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Research Report
Customer experience management framework: how to retain subscribers and improve customer loyalty
Contents [1]
Slide no.
Slide no.
5.
Executive summary
6.
7.
8.
9.
25. The on-board process also involves billing and account management
activities
10. NPS is an indicator and does not tell the entire story
11. Churn rates in Western Europe have not improved during the past 3
years and average 25% annually
27. A direct correlation can be drawn between customer satisfaction and the
quality of service that the network is able to deliver
30. Join
14. Key software components are used to improve the customer experience
15. Market drivers
34. On-board
19. CSPs can apply best-practice methods by collaborating with their key
suppliers in each of the five phases of the CEM lifecycle
36. Use case: Brasil Telecom improves its service provisioning cycle time
by rationalising systems and processes
Customer experience management framework: how to retain subscribers and improve customer loyalty
Contents [2]
Slide no.
Slide no.
37. Support
38. Use case: a European mobile operator made annual cost savings of
EUR5 million in first-call resolution
39. Use case: Sprints mobile self-service system aims for seamless
integration and handoff across customer touchpoints
40. Use case: U.S. Cellular links network quality of service to customer
satisfaction and employee performance
51. Recommendations
42. Use case: TDC (an MVNO) in Denmark gains a unified view of the
service usage and profitability of its fixedmobile business customers
43. Use case: EITC (du) uses emotional signature to better understand the
causes of low NPS
Customer experience management framework: how to retain subscribers and improve customer loyalty
List of figures
Figure 1:
Figure 21: Voice and data services and the customer impact based on
exceeding network delay values
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
Customer experience management framework: how to retain subscribers and improve customer loyalty
Customer experience management framework: how to retain subscribers and improve customer loyalty
Communications
service providers
(CSPs)
Over-the-top
(OTT)
providers
Retail
distributors
and partners
commitment phase
order-to-fulfilment process
self-service and multi-channel customer interaction
accuracy of bill
quality of service
availability of service.
Analysys Mason Limited 2013
Mobile device
manufacturers
Customer experience management framework: how to retain subscribers and improve customer loyalty
Evaluate
Join
Join
Technician visits home, go to store, self-serve
On-board
Set up services, payment, training
Renew
On-board
Support
Web chat, online communities, call centre
Renew
Proactive contact, confirm, promote
relevant new offers
Support
Customer experience management framework: how to retain subscribers and improve customer loyalty
Technician
arrives at
scheduled time
Increases
NPS
Problems are
resolved on the
first call
Excellent online
forums
Too many
options in IVR
Repeat calls to agent
with no problem
resolution
No option for
self-service
Customer does
not understand
bill
Poor coverage
Decreases
NPS
Dropped calls
10
Customer experience management framework: how to retain subscribers and improve customer loyalty
Pay TV
Fixed telecoms
Car rental
Mobile telecoms
Airlines
Electrical goods
Couriers
Retail
Hotels and restaurants
Banking and finance
Groceries
Software
Automotive
Indicative range of NPS score
11
Customer experience management framework: how to retain subscribers and improve customer loyalty
Churn rates in Western Europe have not improved during the past 3 years
and average 25% annually
4Q 2012
3Q 2012
2Q 2012
1Q 2012
4Q 2011
3Q 2011
2Q 2011
1Q 2011
4Q 2010
3Q 2010
2Q 2010
1Q 2010
Percentage
of subscribers
See Analysys Masons Telecoms Market Matrix for churn rates and other KPIs for operators
in Europe. Available at www.analysysmason.com/TMM.
