled time Problems are resolved on the first call Too many options in IVR Increases NPS Excellent online forums Repeat calls to agent with no problem resolution Bills are automatically credited for service disruption SMS texts are received to warn of a network outage No option for self-service Customer does not understand bill Poor coverage Decreases NPS Dropped calls

7 Customer retention is largely impacted by network coverage and reliability Our Connected Consumer survey indicated that smartphones change users perception of what they need from their mobile service provider. Main reasons for churn among smartphone users: 23% cited network coverage 19% mentioned reliability. The quality of the network, and the flexibility and affordability of data packages are clearly key drivers for capturing smartphone customers. Factors other than price that drive respondents to want to change mobile network provider Handset Different package Reliability Customer service Coverage 0% 5% 10% 15% 20% 25% Mobile respondents 7 Non-smartphones Smartphones From Analysys Mason s Connected Consumer survey.

8 Network coverage and data speeds rank high for MEA subscribers of mobile broadband services Our latest survey of MEA users highlights the importance of customer experience: network coverage and data speeds were consistently ranked highly as reasons for selecting their current operator value for money and fast data speeds were important factors driving selection of a new service provider. Selection criteria for current service provider Overall Egypt Saudi Arabia UAE Selection criteria for a new service provider Key: Most (1) Least (6) 8 Kenya Nigeria South Africa Better network coverage Better calling and messaging value Faster data speeds Better data value Overall Egypt Saudi Arabia UAE Kenya Nigeria South Africa Better rates for special usage More usage allowance Faster data speed Better network coverage

9 The customer lifecycle journey is influenced by the join, on-board and support phases 9 Activities in the customer lifecycle The customer lifecycle Inquire and evaluate Online, window shop, talk to family/friends Join Technician visits home, go to store, self-serve Evaluate Join On-board Set up services, payment, training Support Web chat, online communities, call centre Renew Proactive contact, confirm, promote relevant new offers Renew Support On-board

10 Measuring and then managing improvements for each customer interaction yields higher customer satisfaction Methodology for managing the customer experience 10 CEM touchpoints CEM processes Join Product and service availability at the advertised price delivered on time Ordering process Order not fulfilled Activation process Ready to activate On-board Billing process and training Activation failed Support Product failure and/or service disruption Product replacement and/or problem resolution Cancel service order

11 Key software components are used to improve the customer experience CEM touchpoints mapped to Analysys Mason s software market taxonomy 11 Join On-board Support Customer interaction and account creation Service activation Policy management Service management Customer interaction Fault and event management Order management Content management CRM Probe systems Inventory management Billing Partner and interconnect Performance monitoring Workforce automation Engineering tools Customer acquisition Customer retention

12 12 The join process focuses on new or add-on services Customers interact with the CSP through several channels. Personalised offers are made through an enterprise-level product catalogue and personalisation recommendations. Personalisation recommendations come from personalisation policies, matched to subscriber data and product catalogues. The channel co-ordination layer provides uniformity of experience. Integration with the billing and service fulfilment systems supports the immediacy of the experience. Overall customer self-service as part of a multi-channel architecture Channel partner Service fulfilment and billing process Customer or prospect Customer call centre agent Retail store agent Channel co-ordination Customer order orchestration Product and service catalogue Self service Subscriber data and entitlements Shopping cart Personalisation recommendation Personalisation policies

13 The on-board process focuses on service fulfilment activities The first step is to decompose the order into products and services. To achieve high NPS scores, the order must be fulfilled the first time. Customer order orchestration systems decompose complex, multi-product orders and orchestrate the order. Sub-orders are passed to multiple service fulfilment technology stacks. Activation systems are interfaced with customer order orchestration when a simple activation is required. The BSS and OSS components each need data about the products and services required to fulfil the orders. Order management and activation systems CRM Customer order orchestration Order management Inventory Activation Customer care Catalogue Order management Inventory Activation Subscriber management Network Activation SDPs 13 Partner CSPs, third-party vendors

14 The on-board process also involves billing and account management activities Convergent billing (also known as convergent charging) can be used in two types of scenario. Use of a single billing system for both prepaid and postpaid services. These may include fixed-line services as well as mobile. The primary driver for this is reducing costs of established systems. Support of convergent or hybrid services that enable postpaid subscribers to top-up service plans with real-time purchases such as additional bandwidth, access to content or speed boosts. Revenue management deployment scenario Partner and interconnect Business optimisation Revenue management Postpaid rating and pricing Signalling networks (SS7, SIP, IMS) 14 Subscriber data Product data Billing data Real-time charging (RTC) system

15 The support process focuses on call centres and operations Actions that contribute to a positive outcome in the support phase: resolve customer problems link customer data with real-time usage and performance data implement multiple channels of communication understand problems reported in the call centre understand traffic patterns that lead to churn identify potential 3G customers identify and categorise customers who have more than one SIM. Call centre and operational deployment scenario Intelligent customer care Mobile network GSM, CDMA, UMTS, LTE Campaign management Service quality management Data mediation and correlation layer Session control Hardware probes Subscriber data HLR or HSS 15 Benchmarking Software agents

16 Use case: Brasil Telecom rationalises systems to improve its service provisioning cycle time Problem statement Brasil Telecom had to consolidate a disparate set of ten provisioning systems into a single OSS capable of provisioning new data services as well as support voice and service convergence. Implementation approach Brasil Telecom adopted a threepronged approach: built an OSS blueprint architecture selected vendors and SI partners rationalised products and services, and reduced cycle times of provisioning and activation. Benefits Decreased provisioning cycle times for IP services by 45% and ADSL services by 83%. Improved customer experience by addressing customer issues more efficiently, which was possible because of the significantly improved accuracy of the on-board processes. Data communications revenue increased by 23% in one year, and achieved a net revenue increase of 1.6%. 16

