improve customer experience in telco
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TRANSCRIPT
How to improve Customer
Experience through best Network
and IT Quality Management
E2E Service Quality Management
March, 2013
Apresentação da Arthur D. Little
Somos reconhecidos como inovadores que cumprem os p razos e com os compromissos assumidos
� Fundada em 1886, sendo a primeira empresa de consultoria de gestão do mundo
� Hoje é uma empresa líder de consultoria de gestão global com 35 escritórios no mundo inteiro
� Os seus pilares são inovação, estratégia e consultoria tecnológica� Servimos 75% das empresas do Fortune 100 companies
� NASA e a Arthur D. Little– Arthur D. Little participou no planeamento
e execução da missão da Apollo 11– Resultado: A NASA cumpriu os seus
prazos de colocar o Homem na lua antes do fim da década
A Original: A Arthur D. Little é a primeira empresa de consulto ria de gestão do mundo
Trabalhamos com os melhores: Os nossos clientes definem os standards
Uma seleção do nosso portfolio de clientes
1) TIME = Telecomunicações, Informação, Media & Ele ctrónica
MontadorasIndústria
FarmacêuticaEnergia e Utilities
Engenharia e Indústria
Serviços Financeiros
TIME1) Transportes e Turismo
Sector Público e Saúde
Apresentação da Arthur D. Little
Agenda
1 Executive Summary – Business Case
2 Arthur D. Little’s Approach
3 Customer Experience and NW/IT Service Quality Mgmt
Market trends are highlighting network weaknesses t hat will become critical in the next few years
Higher quality requirements!!!
Data traffic growth
High AUPU to support (5Gb/month in 2015e). Data traffic is expected to
grow by 32 times till 2015e
Theoretical speed vs.Real speed
Many times the advertised speed is not the real one; most common
HSPA versions provide a speed of 7,2Mb/s vs. a real speed of 1-2
Mb/s
Limited coverage
Especially in rural zones 3/4G coverage is poor
Innovation and applications
Communication methods are changing and smartphones with their applications are the symbol
Investments in infrastructure and devices
In the next ten years, communication providers are poised to invest more than €0,8 trillion in HS broadband
networks
1 The Context- Issues to be addressed
Source: Arthur D. Little, Exane BNP Paribas
Increasing client’s attention
More intense usage
Highest attention to network quality
Increasing network quality related churn
Source: Arthur D. Little analysis on a Case Study of a leading Mobile Operator
Improvement Area Matrix
Imp
act
Satisfaction
0%
10%
20%
50% 100%
Data Quality
Voice Quality
Data coverage
Voice Coverage
Technical Quality
Customer Service
CC Effectiveness
Complaint Handling
Self Care
Commercial Offer
Billing
Voice Cost
Data Cost
Services & HS Portfolio
HS Availability
HS Cost
FOCUS AREA
1 Executive Summary – Business Case
In 2010/2011 the decrease of Quality of Service cau sed an increase in customer claims with strong negative impact on churn rate of a leading M obile Operator
Improvement of Quality of Service – the experience of a leading Mobile Operator
Case study
• The swap and modernization of the whole Network
Infrastructure
• The launch of an aggressive commercial offer for Voice
and Data Services that have saturated the capacity of
Network Infrastructure
Main Triggers
Solution Plan
Shareholders immediately requested for a definition of a
recovery plan to implement and monitor on a periodically
bases. Main areas of Interventions:
• Network Infrastructure optimization
• Review and improvement of E2E technical
troubleshooting process
• Review and improvement of Customer Claim
management process
Agenda
1 Executive Summary – Business Case
2 Arthur D. Little’s Approach
3 Customer Experience and NW/IT Service Quality Mgmt
2 Arthur D. Little’s Approach
Arthur D. Little proposes an improvement framework according to three maturity levels: 1) fix the basics, 2) align with customer’s expectations a nd 3) exceed customer’s expectations
Network/IT Delivery Service
Customer Experience
How good the service is?
Fix the
basics
Align
Exceed
� Use KQIs to measure the Quality of E2E Service
� Predictive Model development based upon CSI-KPIs correlation
� Claim root causes analysis, classification, resolving actions
� System log analysis to detect issues
� Day-by-day fault prioritization & resolution
� Effective Reporting� 1-to-1 correlation between alarms & faults� Controlling system for undetected faults� Intervention on service priority base� Effective faults resolution� Automation tools for less human errors
Expectations
Customer Care
How well do they help me?