4Q 2012
3Q 2012
2Q 2012
1Q 2012
4Q 2011
3Q 2011
0%
2Q 2011
4Q 2012
3Q 2012
2Q 2012
1Q 2012
4Q 2011
3Q 2011
2Q 2011
1Q 2011
4Q 2010
3Q 2010
2Q 2010
1Q 2010
0%
1%
1Q 2011
O2
Vodafone
4Q 2010
E-Plus
1%
O2
2%
3Q 2010
Vodafone
2%
3%
2Q 2010
T-Mobile
1Q 2010
3%
Percentage
of subscribers
12
Customer experience management framework: how to retain subscribers and improve customer loyalty
CEM processes
CEM touchpoints
Product and service availability at the
advertised price delivered on time
Join
On-board
Support
Ordering process
Activation process
Ready to activate
Activation failed
Customer experience management framework: how to retain subscribers and improve customer loyalty
13
14
Customer experience management framework: how to retain subscribers and improve customer loyalty
Join
On-board
Activation
Support
Service management
Customer interaction
Order management
Policy management
Customer
interaction
Content management
CRM
Probe systems
Billing
Performance
monitoring
Workforce
automation
Inventory management
Partner and interconnect
Customer acquisition
Engineering tools
Customer retention
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
15
Customer experience management framework: how to retain subscribers and improve customer loyalty
16
25%
20%
15%
10%
5%
0%
Coverage Customer Reliability Different Handset
service
package
Smartphones
1
Non-smartphones
Question: Why do you plan to change your mobile phone provider?; n = 551. For further
details, see Analysys Masons The Connected Consumer Survey 2013. Available at
www.analysysmason.com/cc-survey-2013.
17
Customer experience management framework: how to retain subscribers and improve customer loyalty
Apple
Amazon
Facebook
MetroPCS
Wireless
Verizon Internet
Indicative NPS
18
Customer experience management framework: how to retain subscribers and improve customer loyalty
Seniors
'Baby boomers'
Generation 'X'
Generation 'Y'
20%
40%
60%
80%
100%
Web self-service
Web chat
Web search
Peers
19
Customer experience management framework: how to retain subscribers and improve customer loyalty
Business functions
Evaluate
Demand
Join
Acquire
On-board
Deliver
Invoice
Support
Collect
Assure
Renew
Retain
Survey
Advertise
Order
orchestration
Provision
Mediate, rate
and bill
Payment
KPI/SLA
End-to-end
quality of
service
Survey
Customer
lifetime
value
Customer experience management framework: how to retain subscribers and improve customer loyalty
20
Recommendation
Business outcome
Reduce churn
CSPs should clearly articulate the offer, fulfill the order once,
and solve the problem quickly.
Keep it simple
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
21
22
Customer experience management framework: how to retain subscribers and improve customer loyalty
Channel
partner
Customer
call centre
agent
Retail store
agent
Self service
Channel co-ordination
Shopping cart
Personalisation
recommendation
Service fulfilment
and billing
process
Product and
service catalogue
Subscriber data
and entitlements
Personalisation
policies
Customer experience management framework: how to retain subscribers and improve customer loyalty
23
Customer experience management framework: how to retain subscribers and improve customer loyalty
24
Customer care
Subscriber
management
CRM
Partner CSPs,
third-party
vendors
Catalogue
Order management
Order management
Inventory
Inventory
Activation
SDPs
Activation
Activation
Network
The first step in the on-board process is to take the order and
decompose it into products and services.
25
Customer experience management framework: how to retain subscribers and improve customer loyalty
Revenue management
Partner and
interconnect
Subscriber data
Postpaid
rating and
pricing
Business optimisation
Product data
Billing data
Signalling networks
(SS7, SIP, IMS)
Customer experience management framework: how to retain subscribers and improve customer loyalty
26
Intelligent
customer care
Campaign
management
Service quality
management
Benchmarking
Mobile
network
Session
control
Subscriber
data
Software
agents
GSM, CDMA,
UMTS, LTE
Hardware
probes
HLR or HSS
27
Customer experience management framework: how to retain subscribers and improve customer loyalty
Service
Customer impact
Voice
High
Streaming
High
Web page
Medium
P2P
Low
Voice: customers will experience gaps and voice clipping when network delay exceeds 100ms.
Video streaming: customers will experience pixellation and/or frame freezing when network delay exceeds 5ms.
