Authors: Amresh Nandan, Tony Hines Abstract: Customer Experience Management (CEM) can be a highly complex, resource intensive, and at times, a ‘leading to no-where’ program. However, it is imperative for Communication Service Providers (CSPs) who are deeply affected by value-chain shifts, disruptive innovations, and the inherent complexity of their operations. While there are some genuine efforts, there exists a significant amount of cosmetic effort in the name of CEM, evident in global survey reports. This has resulted in the perception that CEM is merely a buzzword. One of the reasons behind this lies in the inherent complexity of the subject. A constructive way to address this is by simplifying the approach. This would ensure a scientific and analytical step-by-step process that may be monitored, controlled and tailored, to suit organizational goals and next financial year’s strategy. This paper discusses an analytical approach towards a CEM construct which can be designed, developed and executed as an eight-stage program by CSPs.

1. Telecom Customer Experience Management
An Analytical Approach for
Simplification
Customer Experience Management (CEM) can be a
highly complex, resource intensive, and at times, a
‘leading to no-where’program. However, it is
imperative for Communication Service Providers
(CSPs) who are deeply affected by value-chain shifts,
disruptive innovations, and the inherent complexity of
their operations. While there are some genuine efforts,
there exists a significant amount of cosmetic effort in
the name of CEM, evident in global survey reports.
This has resulted in the perception that CEM is merely
a buzzword. One of the reasons behind this lies in the
inherent complexity of the subject. A constructive way
to address this is by simplifying the approach. This
would ensure a scientific and analytical step-by-step
process that may be monitored, controlled and
tailored, to suit organizational goals and next financial
year’s strategy. This paper discusses an analytical
approach towards a CEM construct which can be
designed, developed and executed as an eight-stage
program by CSPs.
White Paper
Industry research suggests that
more than 90% of unhappy
customers do not complain
proactively; the majority just decide
to leave.
Interestingly, more than 50% do not
mind paying extra for better service.
Good customer service and business
analytics do not necessarily affect
customer perception.

2. 2
About the Authors
Amresh Nandan
Amresh Nandan is the Head of Strategic Initiatives in Tata
Consultancy Services’Telecom business unit, where he focuses on
the challenges faced by Communication Service Providers. He
brings over 14 years of experience in consulting, strategy
development and execution, offerings management, and
business development. Amresh has extensive insight into telecom
trends, strategy, and practices. He has initiated and led the
development of several offerings and associated practice
management in areas including network assurance, product
management, device management, enterprise mobility, and
customer experience management. Amresh is an electronics
engineering graduate and has an advanced diploma in marketing
management.
Tony Hines
Tony Hines has over 25 years of experience in the
Telecommunications and IT industries. He has held several senior
roles and is currently the European Head of Telecom, Media and
Hi-tech practice for TCS' Global Consulting Practice. Tony brings
deep expertise in business management consulting disciplines,
focused primarily on the Telecom sector. Prior to joining TCS, Tony
worked at Logica and Racal Telecom,where he built a Mobile
Virtual Network Operator (MVNO) from scratch. The MVNO
focused on the UK railway industry and in its infancy, was
Vodafone’s fastest growing MVNO. Tony holds a Bachelor of
Science in electronic engineering and a Bachelor of Arts in
marketing and economics.

3. 3
Table of Contents
1. CEM Philosophy: Is CEM an Extension of CRM or CLM? 4
2. Where the Complexities Arise 5
3. Demystifying Complexities for a Simple Approach 7
3.1. A CEM Construct for CSPs 8
3.2. The CEM Construct to Business Operations 9
4. Results from Our Analysis 10
5. Putting it Together for a Smooth and Ongoing Program 13
6. Conclusions & Take Away 14

