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Transforming service operations so that CEM becomes an enabler for improving customer engagement

Nick Jotischky

Principal Analyst 12th November, 2013

Understanding the challenges facing telcos: The search for differentiation

2

Too much competition

and stringent regulation is putting pressure on my prices.

My customers are becoming more demanding in terms of service features and quality.

I have to invest in adding capacity and upgrading my networks (to all-IP and LTE) to satisfy an exploding demand for data services.

Operational transformation partners must help CSPs to: • become more customer-focused • help CSPs differentiate their propositions (by improving service

quality/ customer experience) • drive CSP revenue growth As a consequence, the governance of transformation programs must have a focus on value creation in addition to network efficiencies and operational excellence.

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What are the biggest challenges facing telcos?

Please rank in order of importance the operational issues that communications service providers must address in

the next three years (starting in 2013)

N: 115 operators

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Loyalty, profitability and differentiation are the main drivers for CEM

4

92%

78%

73%

68%

65%

65%

62%

55%

Driving customer retention and loyalty

Customer yield management

Customer acquisition/ competitivedifferentiation

Driving new service launches and adoption

Optimising processes

Automating processes

Managing network resources/ bandwidth

System standardisation and rationalisation

Business drivers behind deploying a CEM solution? (important and very important)

Strategic focus

Operational focus

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N: 60 operators

Source: Informa Telecoms & Media

5

Main drivers for adoption of CEM tools

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6

Improving operational efficiency

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7

Improving the customer experience

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• Service assurance provides network and device-based data but does NOT correlate with other types of customer and business data. • Without this linkage MNO cannot create a dynamic profile of customer or understand where network or device problems are affecting customer experience. • Network and service quality insights around coverage and download speed need a customer context for service providers to be proactive around issues. • Example: if revenues from an enterprise customer have dropped off, MNO needs to link this decline to poor network performance near that enterprise’s office.

Using CEM portal, Telkomsel bundles together insights from a range of KPIs into structured modules that provide customer-centric reports. Result: A unified view of customer data providing a single point to view real-time experience metrics.

Network

operations Service

operations

Business

operations

People

Processes

Platforms

Governance: Metrics and dashboards

Opera

tional effic

iencie

s

Custo

mer

experience

Revenue g

enera

tion

Customer experience as part of transformation

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Drivers/objectives (Why?):

• Improving service quality and customer experience.

• Shift from voice to data, network cost control to unlimited data plans as differentiator.

Transformation project (What?):

• SOC transformation: Establishing/running a service-performance-management center.

• Still working on identifying/defining appropriate metrics, e.g., throughput, data usage over time.

Approach/challenges/best practices (How?):

• SOC planning/management/implementation: Initially used third party, then took it in-house. NOC still

operated by vendor.

• Interfaces for SOC with other parts of organization are critical, essential to communicate benefits.

• Integration of systems was challenge, requires good support from vendors to optimize/customize tools.

• KBOs/KBIs: Speed of network deployment, expansion of footprint (coverage) and better services for

customers, in particular faster data speeds.

Case study: Tier 1 converged challenger – CSP establishing a SOC

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ITM’s CEM recommendations

For operators, it makes most sense to focus on CEM as an enabler rather

than a differentiator.

Operators should leave new business

models for later.

Vendors should focus on their CEM-analytics

offerings rather than be diverted by business-consulting

opportunities.

Vendors must remember: it’s still early days for CSPs and CEM – so one

step at a time.

Operators must initially focus on using CEM-analytics products to achieve quick wins. It is better to focus initially on areas that bring immediate gains in terms of simplifying customer interactions as well as consolidating and optimizing network-related data management.

Operators should focus on addressing internal data-sharing problems and data silos before they attempt more ambitious data-brokering and monetization initiatives. If an operator is not making efficient use of its own resources, then it is unlikely to have the expertise to address broader sharing or brokering initiatives.

Operators need to adopt a holistic approach that integrates CEM and data-management offerings into a customer-centric strategy. Vendors must not forget that it is their CEM-software offerings that will contribute most to operators repositioning themselves with a customer-experience focus.

Vendors need to demonstrate the clear business benefits of what they can do in the CEM environment and the ROI their CEM-software offerings can deliver. CSPs will buy and implement CEM technologies if the products are well targeted and they can see a clear business case for them.

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