improve customer experience in telco

How to improve Customer

Experience through best Network

and IT Quality Management

E2E Service Quality Management

March, 2013

Apresentação da Arthur D. Little

Somos reconhecidos como inovadores que cumprem os p razos e com os compromissos assumidos

� Fundada em 1886, sendo a primeira empresa de consultoria de gestão do mundo

� Hoje é uma empresa líder de consultoria de gestão global com 35 escritórios no mundo inteiro

� Os seus pilares são inovação, estratégia e consultoria tecnológica� Servimos 75% das empresas do Fortune 100 companies

� NASA e a Arthur D. Little– Arthur D. Little participou no planeamento

e execução da missão da Apollo 11– Resultado: A NASA cumpriu os seus

prazos de colocar o Homem na lua antes do fim da década

A Original: A Arthur D. Little é a primeira empresa de consulto ria de gestão do mundo

Trabalhamos com os melhores: Os nossos clientes definem os standards

Uma seleção do nosso portfolio de clientes

1) TIME = Telecomunicações, Informação, Media & Ele ctrónica

MontadorasIndústria

FarmacêuticaEnergia e Utilities

Engenharia e Indústria

Serviços Financeiros

TIME1) Transportes e Turismo

Sector Público e Saúde

Apresentação da Arthur D. Little

Agenda

1 Executive Summary – Business Case

2 Arthur D. Little’s Approach

3 Customer Experience and NW/IT Service Quality Mgmt

Market trends are highlighting network weaknesses t hat will become critical in the next few years

Higher quality requirements!!!

Data traffic growth

High AUPU to support (5Gb/month in 2015e). Data traffic is expected to

grow by 32 times till 2015e

Theoretical speed vs.Real speed

Many times the advertised speed is not the real one; most common

HSPA versions provide a speed of 7,2Mb/s vs. a real speed of 1-2

Mb/s

Limited coverage

Especially in rural zones 3/4G coverage is poor

Innovation and applications

Communication methods are changing and smartphones with their applications are the symbol

Investments in infrastructure and devices

In the next ten years, communication providers are poised to invest more than €0,8 trillion in HS broadband

networks

1 The Context- Issues to be addressed

Source: Arthur D. Little, Exane BNP Paribas

Increasing client’s attention

More intense usage

Highest attention to network quality

Increasing network quality related churn

Source: Arthur D. Little analysis on a Case Study of a leading Mobile Operator

Improvement Area Matrix

Imp

act

Satisfaction

0%

10%

20%

50% 100%

Data Quality

Voice Quality

Data coverage

Voice Coverage

Technical Quality

Customer Service

CC Effectiveness

Complaint Handling

Self Care

Commercial Offer

Billing

Voice Cost

Data Cost

Services & HS Portfolio

HS Availability

HS Cost

FOCUS AREA


In 2010/2011 the decrease of Quality of Service cau sed an increase in customer claims with strong negative impact on churn rate of a leading M obile Operator

Improvement of Quality of Service – the experience of a leading Mobile Operator

Case study

• The swap and modernization of the whole Network

Infrastructure

• The launch of an aggressive commercial offer for Voice

and Data Services that have saturated the capacity of

Network Infrastructure

Main Triggers

Solution Plan

Shareholders immediately requested for a definition of a

recovery plan to implement and monitor on a periodically

bases. Main areas of Interventions:

• Network Infrastructure optimization

• Review and improvement of E2E technical

troubleshooting process

• Review and improvement of Customer Claim

management process

Agenda



3 Customer Experience and NW/IT Service Quality Mgmt


Arthur D. Little proposes an improvement framework according to three maturity levels: 1) fix the basics, 2) align with customer’s expectations a nd 3) exceed customer’s expectations

Network/IT Delivery Service

Customer Experience

How good the service is?

Fix the

basics

Align

Exceed

� Use KQIs to measure the Quality of E2E Service

� Predictive Model development based upon CSI-KPIs correlation

� Claim root causes analysis, classification, resolving actions

� System log analysis to detect issues

� Day-by-day fault prioritization & resolution

� Effective Reporting� 1-to-1 correlation between alarms & faults� Controlling system for undetected faults� Intervention on service priority base� Effective faults resolution� Automation tools for less human errors

Expectations

Customer Care

How well do they help me?

