DIGITALISING CUSTOMER EXPERIENCE: ADDRESSING CHANGING CONSUMER BEHAVIOUR AND COMPETITION

OMANTEL TELECOMS SUMMIT 2016 BUILDING BLOCKS FOR SUCCESSFUL OPERATOR STRATEGIES #AMTMT DIGITALISING CUSTOMER EXPERIENCE: ADDRESSING CHANGING CONSUMER BEHAVIOUR AND COMPETITION NOVEMBER 2016 KARIM YAICI

SMALL (<25 million) SUBSCRIBER BASE MEDIUM (25 75 million) LARGE (>75 million) Omantel Telecoms Summit 2016: building blocks for successful operator strategies Analysys Mason has developed the Digital experience Index to measure how digitalised the user experience is Vodafone Airtel Deutsche Telekom Orange Verizon Telefónica Telenor AT&T Etisalat Turkcell Zain EE Globe Telecom STC SFR Türk Telekom StarHub Eircom Omantel Three BT TeliaSonera du Singtel/ Optus PLANNING BEGINNING TRANSFORMING DIGITALISED LOW DIGITAL MATURITY HIGH Source: Analysys Mason 2

Telcos used to have the whole thing locked up; it was a vertical/integrated model Third parties Content Connectivity Devices Interfaces Customers None of significance Usergenerated Information services Dedicated circuits Limited distribution Limited functions Standard interfaces Limited functions Little or no segmentation Ringtones! 3

The telecoms value chain and consumer experience are increasingly fragmented because of the entry of new players Third parties Content Connectivity Devices Interfaces Customers None of significance Usergenerated Information services Dedicated circuits Limited distribution Limited functions Standard interfaces Limited functions Little or no segmentation Ringtones! OTT providers have had an impact on how CSPs engage with consumers Mobile is fragmenting consumer behaviour into different experiences The more digital the customer journey, the higher the customer satisfaction 4

Change in share of sales Omantel Telecoms Summit 2016: building blocks for successful operator strategies Multi-device ownership and alternative supply channels are causing the fragmentation of the consumer relationship Third parties Content Connectivity Devices Interfaces Customers Proliferation of devices and new form factors Handsets, tablets, wearables, Things Alternative manufacturers Changes to financing model SIM-only, vendor financing, online channels Increase in non-operator channels for handset sales, 2015 2016 25% 0% Morocco Oman Saudi Arabia Qatar UAE NPS per smartphone acquisition channel, MENA, 2016 23 27 14 5

OTT players compete with operators core business by achieving a higher level of engagement through interfaces Third parties Content Connectivity Devices Interfaces Customers Competition between interfaces browsers, applications, apps within apps, home screens, menus, notifications, assistants Convergence of the mobile web and native apps Shift to voice-enablement; AI 6

Digital natives are preconditioned by digital channels, providing an incentive to become digital service providers Third parties Content Connectivity Devices Interfaces Customers Built an ecosystem to support the sale of devices ios defaults FaceTime Siri itunes AppStore Video production and online streaming Lead in customer experience Multi-device support multi-profile personalisation Data analytics Facebook Personalisation Controls several major interfaces giving it access to billions of users Instagram WhatsApp Facebook Messenger Ecommerce infrastructure and connecting with customers Advanced self-service support Site performance and usability Mobile first experience 7

What does it mean to digitalise the consumer experience? 8

Operators could use automation, personalisation and advanced interaction to improve customer care 9

Operators could also increase customer satisfaction while reducing costs and churn, by supporting social media 10

Digitalising the customer experience is part of a large CSPto-DSP transformation CSP DSP = Communications service provider A service provider with digitalised operations Digital service provider D(SP) + (DS)P vngn A provider of digital services Supported by an agile, virtualised next-generation network Source: Analysys Mason 11

CSPs expect their digital transformation efforts to yield significant benefits for their businesses 12

Many CSPs already have digitalisation strategies in place Question: Which answer best describes your organisation s digitalisation strategy? (Select one)* 13

Examples of sizable digital transformation projects offered by specific operators in both developed and emerging markets 14

Sophistication of delivery capability Omantel Telecoms Summit 2016: building blocks for successful operator strategies Case study: AT&T s journey to digitalise customer experience management: from self-service apps to virtual agents BASIC Traditional legacy capabilities GOLD-ZONE UNIFIED OMNI-CHANNEL LEADING EDGE AUTOMATION AND REAL-TIME COMPLEX EVENT PROCESSING PERSONALISATION ADVANCED CHANNEL SUPPORT ADVANCED SELF-SERVICE Digital maturity 15