4. 1. CEM Philosophy: Is CEM an Extension of CRM or CLM?
Customer service is often measured by customer churn. Communication Service Providers use this
parameter as one of the principal business performance indicators and regulatory authorities monitor it
in the majority of markets. This approach has its roots in the business Key Performance Indicators (KPI) -
Average Revenue Per User (ARPU) and the implementation of Customer Relationship Management (CRM),
and Customer Loyalty Management (CLM) - which every conscious services organization has employed in
some form..
There is in essence, nothing wrong with this approach. However, the implications of changes in the
external environment are too many and too significant to continue to depend on this approach.
Customer churn needs to be contained. The question arises whether CRM and CLM are as appropriate
today as they were a decade ago.
With rapidly changing factors influencing a customer (such as devices, channels, and personal
preferences), it is difficult to keep pace with the current implementation of CRM and CLM. CEM is not
really an extension of either of these.. However, it is the same philosophy that helped develop CRM and
CLM. A customer getting his‘Need’fulfilled through a product or service, is a happy customer. Similarly, a
customer whose‘Desire’has been affected through a product or service, is a delighted customer. In effect,
the same philosophy governs CEM. Not meeting the‘Need’leads to much worse experiences than not
being able to address the‘Desire’, or delight the customer. This defines the value and perception of the
brand among customers. Thus, it is important for Customer Experience (CE) management to first focus on
the‘Need’as a hygiene factor (Figure 1).
4
Figure 1: Perception Impact on Experience
Emotion & Perception
Affecting the CSP
Desire
Leading to
Expectations
Need
and, Sense
of Value
“Customer experience is
the internal and subjective
response customers
have to any direct or indirect
contact with a company.”
(Meyer & Schwager, 2007)
Harvard Business Publishing
Boston
“...It is a blend of an
organization’s physical
performance, the senses
stimulated and emotions
evoked, each intuitively
measured against customer
expectations across all
momentsofcontact.”
(Shaw&Ivens,2005)
PalgraveMacmillan
NewYork

5. 5
In contemporary implementation, CRM and CLM provide a set of tools in the hands of sales and customer
service departments, with little or no influence or effect, on the rest of the organization. Changes in the
external environment today require everyone in the organization to think‘Customer Experience First’.
Additionally, organizational structure, functions, and the key responsibilities associated with them, have
also changed with globalization and the introduction of new services over time.
For a CSP to design and successfully execute a CEM program, the first thing to address is the philosophy
that motivated them to implement CRM and CLM in the first place. CSP operations need to change their
focus to serve customers by meeting their need first (to prevent churn) and subsequently, to affect their
desire (to develop loyalty). This is what the industry calls Customer Experience Management.
CSP operations are inherently complex owing to their infrastructural nature, being a networked industry,
and the ever increasing needs of communication among consumers. Governments and regulatory
authorities add to the complexity through various regulations, including interconnection terms and
conditions, universal service obligations, maximum geographical coverage, rural penetration, and service
quality, to meet socio-economic objectives and enhance economic efficiency.
The industry has addressed these issues through a shift in the value-chain (e.g. introduction of passive
and active infrastructure players, network operators, and MVNOs.) over the years. Types of service and
service delivery mechanisms on the other hand, have become complex owing to the internet and
portability of otherwise static devices. In such a scenario, the traditional method of running CSP
operations with a focus on CAPEX, OPEX and Subscriber size, does not help the customer or the CSP in
the long run. Customer experience measures must be included in the parameters of business
performance. Then, they can be periodically measured and managed in the process of day-to-day
business.
While the subject of complexities of a CSP is a vast one for debate and discussion in itself, it is vital to
consider the inception points of these complexities from the customer experience perspective. The
factors affecting a customer’s experience at each stage of the standard CSP’customer lifecycle chains can
be seen in Figure 2. It is evident that many of these factors are inter-related and add to the complexity of
the CSP operations. Thus, customer experience is not limited to a departmental responsibility or an
individual’s responsibility areas. In typical CSP operations of modern times, these factors are spread over
dozens of functions and departments.
2. Where the Complexities Arise

