End-User Insight. Service Description
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1 End-User Insight Service Description ConsumerLab
2 End-User Insight service description page 2 (17) Ericsson has an unparalleled understanding of end-user drivers and attitudes towards technology. We carry out annual end-user research, interviewing over mobile and broadband consumers worldwide. This provides us with strong insight into the behaviours and preferences of 600 million global consumers with regards to telecommunications services. The insight gained from this research is incorporated into our advisory offerings, which we use in order to provide our customers with a solid understanding of end-user preferences and service requirements. This results in more effective marketing campaigns to drive traffic and revenue growth for the operator.
3 End-User Insight service description page 3 (17) Contents Introduction page 3 About Ericsson ConsumerLab page 4 ConsumerLab service offerings page 6 MarketReality Simulation Workshop page 7 Customised Insight Workshop page 8 End-user service testing pre & post launch page 9 Segmentation Advisory Services page 11 Knowledge Base System Pre-study page 12 Why Ericsson? page 14 Appendix one: ConsumerLab customer references page 16 Appendix two: Ericsson application testing services page 17
4 End-User Insight service description page 4 (17) Introduction: Deeper insight provides greater clarity Deep consumer insight is a critical requirement for operators focusing on market penetration and subscriber retention, ultimately driving revenue growth. In today s competitive environment, operators and service providers must develop meaningful insights into, and extrapolations from, end-user usage psychology. Intimate market knowledge will provide operators with a competitive edge in the effective targeting of existing and new services to defined market segments. Ericsson established ConsumerLab in 1995 to stimulate a more end-user driven approach to the development of new products and services. ConsumerLab provides operators with the foresight to address the shift in the industry from being technology driven to one that is market and end-user oriented. The suite of ConsumerLab services is designed to address key operator challenges, namely: Business Growth Which market segments to target new services to in order to ensure sustainable revenue growth? Evolution Strategy How to pre-empt future market developments, in order to optimally evolve services and networks Cost Efficiency How to maximise marketing and CAPEX ROI? Overcoming these core competitive challenges allows operators to address market issues and growth opportunities in both the mobile and fixed telecommunications services market. These include: Developing new mobile services to increase revenues, such as enterprise solutions, voice portals, mobile internet and machine2machine applications Fixed to Mobile migration / substitution Capturing the exploding broadband market Growing traditional voice revenues Developing advanced services for fixed networks Minimising churn by focusing on service desirability and quality
5 End-User Insight service description page 5 (17) About Ericsson ConsumerLab Ericsson s ConsumerLab research and consulting services offer commercialised, indepth consumer insights to operators. We improve operators business performance, via our proven segmentation methodology, proprietary market knowledge and innovative tools, plus deep business and network consulting expertise: In-depth global end-user market knowledge o Ericsson carries out global end-user applications and services development research annually, giving a rich foundation for generating insights into end-user market segments o Tools supporting a holistic approach strategic analytical tools (enabling operators to understand implications on branding and forecasting); implementation tools (market simulation software); and databases with local market information and global benchmarking information Imparting global and local end-user insight o Our globally certified consultants use both global and country-specific data to derive strategies that will stimulate the mobile and broadband markets o The insight gained from this research is incorporated into our advisory offerings, which aim to expand both the subscriber base and market segment penetration of our operator clients, through targeted end-user services. Knowledge from these studies is structured using Ericsson s Take 5 global segmentation model, a breakthrough value-based framework derived from extensive experience in the telecommunications business. o Our consulting services also ensure the implementation of operator business growth and evolution strategies this is supported by Ericsson s industry experience and technology leadership Why segment? Effective segmentation strategies facilitate the successful targeting of services to those customers most likely to adopt new services to ensure higher revenues, faster. Distinct marketing efforts towards higher-value customers ensure greater returns on campaign and product development investments, allowing increased penetration of existing subscribers, the attraction of like-profile users from competitor operators, and reduced customer churn. Ericsson s Take 5 segmentation model is value-based, identifying groups of customers based on their potential profitability to the operator. In other words, an effective segmentation model provides certainty as to where the money is.