Social media also has the potential to be a primary channel in customer care operations BENEFITS Advanced sales and marketing Reduced call-centre costs 1 Customer and increased self-service self-service LEADING EDGE Customer support 2 Increased customer satisfaction Trend and sentiment analysis 3 Enables the launch of segmented marketing campaigns CURRENT BEST-IN- CLASS TRADITIONAL Basic marketing Source: Analysys Mason 18

Case study: Bouygues Telecom s deployment of Dimelo Social improved customer satisfaction and increased self-service Challenge Increase customer satisfaction Increase self-care Reduce churn Solution Engage with customers via social media channels Manage content on community forum Help customers self-serve Benefits Increased customer satisfaction Increased self-care Reduced calls to contact centre Source: Analysys Mason Source: www.analysysmason.com/bouygues-dimelo-dec2015 19

SERVICE INTERACTION Omantel Telecoms Summit 2016: building blocks for successful operator strategies Case study: T-Mobile Austria deployed a solution to improve customer support and experience via social media T-Mobile Austria is Austria s second largest mobile service provider. It deployed a social customer service platform to support its technology savvy customers SOCIAL CHANNELS Facebook Twitter Google+ Instagram YouTube Machine learning and automation capability reduced the time for interaction AUTOMATED DISTRIBUTION BRAND EMBASSY PLATFORM Single-platform allowed easy monitoring of performance KPIs CUSTOMER SERVICE AGENTS Source: Analysys Mason Source: http://www.analysysmason.com/t-mobile-austria-feb2016 20

SMALL (<25 million) SUBSCRIBER BASE MEDIUM (25 75 million) LARGE (>75 million) Omantel Telecoms Summit 2016: building blocks for successful operator strategies The first version of the Digital experience Index focused on measuring how digitalised the user experience is Vodafone Airtel Deutsche Telekom Orange Verizon Telefónica Telenor AT&T Etisalat Turkcell EE Globe Telecom Zain SFR Türk Telekom StarHub Eircom Three STC BT TeliaSonera Omantel du Singtel/ Optus PLANNING BEGINNING TRANSFORMING DIGITALISED LOW DIGITAL MATURITY HIGH Source: Analysys Mason 21

Various areas contribute differing amounts to the overall Digital experience (DX) Automated partner management Real-time billing, charging and mediation Rapid service design and creation Automated order management and service orchestration Self-diagnostics and personalised information Customer and network data for personalisation and contextualisation Customer omni-channel journey analysis Digital interface Omni-channel Personalisation User service control Social media Advanced interaction Source: Analysys Mason 22

Digital experience (DX) research plans DXI evolution DXI-2 underway, including the new areas DXI-2 subset for: Customer care Revenue management Analytics Service fulfilment Service assurance Enterprise version (edxi) Other DX research Correlation with business success Correlation with NPS Will digitalisation meet the desires of digital natives? What is the digital experience for the enterprise market? Results will be reported in our Customer Experience Management (CEM) programme. 23

Key takeaways 1 Consumers user experience expectations are set by nontelecoms web-scale companies. CSPs must adapt. 2 CSPs that wish to create a fully digital experience for their consumers need to primarily consider customer care systems, but also behind-the-scenes systems. 3 The Digital experience Index (DXI) can be an important tool in Omantel s plans to digitalise the user experience. 24

Contact details Karim Yaici Senior Analyst karim.yaici@analysysmason.com Boston Tel: +1 202 331 3080 boston@analysysmason.com Cambridge Tel: +44 (0)1223 460600 cambridge@analysysmason.com Madrid Tel: +34 91 399 5016 madrid@analysysmason.com Manchester Tel: +44 (0)161 877 7808 manchester@analysysmason.com Dubai Tel: +971 (0)4 446 7473 dubai@analysysmason.com Milan Tel: +39 02 76 31 88 34 milan@analysysmason.com Dublin Tel: +353 (0)1 602 4755 dublin@analysysmason.com New Delhi Tel: +91 124 4501860 newdelhi@analysysmason.com Hong Kong Tel: +852 3669 7090 hongkong@analysysmason.com Paris Tel: +33 (0)1 72 71 96 96 paris@analysysmason.com London Tel: +44 (0)20 7395 9000 london@analysysmason.com Singapore Tel: +65 6493 6038 singapore@analysysmason.com @AnalysysMason linkedin.com/company/analysys-mason youtube.com/analysysmason analysysmason.com/rss 25

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