6. 6
When a CSP decides to focus on its customer’s experience and streamline operations accordingly, it
meets with new levels of complexity - where to begin? To answer this question, the following points
need to be considered:
1. Where does a CSP stand today in terms of its customer’s perceptions?
2. Can a CSP do an objective measurement of customer experience levels for products and services?
3. Among the myriad of applications and processes that a CSP runs with, is it possible to pinpoint the
ones affecting the customer experience in a given way?
4. How does one decide the investments apportioned to a certain process, system or platform,
knowing/predicting well enough its impact on the customers?
5. What is the relevance of various CSP-Customer channels (traditional and new ones, like social media)
from the experience perspective?
6. Can the effectiveness of customer experience enhancement programs be tracked and benchmarked?
Many partners and product vendors further add to the complexity by positioning their products around
CEM. Even if this were true, it can affect only a limited set of processes or system KPIs, generating the
false impression that the CSP is undertaking CEM.
The complexities and resultant challenges can be summarised as shown in the table below:
Number of Offerings; Multiple
and New Mediums for
awareness – Challenges lies
in optimum use and
consistency of information
Mediums of Purchase; Ease of
Purchase; Options for
Purchase; Transaction Type;
Time Required
Number of Options; Speed;
Personalization; Options for
Remote / Self; Ease of
Configuration
Multiple Channels,
Convenience, Effectiveness,
Transparency, Speed,
Options, Acknowledgement
Multiple Channels, their
objectives and effectiveness;
consistency and
completeness of information
Number and Types of
Products & Service Requests,
Personalization;
Customization, Convenience,
Speed, Ability to Bundle
Ease of Use; Service Quality;
Customer Care - Reach /
Options / Ease / Effectiveness
Offerings Upgrade,
Expectations Management,
Customer Care, Quality
Management, Brand Loyalty
Awareness Enquiry Purchase Order Mgmnt Configure Usage Payment In-Life Loyalty
Figure 2: Salient Factors in Customers’Lifecycle

7. 7
Currently, there is a lack of baseline on CEM which a CSP can use to design its own program. Furthermore,
the subjectivity involved in CEM can easily push effort in a direction to address the organization’s view
instead of a customer’s perception, and any CEM program which doesn’t address customer’s perception is
at best, only a cosmetic effort.
It is important to tackle the‘Need’part first. Addressing‘Desire’should ideally be the second step. Tackling
‘Desire’may require more than what a CSP possesses already (i.e. fresh investments into systems to
address changed preferences).
That said, even for the‘Need’part of the customer experience, designing programs such as CEM requires a
certain level of top-down abstraction. The abstraction is required to measure customer experience, map
these measures to various processes and applications within the CSP operations, and then manage them.
The usual functional break-down and organizational structure to address the needs and promised
product/service has been in practice for a long time. Yet, the complexities of operations and underlying
processes create scenarios for failures more often than anticipated. Thus for CEM, the abstraction should
be done by dividing the areas of experience as per the customer lifecycle. For example, interaction with
CSP’s representative (marketing or customer care), procurement experience, service experience
3. Demystifying Complexities for a Simple Approach
Challenges Implications
What is customer experience – Business View
(Marketing) / Systems View (KPIs) / Customer Views
(Surveys) / Customer Perception
Unscientific methodology for Customer Experience:
Fragmented or Bottom-Up Approach.
Which department has a role in customer
experience management - who should do what
and to what extent?
The focus invariably shifts to one or two departments
(e.g. Customer Care).
More than a dozen systems impact customer
experience. What is the role and importance of
each?
The focus invariably shifts to one or two systems (e.g.
Contact Centre or Self-Care).
Where does a CSP start and where should it invest
first? How to benchmark?
Uncoordinated effort and Fragmented upgrades of
systems and processes, No Real Benchmark.
How much investment is justified and how do you
prepare the organization for customer experience
readiness?
Haphazard Approach/Product- Centric Investments.
Table 1: Top Challenges and Implications for CSPs