� Implement NBA solutions to anticipate customer requests and leverage cross-selling potential

� Sentiment Analysis

� Personalized Caring Services

� Tool automation for real-time claim troubleshooting to increase FCR

� Customer blended management (integrate all touch points)

� Improve selfcare and App touchpoints

� Unified desktop interface for CC

� Standardized incidents reporting and solving workflows

� Knowledge Management

� OSS-accessibility for data retrieval by CC agents

Driv

en b

y m

ajor

bu

sine

ss im

pact

sD

riven

by

cust

omer

se

gmen

tatio

n

CB

Neu

tral

Driv

en b

y m

ajor

bu

sine

ss im

pact

sD

riven

by

cust

omer

se

gmen

tatio

n

CB

Neu

tral

Key: CB: Customer Base , NBA: Next Best Action

Source: Arthur D. Little analysis

Prioritization Matrix

Quick Wins Mid Term Issues

Second Tier Issues Nice to have

Complexity

32

46

5


At “fix-the-basics” level technical issues affecting NTW/IT operations are addressed according to a prioritization matrix and no customer impact is considered yet

Average benefits measured on

a yearly basis upon our

experience include:

�Cell unavailability : - 20/30%

�Cell data inaccessibility : -

30/40%

�Cell voice inaccessibility :

- 20/30%

�Drop rate: - 5/8%

�CSI: + 5/7%

Benefits

1

Impa

ct

# Issues

1 Effective Reporting

21-to-1 correlation between alarms &

faults

3 Controlling system for undetected faults

4 Intervention on service priority base

5 Effective faults resolution

6 Automation tools for less human errors


Illustrative – referto a specifi case

At “align” level E2E customer perspective is consider ed in order to get everything properly working along the whole workflows and limit major b usiness impact

E2E Quality-assurance approach


ERP

CRM Provisioning Network

Billing

Monitoring pending orders or errors in

CRM

Monitoring pending orders or errors in provisioning

Monitoring errors in Billing

1

32

Orders input


IT log analysis (crash program) seeks

workflows error along critical connection

points

Crash Program

Day-by-day operations activities

eliminate/solve current errors limiting

impact on customer service

Day-by-day Operations

Claims root-cause analysis is carried

on in order to identify overall IT defects

that directly impact on customer service

Claims root-cause analysis

1 2 3

Illustrative

Major business impacts on customers are limited mon itoring service workflows in an E2E perspective

Arthur D. Little has an extensive expertise in impr oving Mobile Service Quality and has developed a model of intervention based on the conc ept of Quality of Experience


Project Customer Satisfaction

MNOMNOMNOMNO

Expectation

Perceived

CustomerCustomerCustomerCustomer

Max Satisfaction = Min [Expectation - Perceived]

ExpectationsExpectationsExpectationsExpectations are related to:

- MNO positioning

- MNO Brand values

- History of the relationship between

customer and MNO

Perceived Perceived Perceived Perceived quality is related to:

- Tangible aspects of service performance

(eg. Technical quality. Technical quality. Technical quality. Technical quality) and intangible

(eg. CommunicationCommunicationCommunicationCommunication)

The Customer Satisfaction must be designed on customer expectations that reflect the positioning and brand values of Oi


� CSI-adjusted thresholds can be calculated for any KPI (coverage, drop calls, surfing speed and so on)

� From now on, KPIs can let Business Operations be run with a specific focus on Customers expectations and satisfaction

Customer Expectations Predictive Model for Operatio ns

CSI (1-5 range) Pure-technical Cell Availability KPI

CSI-adjusted Cell Availability KPI

Soglie CSIDa 1 a 2,49

Da 2,5 a 2,74Da 2,75 a 2,99Da 3 a 3,24Da 3,25 a 3,49Da 3,5 a 5

(90%)

100%

99,1%

98,5%

99,3%100%

(90%)

96%

97%

98%

96%

97%


CSI

Customer Expectations

Actions

QualityGroup

� Business Op.� Marketing� Sales� Customer

Care

P R E D I C T I V E O P E R A T I O N S

KPIs

� Predictive Operations use CSI data to understand customer expectations and predict possible issues

At “exceed” level Business and Technical data are cor related in a CSI drive framework in order to predict Customer needs and expextations, a lso addressing investments effectively

Customer Behavior Data Retrieving

Illustrative



Expected Benefits

� Deflection to automated / self-service touch points

� Average handling time reduction

� More value added customer care service

Improving Customer Experience Improving CC Worklife

Accessibilityand ease of useAccessibility

and ease of useAnswers

EffectivenessAnswers

EffectivenessOperations EfficiencyOperations Efficiency


Arthur D. Little approach for customer care service quality improvement addresses both Customer Experience and CC Agents worklife


Fix the basics Align Exceed

Ser

vice

M

odel

Act

ions

Ben

efits

Flat for all customers Driven by business impact Customer based segmentation and personalization

� Standardized incidents reporting and solving workflows

� Knowledge Management

� OSS-accessibility for data retrieval by CC agents

� Tool automation for real-time claim troubleshooting

� Customer blended management (integrate all touch points)

� Improve selfcare and App touchpoints

� Unified desktop interface for CC

� Implement NBA solutions to anticipate customer requests and leverage cross-selling potential

� Sentiment Analysis

� Personalized Caring Services

Handling Time

Deflection rate to automated touch

points

-30%

+30%

-20%

+25%


Incremental benefits are provided while moving upwa rd across the maturity levels of the proposed improvement framework

improve customer experience in telco

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