Web page: customers will experience slow page refresh times or no updates when network delay exceeds 10 seconds.
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
28
29
Customer experience management framework: how to retain subscribers and improve customer loyalty
Maturity
Gold
Analytics and
personalised support,
Silver
including offering relevant
product and services
based on socioeconomic
Customer details known by
status. Customers have a
CSR and systems provide
positive experience and
complete lifecycle of
promote products and
customer interactions
services to other people.
across the entire business
for orders, billing and
trouble tickets.
Bronze
Basic
Time
Analysys Mason Limited 2013
Customer experience management framework: how to retain subscribers and improve customer loyalty
Use cases
Join
On-board
Support
30
Customer experience management framework: how to retain subscribers and improve customer loyalty
31
Customer experience management framework: how to retain subscribers and improve customer loyalty
32
Customer experience management framework: how to retain subscribers and improve customer loyalty
33
Customer experience management framework: how to retain subscribers and improve customer loyalty
Use cases
Join
On-board
Support
34
Customer experience management framework: how to retain subscribers and improve customer loyalty
35
Implementation approach
Benefits
In the 2 months after launch, the number of people using the
self-care solution reached 240 000, and the number using it
purely for MMS activation reached 120 000.
Orange Romnia achieved quantifiable cost savings from a
reduced number of calls to call centres and reduced use of
IVRs.
Customer experience management framework: how to retain subscribers and improve customer loyalty
36
Use case: Brasil Telecom improves its service provisioning cycle time by
rationalising systems and processes
Problem statement
In the increasingly competitive Brazilian telecoms market,
Brasil Telecom had to consolidate a disparate set of ten
provisioning systems into a single OSS with integrated order
management, inventory management and activation.
The OSS had to be capable of provisioning new data
services as well as support voice and service convergence.
Implementation approach
Brasil Telecom adopted a three-pronged approach.
It built an OSS blueprint architecture that could scale and
support multiple domains and services.
It selected product vendors and SI partners.
It embarked on a programme to rationalise and modernise
the products and services, as well as reduce cycle times of
provisioning and activation.
It selected three Oracle products. Oracle ASAP enabled it to
accelerate service roll-out and reduce activation cycle times.
Objectel provided Brasil Telecom with a centralised network
repository helping network engineering teams and minimising
costs. Oracle Provisioning enables effective management
and faster delivery of next-generation converged services.
Customer experience management framework: how to retain subscribers and improve customer loyalty
Use cases
Join
On-board
Support
37
Customer experience management framework: how to retain subscribers and improve customer loyalty
38
Implementation approach
Customer experience management framework: how to retain subscribers and improve customer loyalty
39
Customer experience management framework: how to retain subscribers and improve customer loyalty
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Customer experience management framework: how to retain subscribers and improve customer loyalty
41
Implementation approach
Benefits
Customer experience management framework: how to retain subscribers and improve customer loyalty
42
Use case: TDC (an MVNO) in Denmark gains a unified view of the service
usage and profitability of its fixedmobile business customers
Problem statement
TDC needed to better understand and manage the
performance and usage of services in order to improve
customer experience. Additionally, it wanted to optimise the
business performance to ensure customer profitability across
the fixedmobile converged solution.
TDC wanted to monitor service quality and proactively avoid
churn because business customer churn can potentially
reduce total revenue by several percent.
Implementation approach
Benefits
Customer experience management framework: how to retain subscribers and improve customer loyalty
43
Use case: EITC (du) uses emotional signature to better understand the
causes of low NPS
Problem statement
du had experienced a decline in its NPS during a period of
9 months. It wanted to discover and analyse the underlying
causes of this decline.
As part of this analysis, du found that customers are
increasingly using the Internet to plan their purchases.
Customers preferred web chat to the mobile phone channel,
because the former solution puts the customer in control. du
found that customers are increasingly less loyal as the
availability of information improves.