8. 8
(separately for retail and enterprise customers), customer care experience, billing and payment
experience, to name a few.
The sum total of each of these experiences is referred to as the Total Customer Experience being
delivered by a CSP. Any measurement and management effort should begin right from the initiation of
the customer lifecycle and should cover all the aspects of CSP-Customer interactions and transactions -
both from the Need and Desire perspectives.
3.1. A CEM Construct for CSPs
With the discovery and prioritization of the areas of importance of customer experience for a CSP, the first
level of simplification is achieved. This provides a top level functional break-up of CEM from a customer
lifecycle perspective and from here, a top-down construct can be developed. This construct should be
dependent on the areas of operations of the CSP (e.g. fixed line, mobile), focused market segments (e.g.
retail, enterprise), geographical spread of customers (e.g. metro, urban, rural); apart from the usual
business functions such as marketing, sales, order management, fulfilment and assurance.
Each of these experience areas lend themselves to certain mediums or channels, through which the
customer interacts with the CSP. For example, a mobile phone is a big channel or medium of CSP-
Customer interaction and transaction in a mobile retail CSP operation scenario. Similarly the CSP’s website
and selfcare portal are other mediums of CSP-Customer interaction. For a granular and analytical
framework, each of the channels of each identified experience area, should be uncovered for analysis. For
the sake of further simplification; one can even divide the identified channels or mediums into multiple
types as appropriate.
This is where customer experience analysis begins. These mediums or sub-mediums of CSP-Customer
interaction and transaction are affected or influenced by a number of factors which in turn affect
customers’experience. Identification of these factors, which aid in meeting the‘Needs’and influence the
‘Desire’, is critical for CSPs. For example, a voice call through the medium of mobile phone will involve
factors like – the call connection time, clarity of speech, and successful completion of the intended call..
Similarly, in the case of interaction via selfcare-portal - the way to log into the portal, look and feel of the
webpage, available features and functionalities, and ease of navigation - are some of the factors affecting
the customer experience.
Figure 3: Customer Experience in Totality
Total Customer Experience = Experience
Interaction
Procurement
Product Usage
Service Usage
Billing
Payment
Customer Care
Problem Resolution
[ [

9. 9
With this approach, the construct looks something such as shown in Figure 4:
Maximum caution is required in the identification of the experience factors as these are not only
technical or system KPIs (e.g. latency, call drop rate, packet data throughput) but also the perception of
the customer during his interaction and/or transaction over the channel (e.g. look & feel, ease in making
payments, presence of desired information). Unless the factors which affect perception are taken into
account as a whole, the construct is only another view into system or business analytics.
The measurement of these factors depends on the nature of the factors. Certain factors, such as, call drop
rate or throughput, can be measured through existing systems and tools. However, majority of the
factors would require a survey (with questions pertaining to CE Factors) to be conducted in order to
capture customer perception at each channel or medium. Aggregation of these customer experience
factors to arrive at the CE measure for the channel, requires scaling the survey and system parameters on
the same scale (e.g. a five Point or seven point Likert Scale mapped to -100 to +100).
3.2. The CEM Construct to Business Operations
The next level of simplification can be rather tedious from a planning perspective. In order to effectively
implement CEM, it is important to identify the processes and applications in the CSP organization which
have an impact on the customer experience.
This identification is dependent on the functional role of the processes and applications in the way that
they have been implemented. These processes and applications should map as‘one-to-one’or‘one-to-
many’with the experience factors identified. That is, one factor influencing the experience in a good or
bad way as a result of several processes, must be implemented across more than one application or
module.
TM Forum’s (TMF) standards guide CSP operations. Although not all CSPs follow TMF standards, most
CSPs have a set of processes and applications. These are similar to eTOM (version 9.0) and TAM (version
4.5) recommendations. For the sake of explanation using eTOM and TAM: the experience factor‘Presence
of desired information' on a CSP's website is dependent on several processes such as 'Link Market
Figure 4: The CE Measurement Construct
Experience
Areas
Experience
Mediums
Experience
Interfaces
Experience
Factors
Area-1
Medium-1 Medium-N
Interface-1 Interface-2
Factor-3 Factor-4 Factor-N
Interface-NInterface-3
Factor-2Factor-1

