Driving Better Customer Experience
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1 Driving Better Customer Experience Susan McNeice, VP of Research Sheryl Kingstone, Director and Research Fellow June 2, 2011 Copyright Yankee Group Research, Inc. All rights reserved. Page 1
2 Agenda The Connected Experience Users Speak Out Related Research and Q&A Copyright Yankee Group Research, Inc. All rights reserved. Page 2
3 Research Focus: The Connected Experience Companies that deliver the best Connected Experience to users are positioned to lead the industry. Yankee Group s research focuses on: Connected Experience: Experiences that combine networks, devices and content into a seamless engagement that captivates users. Networks: Advanced networks that are increasingly multi megabit broadband, wireless and all IP. Connected Devices: Devices that let users interact and communicate, including the latest smartphones, tablets, e readers and more. Cloud Sourced Content: Content that lets users consume, buy and share experiences, applications and media anytime, on the go. Copyright Yankee Group Research, Inc. All rights reserved. Page 3
4 Connected Users Drive Seismic Change Copyright Yankee Group Research, Inc. All rights reserved. Page 4
5 Delivering a World Class Experience Yankee Group believes enhancing the customer experience is service providers last remaining opportunity for competitive differentiation Copyright Yankee Group Research, Inc. All rights reserved. Page 5
6 Operations and Customer Experience Drive Investment Priorities Reducing opex and creating customer loyalty is a critical near time focus for service providers Influencers believe customer loyalty is a key priority, but decision makers see it as less important Personalization and rapid service delivery continue to rate high priority Copyright Yankee Group Research, Inc. All rights reserved. Page 6
7 What Can Service Providers Do to Create a Positive Customer Experience? How do I improve the level of service to the customer while also lowering costs and driving revenue, especially considering... More complexity in products and services Commoditization driving down margins Changing demographics and higher customer needs/expectations Competition with over the top services The battle for dominance in the home network Copyright Yankee Group Research, Inc. All rights reserved. Page 7
8 Customer Experience: Considerations for Service Providers Copyright Yankee Group Research, Inc. All rights reserved. Page 8
9 Customer Experience: Considerations for Service Providers Do I get the same quality of service every time? Can I get upgrades in real time? Do I trust this provider? I don t want to worry about the fine print. Are the Web site, call center and retail store all going to give me the same answer? Can I start my purchase on the Web and finish at the store? Can I get the right combinations of products and services at a competitive price? Copyright Yankee Group Research, Inc. All rights reserved. Page 9
10 Setting Sights on the Ideal Experience A commitment to customer interactions that are consistent, dynamic and transparent across all four dimensions of brand, products and services, channel, and delivery and operations. The goal is to achieve competitive differentiation by viewing the world through the eyes of one s customers and modifying interactions of the experience accordingly. Copyright Yankee Group Research, Inc. All rights reserved. Page 10
11 What Does It Mean to be Transparent, Consistent and Dynamic? Transparent The relationship should be evident and in plain sight at all times, but fine print restrictions and caveats are almost always present in customers experiences with their service providers. Users are willing to pay 10 percent more per month to avoid billing surprises. Consistent When service providers promise customers certain coverage, quality, pricing or availability, customers expect consistent behavior from the network, customer care, billing, provisioning and all other touch points. Dynamic Service provider actions that affect the connected experience must be rapid, personalized, immersive and competitive. Connected users of all services look for real time or at least near real time delivery. Copyright Yankee Group Research, Inc. All rights reserved. Page 11
12 Poll Are you involved in customer experience transformation at your company? Yes No Copyright Yankee Group Research, Inc. All rights reserved. Page 12
13 Agenda The Connected Experience Users Speak Out Related Research and Q&A Copyright Yankee Group Research, Inc. All rights reserved. Page 13
14 Delivering a World Class Customer Experience Users Speak Out! 2011 marks a shift in our research; we specifically evaluate how customers identify and rank the ingredients of their experiences with service providers the first of its kind in industry. We seek to understand the relative importance of the ingredients of the experience, such as customer service, network service, pricing, devices and even service provider brand and reputation. What Do Customers Want? Copyright Yankee Group Research, Inc. All rights reserved. Page 14
15 Copyright Yankee Group Research, Inc. All rights reserved. Page 15
16 Copyright Yankee Group Research, Inc. All rights reserved. Page 16
17 Copyright Yankee Group Research, Inc. All rights reserved. Page 17
18 Copyright Yankee Group Research, Inc. All rights reserved. Page 18
19 Copyright Yankee Group Research, Inc. All rights reserved. Page 19
20 Copyright Yankee Group Research, Inc. All rights reserved. Page 20
21 Understanding How the Ingredients Play Out by Psychographic Segment Copyright Yankee Group Research, Inc. All rights reserved. Page 21
22 Service Provider Requirements: Customer Experience Transformation Copyright Yankee Group Research, Inc. All rights reserved. Page 22
23 Agenda The Connected Experience Users Speak Out Related Research and Q&A Copyright Yankee Group Research, Inc. All rights reserved. Page 23
24 Customer Experience Transformation Recent Research Customers Come First Delivering a World Class Customer Experience: Transformation from the Outside In, March 2011 Keeping Customers Happy What Customers Want: The Experience Transformation Imperative, April 2011 Survey Results 2011 US Consumer Survey (Ongoing) Streamlining Support Operations Survey: Support Issues Continue To Be a Drag on Customer Experience, March 2011 The Future of Customer Experience CSPs Need Proactive Subscriber Intelligence to Improve Customer Experience, December 2010 Upcoming Research Customers Come First Service Providers Want Insight: How Analytics Can Provide a More Intelligent Experience, Q Keeping Customers Happy Mobile Business Applications: What Do Businesses Want and How Can User Experience Be Improved?, Q Streamlining Support Operations Transforming Order Management, Q The Future of Customer Experience Service Assurance as a Customer Experience Driver, Q Industry Event 4G World Customer Experience Summit: Measuring the Cost of Lost Copyright Yankee Group Research, Inc. All rights reserved. Page 24
25 Q&A Susan McNeice, VP of Research Customer Experience, B/OSS, Service Provider Strategies, Policy Management, Service Delivery Architecture Sheryl Kingstone, Director and Research Fellow Customer Experience, Service Provider Strategies, B/OSS, Mobile Applications, Cloud Computing, Consumerization, Policy Management Copyright Yankee Group Research, Inc. All rights reserved. Page 25
26 Read analyst blogs at blogs.yankeegroup.com Thank You Watch analyst videos at youtube.com/yankeegroup Fan Yankee Group at facebook.com/yankeegroup Follow us on Upcoming Yankee Group Webinar: Three Screens for Video Tuesday, June 28, a.m. EDT Register at Copyright Yankee Group Research, Inc. All rights reserved. Page 26
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