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


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

  1. 1. This document is offered compliments of BSP Media Group. All rights reserved.
  2. 2. Transforming service operations so that CEM becomes an enabler for improving customer engagement 12th November, 2013 Nick Jotischky Principal Analyst
  3. 3. Understanding the challenges facing telcos: The search for differentiation 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. © Informa UK Limited 2013. All rights reserved 2
  4. 4. 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 © Informa UK Limited 2013. All rights reserved
  5. 5. Loyalty, profitability and differentiation are the main drivers for CEM Business drivers behind deploying a CEM solution? (important and very important) System standardisation and rationalisation Managing network resources/ bandwidth 55% Operational focus 62% Automating processes 65% Optimising processes 65% Driving new service launches and adoption Customer acquisition/ competitive differentiation Customer yield management Driving customer retention and loyalty Strategic focus 68% 73% 78% 92% N: 60 operators Source: Informa Telecoms & Media 4 © Informa UK Limited 2012. All rights reserved
  6. 6. Main drivers for adoption of CEM tools © Informa UK Limited 2012. All rights reserved 5
  7. 7. Improving operational efficiency © Informa UK Limited 2012. All rights reserved 6
  8. 8. Improving the customer experience • 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. Using CEM portal, Telkomsel bundles together insights from a range of KPIs into structured modules that provide customercentric reports. Result: A unified view of customer data providing a single point to view real-time experience metrics. © Informa UK Limited 2012. All rights reserved • 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. 7
  9. 9. Processes Platforms Business operations Revenue generation People Operational efficiencies Network operations Service operations Customer experience Customer experience as part of transformation Governance: Metrics and dashboards © Informa UK Limited 2013. All rights reserved 8
  10. 10. Case study: Tier 1 converged challenger – CSP establishing a SOC 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.
  11. 11. ITM’s CEM recommendations 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 need to adopt a holistic approach that integrates CEM and datamanagement 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. For operators, it makes most sense to focus on CEM as an enabler rather than a differentiator. Vendors should focus on their CEM-analytics offerings rather than be diverted by business-consulting opportunities. © Informa UK Limited 2012. All rights reserved Operators should leave new business models for later. Vendors must remember: it’s still early days for CSPs and CEM – so one step at a time. 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. 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. 10
  12. 12. © Informa UK Limited 2013. All rights reserved Thank you For further information: The contents of this publication are protected by international copyright laws, database rights and other intellectual property rights. The owner of these rights is Informa UK Limited, our affiliates or other third party licensors. All product and company names and logos contained within or appearing on this publication are the trade marks, service marks or trading names of their respective owners, including Informa UK Limited. This publication may not be: (a) copied or reproduced; or (b) lent, resold, hired out or otherwise circulated in any way or form without the prior permission of Informa UK Limited. Whilst reasonable efforts have been made to ensure that the information and content of this publication was correct as at the date of first publication, neither Informa UK Limited nor any person engaged or employed by Informa UK Limited accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard - readers assume full responsibility and risk accordingly for their use of such information and content. Any views and/or opinions expressed in this publication by individual authors or contributors are their personal views and/or opinions and do not necessarily reflect the views and/or opinions of Informa UK Limited.