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1COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCEANALYTICS KEY NEW TREND FOR TELCOSDavid Stevenson, VP/GM Customer Experience...
BIG DATAPREDICTING THE FUTURE• UK: one in five large UK businesses  assigning financial value to their  data on the compan...
CUSTOMER EXPERIENCE RELATEDTO ENTIRE JOURNEYTHE CUSTOMER                  1          2            3            4          ...
IDENTIFY THE KEY KBO’S AND KQI’S ACROSSENTIRE CUSTOMER JOURNEYSTHE CUSTOMER JOURNEY                                       ...
TOP 10 WIRELESS NETWORK PROBLEMS AFFECTINGCUSTOMER EXPERIENCEWHILE CALLING, MESSAGING AND USING DATA IN THE US 1     Dropp...
IMPORTANCE OF THECEM-RELATED METRICS       Customer satisfaction                                56                        ...
MOVING FROM A FRAGMENTED VIEW TO ANINTEGRATED CUSTOMER EXPERIENCEOPTIMIZED CUSTOMEREXPERIENCE THROUGH                     ...
CRITICAL FUNCTIONS FOR CUSTOMEREXPERIENCE-DRIVEN DIFFERENTIATION                            Support for big data          ...
COMPLETE VIEW OF THE CUSTOMERSUPPORTS DIFFERENT STAKEHOLDERS AND ACTIONS          Batch Usage and Customer Data          (...
MANAGING THROUGH ANALYTICSBASED ACTIONS$                                                                                  ...
TOP RANKEDUSE CASES                                 ACTION                          USE CASE                              ...
TURNING CELL UTILIZATION INTO AN OPPORTUNITYANALYTICS DRIVEN INTELLIGENT SERVICE OPTIMIZATION ANDCONTEXTUAL OFFERS        ...
SECURING THE  CUSTOMER EXPERIENCE                                     DEVICE MANAGEMENT MAKES                             ...
FRAUDULENT USEDETECTION                                                                          USER RESPONDS (“ENABLE”  ...
BEING PROACTIVE ABOUTSERVICE INTERRUPTION      ARE MY CUSTOMERS                          SERVICE QUALITY      IMPACTED BY ...
PROACTIVE/REACTIVE CAREON SLA NOTIFICATIONS                                                                     MOTIVE / S...
BELL LABS RESEARCH ACTIVITIESIN ANALYTICS UNDERSTANDING SIGNALS AND                                       UNDERSTANDING PE...
PREDICTIVE ANALYTICSTRULY UNDERSTAND CUSTOMER BEHAVIOR                                                                  Pe...
KBOCALIBRATION                                              Historical                                                    ...
NET PROMOTER SCORE(NPS) PREDICTION                                                                                        ...
TOP 8 LAWS OF BIG DATAACCORDING TO FORBES       1. The faster you analyze your data, the greater its predictive value     ...
CONSUMERS WANT SIMPLICITYANALYTICS ARE ENABLERSThe most effective marketers usethree tactics:1.    minimize the number of ...
THREE LARGEST BARRIERS TO IMPLEMENTINGCUSTOMER EXPERIENCE MANAGEMENT Difficulty in securing cross- organizational co-opera...
CUSTOMER EXPERIENCEMATTERS• Study indicates that organizations may  be losing on average 14% of incremental  revenue per y...
TITLE:       CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCE:             ANALYTICS KEY NEW TREND FOR TELCOSSHORT TITLE: AN...