� Implement NBA solutions to anticipate customer requests and leverage cross-selling potential
� Sentiment Analysis
� Personalized Caring Services
� Tool automation for real-time claim troubleshooting to increase FCR
� Customer blended management (integrate all touch points)
� Improve selfcare and App touchpoints
� Unified desktop interface for CC
� Standardized incidents reporting and solving workflows
� Knowledge Management
� OSS-accessibility for data retrieval by CC agents
Driv
en b
y m
ajor
bu
sine
ss im
pact
sD
riven
by
cust
omer
se
gmen
tatio
n
CB
Neu
tral
Driv
en b
y m
ajor
bu
sine
ss im
pact
sD
riven
by
cust
omer
se
gmen
tatio
n
CB
Neu
tral
Key: CB: Customer Base , NBA: Next Best Action
Source: Arthur D. Little analysis
Prioritization Matrix
Quick Wins Mid Term Issues
Second Tier Issues Nice to have
Complexity
32
46
5
2 Arthur D. Little’s Approach
At “fix-the-basics” level technical issues affecting NTW/IT operations are addressed according to a prioritization matrix and no customer impact is considered yet
Average benefits measured on
a yearly basis upon our
experience include:
�Cell unavailability : - 20/30%
�Cell data inaccessibility : -
30/40%
�Cell voice inaccessibility :
- 20/30%
�Drop rate: - 5/8%
�CSI: + 5/7%
Benefits
1
Impa
ct
# Issues
1 Effective Reporting
21-to-1 correlation between alarms &
faults
3 Controlling system for undetected faults
4 Intervention on service priority base
5 Effective faults resolution
6 Automation tools for less human errors
Source: Arthur D. Little analysis
Illustrative – referto a specifi case
At “align” level E2E customer perspective is consider ed in order to get everything properly working along the whole workflows and limit major b usiness impact
E2E Quality-assurance approach
Source: Arthur D. Little analysis
ERP
CRM Provisioning Network
Billing
Monitoring pending orders or errors in
CRM
Monitoring pending orders or errors in provisioning
Monitoring errors in Billing
1
32
Orders input
2 Arthur D. Little’s Approach
IT log analysis (crash program) seeks
workflows error along critical connection
points
Crash Program
Day-by-day operations activities
eliminate/solve current errors limiting
impact on customer service
Day-by-day Operations
Claims root-cause analysis is carried
on in order to identify overall IT defects
that directly impact on customer service
Claims root-cause analysis
1 2 3
Illustrative
Major business impacts on customers are limited mon itoring service workflows in an E2E perspective
Arthur D. Little has an extensive expertise in impr oving Mobile Service Quality and has developed a model of intervention based on the conc ept of Quality of Experience
2 Arthur D. Little’s Approach
Project Customer Satisfaction
MNOMNOMNOMNO
Expectation
Perceived
CustomerCustomerCustomerCustomer
Max Satisfaction = Min [Expectation - Perceived]
ExpectationsExpectationsExpectationsExpectations are related to:
- MNO positioning
- MNO Brand values
- History of the relationship between
customer and MNO
Perceived Perceived Perceived Perceived quality is related to:
- Tangible aspects of service performance
(eg. Technical quality. Technical quality. Technical quality. Technical quality) and intangible
(eg. CommunicationCommunicationCommunicationCommunication)
The Customer Satisfaction must be designed on customer expectations that reflect the positioning and brand values of Oi
2 Arthur D. Little’s Approach
� CSI-adjusted thresholds can be calculated for any KPI (coverage, drop calls, surfing speed and so on)
� From now on, KPIs can let Business Operations be run with a specific focus on Customers expectations and satisfaction
Customer Expectations Predictive Model for Operatio ns
CSI (1-5 range) Pure-technical Cell Availability KPI
CSI-adjusted Cell Availability KPI
Soglie CSIDa 1 a 2,49
Da 2,5 a 2,74Da 2,75 a 2,99Da 3 a 3,24Da 3,25 a 3,49Da 3,5 a 5
(90%)
100%
99,1%
98,5%
99,3%100%
(90%)
96%
97%
98%
96%
97%
2 Arthur D. Little’s Approach
CSI
Customer Expectations
Actions
QualityGroup
� Business Op.� Marketing� Sales� Customer
Care
P R E D I C T I V E O P E R A T I O N S
KPIs
� Predictive Operations use CSI data to understand customer expectations and predict possible issues
At “exceed” level Business and Technical data are cor related in a CSI drive framework in order to predict Customer needs and expextations, a lso addressing investments effectively
Customer Behavior Data Retrieving
Illustrative
Source: Arthur D. Little analysis
2 Arthur D. Little’s Approach
Expected Benefits
� Deflection to automated / self-service touch points
� Average handling time reduction
� More value added customer care service
Improving Customer Experience Improving CC Worklife
Accessibilityand ease of useAccessibility
and ease of useAnswers
EffectivenessAnswers
EffectivenessOperations EfficiencyOperations Efficiency
Source: Arthur D. Little analysis
Arthur D. Little approach for customer care service quality improvement addresses both Customer Experience and CC Agents worklife
2 Arthur D. Little’s Approach
Fix the basics Align Exceed
Ser
vice
M
odel
Act
ions
Ben
efits
Flat for all customers Driven by business impact Customer based segmentation and personalization
� Standardized incidents reporting and solving workflows
� Knowledge Management
� OSS-accessibility for data retrieval by CC agents
� Tool automation for real-time claim troubleshooting
� Customer blended management (integrate all touch points)
� Improve selfcare and App touchpoints
� Unified desktop interface for CC
� Implement NBA solutions to anticipate customer requests and leverage cross-selling potential
� Sentiment Analysis
� Personalized Caring Services
Handling Time
Deflection rate to automated touch
points
-30%
+30%
-20%
+25%
Source: Arthur D. Little analysis
Incremental benefits are provided while moving upwa rd across the maturity levels of the proposed improvement framework