17 Use case: European mobile operator made annual cost savings of EUR5 million in first-call resolution Problem statement Surge in smart device usage caused complex support issues. The CSP needed to improve first-call resolution for mobile data services. Implementation approach Engaged a vendor to analyse types of issue reported to the first line, and the type of information that would be required to fix those issues. Using analytics, network information was sourced and presented in a way that first- and second-line teams could better understand and use it to resolve customer issues more efficiently. Deployed a network analytics solution to gain a real-time view of consumer behaviour including apps, devices, locations and service types. Benefits Solution empowered support teams with more-detailed customer experience metrics in real time. 50% reduction in calls escalated from first-line to second-line support Reduced call resolution times from 12 minutes to 8 minutes, or 33%. Annual cost savings of EUR5 million in reduced resource requirements for about 10 million customers. 17

18 Use case: U.S. Cellular links network quality of service to customer satisfaction Problem statement Wanted to enable its operational teams to proactively discover and troubleshoot network issues, in order to reduce churn and improve customer satisfaction. Implementation approach Linked employee performance in the networks organisation to QoS parameters such as dropped calls. Deployed Alcatel-Lucent s 9900 Wireless Network Guardian (WNG) to measure these metrics and monitor traffic. Benefits Within 2 weeks of using the WNG, was able to gather significant amounts of useful traffic data that had not been possible earlier. Customer satisfaction ratings have gone up, because of improved call quality. Reduced the time it takes to respond to issues and became more proactive. 18

19 Use case: UPC cablecom improves NPS and reduces churn through operational processes Problem statement Performing poorly on all KPIs such as first-contact resolution, customer satisfaction, NPS and churn. Implementation approach Instituted a new framework for improving customer experience with the following key components. Employees met customers to solicit feedback and ideas for improvement. Conducted surveys and focus group discussions on key topics. Link KPIs to the bonus payments of all employees. Defined KPIs for each customer touchpoint in each stage of the customer lifecycle value chain. After every transaction, sent out text message questionnaires. In one such example, sent out 1.6 million and received responses. All KPIs were aggregated on a rolling 4-weekly basis and reported through a customer experience dashboard on a weekly basis. Benefits During the 4-year period from 2009 and 2012, UPC improved in every KPI, and increased customer numbers. 19

20 Use case: An Asian CSP ensures reliable network quality of service by improving network coverage Problem statement Did not have end-to-end visibility of the network performance. Result was long and inefficient troubleshooting processes for network issues. CSP received a high volume of complaints of high call-drop rates. Implementation approach Implemented Astellia s network assurance solution and integrated it into its network optimisation process enabling better planning using up-to-date network performance data. Operational teams gained end-to-end visibility of 3G network performance. Empowered NOC teams to accurately identify the root cause of network failure. Identified two badly performing cells where the call drop rates were above 20%, and added new neighbouring cell relationships. Benefits Quickly improved network quality of service by improving coverage. Improved customer experience, lower churn and maximised revenue. Automation capabilities reduced operational costs and increased network equipment efficiency. 20

21 Use case: AT&T rolls out video bill feature to help mobile customers understand service charges Problem statement AT&T wanted to enable subscribers to understand their monthly charges, in an audiovisual format. Implementation approach Worked with Amdocs to customise a technology from SundaySky, which was designed to create customised product videos for online shoppers. Amdocs billing systems feeds customers billing information into SundaySky s technology, which in turn automatically generates a personalised video. Voice-over artists recorded all possible billing combinations, and more than 1500 first names, so that the customer is greeted by name. All video and audio elements are assembled by the technology at time of playing the video bill. Rolled out the pilot to U-verse voice, TV and Internet customers. Benefits 85% of users found video bills helpful. Expanded the video bill service to its national U-verse customer base and eventually rolled it out to all its wireless customers. 21

22 Use case: JDSU helps a major EMEA IPTV service provider improve call handling times Problem statement High opex because of high Tier 1 and 2 call handling times, excessive dispatches to analyse and fix problems, and excessive residential gateway and STB replacement. Implementation approach JDSU used a variety of test equipment to measure IPTV service from the headend, in the transport network, in the metro network, and in the access networks up to the home networks. Deployed the probe-less home performance management (PM) triple-play monitoring solution. The solution identifies problems between service delivery platforms, the core network, the access networks, and the home networks. Benefits Improved customer experience and operations efficiency by making more information available to the customer care representatives and reducing call handling times. Reduced opex by 20% by cutting the number of dispatches to the field. RoI within 1 year. 22

23 23 Recommendations for CSPs Identify which customer interactions lead to dissatisfaction and contribute to churn to achieve specific business outcomes, such as: reduce churn increase ARPU optimise capital efficiency reduce call escallations stop wasted truck rolls simplify billing statements. Target the low hanging fruit to improve retention. focus on network quality and coverage utilise big data to correlate high-arpu users with planned RAN upgrades. Identify specific customer experience measurement points in the join, onboard and support phases, and develop an implementation plan that achieves specific improvements in 3 months. Select suppliers that have demonstrated successful deployments with clients that sell similar products and services.

24 24 Thank you for your attention. Any questions? Patrick Kelly Research Director