Truphone Growth through Innovation

Publication Date: 04 Aug 2014 | Product code: IT0020-000039
Jeremy Cox
Truphone: Growth through
Innovation and Global Customer
Engagement
Disruptive innovation and an exemplary customer
experience

Truphone: Growth through Innovation and Global Customer Engagement
© 2014 Ovum. All rights reserved. Unauthorized reproduction prohibited. Page 2
Summary
Catalyst
Truphone is a global mobile network operator headquartered in London. It manages and owns its own
core network infrastructure, and rents the radio access network from tier-1 network partners. This
enables it to offer a highly differentiated service offering compared with traditional network operators
and MVNOs. It serves both business and consumer customers globally, and differs from the large
operators and MVNOs by offering calls at local rates, with local speeds and quality, on a single SIM.
Traditional mobile networks are country-specific, which is why – if they are to avoid huge roaming
charges when travelling to other countries – travelers have to disable roaming on their smartphones
and rely on unsecure Wi-Fi at hotels, airports, and other establishments to pick up emails and content
from colleagues, friends, and family. This impedes productivity.
Truphone was founded by James Tagg, the current CTO, in 2001, and enables international travelers
to avoid excessive roaming charges and still enjoy high-quality data access. This removes the
impediment to productivity when abroad.
Ovum view
Ovum has identified eight attributes exhibited by organizations that have the capacity to sense,
respond, anticipate, and adapt at the right speed to ensure continued relevance to their customers, as
a result of which they continue to grow profitably.
Truphone displays the coherence and attributes of a customer-adaptive enterprise, with a single-
minded focus on the customer supported by continuous and relevant innovation. These attributes
have enabled the company to disrupt its competitors through innovation and a world-class level of
service, as evidenced by a Net Promoter Score (NPS) in the mid-60s percent. To put that in context, a
Satmetrix benchmarking study in the US in 2013 reported a top score of 39% by the mobile operator
TracFone.
Key messages
§ The leadership of Truphone is single-minded in the pursuit of its customer vision.
§ The workforce is fully engaged, empowered, and enabled to deliver that customer vision.
§ Truphone can collaborate across both geographical and departmental boundaries.
§ The firm's sensing capabilities enable it to anticipate and resolve problems proactively.
§ Truphone delivers a superior customer experience, which is reflected in its NPS scores.
§ Innovation is continuous, which creates new value and continued relevance to customers.
§ Processes across the enterprise are highly integrated and simplified for speed of execution.
§ The enterprise architecture is adaptive by design, enabling it to support the firm's vision.

Leadership and vision
The leadership of Truphone is single-minded in the pursuit of its
customer vision
Single-minded purpose
Truphone was established to address the needs of large organizations where international travel by
employees is a regular occurrence. Traditionally, if a user travels to the US, for example, and uses a
phone supplied by a traditional mobile operator in the UK, any calls they make are routed back to their
home country. This has two consequences. Firstly, the calls are charged at international rates, and
are therefore expensive. Secondly, data quality deteriorates, and the information is delivered at much
slower speeds than in the home country. This is because the data has to travel several thousand
miles back and forth between the home and foreign countries.
A global network that covers more than 200 countries
Truphone World
Truphone World covers 66 countries. In these countries the firm offers a tariff package that allows
users to consume their allocation of voice, text, and data without consideration for international
borders.
Truphone Zone
The firm operates major nodes in eight countries: Australia, Germany, Hong Kong, Poland, Spain, the
Netherlands, the UK, and the US. In these eight countries customers can get permanent local mobile
numbers stored on a single SIM, so they are always reachable at local call rates, no matter where
they are in the world. This brings them closer to their international contacts.
Internationally, calls are routed by a globally distributed core network infrastructure. This means that
voice, text, and data traffic travels shorter distances, resulting in in lower costs, higher fidelity, and
reduced latency compared with traditional operators.
Single-minded customer vision and values
Since 2001 Truphone has grown substantially. It now serves more than 2 million consumers and
many FTSE 100 and Fortune 500 corporate customers, including five of the largest investment banks
and Caterham F1 Team. In June 2014 the company announced that it will be the official provider of
mobile services to the Volvo Ocean Race, considered one of the toughest international sailing races
in the world.
The firm currently has 790 staff across four continents. It has a strong management team with a track
record of managing major organizations. For this case study Ovum interviewed two members of the
leadership team: Colin Windsor, Truphone’s COO and former partner at PWC and CIO at Openreach;
and Rod Sheriff, the company’s director of customer services, who has led customer experience
teams at Scottish and Southern Electricity and Lebara Group, and won 13 major awards related to
customer experience delivery. In 2014 the firm has won or been shortlisted for several major awards:
§ Best MVNO, Telecoms.com Awards (winner).
§ Outstanding enterprise award, Capital Magazine (winner).

