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This document is offered compliments of BSP Media Group. www.bspmediagroup.com
All rights reserved.
All material is Copyright © Informa Telecoms & Media
Welcome
Customer Experience Management in Telecoms
1
Alan Mayne
Training Manager - Informa Telecoms
Academy
30 years in Telecoms and IT
Career history: BT, Digital Equipment
Co. (HP), Ericsson
Network experience: BT, C&W, COLT,
Worldcom, Vodafone, T-Mobile and
Orange
GSM, UMTS (3G), LTE (4G), Fixed
Telecoms, IP, IMS, Optical
Networking, OSS/BSS, Digital
Broadcasting, Service and Content
Delivery, Telecoms Management
Programmes
2
• Established in 2000
• Based in London – we
provide Training Services
globally
• Public and In-house /
Customised Instructor-Led
Training
• Distance Learning
• Two Faculties – Telecoms
Technology and Telecoms
Business
• Part of the Informa Telecoms
& Media Group
The Informa Telecoms Academy
3
Some of our customers…
4
Telecoms: First 140 Years
Focused on connecting places
and people
Obtain the License
– Number Range
– Spectrum (if mobile)
Build & run infrastructure
Deliver services over the
infrastructure
Provide a user experience
– Devices, pricing, packaging,
branding
But, the customer experience is
changing rapidly
5
CEM – how important is it?
6
Definition: CRM
CRM - Customer Relationship Management
– Methodologies and software that help an enterprise
manage customer relationships in an organised way
– Damage limitation
– Seeks to up-sell and cross-sell
7
Definition: CEM
CEM - Customer Experience Management
– Managing everything related to how the
customer experiences the company
“How customers perceive their interactions with a
company” (Forrester)
“The sum of observations, perceptions, thoughts and
feelings arising from interactions and relationships
between customers and their service providers” (Infosys)
8
Just to be clear…
CEM
CRM
9
What CEM Means for the Operator
Holistic, outside-in approach
Seeks to create a customer base that is delighted
with a company‟s services
“Customers experience you and
your brand as a whole, not by
different departments or
functions”
10
The Need for a Change of Approach
Need to retain more customers and manage them as
assets
Focus on beginning and end stages
11
Your customers are your assets!
Customer Lifetime Value (CLV)
= (Average sale) x (Estimated number of times customers reorder)
Customer Lifetime Profitability (CLP)
= (Average profit per sale) x (Estimated number of times customers reorder)
Developing the customer experience over their total lifetime can increase the value of your asset base!
12
Customer touchpoints - significant
motivations to churn
28%
51%
54%
64%
65%
67%
67%
71%
74%
77%
88%
92%
My employer makes the decision to change the operator
Influenced by friends and family on other operators
Attracted by another operator's brand
Bad customer service
Billing or service dispute
Attracted by a better service offer (e.g., application store,gaming, music, etc)
Low voice calls quality
Bad data service quality
Attracted by better mobile phones from another operator
Lack of network coverage
Attracted by better price plan from another operator
Better value for money on another operator
What would be the main reasons that would make you leave your current main operator? (important and very important) (UK smartphone survey)
N: 1,400
Source: Informa Telecoms & Media
13
CEM Goes Beyond Customer Satisfaction
Passion
Pride
Integrity
Confidence
Satisfaction
14
A question- which brands...
Do you feel
passionately about?
– Airline
– Restaurant
– Hotel chain
– Football team
– Telecoms
Positively or
negatively?
Why?
15
Passion Comes from a Consistent Customer
Experience
Source: O2
16
Measuring Customer Passion:
The Net Promoter Score
Net promoter score = % of promoters - % of detractors
17
What’s so good about Net Promoter Score
Traditionally
measured Customer
Satisfaction
Many “satisfied”
customers defect
from businesses
every day
NPS offers better
correlation to
customer future
actions
18
Why the NPS Matters in Telecoms
In the US wireless market, promoters generate on
average nearly 80 percent higher lifetime revenue
than passives and nearly two and a half times more
revenue than detractors, based on their longer
tenures. They are far less likely to churn than
passives and detractors.
(Source: Bain)
19
Where are the holes in the bucket?
How do you identify gaps:
– Between what customers expect and what they get?
– Between what you think customers expect and what
they actually expect?
20
Example: When to measure the NPS
Source: Vodafone Turkey
21
The CEM business case = Higher Profits
Loyal customers:
Are less likely to churn
Have their customer acquisition
investments amortized over long periods
Cost less to serve
Make operators‟ processes and employees‟
life easier as it is easier to serve satisfied
customers than unsatisfied ones
Are more likely to be promoters (word of
mouth)
Normally buy more services/products
Are less price-sensitive and tend to buy
more premium services
22
Critical Mindset Shift: Inside-Out to Outside-In
Do you see your customers in the same way as your
customers see you?
23
CEM Value Proposition
25
CEM demands not only technology integration,
but also an organizational change
Phase 1 Phase 2 Phase 3
Ob
jecti
ve
A
pp
roa
ch
• Identify different
consumer groups via
segmentation
• Access and integrate
information from all
consumer touchpoints
(including channels,
network, retail, etc.)
• Define metrics and
goals
• Establish the information
source and the metrics
being used
• Engage the different
areas into a single CEM
goal, but with individual
targets for each area
• Use a dashboard with
both individual and
aggregated customer
information
• Define the right mix of
metrics to measure
different aspects within
CEM
• Attach CEM metrics to
employees to perform
bonuses
• Identify the successful
initiatives to use as a
benchmark for
improvement
Identify the drivers
for CEM
Implement action
based on customer
information
Use metrics to
improve performance
Source: Informa Telecoms & Media
26
Making a Start
Focus:
– What experiences will deliver more revenue?
– What experiences will deliver greater margin?
How can we ensure that these outcomes are achieved?
– Identify core touchpoints
– Define touchpoint excellence – from the customer
perspective
– Implement operational changes
– Remove barriers to change
27
Developing CEM KPIs:
How do we Look from the Outside?
KPIs should reflect customers‟ view
KPIs should be aligned with their experience and
expectations at multiple touchpoints
The strategic objectives of a CEM programme are:
– increased NPS at all touchpoints, leading to
– increased customer loyalty throughout their lifecycle
– greater ROI and
– increased CLV
Cascade these objectives into operational KPIs that are
measured and actioned
28
Organisational Alignment
Who is responsible for CEM?
– Total organisational commitment
Companies have traditionally divided responsibility for
touchpoints among functions. But a comprehensive
strategy for engaging customers across them rarely
emerges and, if one does, there‟s often no system for
executing it or measuring its performance
Who „owns‟ the touchpoints?
– From the customer‟s point of view, it‟s the company as
a whole, not a single department
– There‟s no need to worry about traditional functional or
business unit ownership: whoever is best placed to
tackle an activity should do so
(Source: McKinsey)
29
Remember …
Customers experience
you and your brand as
a whole, not by
different departments
or functions
30
What next?