6 End-User Insight service description page 6 (17) ConsumerLab service offerings Ericsson s End-user Insight offerings include five service options, which can be further customised to your requirements. These offerings aim to provide you with a competitive edge by empowering you to design sound revenue growth strategies founded on credible market research data and Ericsson s consulting expertise: 1 MarketReality Simulation enabling you to understand market dynamics and to assess the impact of strategic and tactical marketing decisions 2 Customer Insight Workshops providing greater understanding of market issues and opportunities, through a structured analysis of local and global survey data 3 End-User service pre & post launch testing ensuring the long-term success of a service launch 4 Segmentation Advisory Services facilitating the development of focused and effective market targeting strategies 5 Knowledge Base System Pre-study optimising marketing investments and service development through in-depth understanding of your customers Combined, these service options address all phases of the operator service life cycle: Business Strategy Defined Vendors Selected Detailed Design Defined Solution In Operation Service Products: Solution Advise Solution Service Integration Solution Management End-User Pre- & Post-Launch Testing Market Reality Simulation Tailored Workshops Knowledge Base System - Prestudy Specific CLAB Offerings: Segmentation Advisory Services Customer Solution Life-cycle phases Planning Design and Specification Implementation And Launch Operation Figure1: Ericsson s comprehensive ConsumerLab services
7 End-User Insight service description page 7 (17) MarketReality Simulation Workshop MarketReality is an innovative example of how to create a true understanding of market dynamics through learning. The tool provides a real-time market simulation around the three dimensions of consumers, competitors and the macro-market environment. Appreciation of the practical realities of both current and upcoming market dynamics will provide invaluable input into your strategic planning process, by conveying a likely, big picture scenario to key decision makers. The MarketReality workshop enables you to use both strategic and tactical marketing decisions to: 1. Investigate which consumer segments exist in the marketplace today and how they evolve so you that can develop targeted campaigns that hit the mark 2. Examine the different values and attitudes that drive consumer buying behaviour to improve the success of your offerings by accurately targeting the behaviours 3. Discover how the marketing mix can be aligned for maximum competitive impact, through testing the implementation of various marketing strategies under predetermined competitive scenarios Operator benefits MarketReality can help you test how your marketing strategies and tactics perform using current Australian market data - to avoid making costly mistakes Through scenario generation, the tool enables you to understand how the market will develop dynamically over the years Preparedness for market developments, enabling the making of informed decisions on market launch, pricing or branding strategies Facilitate the development of marketing capability through improved crossfunctional understanding and cooperation within your organisation. This will enable you to implement strategies with increased efficacy, as your organisation will be aligned under a common view of market dynamics. As both strategic and tactical market issues are addressed, the game is relevant to senior as well as more junior managers and specialists. What you get A fun, interactive real-time electronic simulation workshop (typically 1 day), including a theory session on brand strategy and consumer segmentation and an evaluation of strategies during the game Wash up presentation to key stakeholders outlining key learnings of each team
8 Customised Insight Workshops End-User Insight service description page 8 (17) Ericsson provides customised workshop programs to address specific operator questions and issues. These programs provide a structured analysis of ConsumerLab local and global market data, and enable operators to develop action plans to address the target issues and opportunities. Suggested topics could include: Youth consumer opportunities Enterprise & business user opportunities Customer loyalty & churn issues Enabling sales channels to sell more effectively to target segments Facilitating the successful take-up by early adopters and subsequent adoption by followers Pivotal to the workshop is the Ericsson Interactive Report, our innovative interactive data analysis tool. The tool enables you to gain dynamic business insights into the market information derived from the 2004 Australian market survey responses. The Report format is dynamic, providing PowerPoint users with an immediate capability to access tens of thousands of enquiries of the survey data. The Reports are an accurate and holistic representation of the entire survey data of 1700 respondents, including all questions and permutations and combinations of answers. This allows for specific business queries to be answered, taking into account the total survey, not just correlations between pre-selected variables. Operator benefits Gain deeper insights into the end user, and of your competitive position in order to enhance marketing effectiveness. This can be achieved by leveraging Ericsson Interactive Report. Verification of assumptions about target segments, enabling easier identification of growth opportunities (including the prioritization of these) and the development of an aggregate service roadmap. What you get A customised consultancy incorporating a program of interactive workshops Presentation pack outlining the key findings of the consultancy Access to Ericsson Interactive Report, a data analysis tool enabling deeper neurological understanding and extrapolations of consumer behaviour. These reports can be made available for purchase and use under license in your own business after the workshops. An agreed program of action to implement the findings
9 End-User Insight service description page 9 (17) End-user service testing pre and post launch Service launch success is dependent on the alignment of marketing programs to customer perceptions and expectations. Ericsson s end-user pre and post launch testing assists operators in understanding issues around customer preferences and behaviours with regards to a specific service s functionalities and features. This offering provides you with: An understanding of the revenue potential of different services, including the identification of the key drivers and inhibitors to customer usage Insight into the perceived value / benefit of the service across market segments, hence identification of higher-value segments to target. Verification of the perceived value of the service with an end-user sample reduces strategic and financial risks to you, in terms of product / service portfolio roadmap planning, and marketing / brand positioning activities. Testing and validation of the end-to-end service experience from a consumer perspective (perceived ease of use, usability testing of terminals, content interface) An understanding of pricing sensitivities and elasticity; charging and billing preferences; packaging, distribution and promotional strategies which will be most effective in addressing the most lucrative subscriber segments An evaluation of the impact of the service on existing services, i.e. will cannibalization / substitution occur or will the revenue pie expand? Operator benefits Through validating the value of the service attributes to particular segments, operators can ensure optimal targeting, positioning and pricing of the proposed service. Implicit benefits accrued by the operator include: Knowing how to increase minutes of use by existing subscribers Optimisation of marketing ROI Optimisation of current network performance according to customer values The ability to build a robust business case (using traffic data to drive assumptions) Invaluable insight when crafting key marketing communications messages and building a branding platform What you get Planning workshops with Ericsson consultants, defining o Key required learnings in the context of the operator s marketing strategy o What is the customer experience to be tested o Segment selection and the customer need / opportunity o Testing parameters (such as duration/timeframe, methodology and deliverables)
