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www.huawei.com

Leading CEM into 5G

Ken Poh,

Principal Business Architect

CEM Solutions, South Pacific Marketing Dept

Huawei Confidential

Differentiation

Re-architecting

Netw

ork

-based

E

xperien

ce

Operations and Infrastructure Re-architecting

Network Evolution & Operations Improvement

RO

AD

S E

xperien

ce

• New user• New market

Cloud

APPs

5G – What could happen?

• Increase in demand for speed – 10Gbits/s

• 5G - 6 sec to DL 8G HD Movie

• Increase in users – 1 million per SqKm

• Reduce in Latency – 1ms

• Platform for new applications, industries, IoT

DEMAND will Drive us into 5G !!

Huawei Confidential

• Research cited

network

performance is a key

contributor to Network

NPS, Service

experience & directly

implicate Operator’s

Revenue &

Profitability

• Understanding the

customer behaviour

• Improve Subscriber

retention rate

• Require capabilities to

identify high value data

• Deep End User profile

required to support Planning,

Operations, Customer Care

Marketing, Important Events,

etc

• Do we understand our

customer?

• Customer experience is

difficult to evaluate

• Require proactive customer

care

B. Service

Quality

A. Customer

Insights

C. RetentionD. Customer

Experience

Huawei Confidential

TM Forum Customer Life Cycle Model

First-pass of what can be made zero-stop, use Level 0M

an

ag

e p

rofile

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rvic

e

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ct/se

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ord

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ive

Use

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pute

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ay

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ct/se

rvic

e

Ga

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ya

lty

Fe

ed

ba

ck

Dis

co

ntin

ue

1. Buying 2. Using 3. Sharing

Be Aware Interact Choose Consume Manage Pay RenewRecomm

endLeave

Advantages • Comprehensive

• Industry standard terminology

• Several levels of progressive detail

Level 1

Level 2

TM Forum provides useful map of operator/customer interactions

Level 0

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Heavy Users 33%

•Want• Better Coverage

• 62% would pay more

•Higher Data Rates

• 58% would pay a premium

•Attribute•Multiple Devices

• 83% own or plan to buy a tablet

Value Chaser 18%• Want• Cheap Price

• 68% would churn due to price

• 35% would tolerate advertising

• Free Wi-Fi

• 63% Use when available

• Attribute• Lowest CLV

• Lowest ARPU

• 19% Annual Churn

Entertainer 16%

•Want•High Data Speeds

• 72% Rate as Top Priority

•More Content

• 51% seek and pay for more HD Video

•Attribute• Low Loyalty

• 22% Annual Churn

• 33% Regularly post negative experiences to Social Media

Socializer13%

•Want• Reliable Data

Coverage

• 70% would prefer not to seek out wi-fi.

• Reliable App performance

• 61% Access Social Network Apps Daily

•Attribute•Highest CLV

•Highest ARPU

• Lowest churn rate

• 62% not churned in last 3 years

• 50% regularly share positive experiences

Business Elite 11%

•Want•Good Network

Quality

• 67% rate as Top Priority

• 33% of churn due to poor voice quality

• Better Care

• 36% would pay a premium

• 21% Very dissatisfied with Call Center

• Connected Car

•Wanted by 38%

•Attribute•Worst Network NPS

Family Focused

9%•Want• Better Coverage

(Particularly at home)

• 58% would pay premium

• Better Loyalty Programs

•Only 22% are satisfied

•Attribute•Hard to Please

•Only 34% consider expectations met

Source: Huawei CETC 2014, Sample = 3100

Huawei Confidential

CEM VALUE PROPOSITION ARCHITECTURE

LOYALTYBRAND PROFIT

EXPERIENCE ENHANCEMENT

EFFICIENCY IMPROVEMENT

$ECONOMIC

VALUE ADDED！

RISK MITIGATION

VISION

VALUE

USE CASE

Use Case For OperationsUse Case For OperationsUse Cases For Operations Dept.

Use Case For OperationsUse Case For OperationsUse Cases For Marketing Dept.