Alcatel-Lucent Motive: Customer Insights to Improve Performance by David Stephenson
Alcatel-Lucent Motive: Customer Insights to Improve Performance by David Stephenson
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Alcatel-Lucent Motive: Customer Insights to Improve Performance by David Stephenson

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Alcatel-Lucent Motive: Customer Insights to Improve Performance by David Stephenson

  1. 1. 1COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  2. 2. CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCEANALYTICS KEY NEW TREND FOR TELCOSDavid Stevenson, VP/GM Customer Experience SolutionsOctober 23, 2012 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  3. 3. BIG DATAPREDICTING THE FUTURE• UK: one in five large UK businesses assigning financial value to their data on the company balance sheet• NYPD: Uses Big Data to identify crime “hot spots”• Wal-Mart: Uses Big Data to fine- tune merchandising store by store• Service Providers: Starting to use Big Data to improve Customer Experience and Loyalty Big Data Opportunity Heat Map by Industry Source: Gartner, July 2012 3 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  4. 4. CUSTOMER EXPERIENCE RELATEDTO ENTIRE JOURNEYTHE CUSTOMER 1 2 3 4 5 6 7 8 Awareness Interact Agree/Get Consume Use/Support Pay Reward LeaveJOURNEY 1 2 3 4 5 6 7 8SERVICE PROVIDER Market Fulfill Manage Service Charge Retain Acquire RetireJOURNEY Sell Order Customer Assurance Bill OptimizeYOU DON’T NEED HUNDREDS OF KPIs –ONLY THE RIGHT KQIs TO MEASURE AND KBOsIMPROVE CUSTOMER SATISFACTION Key business objectives e.g. increased profitability KBIs DASHBOARDS Key business indicatorsSELECTION OF KEY CUSTOMER AND e.g. average revenueSERVICES IMPACTING KBOs per user (ARPU) REPORTING KQIs CUSTOMER Key quality indicatorsMAPPING STRUCTURE FOR EXPERIENCE e.g. end-user satisfactionCATEGORIES OF INDICATORS with video service quality KPIs Key performance indicators OPERATIONALMAPPING STRUCTURE FOR KQITO KPI RELATIONSHIP e.g. video packet loss EXCELLENCE NETWORK LAYER 4 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  5. 5. IDENTIFY THE KEY KBO’S AND KQI’S ACROSSENTIRE CUSTOMER JOURNEYSTHE CUSTOMER JOURNEY SERVICE PROVIDER JOURNEY 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Market Fulfill Manage Service Charge Retain Awareness Interact Agree/Get Consume Use/Support Pay Reward Leave Acquire Retire Sell Order Customer Assurance Bill Optimize KBOs Quality Care Care Perception Perception Ease Value Value & Ease 5 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  6. 6. TOP 10 WIRELESS NETWORK PROBLEMS AFFECTINGCUSTOMER EXPERIENCEWHILE CALLING, MESSAGING AND USING DATA IN THE US 1 Dropped calls Still Picture or Evolving Landscape? 2 Calls not connected • Excessively slow mobile Web loading 3 Audio issues - 15 PP100 for 4G LTE-enabled devices 4 Failed/late voicemails - 22 PP100 for WiMAX devices 5 Lost calls - 23 PP100 for HSPA+ devices 6 Text transmission - vs. 20 PP100 industry average failures • Mobile hotspot adoption rate 35% higher for LTE 7 Late text message notifications • LTE: best network performance (reliability, spectrum efficiencies, increased data 8 Web connection errors connection speeds, etc.) 9 e-mail connection errors 10 Slow downloads PP100 = problems per 100 network connectionsSource: J.D. Power and Associates, Aug. 2012 6 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  7. 7. IMPORTANCE OF THECEM-RELATED METRICS Customer satisfaction 56 27 84 Network availability data 43 39 83 Service availability data 42 39 81 Time/cost to resolve customer issue 38 43 80 First call resolution/CRR 37 42 79 Customer behavior data 44 34 78 Service usage data 48 27 75 Average call handle time 30 39 69 Time/cost to provision 26 43 68 Time to launch new service 27 39 67 0 10 20 30 40 50 60 70 80 90Source: Heavy Reading, Sept. 2012 7 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  8. 