10. 10
Segment & Products (1.2.1.1.4)', 'Product & Campaign Message Development (1.2.1.7.2)', 'Message &
Campaign Delivery Management (1.2.1.7.5)', and 'Message & Campaign Effectiveness Monitoring
(1.2.1.7.6)'. Further, these identified processes could be implemented across 'Customer Sales Portals
(3.7.1)', 'Indirect Sales Portals (3.7.3)', 'Customer Self Management (5.4)', Enterprise Website & Portals (9.6.2)
etc. This leads to a map of Customer Experience Factors to Business Processes as shown through the
structure in Figure 5:
Similar to the identification of the Experience Factors in a given experience area, the identification of the
right business process and applications, or modules, influencing an experience factor is an important
step. A lot depends on the CSP’s internal business operations and implementation of systems and
processes. Work done in the past on business process transformation projects could be leveraged here.
Post measurement of customer experience, the analysis of processes and applications should be done in
the context of experience factors. This would provide a direct guideline to process owners in various
departments to tailor the processes to address undesirable CE measures in a specific channel or even a
specific experience area.
After this step, a CSP is ready to benchmark its customers’current experience levels, as well as, design a
program for subsequent improvement in the processes and applications. These improvements may then
get guided by the context of experience factors as measured, instead of organizational or managerial
perception.
Our analysis of modern CSPs serving both retail and enterprise customers, suggests that there are a
minimum of seven experience areas, more than 50 channels of CSP-Customer interaction and transaction
in the customer lifecycle, and almost 250 factors across the channels that affect customer’s experience.
Of course, it is understood that not all the experience factors are applicable to every CSP. It is also
recognized that even for a specific CSP, the applicability and weightage of various experience areas and
channels may vary in a given timeframe. Thus, the mechanism to focus on the importance of a channel
and even an experience factor was brought into our analysis. The measurement output with a sample of
data represents the status of various channels as shown in Figure 6 below. The channels in red gradient
are contributing maximum to the areas of bad experience, whereas the channels in green are
contributing to the good customer experience.
4. Results from Our Analysis
Figure 5: Experience Factor to Business Operations
Experience Factor
Process 1 Process 2 Process 3
App / Module 1 App / Module 2 App / Module 3 App / Module 4 App / Module 5

11. 11
Similarly, the measurement output with aggregation of data across channels and across experience areas,
provides the status of each area and the CSP’s overall operations as shown in the Figure 7 below:
Figure 6: Representative CE Measures across Channels with Sample Data
Figure 7: Representative CE Measures across Areas with Sample Data

12. 12
When identified properly, these experience factors say a lot about‘how to operate’. For example, in our
analysis we found that a comprehensive mobile device management system and its integrated
implementation (considering CE context) can positively influence customer experience in the range of 30
to 40%.
Our analysis using TMF standards (eTOM and TAM) with CEM construct, in the context of a contemporary
modern CSP, highlights some interesting facts. If we consider the repetition of processes and applications
or modules across all 250 identified experience factors, the process count is nearly 700, and the
application/module count is almost 900.
However, only 80 to 100 unique processes (at L3 level) need to be relooked at. In the context identified,
experience factors and these 80 processes could be implemented across approximately 70 unique
applications or modules. These unique processes are spread across operations such as marketing,
product management, CRM, sales, order management, assurance, billing, customer care, partner
management, workforce development, and knowledge management. A focus on these processes around
perception measures can fix regular business operations itself.
Using this approach, taking the sample data used in measurement (shown above), the processes and
applications to be looked at for one of the channels (say, problem resolution at a CSP’s Franchisee store)
can be seen in Figure 8 below:
These processes and applications should be enhanced in the context of a customer’s perception of the
‘timely interaction with trained personnel, understanding of customer’s problem, ease of
responding/actionable, problem and resolution satisfaction. This forms the basis for customer experience
improvement initiatives in line with CE measures and enhances regular business operations with relevant
CEM requirements. It also allows the distribution of the CEM effort across all teams involved in regular
business operations.
Figure 8: Representative CE Measures across Areas with Sample Data