§ Best customer service team, APAC, Contact Centre Awards (winner).
§ Best customer service team, EMEA, Contact Centre Awards (winner).
§ World’s best customer service team, Contact Centre World Awards (shortlisted).
Truphone has declared its intention to be the best service company in the world. Although this is a
lofty ambition, judging by its NPS scores and these awards the company has made some progress
toward achieving it. The challenge is to ensure that everyone within the organization buys into the
leadership’s vision, and is able to step up to the challenge.
The workforce is fully engaged, empowered, and enabled to
deliver that customer vision
Empowered to make commitments to customers
A critical attribute displayed by customer-adaptive enterprises is a high level of engagement and buy-
in to the overall company vision. Given the potential complexity of delivering a consistently high-
quality customer experience, decisions have to be made immediately at the point of customer need.
All of the company's employees are given the authority to make decisions that benefit the customer
without referring to their team leader or manager. This may be considered a high risk in some
companies, but Truphone is very careful in how it selects its personnel, especially those who interact
with customers. Rod Sheriff believes that ''culture is not part of the game, it is the game.” He also
quotes Peter Drucker, who said that ''culture eats strategy for breakfast."
Enablement through technology
Truphone uses Salesforce.com's CRM platform and enterprise social network Chatter to provide a
global capability to serve customers. It is fully integrated into the firm’s operational systems, and
everyone has access to the customer records. This means that, irrespective of the country from which
the customer calls seeking help with an issue or advice, their complete history is available. Figure 1
provides a topology of Truphone’s applications and how they support the customer.

Figure 1: Truphone’s integrated customer support infrastructure
Source: Truphone
Truphone collaborates across both geographical and
departmental boundaries to deliver the vision
Single view of the customer supports better collaboration
Because any member of the workforce with whom the customer interacts has complete visibility of
that customer, they can resolve issues rapidly. Sometimes this requires the collective support and
wisdom of a team of employees operating in different countries.
Collaboration with partners and customers is increasingly important
As the firm develops new partnerships with local carriers and other third parties to provide new routes
to market, especially in China and Latin America, the ability to collaborate effectively both locally and
internationally will increase in importance. Extending the use of Chatter to include these third parties
will make collaboration easier and faster.

Capabilities and experience
The firm's sensing capabilities enable it to anticipate and
resolve problems proactively
Embedded sensors, analytics, and routing optimization preserve quality of
service
Truphone has embedded sensors and analytics within its global network. This enables it to identify
any sudden loss of data speed or quality before it impacts the customer. Network traffic can be
rerouted dynamically between nodes to ensure that the customer does not suffer any slowing or
degradation in service levels.
The voice of the customer is constantly monitored and measured
In the Ovum report Framework: Harnessing Voice of the Customer for Customer-Driven
Transformation we identified the optimum customer-adaptive uses of voice of the customer (VoC),
which are to drive continuous improvement in the customer experience and to capture customer
insights that can reveal opportunities to innovate.
Truphone has an advanced VoC capability. NPS results are monitored at board as well as at
departmental or team level, and embedded analytics also helps surface any issues so that they can
be acted on swiftly.
Truphone delivers a superior customer experience, which is
reflected in its NPS scores
Several factors affect the quality of the customer experience, and the culture of the organization is
foremost among them. Philosophically, rather than benchmarking itself against other telecoms
operators or MVNOs, Truphone seeks inspiration from organizations that are famed for outstanding
service, such as Ritz-Carlton, Disney, Starbucks, and John Lewis.
Culture is an essential consideration during the onboarding process
Selecting for attitude
Truphone has a clear mission and a customer-centered vision. The attitude of each candidate for
recruitment is carefully assessed, and of greatest importance are emotional intelligence and whether
or not the individual will fit in to the company culture. The firm looks for “enthusiastic, smart, and
passionate people who enjoy a slightly crazy/frenetic environment where everyone can make a
difference.'' This last point is particularly significant; it goes to the heart of being positively engaged.
Intensive cultural training through the company’s Inspire program
The first two days for any new employee take the form of a deep immersion in Truphone’s Inspire
program, which sets out what is expected of new recruits and is designed to inspire desired
behaviors. A strong sense of personal growth and the freedom to add value are part of the Inspire
program, along with a promise that Truphone will be the best company the new employee has ever
worked for due to the opportunities it offers for personal growth and its supportive, nonhierarchical
culture. Call center employees are also given mood training to heighten their emotional intelligence

