Copyright 2015 QuEST Forum. All Rights Reserved. 1

Increasing Revenue through

Improved Customer Experience

Jonathan Hopkinson

Derek Chen

EMEA BPC Munich June 2015

Customer Experience Investment

Makes Business Sense

CE is Delivering Business

Value

• Use Cases: Churn, PTC

Reduction…

• Improved Brand Perception,

NPS

2012

No Longer a “Leap of Faith”

HUAWEI SmartCare CEM®

MWC Booth Visitor Distribution

Percentage of CMO: 0

2015

Percentage of CMO: 10%

Highly Competitive Market in Hong Kong

76% World’s Highest

IPTV Penetration

Rate

101% Fixed Lines

Penetration,4.3M

Users

90% Penetration of

Broadband

Users

230% Penetration of

Mobile Users

4 Mobile, 21 Fixed and 3 Pay-TV Operators

“Excellent Customer Experience"

4

The best way to succeed in a highly competitive market

Customer Experience Executive Committee

Chaired by Group MD

Formulates Strategy and Tactics

But How?

We needed a qualified

solution partner!

Established the “HKT Premier” &

Regional Customer Service Centers to

better serve our customers…

Externally, launch the motto

“Here to Serve”

Implement measures to improve CE

Internally, build the

“Best Network, Best Services” to

serve our customers

HKT CE Transformation Journey

Dimension Level 1 Level 2 Level 3 Level 4 Level 5

Initial Repeatable Defined Managed Optimizing

Vision / Strategy

Organization /

Influence

People

Processes

Business Metrics /

KPIs

Tools / Systems

Established Vision

SEA / QITCEM

Workshops

CEECMarket OrientedContinue to Improve• PSPU • Reduced MTTD/R• Better FCR & AHT

CE across Functions

Focus on KQIs

PSPU Analysis

CE within Functions

Focus on Dept KPIs

Network Focus (NOC)

Closed-Loop, Customer-Centric Operations

CE Service Quality Monitoring

Journey Design

Customer Experience

Triggers

Mapping to Signaling Process

KQI Framework Formulation

KQI Definition

Web Browsing

Accessibility

Web Browsing

Access Time

Web Browsing

Download Time

Web Browsing

Retainability

2: Some parts of

the website start

showing in the

interface.

1: User inputs the

URL and clicks

ENTER

3: User can see

the whole page of

the website

Example Cases

Win-Win Process to improve customer ‘Buy’ experience

Maintenance Prioritization to reduce customer coverage complaint rate

Empower front line staff to answer customer enquiries

Example Cases

Win-Win Process to improve customer ‘Buy’ experience

Maintenance Prioritization to reduce customer coverage complaint rate

Empower front line staff to answer customer enquiries

Win-win Process to Improve CE

Old Process

Site Coverage Test

Sites coverage Improvement

Field engineers do mobile coverage testing. Make

improvements and report to the customer.

Batch

Migration

Customer Dissatisfaction

Slowing Migration

Win-win Process to Improve CE

Customer provides their subjective view

PSPU monitoring to assure SLAs

NewProcess

Commercial customers “test” the network

Involve customer on acceptance test.

Provide free SIMs and devices for testing

Win-Win Result

Risk is reduced. Responsibility shared.

Leads to fewer complaints.

Win-win process to improve CEDear Song, I would like

to compliment your

employees, for the

excellent services they

provide. Such a

commitment to great

customer service is to be

commended. We enjoy

doing business with HKT

and for years to come.

(Coverage case from

Retail – Deputy Director)

A successful migration and

good customer service will shift

the share of wallet (SOW)

Planned before migration

Competitor SOW =80%

With smooth migration

Competitor SOW=50% or less

Better CE

Competitor SOW =30%

or less

Example Cases

Win-Win Process to improve customer ‘Buy’ experience

Maintenance Prioritization to reduce customer coverage complaint rate

Empower front line staff to answer customer enquiries

Empowering Front Line Staff (Previous)Over 50%+ of enquiries are focused on billing:

Corporate customers can have thousands of users. Billing information

need to be thoroughly checked

Billing Complaint

inquiriesVarious

Backend units

Old Route

Corporate Customer ServicesTarget User

Poor experience due to long processing time:

• Slow BSS using image retrieval

• Long waiting time for back end departments

• Information from back end is raw, requiring

further processing

Empowering Front Line Staff (Improved)

Billing Complaint

Customer

Care request for

detail billing record

Corporate Customer ServicesTarget User

With new systems and staff training, staff can answer complex billing

enquiries in a matter of minutes with fewer call transfers

Check profile in CRM

Check customer call record

Basic root cause analysis

Bill adjustment or communication to

settle enquiry

Care Assistant

Improve customer billing enquires response time

Empowering Front Line Staff (Result)

Transfer rate decreases by 30%after system enhancement

Billing enquiry processing time

decreases by 60%

Example Cases

Win-Win Process to improve customer ‘Buy’ experience

Maintenance Prioritization to reduce customer coverage complaint rate

Empower front line staff to answer customer enquiries

Smarter Prioritization to Reduce Complaints

• Proactively identify cell

sites with poor service

quality

• Prioritize cell sites for

preventive maintenance

• Reduce Enterprise / VIP

complaint on worst cell

sites

• Improve cell site

preventive maintenance

task efficiency

VIP Customer

Satisfied

Service

Management

Optimization

Team

Operation

Team

4G Coverage Complaint Rate Trend

Reduce VIP coverage

complaint rate by 34%

4G Site Volume

4G Complaint Rate

M1

M2

M3

M4

M5

M6

M7

M8

M9

M10

M11

M12

Smarter Prioritization to Reduce Complaints

Results

• Customer satisfaction increases by 11%

• 10% increase in ARPU to US$29

• Post-paid Churn Rate reduced to 1.5%

• Grand Prize in Customer Service HK

Awards for Industries

• Market Leadership position in Quad-play

(Fixed Voice, Broadband, Mobile, Pay

TV)

Mobile Price Plan Charges

119149

188 198169

198218 238

238.8

285.6

297.6 298

238

298

388

438

2013 Q4 2014 Q2 2014 Q3 2015 Q1

1G Plan 2.5 G Plan 6G Plan 10 G

Price HKD

Key Success Factors

Internal• Management Commitment

Monthly CEEC with CEO

• Motivated Employees

All staff trained and rated on CE

Monthly and annual CE awards

• Focus on a Few Metrics

Complaints/Compliments per

month, NPS and CSAT

Having too many metrics leads to

lack of focus and manipulation

Balance efficiency and CE

External (Partner)• Deep Experience

Guide and share best practices

Access to latest industry

thinking

• Flexible and Agile

Willing and able to explore new

ideas and quickly implement

with us

22

End

23