Customer Experience Management: Operator Priorities vs. Vendor Hype
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1 Outsmart Your Competitors Customer Experience Management: Operator Priorities vs. Vendor Hype Presented by: Bruce Page VP, Custom Research Peter Jarich Service Director Washington DC / London / Paris
2 Agenda Customer Experience Management: What Is It? Customer Experience Management: Why Does It Matter? Current Analysis CEM Survey Why we did it Who we talked to Key findings Conclusions & Recommendations 2
3 Background: Operator Pain Business Model Evolution Dwindling revenues from traditional voice business Voice Minutes of Use to Flat-Rate vs. OTT / Free Proliferation of Mobile and Data services driving growth Shifting customer dynamics & segments Multiple contracts / services per customer Need for single view of customer Competition and Consolidation and meanwhile, reduce churn and grow contract value & ARPU 3
4 CEM: What Is It? The CEM Value Proposition Processes used to track, oversee and organize customer interactions The hardware and software used to implement, support, analyze and manage those processes and deliver optimum experiences Basic Tenets Multi-channel Cross-channel Cross-lifecycle Moving beyond CRM Holistic solutions vs. point products Core Components Customer care CRM Billing / charging Operations support systems Network management Subscriber data management Policy control Service delivery platforms Application management Device management Network analytics Customer analytics Deep packet inspection 4
5 CEM: What Is It? The CEM Ecosystem Products Solutions Buzzwords and hype No Solid CEM Definition Customer demands Vendor agendas Operator agendas Examples Analytics alone? IVR systems? Business consulting? Device-based self-service? the whole enchilada? 5
6 CEM: Why Does It Matter? It s All About Competition: Part One The Usual Suspects CEM as a solution for building better user experiences and monetizing them Service discovery Service recommendation Improved customer loyalty Decreased customer churn Improved network quality Problem resolution 6
7 CEM: Why Does It Matter? It s All About Competition: Part Two The New Competitors CEM as a solution for competing with Over the Top players by leveraging network assets Quality control Bandwidth management App-based QoS Tailored service packaging High-value customer identification 7
8 CEM Survey: The Why Build an understanding of how operators are thinking about CEM and CEM solutions Build an understanding of key operator considerations in implementing CEM solutions in order to help infrastructure vendors with portfolio and product differentiation Key issues explored: Operator interest in CEM solutions across Europe and N. America Operator CEM strategies and priorities Operator rationale for CEM adoption Barriers to CEM solution and strategy adoption The optimal composition of CEM solutions Operator perceptions of CEM vendors 8
9 CEM Survey: The Who Fixed, Mobile & Converged operators North America and Europe Operations, Network Technology, Marketing Which of the following best describes your company? % of respondents, N=76 Indicate the continent in which your country is located % of respondents, N=76 Converged operator 60% Fixed operator 33% Europe 67% North America 33% Mobile operator 7% 9
10 CEM Survey: The Key Findings Operational Challenges Are Holding Back CEM Solution Adoption But Operators Are Looking to Address Them Rank the following barriers to the adoption of a CEM solution 1=Low Difficulty, 5=High Difficulty Is there one person in your company responsible for overseeing CEM? Organizational challenges Cost to replace existing OSS/BSS systems Uncertain ability of CEM system to gather real-time insights Difficulty in correlating data from different sources in a timely manner Multi-vendor solutions create barriers to implementation Low priority in relation to other upgrades No 55% Yes 45% 10
11 CEM Survey: The Key Findings What are major objectives of CEM adoption 1=least important; 5=most important Reduce churn/increase loyalty Improve trouble Call response Generate new revenue Identify highest value customers Track network and service performance Quickly evaluate effectiveness of new offerings Differentiate services from competitors/ott Bring TDM predictability to IP network Customer Care Remains the Predominant CEM Objective for Operators But Service and Customer Monetization Is Close on Its Heels Track devices using network 11
12 CEM Survey: The Key Findings Mobile Operators Leading the Charge on CEM Fixed Operators Are Less Aggressive on Central Oversight or Solution Building Is there one person responsible for CEM oversight? % of respondents Does your organization possess most of the components of a CEM solution? % of respondents 64% 51% 48% 33% No Yes No Yes 36% 49% 52% 67% Fixed Mobile & Converged Fixed Mobile & Converged 12
13 CEM Survey: The Key Findings Which best describes your CEM adoption strategy? % of respondents, N=76 Work with multiple suppliers and build a CEM system in-house Contract with a single systems integrator to construct a CEM solution Already have one in place 22% 20% 49% Operators Largely Looking for Best of Breed Solutions Most Think They Can Integrate Their CEM Solution with In-House Resources Outsource construction and operation of a CEM solution to a third party 9% 13
14 CEM Survey: The Key Findings Yet, IT Integrators Still Rank Highest in Terms of Operator Perception Of Course, Solutions and Marketing Help Too Which vendors do you hold a very positive perspective as CEM solution providers? % of respondents, N=76 HP Nokia Siemens Networks IBM 26% 26% 25% Ericsson 14% Alcatel-Lucent Huawei Openet ZTE 7% 5% 5% v 9% Netcracker Tekelec Amdocs 3% 3% 1% 14
15 Conclusions & Recommendations Realize We re Still in an Educational Phase What CEM is What it can be The complexity of creating solutions Drive Organizational Coherence on CEM It s still an issue for many operators It is key to solution sales and full value creation Vendors: Connect Your Agenda to Operator Agendas Linkage between CRM and network monetization Proof points CEM and managed services Think Holistically: CEM Is Not a Product Dedicate Marketing $$$ to CEM Strategy 15
16 Thank You for Attending Presented by: Bruce Page VP, Custom Research Peter Jarich Service Director 16
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