8. MOVING FROM A FRAGMENTED VIEW TO ANINTEGRATED CUSTOMER EXPERIENCEOPTIMIZED CUSTOMEREXPERIENCE THROUGH To integrationANALYTICS AND ACTIONS Optimization Analysis & Forecasting Monitoring From fragmentation 8 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  9. 9. CRITICAL FUNCTIONS FOR CUSTOMEREXPERIENCE-DRIVEN DIFFERENTIATION Support for big data 40 30 70 B/OSS integration 40 30 70 Individual service quality metrics for customer care 36 34 70 Dashboard with tailored views for different stakeholders 38 30 68Service quality metrics for individual customers 40 25 65 Unified view of the customer 40 25 65 Per-subscriber, per service of network performance 38 25 63 Library of ready-to-go customer experience 27 35 62 indicators Consistent customer identity management across services 31 30 61 Support for real-time zero touch 38 22 60 processes Extensible analytics engine 24 31 55 Network probes/instrumentation 29 24 53 Third-party source integration 22 29 51 0 10 20 30 40 50 60 70 80 Critical Standard Source: Heavy Reading, Sept. 2012 9 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  10. 10. COMPLETE VIEW OF THE CUSTOMERSUPPORTS DIFFERENT STAKEHOLDERS AND ACTIONS Batch Usage and Customer Data (OSS, BSS, CDRs, CSR, roaming data, social media, etc.) Marketing, customer care, etc. are monitoring, analyzing, and optimizing the CUSTOMER ANALYTICS individual customer’s (or group’s) MINED INSIGHTS experience. Operations is monitoring, analyzing and optimizing the services that are running SERVICE QUALITY ANALYTICS over the network, performing root cause MINED INSIGHTS analysis, managing SLAs, etc Engineering is monitoring, analyzing and NETWORK AND DEVICE ANALYTICS optimizing network and device MINED performance, capacity planning, etc. INSIGHTS Real time Network and Customer Data (RAN, GGSN, IP Core, etc.) 10 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  11. 11. MANAGING THROUGH ANALYTICSBASED ACTIONS$ Cumulated Cash Upgrade: Flow over Customer - Increased Lifetime monthly bill Cash generation: Up-sell: - Activation fees -Trialing new features Downgrade: - Monthly bills - Reduced bill Churn: - Stop using Time Care: - Customer care calls Retention: - 1 Free month Termination cost: - Administrative Acquisition costs: - De-activation - Promotion - Device$ - Activation - Etc. MAXIMIZING CUSTOMER LIFETIME VALUE (CLV) 11 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  12. 12. TOP RANKEDUSE CASES ACTION USE CASE 1. Service Quality Analysis (4.0/ 5.0) MANAGEMENT 2. Targeted Retention Campaign for VIP customers Reduce Churn with high churn prediction (3.75/ 5.0) 3. Targeted campaign for Customers with poor QoS(4.5/ 5.0) Up-sell 4. Mobile Security Threat Remediation (4.0/ 5.0) Revenue 5. Fraudulent Use Prevention (4.5/ 5.0) Assurance 6. Root cause analysis for IPTV, on-line video, mobile Troubleshooting and fixed (including IMS) (4.5/ 5.0) Proactive 7. Trends analysis and proactive problem solving Customer Care (3.5/ 5.0)OPTIMIZATION ANALYTICS Reactive 8. Customer problem solving (4.0/ 5.0) Customer Care Prioritized 9. Analytics Driven Intelligent Service Optimization Access and Contextual Offers (4.25/ 5.0) Capacity 10.Capacity Insights (3.5/ 5.0) Planning Ratings based on Service Provider survey, ALU June 2012 12 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  13. 13. TURNING CELL UTILIZATION INTO AN OPPORTUNITYANALYTICS DRIVEN INTELLIGENT SERVICE OPTIMIZATION ANDCONTEXTUAL OFFERS LIST OF ALL USERS IN 4 CONGESTED 2 CELL IS SENT TO ANALYTICS ENGINE 1 OPTIMIZATION & PCC SCORES USERS BY CLV AND SYSTEMS CHURN. CONGESTED CELL 1 2 5 OPTIONAL: CLV TRIGGERS ALERT 3 4 EVALUATE TARIFF PLAN AND QoE PER Churn PERSONALISED CUSTOMER CONTEXTUAL SERVICE OFFER SENT TO OPTIMIZED 3 CUSTOMERS FLEXIBLE & SCALABLE POLICY AND CHARGING CONTROL (PCC) OPTIMIZES SERVICE DELIVERY BASED UPON SUBSCRIBER PROFILE 13 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  14. 