Use Case For OperationsUse Case For OperationsUse Cases For Planning Dept.

Use Case For OperationsUse Case For OperationsUse Cases For Customer Care Dept.

Use Case For OperationsUse Case For OperationsUse Cases For CE Dept.

Use Case For OperationsUse Case For OperationsUse Cases For Other Dept.

Huawei Confidential

APPLYING CEM TO SMART CITIES with the operator as the “Experience Integrator”

Benefits CSP: Gains new revenue streams as part of the smart city eco-system

Citizen: Harmonious digital experience encourages smart city expansion

Smart Building

Smart Government

Smart Transport

Smart Connectivity

Smart HealthCare

Huawei Confidential

Driven by Targets, Marketing & Network Insight

Key Business Objective

Accurate

Investment &

Actions

Reliable Data

Experience

Good Service

Quality

User Migration

to 3G/LTE

Improve Indoor

coverage

penetration

Increase revenue

Growth by 1x%

High Value with Good

CE: Drive Sales

Low Value with Good

CE: Drive user awareness and

marketing

High Value with Poor

CE:Improve Experience with

investment

Low Value with Poor

CE: Strategize actions

Poor GoodPotential & ValueL

ow

Hig

hQ

ua

lity &

CE

Drive Sales

Drive Experience & Quality

Defining high value user and potential development area

Focus and Segmentized Approach

Huawei Confidential

VALUE

4G User Migration Promotion Support

DELIVERABLE

C

4G Device but 2/3G Traffic

Only

4G Devices only have

traffic in 2/3G network

Heavy 3G Device Users3G Device with high

traffic in 2/3G network

Heavy 2G Device Users2G Devices with high

traffic in 2G network

• Precise promotion with higher success convert rate, save campaign cost and improve revenue

• User insight, segmentation result (list)

• Precise promotion suggestion (user behavior, location & time)

Dependencies

• User package information to support more accuracy promotion suggestion

Huawei Confidential

6D Modeling to identify accurate

investment locations

User

Complaint

Coverage

Terminal

Traffic

Revenue

Value

Cost

Accuracy

"Can the web page be opened?"

"How long does it take for the web

page to respond?"

"Is the web page completely

opened?"

"How long does it take for me to

watch my wanted content?

Key user experience points Accessibility Integrity

Where high value

users frequent?

Understanding high

value user

10% of users generating

69% of traffic

What services are

they using?

How is their

experience?

Targeting the high Value user

High value user hotspot

Migrating users to LTE

Right POI with Right Investment

Decision Making Excellence

Huawei Confidential

Business Driver

Business Metric

Objective

Customer

Lifecycle

Data Source

1. Prioritize network investment by correlating customer experience & revenue generated by subscribers.

1. Prioritize of site optimization

2. CAPEX investment

1. Increase ROI – Site Expenditure

2. Decrease customer lost

1. Consume

1. Network Probe2. CRM

CUSTOMER EXPERIENCE

High

Low

VALUE

High

Low

CEI > 60

Zone 1

Zone 4

Zone 2

Zone 3

* K Subs.（29%）

* MUSD（60%）

* K Subs.（63%）

* MUSD（31%）

* K Subs.（3%）

* MUSD（6%）

* K Subs.（5%）

* MUSD（3%）

Value/ Experience Classified

Model

Sites Ranking Model

Network

Performanc

e

Customer

Experience

Value

Network

Centric

Critical Inputs Modeling Dimensions

Site

Rankingf(x)

Modeling

Service KQI

ARPU

Zone 4 Target SitesTraditional investment

focused on network KPI

23.7%Matched with Traditional KPI Focused List

Huawei Confidential

Business Driver

Business Metric

Objective

Customer

Lifecycle

Data Source

1. Proactively identifying areas within network which causeinbound roamers failing to connect to Celcom network

1. Prioritize of site optimization

1. Increase Revenue – Roaming traffic

2. Decrease customer lost

1. Consume

1. Network Probe

Huawei Confidential