10 End-User Insight service description page 10 (17) Pre-launch testing is the total product offering optimized for the target segment? o Qualitative research focusing on the selected segment. o Focus groups may include providing access to the service / application being tested, to provide a realistic user experience o Presentation / report on pre-launch testing findings, including ramifications for go-to-launch strategy, and o Results from this initial testing will serve both as input for further development / fine-tuning of the service as well as understanding of the triggers for an interest in the service / device features, etc. Post-launch testing how well is the offering performing in the market? o Quantitative follow-up studies on usage, including an analysis of traffic data post-launch to monitor service uptake by the target segment. o This can be supplemented by further exploratory qualitative research into factors affecting service usage (e.g. focus groups for deeper insight into behaviours and to validate pre-launch study results.) o Presentation / report on findings and recommendations on how to refine the service, and agreement on next steps Service options Holistic go-to-market planning and support, through joint marketing workshops Training of key internal contact points such as customer care staff Business case development Technical verification, integration and monitoring of the new service (refer to Appendix 2 for more details) Segmentation advisory services Consumer pre-launch testing Application monitoring concept development operations & management concept validation end-user perception deployment & launch Consumer post-launch testing Application verification Figure 2: Ericsson s holistic approach to service launch pre & post launch testing
11 End-User Insight service description page 11 (17) Segmentation Advisory Services Ericsson provides segmentation advisory services, either by building a customized segmentation model from the ground-up, or by enhancing the operator s existing framework. We can optimize your segmentation model by leveraging available Australian market data and global benchmarking information, enabling you to improve the marketing competitiveness of your voice and data services. We can then operationalise the segmentation model by populating it with actual market data for input into marketing campaigns, sales channel distribution strategies, loyalty programs, etc. Our segmentation advisory services have been refined over ten years experience in delivering tailored consulting to operators around technology specific value-based segmentation strategies. Our extensive experience, coupled with our comprehensive value-based Take 5 segmentation model, provides Ericsson with the capability to refine your segmentation methodology focusing on the fundamental values, and hence purchasing behaviours, of consumers. Operator benefits A robust segmentation model improves the competitive effectiveness of an operator s marketing plans and campaigns, as customers can be clearly identified and targeted. The following benefits can be realized: Understanding which services to launch and which segments to target Minimised subscriber churn Increased revenue from current customers Understanding the impact of new service diffusion on network planning Optimised current network performance according to customer values What you get A fully customized segmentation methodology leveraging both global and local market insights which will improve your overall marketing effectiveness
12 End-User Insight service description page 12 (17) Knowledge Base System Pre-study Understanding your customer base is essential to retain your high-value customers. Ericsson s ConsumerLab Knowledge Base System Pre-study provides an implementation plan for drawing together disparate customer information sources to present synergistic, total subscriber profiles. A better understanding of their subscribers enables operators to identify key marketing intervention points where consumer behaviour can be influenced (e.g. to increase usage and enhance loyalty). This ConsumerLab offering identifies bridges between your consumer segmentation model and other existing internal and external data sources within your environment, including: Ericsson s ConsumerLab 2004 Australian market study results Specially commissioned primary research (e.g. from other ConsumerLab offerings, such as End-user pre and post launch testing) Other available market studies Brand positioning surveys Macro-market data Operator s own subscriber database Operator benefits Increasing the accuracy of customer profiling leads to greater effectiveness in targeting your customers and therefore optimisation of marketing ROI. Benefits include: Targeted services Increasing revenue from existing customers Decreasing customer churn What you get A clear understanding of the potential of improved customer profiling A comprehensive report outlining a range of options for the development and implementation of consumer profiling and database tools The following tools can be developed specifically for you: o Consumer Segmentation Model o Brand Position Model o Size of market, forecasting o Competitor analysis
13 End-User Insight service description page 13 (17) Providing the whole picture Ericsson s comprehensive ConsumerLab advisory services addresses all aspects of an end-user service launch from initial market and segment opportunity scanning, through to launch implementation and performance monitoring. Figure 3 depicts a typical service flow scenario - from understanding the revenue growth opportunities to shaping data-validated strategies to realize business goals. Insight services understanding the opportunities Advisory services how to capture the opportunities 1. Customised insight workshops 2. MarketReality TM Workshops 3. Segmentation Advisory services 4. End-user service pre & post launch testing 5. Customer Knowledge Base System Pre-study Figure 3: ConsumerLab service flow scenario
14 Why Ericsson? End-User Insight service description page 14 (17) Proven track record Ericsson has extensive experience in helping operators increase revenue through the introduction of new end-user services. Ericsson has conducted over 300 projects in Market and Service Launches worldwide, capitalising on our hybrid expertise in business and technical consulting. This is backed by industry experience and technology leadership, ensuring our solutions address commercial, technical and strategic facets of the operator s business. Holistic approach to service launch Ericsson s ConsumerLab services leverage our business and technical acumen to enable our customers to realise revenue expansion and a strong foothold in the increasingly competitive mobile and fixed communication services market. Ericsson s expertise span the following: Product development Consumer research Marketing Strategic planning General presentations on consumer understanding Risk mitigation Ericsson s consulting expertise mitigates the risk of new service launches for operators. We have practical experience in working with a variety of operators globally, and are able to offer advice on best practice and benchmarking, and can provide expertise in business planning, service development, sales channel management and marketing planning and implementation.