when interacting with customers, so that they respond empathetically and appropriately depending on
the customer's mood and the specific context of the call.
The customer experience is designed to appeal to all five senses
Truphone creates customer experiences designed to appeal to all five senses, including smell. When
a customer receives their new phone it comes in packaging to appeal to the visual senses. When they
open the box it releases a pleasant smell, and they are also rewarded with a Hotel Chocolat taste
treat. This creates a pleasant surprise and sets the tone for the ongoing relationship. A further
surprise is that when the phone is taken out of the box it is ready to use immediately – the SIM card,
with up to eight different local phone numbers, is already in the smartphone.
The experience is designed around the customer journey and individual
personas
The lifecycle of the customer, including “significant moments of truth,” has been mapped out to ensure
that Truphone can add value through every interaction. The firm has identified different personas, and
its experience designers work continuously to refine the experience and eliminate any process or
governance rules that might cause friction for the customer. Contextual information around the
customer is provided at the point of interaction by the Salesforce.com CRM system. Every agent has
access to this information so that the customer is recognized and all conversations are relevant,
irrespective of the country from which the customer calls Truphone.
When things go wrong Truphone is able to react quickly
One example illustrates how quickly Truphone is able to respond to its customers’ needs. A customer
from the Netherlands had travelled to the UK. While there they dropped their phone, breaking its
screen. The customer emailed their personal assistant back in the Netherlands, who rang Truphone
asking for help. The local agent contacted Truphone in the UK and a new phone – ready for use, with
all the correct contact numbers – was dispatched to the customer. The total elapsed time from the
initial call to Truphone to the customer receiving their replacement phone ready for use was just 256
minutes.
Key performance indicators foster a more positive customer experience
Truphone uses a variety of KPIs and trend information to foster a more positive customer experience.
These include:
§ NPS scores, broken down by B2B and B2C categories as well as overall
§ the propensity of customers to contact the firm across the lifecycle, again broken down by
B2B and B2C categories
§ SLA compliance across both B2B and B2C
§ first-call resolution
§ percentage of calls answered for both B2B and B2C.

Innovation is continuous, which creates new value and
continued relevance to customers
Truphone started with disruptive innovation
Clayton Christensen, professor of business administration at Harvard Business School, describes
disruptive innovation as new ways of “getting the job done” that are simpler and less expensive, and
which consequently drive growth. In a speech at a recent SAP conference (Sapphire Now 2014), he
contrasted disruptive innovation with incremental or “sustaining” innovation, which is focused on
modifying existing products and services, and therefore does not generate growth, but is maintaining
by nature. Truphone provides an innovative global network to overcome the issues of high-cost and
low-quality voice services and slow data transfer for the mobile traveler. This disruptive innovation
reduces costs and helps customers to “get the job done” faster, boosting productivity.
Continuous innovation supported by a broad network of contributors
Truphone continues to invest in new capabilities and has cast the net wide across the enterprise so
that every member of the workforce can contribute. It has created a culture of innovation in which
every employee is encouraged to contribute ideas and to look for opportunities to simplify processes
and enhance the customer experience. Elliot Cox, a full-time member of the board and director of
corporate strategy, is tasked with leading the drive for continuous innovation.
Connected, enterprise-wide processes and an adaptive
enterprise architecture
There are two final attributes of the customer-adaptive enterprise. First is having connected and
frictionless processes that span the enterprise and support rapid execution. Second is building the
business on an enterprise architecture that provides great fluidity and the ability to adapt at speed,
and that underpins the overall purpose and vision of the company.
Connected processes and continuous performance monitoring
All Truphone’s mission-critical processes are fully integrated, as is the technology supporting them.
This means the company can not only recognize customers irrespective of contact point, but also
monitor performance continuously. This helps it in its quest to simplify or enhance processes to meet
the needs of its customers and deliver a rewarding experience. The Salesforce.com CRM system,
which is fully integrated with operational systems and accessible by 90% of the firm's employees,
plays a vital role in connecting the company to its customers and delivering the 360-degree promise.
A simple architectural map provides a visualization of how the organization
functions as a coherent system
Truphone's purpose is to "create the most valued global mobile business through innovation and
service that inspire," and to support the internationally mobile worker and provide the best customer
experience. The organization's architecture was designed from the outset to deliver on this mission. It
also allows the firm to adapt at speed, and to graft on new technologies as required. Truphone has a
clear enterprise architectural map that makes explicit how it supports its overall purpose and vision.

Recommendations
Recommendations for enterprises
Organizations with extensive international travel requirements should consider Truphone as a
potential partner to maximize international mobile productivity and reduce costs.
Recommendations for Truphone
Explore the potential for predictive analytics
Truphone should explore the potential for predictive analytics to augment its real-time KPI analyses.
This may uncover new opportunities for innovation or additional elements that can help it achieve its
stated aim of offering the best customer service in the world.
Put in place an innovation-management process and platform to foster
innovation
Truphone uses Salesforce.com's Chatter and Microsoft Lync for cross-enterprise collaboration, and is
developing its own WebRTC client to enable browser-to-browser services to facilitate voice calling,
video chat, and P2P file sharing without the need for plug-ins. This will provide a rich collaborative
environment, but the firm should consider augmenting this with a formal innovation-management
process. This would enable it to take advantage of these collaboration tools, increase its ideation
input, and collaborate on opportunities to create new services or experiences that will appeal to its
customers and prospects.
Appendix
Further reading
Framework: Innovation Management for Continued Customer Relevance and Growth, IT0020-000032
(July 2014)
Framework: Harnessing Voice of the Customer for Customer-Driven Transformation, EI023-000009
(May 2014)
A Maturity Model for Measuring the Customer-Adaptive Enterprise,IT020-000016 (April 2014)
Author
Jeremy Cox, Principal Analyst, Customer Engagement
jeremy.cox@ovum.com
Ovum Consulting
We hope that this analysis will help you make informed and imaginative business decisions. If you
have further requirements, Ovum’s consulting team may be able to help you. For more information
about Ovum’s consulting capabilities, please contact us directly at consulting@ovum.com.

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