CEM Compass Enhance your Customer Experience Management - Strategy - Execution

CEM CompassEnhance your Customer Experience Management - Strategy - Execution

London, September 28, 2011

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the footer areaEricsson Consulting | OSS-BSS World Summit 2011 | 2011-09-28

CLOUD

LTE

NETWORKED

SOCIETY

CONNECTED

& SMART DEVICES Moments of

Truth

Network and Service Quality

Service and device portfolio

Customer Care, Information, resolution and competence

Flexible costs and billing

CE Moments of Truth

Cornerstones

In-Service Need;P/S QualityAvailabilityUsability

Customer Experience

Service Wrap;E2e Customer

facing OSS processes

Experience and Behavioral

Needs;Brand Image

Pre-Service;Marketing

CRM

Customers’ world is changing, impacting CEM approach

Multi-Channel BRAND

Interaction

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We have significant experience in CEM thanks to our engagements with operators

2B Subs.

12.000 Professionals, 1.300 Projects per year

Consulting and Systems Integration

Customers on Network Support

750M Subs.

Subscribers on Network Management

Continuing to invest

Pride groupPride groupgroup

Ericsson India Global Services

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Discovering insights is fundamental to obtain value investing in a CEM journey

50% Satisfaction Driver is NW Quality.

63% will churn if competitor offers

better NW quality. (4)

MBB service with better data activation would

create additional 20m $ FCF in four years (3)

Sources; (1) Operator Case, (2) Operator Case, (3) Operator Case (4) ConsumerLab Network Quality Study 2010,

Service quality optimization allowed

operator to increase 13% market share (2)

10% of subscribers base with potential for 1.5 $

ARPU increase if targeted offering (1)

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Case: Segmentation and targeting enhances CEM strategic direction

Results achieved

› Discovery of micro-segment; opportunity to build targeted offering with potential ARPU increase of 1.5$ for 10% of subscribers base

Market context

› Very competitive market, advanced services and infrastructure, differentiation challenge

› Exploration and trial of Dynamic Pricing for churn reduction and ARPU booster

Ericsson Dynamic Pricing and go to market consulting approach

TRIALEvaluation & Evolution

Integration & Implementation

PlanningAnalysis & DesignDP GTM

Strategy and Focus

Target Segmentation

Features and Roadmap

Collateral Implications

1

2

3

4

Technol ogyTechnol ogy

BSC

Cel lUt il .

h i!Zone In f o

Discoun tIn f o

REPORT

MARKETING

1

MARKETING

1

Cust omerCar e

3

Cust omerCar e

3

DTE

Comms..agency

2

Comms..agency

2

5

Subscr iber

4

Subscr iber

4

SALESCHANNELS

3

SALESCHANNELS

3

Insights impacting CEM process areas

Dis

co

un

t

-0.7

-0.6

-0.5

-0.4

-0.3

-0.2

-0.1

0

0.3% -6.6% -11.8% -16.1%

El ast ic it y*last 4 months, peaks evened out

Micro Segment

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Case: Performance optimization improves CEM real-time control

Results achieved› Automated and standardized processes› Total visibility of the quality of the network

Market context

› Leading operator with 6 million subscribers, holding 24 percent market share

› Continuing to introduce new standards in terms of service quality and pricing


Service Quality

40

45

50

55

60

65

70

75

80

85

Time

KPI

0,80

1,00

1,20

1,40

1,60

1,80

2,00

ServiceUsage

Service Quality Service Usage

Service Quality

Usage Uptake

Ericsson network performance partnership with user service performance approach

TransformationPartnership Solution

AgreementBaseline and Target

Assessment

Current Performanc

e

Performance Commitment

Performance Levels Implemented

Optimized Performanc

e

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Case: CEM automation on Customer Lifecycle Management framework

Results achieved

› Foundation for Performance Based Service Assurance (Experience Map, SKPIs, RKPIs)

› Automated service monitoring and reporting

Market context

› Operator explore innovative business models to stay ahead of competition

› Satisfaction levels declined due to mobile data service quality and experience

Ericsson customer touch-points framework (LCM) sample approach

Data Readiness Quick-Wins

Architecture Recommendation

Data Activation Experience Map

Device Activation Assessment and Finance

Impact

Customer experience

map

Customer experience

map

Customer experience

Capabilitiesperspective

Proposed ArchitectureProposed

Architecture

Device activation assesment

Capability gap analysisCapability

gap analysis

Architectureperspective

Find Get Setup Use Pay for

Get help

Modify

Insights impacting CEM process areasTOP handset brands with highest failed attempts(12 hours period)

One Iphone generated more than 2500 failed attempts

One BB 9700 generated more than 1250 failed attempts

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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Case: Diagnosis tool enhances satisfaction drivers and KPIs

Results achieved

› Establishment of satisfaction drivers KPIs› Network Quality Index with diary network issue

category & details

Market context

› Developing market with aggressive churn› Operator exploring on network and systems

data and applicability to marketing


KPIs Diagnosis

Map perception / System data

Revenue Risk Assessment

Network Quality Churn impact

Satisfaction Driver Model & NPS

Profiling Questions, Diary exercise, Survey

& CDRs

Ericsson market research and technology consulting approach

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performance priority

loyalty

differentiation

Summary: Navigating CEM on 360° compass increasing Customer Lifetime Value

Customer Lifecycle Management

Customer Segmentation and

TargetingCustomer Satisfaction

Customer Experience Optimization

Understanding

Acting

CLV

Documents

CEM Compass Enhance your Customer Experience Management - Strategy - Execution