Implementation approach
While NPS is a good measurement tool, it does not expose
the causes of a low score. du looked at its customers
emotional engagement emotional signature to uncover
the rational and emotional drivers of the experience, and the
conscious and unconscious drivers of value.
Customer experience management framework: how to retain subscribers and improve customer loyalty
44
Implementation approach
Belgacom embarked on a company-wide transformation
programme to achieve its CEM objectives.
It set out three key messages Belgacom would provide its
customers with a premium product experience in a friendly
and a simple way.
The premium product experience would be innovative,
stable and available all the time, and would have user
experience at its core.
Its employees would be always available, have a friendly
attitude towards its customers and offer fast service.
Simple would be characterised by clear pricing, and
products that are easy to install, configure and use.
Customer experience management framework: how to retain subscribers and improve customer loyalty
45
Use case: UPC cablecom improves NPS and reduces churn by improving
operational processes at each customer touchpoint
Problem statement
UPC was performing poorly on all KPIs such as first-contact
resolution, customer satisfaction, NPS, churn and delivery
time. Its inside-out approach had led it to overspend in
operations with mediocre results while reducing sales,
marketing and product management budgets. Its customer
perception was at an all-time-low in 2009.
Implementation approach
UPC instituted a new framework for improving customer
experience with the following key components.
Celebrate success.
During the 4-year period from 2009 and 2012, UPC improved
in every KPI, and increased customer numbers.
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
46
Customer experience management framework: how to retain subscribers and improve customer loyalty
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48
Customer experience management framework: how to retain subscribers and improve customer loyalty
Order
orchestration
Service
activation
Quality of
service
Flexible rating
and charging
Customer
self care
Workforce
optimisation
Aircom International
Alcatel-Lucent
Amdocs
Astellia
Avaya
BMC
Brite:Bill
BroadVision
CA
Carrier IQ
Comptel
Comverse
Consona (SupportSoft)
Convergys
CSG International
EMC
49
Customer experience management framework: how to retain subscribers and improve customer loyalty
Order
orchestration
Service
activation
Quality of
service
Flexible rating
and charging
Customer
self care
Workforce
optimisation
Empirix
Ericsson
Guavus
Hewlett-Packard
Huawei
IBM
InfoVista
JDSU
LogMeIn
Mycom International
NEC
Netscout
Nexus Telecom
Openet
Oracle
50
Customer experience management framework: how to retain subscribers and improve customer loyalty
Order
orchestration
Service
activation
Quality of
service
Flexible rating
and charging
Customer
self care
Workforce
optimisation
Orga Systems
Sigma Systems
Spirent Communications
Synchronoss Technologies
Tekelec
Tektronix
TEOCO
Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
51
Customer experience management framework: how to retain subscribers and improve customer loyalty
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Customer experience management framework: how to retain subscribers and improve customer loyalty
Executive summary
Market drivers
Business environment
Use case studies
Vendor analysis
Recommendations
About the authors and Analysys Mason
53
Customer experience management framework: how to retain subscribers and improve customer loyalty
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Customer experience management framework: how to retain subscribers and improve customer loyalty
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Consulting
Our focus is exclusively on TMT.
We support multi-billion dollar investments, advise clients on
regulatory matters, provide spectrum valuation and auction support,
and advise on operational performance, business planning and strategy.
We have developed rigorous methodologies that deliver tangible
results for clients around the world.
Research
We analyse, track and forecast the different services accessed by
consumers and enterprises, as well as the software, infrastructure
and technology delivering those services.
Research clients benefit from regular and timely intelligence in
addition to direct access to our team of expert analysts.
Our dedicated Custom Research team undertakes specialised and
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For more information, please visit www.analysysmason.com/research.
Analysys Mason Limited 2013
Customer experience management framework: how to retain subscribers and improve customer loyalty
Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke research
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To find out more, please visit www.analysysmason.com/research.
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Customer experience management framework: how to retain subscribers and improve customer loyalty
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Customer experience management framework: how to retain subscribers and improve customer loyalty
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