14. SECURING THE CUSTOMER EXPERIENCE DEVICE MANAGEMENT MAKES SECURITY CLIENT APPLICATION AVAILABLE & CURRENT 7 4 SEND INFORMATION ON COMPROMISED DEVICE TO CSR 1DEVICE INFECTED WITH ANALYTICS IDENTIFIES VALUEDMALICIOUS APPS DEVICE REMEDIATED 8 ALERT 6 CUSTOMER AND SENDS OFFER FOR MOBILE SECURITY 3 9 2 SEND INFORMATION ON COMPROMISED DEVICE TO ADJUST POLICY FOR POLICY SYSTEM 5 COMPROMISED DEVICE THREATS DETECTED BY NETWORK INTRUSION DETECTION SENSOR 10 REINSTATE POLICY FOR REMEDIATED DEVICE 14 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  15. 15. FRAUDULENT USEDETECTION USER RESPONDS (“ENABLE” 5 OR “DISABLE”) IF RESPONSE IS “DISABLE”, INFORM POLICY ENGINE TO DISABLE DATA SERVICE UNTIL ROAMING STATUS IS DISABLED 4 FOR CUSTOMER HAVING USAGE PROFILE ALERTS, CALL TO HOME PHONE FROM CALL CENTER OR SYSTEM SENDS SMS 6 1 REQUESTING “ENABLE / “DISABLE DATA” RESPONSESUBSCRIBER USAGE ANALYTICS MONITORS CUSTOMER USAGE FROM 2 3 NETWORK CDRs & ALSO BILLING/CHARGING ANALYTICS DETECTS USAGE RATED CDRs PATTERN NOT ALIGNED WITH CUSTOMER USAGE PROFILE (eg roaming calls for a customer never been in foreign country, nbof today’s calls x% higher than usual) 15 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  16. 16. BEING PROACTIVE ABOUTSERVICE INTERRUPTION ARE MY CUSTOMERS SERVICE QUALITY IMPACTED BY SERVICE INSIGHTS 2 1 INTERRUPTION? SERVICE ANALYSIS PER Alcatel-Lucent KEY CUSTOMERS 3 4 SERVICE ANALYSIS AND CLV DASHBOARDS IDENTIFICATION OF 5 A FAULTY CELL MARKETING TO DECIDE IF NOC INTERVENTION CUSTOMER 7 6 COMMUNICATION REQUIRED SERVICE INTERRUPTION RESOLUTION 16 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  17. 17. PROACTIVE/REACTIVE CAREON SLA NOTIFICATIONS MOTIVE / SMP RECEIVES 4 3 TRANSACTION EVENT PER SLA ALERTS NOC 4 NOC IS ALERTED AUTOMATICALLYIPTV, MOBILE AND FIXED WITH SERVICE CUSTOMER CARE KQI/SLA AGENT IS NOTIFIED INFORMATION ON CUSTOMERS HAVING SLA ALERTS IN ORDER TO ANALYTICS MONITORS PROCEED ACTION SERVICE KPI & CUSTOMER KQI. (CALL, SMS, …) GENERATES ALERTS WHEN KQI DOESN’T MEET CUSTOMER SLA. NETWORK DATA COLLECTION ON-THE-FLY 1 FOR ALL 2 CUSTOMERS ANALYTICS 17 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  18. 18. BELL LABS RESEARCH ACTIVITIESIN ANALYTICS UNDERSTANDING SIGNALS AND UNDERSTANDING PEOPLE’S INTEREST AND EQUIPMENT SYSTEMS BEHAVIORAPPLICATIONS Network Smart Grid Public Space Recommender Monitoring Data Mining Surveillance Systems Network Indoor Speaker Gesture Social Media Performance Localization Recognition Monitoring Diagnosis Intrusion Customer Detection Experience DiscoveryBASIC METHODOLOGIES Compressive Sampling / Forecasting Sensor Text Streaming Data Analysis Fusion Mining Data Complexity & Anomaly Interactive Data Audio-Video Model Selection Detection Visualization Analytics 18 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  19. 19. PREDICTIVE ANALYTICSTRULY UNDERSTAND CUSTOMER BEHAVIOR Personalize and differentiate service based on a deep understanding of each customer. Bell Labs worked with a range of partners to build an analytics foundation, based on developing analytic patterns for QoE, propensity to churn, lifetime value, etc. Customer Bell Labsalsoworkswith local dataTargeted Churn CustomerCampaign Trends & Prediction QoE analyticspartners (whereappropriate). PatternsCUSTOMER EXPERIENCE ANALYTICS Analytics Better understanding of customer value, Infrastructure happiness and influence are key enablers of (ETL, DB Model & BI a differentiated service approach so that Reports) investments are better matched to the expected returns per customer. 19 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  20. 