Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey

Value Creation and Customer Experience
Management in Mobile VAS
for an Enhanced Customer Journey
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT and Media
Ali.Saghaeian [at] gmail.com

Objectives
• How to Map the Customer Experience and create
Value
• What are the main Objectives for Customer
Experience Management (CEM)
• Comparing Traditional Customer Service vs. Next
Gen Proactive Support
• Looking into economic principles for Superior
Customer Experience
• Understanding Customer Issues and moving through
Customer’s Journey

Agenda
• The primacy of the customer experience is taking
root
• Mapping the Customer Experience
• Customer experience as an ecosystem play
• Top business and process challenges for customer
experience programs
• Deepen engagement over the lifecycle of the
customer
• Importance of Self Service in better customer
experience

The primacy of the customer experience is
taking root
Progress towards digital transformation
Source: Ovum | TMT intelligence | informa
13.3%
14.0%
15.1%
15.2%
22.8%
27.1%
28.1%
26.9%
30.0%
28.8%
33.7%
33.4%
35.7%
35.3%
32.3%
27.8%
30.2%
29.8%
29.3%
31.3%
20.0%
16.8%
17.5%
18.2%
14.9%
15.9%
12.9%
11.4%
7.2%
7.8%
7.5%
10.2%
6.5%
7.2%
6.2%
5.0%
5.8%
4.0%
3.5%
4.9%
5.1%
4.4%
2.8%
3.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
90% 100%
Transform IT capability
Modernize legacy systems
Build the modern workplace
Adopt cloud services
Exploit business information
Connect the physical world
Manage security, identity and privacy
Enhance customer experience
Percentage of respondents
Progress towards digital transformation
Complete Well advanced In progress Early
stages Not started Not relevant

Mapping the experience
W eb
IVR
Live Chat
Email
Agent Events
Social Media
Surveys Feedback
Calls
Customer Service
Operations
Sales
Management
Marketing Product Mgt
Customer Experience
Human Resources
Mobile Applications

Why bother engaging with YOUR customers?
• If you don’t, your competition will!
• Who will be your most fierce competition next year?

The way we engage our customers needs to
change as a result of the shift to digital
Empowered and
demanding:
personalised content
and differentiated
experiences are key
‘Always on’: have
constant access to
news and
information
Increasing their
expectations: companies
must engage digitally
Pioneers:
embracing new
technology at high
speed
Networking: using digital
tools and platforms to build
cross-border networks
Today’s
customers
are...
Ambitious: keen to
harness the power
of digital to further
their careers and
development

Customer Service Vs Customer Experience
Customer Service Customer Experience
Happens only when there is a
problem
Overall perception
A point The line
What the organization does What the customer thinks
An event A feeling
Covers 3 marketing P’s:
people, physical evidence,
process
Covers 7 marketing P’s:
people, physical evidence,
process, product, price,
distribution, promotion
Transactional and quantifiable Subjective and experiential

Customer experience is an eco-system play
Operator's Network
Radio network, backhaul,
coverage etc
Subscribers
Subscriber usage
behaviour
and Personalization
Devices
Device behaviour, quality,
battery performance
Environment
Location, weather conditions
and other external factors
Applications
App behaviour, performance
Operating System
Operating system
stability, usability etc

The main objectives for Customer Experience
Management (CEM) are:
6 Improving operational efficiency and quality
•Understand issues and challenges
•Use SQM as a key part to ensure operational quality levels
•Allow proactive and “real-time” decision making
Enhancing customer touch points
•Integrate different metrics to allow a holistic customer view
•Provide a seamless experience across the different touch points
•Understand and manage the customer journey
3.Supporting differentiation & new business models
•Differentiation and monetization support
•Consulting and libraries of actions/ use cases/ experience packages
•Data and profile brokering

Traditional customer service vs. Next Gen
proactive support
Interaction type
Traditional reactive post-sales
customer interactions
Pro-active pre- and post-sales customer
interactions
Channels
Inbound telephone customer care
Inbound service-to-sales
Outbound telesales
Email
Pro-active web chat
Click-to-call
Chat-to-Voice escalation
Interaction
triggers
None
Individual customer journeys
Behavioral attributes
Purchase and experience history
Value at stake
Customer lifecycle attributes
Approach
“Waiting for the phone to ring” or email
to come in
“Reaching out to customers in need, targeted
and contextualized”
Cost & ROI
Cost per minute, regardless of sales
conversion
Unit based and variable compensation model
ensures positive ROI

Customer Experience Management (CEM) is a
key milestone for Telecom Operators
Please rank in order of importance the operational issues that communications service
providers must address in the next three years

