Customer experience management: evaluating effective operator strategies
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1 Research Viewpoint Customer experience management: evaluating effective operator strategies May 2014 Patrick Kelly
2 Investment Customer experience management: evaluating effective operator strategies 3 CEM is converging with network intelligence and customer engagement, which is changing the way in which CSPs make software investments Figure 2: Telecoms software investment trends, worldwide, (illustrative) [Source: Analysys Mason, 2014] Pre-telecoms deregulation era Dotcom era Rationalisation era OTT and mobile broadband era Cloud and network virtualisation era CEM area of opportunity COTS software proliferation Software consolidation NOC consolidation Self-optimising networks Cross-channel marketing Usage and behavioural awareness B2B, B2C VPN/Ethernet SLAs Mobile broadband QoS Churn modelling VoLTE Video Self-care Network Service Customer
3 4 Customer satisfaction and service quality basics must be provided before focusing on differentiating the customer experience Each phase of the customer interaction should align with the business goals and target specific improvements in creating a positive customer experience. CSPs should: collect and analyse both external metrics (NPS) and internal metrics (operational KPIs) correlate negative experience to business process activity or phase of the customer journey prioritise actions based on high-value customers and service impact take immediate action for example, offer credit, resolve problem, add capacity or change service plan. Figure 3: Five phases of the customer lifecycle [Source: Analysys Mason, 2014] Advertise Figure 4: Aligning the operational focus to CEM, by department [Source: Analysys Mason, 2014] Customer care Marketing Network operations First call resolution Self-care enablement On-demand fulfilment Churn analysis Revenue per cell site Customer clustering segmentation Control and user plane QoS Device insight Roaming insight Network planning Coverage by technology (3G/LTE) Optimising capital investment Small cell capacity and coverage Figure 5: Net Promoter Score customer categories [Source: Analysys Mason, 2014] Detractors Passives Promoters Retain Join Customer satisfaction score: Support On-board
4 21 About the author Patrick Kelly (Research Director) sets the direction for Analysys Mason s Telecoms Software research stream, which focuses on identifying the rapidly growing segments in the telecoms software market. He has produced research on real time analytics, policy management, cloud computing, LTE and mobile backhaul, IP next-generation service assurance, M2M, and customer experience management. Patrick is a frequent speaker at industry and user group conferences. He holds a BSc from the University of Vermont, and an MBA from Plymouth College.
5 22 About Analysys Mason Knowing what s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. 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. For more information, please visit 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 bespoke projects for clients. For more information, please visit
6 Published by Analysys Mason Limited Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0) Fax: +44 (0) Registered in England No All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any clientspecific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.
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