20. KBOCALIBRATION Historical • Really KBO Network Usage Scores/Touchpo understand KPIs/KQIs Metrics ints drivers • Build accurate KQI KQI KQI KPIs/KQIs from KBO “formula” other Touch KPI KPI KPI Statistical Analysis and Points Customer Care Machine Learning KPI KPI KPI KPIs/KQIs Models Additional Subscriber Data KPI KPI KPI Calibration Example KBO Calibration: Customer Satisfaction of KPI Identify key data Mobile Broadband Service and metrics Key DriversKEY BUSINESS OBJECTIVES QUALITY CARE PERCEPTION EASE VALUETHE CUSTOMER JOURNEY SERVICE PROVIDER JOURNEY 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Market Fulfill Manage Service Charge Retain Awareness Interact Agree/Get Consume Use/Support Pay Reward Leave Acquire Retire Sell Order Customer Assurance Bill Optimize 20 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  21. 21. NET PROMOTER SCORE(NPS) PREDICTION KBO KQI KQI KQI KPI KPI KPI KPI KPI KPI Historical Network Usage Scores/Touchpo KPI KPI KPIs/KQIs Metrics ints KPI KPIs/KQIs from KPI Identify key other Touch metrics Statistical Analysis and Points Customer Care Machine Learning KPIs/KQIs Models Additional Overall NPS Scores Subscriber Data Statistical Analysis and Key NPS Machine Learning Touchpoint NPS Score Models Metrics/Touchpoint Predicted NPS Score and Key NPS Drivers 21 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  22. 22. TOP 8 LAWS OF BIG DATAACCORDING TO FORBES 1. The faster you analyze your data, the greater its predictive value 2. Maintain one copy of your data, not dozens 3. Use more diverse data, not just more data 4. Data has value far beyond what you originally anticipate 5. Plan for exponential growth 6. Solve a real pain point 7. Put data and humans together to get the most insights 8. Big Data is transforming business the same way IT did 22 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  23. 23. CONSUMERS WANT SIMPLICITYANALYTICS ARE ENABLERSThe most effective marketers usethree tactics:1. minimize the number of information sources consumers must touch as they move confidently toward a purchase2. provide trustworthy sources of product information and recommendations3. offer tools that allow consumers to weigh their options by identifying the features that are most relevant to them. CONSUMERS ACTUAL REASONS; BUSINESSES PERCEIVED REASONS (SOURCE IBM INSTITUTE FOR BUSINESS VALUE)Source: Harvard Business Review, May 2012 23 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  24. 24. THREE LARGEST BARRIERS TO IMPLEMENTINGCUSTOMER EXPERIENCE MANAGEMENT Difficulty in securing cross- organizational co-operation 17 25 13 55 Poor understanding of benefits of improving CEM 15 22 17 54 Poor data quality 12 15 20 47 0 10 20 30 40 50 60 Most important Second most important Third most importantSource: Heavy Reading, Sept. 2012 24 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  25. 25. CUSTOMER EXPERIENCEMATTERS• Study indicates that organizations may be losing on average 14% of incremental revenue per year by not fully leveraging collected information• Telcos are most progressive in Analytics – many new use-cases possible to support monetization of their Networks, especially mobile• In an environment where everyone has the same devices and mobile penetration is reaching saturation, Customer Experience is a priority and Analytics a key enabler for Service Providers 25 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  26. 26. TITLE: CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCE: ANALYTICS KEY NEW TREND FOR TELCOSSHORT TITLE: ANALYTICS KEY NEW TREND FOR TELCOSAbstract:• As communications service providers (CSPs) search for new ways to stand out from the competition, they are looking to customer experience analytics solutions that deliver actionable insights from their wide- reaching customer, network and service data. This session will provide details on developing trends from the telco industry, including what we’re hearing from our CSPs customers about the importance of analytics. Alcatel-Lucent and IBM are collaborating to bring a joint analytics story to the market that combines intellectual property from Alcatel-Lucent and Bell Labs, with robust analytics software from IBM, to give service providers predictive insights about customer behavior. 27 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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