Understand your current state and aim for
the next level of maturity
Customer-Adaptive
CEO, board level sponsorship, enterprise-wide commitment Focused
on:
• New business
models
• Continuous
innovation
• Anticipating
the future
• Disruptive
force
Customer Experience
Coherence as an organisation
Omnichannel CX
CEO, board level sponsorship, enterprise-wide commitment
• Customer
journey’s
mapped
• Integrated
channels
• Context 360
Multichannel
Basic integration between systems but siloed
mentality and product/cost driven
Departmental
Departmental silos,
Fragmented CX
Class leading

Organizations are largely disconnected from
their customers, putting their futures at risk
Critical areas of weakness identified
 Leadership ‒ Slow decision-making, suggesting
command-and-control is still prevalent
 Partially engaged workforce ‒ Lack of
empowerment or concern for their aspirations
 Weak sensing capabilities ‒ Largely flying blind as
lack both insight and foresight
 Fragmented/disjointed customer experience ‒
Insufficient to meet rising customer expectations of
what a good experience should be – a bolt on
approach to technology
 Innovation is haphazard ‒ No disciplined broad-
based innovation management capability in place =
hostage to fortune
 Poorly aligned, overly complex & disconnected
mission critical processes ‒ Negative impact on
productivity and efficiency & critical information
flows
 Lack an adaptive enterprise architecture ‒ Held
back by legacy systems and ad hoc IT approaches.
User experience is not consumer-grade level

Consumers expect a personalized experience
1 - Teradata & Celebrus Research 2015.
2 - Location Score Index (Q1 2025) Thinknear via GPS Business News
Poor Monetization Efforts can be Damaging
1. Teradata & Celebrus Research 2015.
2. Accenture Personalization Survey 2015
Nearly 60% of consumers want
real-time promotions and offers.2
63% of consumers across every age group like to receive personalized offers.1
Only 37% of geo-tagged mobile ad impressions are within 100 meters of the user’s true real-time location.2
77% say they would take action to poorly personalized experiences.1

Customer experience – various sources of
complexity can make solutions difficult
Complexity of
products
Pricing complexity
Switching
processes
Contractual
restrictions on
ability to switch
Imbalance between
parties’ rights &
obligations
Bundled services
Importance of
services
The complexity of products and speed of change means that consumers may find it difficult
to understand the products they are buying and to compare them in order to reach a
purchasing decision.
Pricing complexity can make choosing the best deal difficult.
These can lead to poor consumer experiences and result in harm to consumers who attempt
to switch (and/or port their number). This can be a feature in mobile markets where there are
low incentives on CPs to agree to switching processes that are good for consumers.
There is an increasing trend towards CPs seeking to introduce contractual restrictions on
customers’ ability to switch e.g. longer minimum contract periods (‘MCPs’) and penalties if
they wish to exit the contract during this period.
W here both parties to a contract have equal information and resource, they will also have
equal ability to negotiate terms and to enforce. However, in consumer-to-business contracts
this is not the case. It is often difficult to understand the implications of small print.
The growth of bundles can generate valuable upside for consumers, but can also serve to
exacerbate many of the issues identified above.
The growing importance of communications services such as mobile to enable citizens to
take full part in society and the economy has drawn attention to gaps in provision or take-up
where there has not been a commercial case for CPs to invest and provide service.

Top business and process challenges for
customer experience programs
Getting a holistic view of the customer
Understanding customers’ needs
Providing responsive support
Understanding account profitability
Meeting SLA conditions
Providing customized solutions/products
Bringing new products to market
Process complexity
Management support
Account Management
Partnering with others in the value fabric
Agreement of core metrics

Telcos are in the early phases of improving &
managing CE
Has you organization deployed any of the following customer experience
management projects?
Source: Ovum | TMT intelligence | informaIntegrating social media analytics with CRM
Speech analytics
Contact center analytics
Digital marketing/marketing automation
Mobile device tracking and profiling
Social media and Big Data mining
Order-to-activation
Multi-channel routing
Feedback and surveys (voice-of-customer)
Setting up service monitoring/ operation centers
Integrating inputs from OSS/BSS into CRM
Fully deployed Trialing Planning Considering use, but no firm plans Not considering

Successful enterprise innovators have 10
attributes in common
Leadership Prioritize and foster innovation – remove barriers, provide resources/time, set challenges and priorities, enable Deep insight and foresight Market-led insights, current voice of the customer (VoC), and horizon scanning of emerging technologies Coherent innovation strategy Determine where and how to innovate. Select markets in which to compete/engage. Cast ideation net wide: crowdsourcing, coinnovation Balanced innovation portfolio Healthy mix of sustaining and disruptive innovation – products/services/customer experience and business models Adaptive planning Continuous versus annual planning cycle. Rapid allocation of resources for disruptive innovation Dedicated innovation team Dedicated team to act as catalyst and 100% focused on innovation Formal innovation
management Coherent process from ideation through to selection, prototyping and launch, and product lifecycle management Culture Foster experimentation; fail fast, succeed sooner philosophy; agile approach Highly collaborative Across the enterprise, and with customers, partners, and suppliers Relevant ecosystem Innovation partners, venturing and options, incubation with entrepreneurial start-ups