15 End-User Insight service description page 15 (17) Leveraging Ericsson assets Behind the introduction of any successful end-user service lies a well-devised strategy that takes into account all the key decisions that have to be executed for a launch. Ericsson has an all-encompassing suite of Intellectual Property ensuring our customer s go-to-market strategies, and therefore, traffic and revenue growth objectives, are fulfilled. Case portfolio Global watch of best services Network services Best Practice in Optimizing Service & Network Traffic Benchmarking & Audit Continuous global watch Increased Traffic & Revenue Systems Integration Benchmarking & Audit Network Performance Improvement Matchmaking Accreditation and Testing Partner Management Mobility World Over 1000 Content and Applications Partners Opportunity Analysis Market Planning Service Launch Consulting Business Consulting Over 300 projects in Market Strategy and Service Launch Consumer Insight & foresight Market Research & Segmentation MarketReality Workshops Consumer Insight Industry leading insights & Database of End-user needs for Telecom Services Figure4: Ericsson s comprehensive suite of expertise and IP Ericsson s deep specialisation in telecoms business and network technology consulting, insight into end-user trends, network and service implementation, integration and operational capabilities uniquely positions us to assist operators in growing their business strategically. We can advise on how best to grow business and evolve telecom networks for a profitable future.
16 End-User Insight service description page 16 (17) Appendix one ConsumerLab customer references Ericsson has extensive experience in delivering consultancy around end-user insight to operators worldwide. These advisory services address the typical business challenges for operators and service providers, namely achieving business growth, cost efficiency and having a sound network and business evolution strategy. Some recent success stories include: Operator AIS, Thailand Orange, Sweden SonyEricsson (global) TelCel, Mexico TeliaSonera TIM, Brazil Vodafone, UK Ericsson offering local market study with segmentation and target group descriptions local market study, customised segmentation modelling and target group identification and descriptions global market studies, customised segmentation modelling, tools for analysis and implementation results local market studies, CRM pre-study local market studies, segmentation modelling, development and implementation of analytical and pedagogical tools local market studies, customised segmentation modelling segmentation, evaluation of launched services
17 End-User Insight service description page 17 (17) Appendix two Ericsson Mobility World application testing services overview To augment end-user behavioural validation studies, Ericsson also has the technical integration expertise to ensure that the proposed service becomes reality for the consumer in short, the service works, and it is robust. Ericsson Mobility World is our 3 rd party partnering program for application developers and service providers. Ericsson Mobility World s verification and monitoring services are based on Ericsson s experience of extensive application testing in mobile networks for over five years, which has provided us with in-depth knowledge of how mobile network infrastructure affects application performance, and knowledge of best practices in application design. Application verification This service provides the customer with an opportunity to test and verify mobile applications to their requirements, to help isolate the interoperability and functionality issues between mobile infrastructure, terminals and applications ensuring technical issues are addressed prior to commercial launch. Application monitoring Ericsson provides the operator with an opportunity to monitor launched mobile applications according to their requirements for performance, usability and availability Ericsson facilitates the operator with a tailor-made, scalable, end-to-end solution that monitors the services from both an end-user and technical perspective by analysing the jointly defined service use cases and defining KPIs for each application. Operator benefits Shorten time to market Reduced subscriber churn Ensuring application quality and reliability Cost control, risk reduction Low barriers to entry for application and content developers
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