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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

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CEM – how important is it?

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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

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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

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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”

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The Need for a Change of Approach

Need to retain more customers and manage them as

assets

Focus on beginning and end stages

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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!

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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

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CEM Goes Beyond Customer Satisfaction

Passion

Pride

Integrity

Confidence

Satisfaction

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A question- which brands...

Do you feel

passionately about?

– Airline

– Restaurant

– Hotel chain

– Football team

– Telecoms

Positively or

negatively?

Why?

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Passion Comes from a Consistent Customer

Experience

Source: O2

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Measuring Customer Passion:

The Net Promoter Score

Net promoter score = % of promoters - % of detractors

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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

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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)

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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?

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Example: When to measure the NPS

Source: Vodafone Turkey

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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

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Critical Mindset Shift: Inside-Out to Outside-In

Do you see your customers in the same way as your

customers see you?

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CEM Value Proposition

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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

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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

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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

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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)

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Remember …

Customers experience

you and your brand as

a whole, not by

different departments

or functions

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What next?

All material is Copyright © Informa Telecoms & Media

Thank you

alan.mayne@informa.com