13. 13
5. Putting it Together for a Smooth and Ongoing Program
As evident, a CEM program from conceptualization to implementation comprises of several steps of
designing, planning, execution, and enhancement activities. These steps can be schematically
represented as shown in Figure 9 below.
The program is an organizational team effort. However, its implementation warrants a‘CEM Champion’
who can be the sponsor (preferably from senior leadership) and work with SMEs across the organization
to design the CEM program and plan for its execution.
Amidst all of these analytical considerations for the CEM program, lie the important aspects of
organizational culture and people. Both these aspects have a direct and immediate impact on the
program; Just like any large change management program in an organization, clear sponsorship and
good communication is paramount for success.
While the CSP operations and processes do factor in workforce development as part of their business
operations, programs like these may not suffice with the usual processes of workforce development. It
requires instilling the ethos of customer experience among people of the organization, as well as, to
partners and suppliers who form part of the value chain of business operations.
Figure 9: Step-by-Step Approach for CEM Planning & Execution
Stage-1: CEM OBJECTIVES
Define Customer Experience Program Objectives
Stage-2: CEM CONSTRUCT
Build the Organizational CEM Construct
Stage-3: MEASUREMENT APPROACH
Identify right samples, size and measurement mechanism
Stage-4: MEASUREMENT EXERCISE
Develop overall Experience Measure
Stage-5: CHANGE MANAGEMENT PLAN
Identify the areas of good and bad experience
Stage-6: CHANGE CONTEXT APPROACH
Find Processes and Applications with Context for change
Stage-7: RECOMMEND CE IMPROVEMENT
Recommend and Execute CE Improvement Strategy
Stage-2a:
Identify Experience
Areas of Importance
Stage-2b:
Identify Channels /
Mediums in each Area
Stage-2c:
Identify Experience Factors
in each Channel / Medium
Stage-2d:
Link the Factors, Mediums
and Areas

14. 14
6. Conclusions & Take Away
CEM can be a good way for organizations to manage the shift to the‘customer economy’where customers
have more power than ever before. For CSPs, focusing on the customer is not new and neither is the
‘Customer First’idea. What is new, is the potential impact of failing one. In an industry where the concept of
brand loyalty is fast disappearing, CEM can certainly be a key enabler of sustainability for CSPs by providing
better experience to existing customers instead of investing in acquiring new ones..
Even though CEM is complex, its importance warrants simplification. A change in functional perspective to
address CEM can help develop this simplified approach.
Tackling CEM in a way which is aligned to various experience areas for a customer, allows the development
of an analytical method for planning and execution. Using the concept, a CEM construct as detailed in this
paper, can be developed for a CSP and used for periodic assessment and continuous improvement. It may
be compared to an evolving maturity model used by quality assurance programs. Such a CEM construct
can address the identification of areas of good and bad experience, help prioritize investments in CE
programs in line with larger business strategy, and address problems in the essential processes and
applications that help run the business.
Our top-down approach automatically distributes responsibility across the organization, making everybody
responsible for factors affecting customers . Thus, the approach avoids changes in the organization
structure, unless functionally warranted. A CEM champion is recommended..
CEM program execution can become part of ongoing business operations and CSPs can use the customer
experience measure as one of their key performance indicators.
References
1. Best, Ian (2012, Apr). TM Forum customer experience management introduction and fundamentals, Managing the Quality of Customer Experience – TR148, TM Forum.
2. Jospeh Pine II, B. & Gilmore, J. H. (1998, Jul-Aug). Welcome to the experience economy, Harvard Business Review.
3. Markey, R. & Reichheld, F. (2011). Loyalty insights, Bain & Company Inc, Retrieved from:
http://www.bain.com/Images/LOYALTY_INSIGHTS_1_Introducing_the_Net_Promoter_system.pdf
4. Meyer, C. & Schwager, A. (2007). Understanding Customer Experience. Boston, MA: Harvard. Business Publishing.
5. Richardson, A. (2010, Nov. 15). Using customer journey maps to improve customer experience [Web log comment]. Retrieved from
http://blogs.hbr.org/cs/2010/11/using_customer_journey_maps_to.html
6. Shaw, C. & Ivens, J. (2002 revised in 2005). Building a Great Customer Experience. New York: Palgrave Macmillan.
7. Skard, S., Nysveen, H. & Pedersen, P. E. (2011). Brand and customer experience in service organisaitons: literature review and brand experience construct validation, SNF Working
Paper No. 09/11, SNF-Project No. 9033, Institute for Research in Economics and Business Administration.
8. Uusitalo, Mika (2012). Customer Experience Management in Telecom Operator Business, Master's Thesis, Helsinki Metropolia University of Applied Sciences.
9. Verhoef, P. C., Lemon, K. L., Parasuraman, A., Roggeveen, A., Tsiros, M. & Schlesinger, L. A. (2009). Customer experience creation: determinants, dynamics and management
strategies. Journal of Retailing, 85 (1), 35-41.

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