Deepen engagement over the lifecycle of the
customer
Use cases Pricing: Recommendation:
Bundled pricing plans
Location based pricing
Acquire
Grow
Retain W inback
Incentives for the first top-up
Discount on VAS trials
Real-time Offers
Personalized real time offers
Next best offers
Data/VAS/mMoney promotions
Location based offers
Churn control:
Churn propensity scoring
Customer experience optimization
Winback campaigns
Service/content recommendations
Loyalty programs
Tenure based personalized rewards
Rewards & incentives:

Your Customer’s Journey Should Be Like
This….
9
1. Provide me with relevant
and timely information
2. Tailor my engagement
based on past interactions
3. Personalize offer to my
budget and needs
6. Personalize my
services on demand
7. Help me manage
my services/spend
8. Share my experiences
5. Deliver right first
time and every time
4. Keep the contracting
process simple

Importance of Self Service in better customer
experience
New support paradigm for customers
SATISFACTION
DISSATISFIED CUSTOMERS
✔
Self Service customer support
✗
TRADITIONAL
CHANNELS: Online, call
center, Point of sale
On device Self service
- Quick Fixes
- Personnalized
support
- Seemless user
journeys
- Self-service (no
waiting time)
- Qualified order
bookings
Still not migrated to
Self-Service support

Right Message, Right Time, Right Location
Brazil
UK
55%
78%
US UAE 63%
68%
The messages you receive are not in line with your areas of interest
Communicate with your customers
at the precise MOMENT and LOCATION
when it offers the most value
Only mobile devices can deliver relevant experience!

Look into economic principles for superior
customer experience
Match right product to right customer
Implement 3rd degree price discrimination
Increase producer’s surplus by recommending right plan/pack to right segment of users based on their price elasticity
Reduce dead weight loss in operator’s favour
Demographic segmentation to identify price conscious users
Send promotions at right time
Price inelastic
Price elastic
Customer’s state of mind changes with the time of the day and day of the week
Channel preference and location also changes with the time
Build 360° customer profile
Identify user’s interest , liking, usage behavior , etc to recommend right kind of product to the user
Superior Customer Experience Personalization and Recommendation
Bring together Buyer and Seller

RECOGNIZE INDIVIDUAL TRAJECTORIES
Identify structure in routine
Do video chats Location
Reading mails
Location
Individual Places
Life Pattern
Streaming Music
8 am
10 am
12 am 14 pm 16 pm
18 pm
use App‘s xyz
Home A
School
Shop
Office Home B

Understand Customer Issues: An Example of
Telefónica Germany – “Get into the customers shoes”
Customer Experience Trail
Start: Telco is not the centre of our customers life
Introduction of customer roles
TP “Attract”: Experience of the information overload
TP “Information”: Address different information channels
TP “Buy”: Address importance of customer need based
consultations
TP “Bill”: Experience bill as important tool to reassure
buying decision
TP “Use”: Address how important user-friendly services are
TP “Help”: Experience the customers frustration over
unsolved problems
TP “Lifetime:” Address the importance of using customers
language and a customer dialogue
TP “Cancellation”: Experience the cancellation process

Results Being Realized by World-Class CSPs
2.6
Weeks of deal
validation is
reduced to few
hours
4
Days reduction in
time-to-configure
and 2 days
reduction in timeto-
price a quote
91%
Reduce in order
fallouts
96%
Achieve in SLA
compliance
5%
Of annual ME
revenue are
recovered from
revenue leakage
10%
Reduce in
number of days
of order to bill
cycle

With Essentials2020, Orange is moving
forward in a strategic ambition focused
on Customer Experience

Conclusions and recommendations
CEM is all about driving profitable growth by focusing on the customers rather than the internal challenges
CEM demands a holistic approach. It is not only about technology and processes, it is about building a customer-centric organization
Start small – It makes most sense for operators to initially focus on CEM as an enabler rather than a differentiator

Moving from 4 seconds to 2 seconds: success is a team
of measures all working together to drive an outcome

Sociodemographics, Mood, location and
predictive behaviour
CAN YOU COME UP WITH SERVICE IN FEW MINUTES?
KNOWLEDGE OF ONE OR MORE MOBILE USER IS VERY STABLE & IN ca. 95% of the cases true from MON-FRI
9
SOCIODEMOGRAPHICS & INTERESTS CURRENT AND HISTORICAL BEHAVIOUR, MOOD, NEEDS CURRENT & FUTURE ABSTRACT LOCATION
 Current: At Home
 Future (30min later): Restaurant
 + Typical movement patterns
 Current: Listening music & talking to friends
 Current Mood: Happy
 Current Need: Hungry
 + Typical Behaviour patterns
 Age: 25
 Gender: male
 Relationship status: single, no child
 Country & Language: Germany, german/english
 Interests: Soccer, Cars, Art

Any Questions?

Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey

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