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Abstract
Smartphone devices have dramatically changed the way consumers consume data. The need to be connected anywhere and anytime is driving service providers to put focus into customer experience to grow customers, build loyalty and drive prots through new services. As a result, the expectations of service experience from the end-user are heightened and cannot be underestimated. For end-users, customer care expectation and solutions have a real impact on their customer experience with less time struggling to resolve connection problems and more time using the service. Service providers are under pressure to deliver customer experience that separates them from the competition, while at the same time trying to delicately balance their revenues and managing costs for near term gain and longer term success. In this paper, we outline the scale of issues faced in mobile device and service care that impacts both service providers and end-users beyond connectivity. With a broad range of services and wide variety of applications, the smartphone requires more complexity to handle a multitude of rmware and software congurations which legacy CRM systems are inadequate to deal with todays customers. Remote device support and service care is a key component to tackle the demands of escalating costs in customer care. Service providers are seeking integration onto backend systems without incurring heavy infrastructure changes and ensure the best t into the existing operations through automated and proactive customer care mechanisms to ensure service excellence and thus prevent service quality degradation.
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Contents
Overview Conventional CRM Revisited Driving New Generation of Self-Care Customer Service Revenue Churn Cost Where is the Cost Savings Step by Step Problem Resolution An Integrated Approach Instinq Self Healing Diagnostic System Legacy CRM versus Instinq SDS Conclusion Service Uninterrupted 24/7 References 11 12 13 06 07 09 01 03 04
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Overview
The smartphone is becoming common as it replaces handsets into multi-purpose devices to meet business and social needs of everyday lifestyle. In a report by analyst rm Juniper Research1, the number of global smartphone shipments will reach 1 billion per annum in 2016, up from 302 million in 2010 and it is not showing signs of slowing down, as these devices become available at lower price points over the years. Smartphones can create a number of challenges of their own, including higher device-related support costs and longer call handling times which leads to an increased need for support, particularly with the conguration of new applications and services. These support costs can possibly threaten the already thinning prots of services. Service providers are becoming aware that customer care can play a strategic role and thus are under pressure to ensure outstanding user experience. The shift of service provider to customer-centric focus has been challenging if not frustrating to the end-users. Typically, customers who experience Internet connection trouble will call their service provider and speak to a customer service representative for help with troubleshooting. Customer complaints due to fault and inability to connect exceed 30%2 on average as illustrated in Figure 1. Most often, users will give up trying to connect to a service after one or two attempts. Similarly, user complaints point towards grouses of inability to connect, slow connection and inability to access the Internet.
2% 18%
General Enquiry Fault / Network Trouble Issue Request on Credit Change of Service 33% Complaint Bill Charge Enquiry on Bill Charges Follow Up / Complaints
6% 7% 9% 2% 7% 8%
1 2
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Source : Smartphone Evolution Strategies: Premium , Standard and Economy Markets 2011-2016, Juniper Research Source : P1 Customer complaints, Sept 2009
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In a separate study, consulting rm Bain & Company concluded that it is six times costlier to acquire a new customer than retain an existing one. Looking after subscribers is a key differentiator as reputation for good customer care is harder to emulate compared to bringing to market new services or price plans, as consumers are quick to switch service provider in this ercely competitive market. Instead of relying on a customer service representative, a customer can enjoy the same assurance of quick and effective troubleshooting through an intelligent self-care platform. The self-care platform has diagnostic and intelligent analytics ability that is automated and service provider can achieve savings in its customer care investments in the longer term. The self-care platform is a based on closed-loop architecture (eg: aggregation of expert knowledge with reduced learning cycle or staff training over time). This paper will discuss the use of self-care, diagnostics and analytics, challenges and approaches to address the burgeoning need of service providers to optimize costs and deliver excellent service.
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Revenue
With reduced reliance on call centers, service providers can potentially protect revenues by taking the pressure off on escalating support cost. The exibility of the client-server architecture allows for scalable and modular modules to be built into the smart self-care system through a diagnostic manager allowing concurrent, multiuser access as well as remote user access to the diagnostic server and diagnostic tools. It provides external interface to integrate into provisioning server, easing installation, support, administration, and upgrade whenever necessary. Customers continue to have easy access to applications and generate immediate desire to pursue the value added services. Ultimately, giving rise to better revenue opportunity.
Churn
The ability to remotely detect conguration settings on devices, monitoring of devices, resolve rmware conicts, SW installation, updates and various settings immediately is a powerful tool. The result is a signicant savings in reducing call handling times, as customers do not need to contact their service provider. Through built-in intelligence and proactive troubleshooting feature, connectivity issues can be queried and detected right up to the users devices. Next, either corrective action can be taken immediately (if possible) or customer service agents can be informed of the situation and advised on how to counsel users regarding problem solving steps. The smart self-care system can gracefully coordinate the various statistical reporting, analytics within a centralized server for easy data management.
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Cost
By introducing a smart self-care mechanism to address connectivity issues, reliance on customer support is reduced. As a result, customer care OPEX costs can be lessened. Meanwhile, customer support efforts are reserved for more critical issues and a healthy support turnaround time is maintained. Additionally, with built-in knowledge models, common connectivity issues can be healed automatically without going through manual troubleshooting efforts. Automated technical support for the entire network is further improved via continuous updates of new knowledge models.
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Total Subscriber Addition Average ARPU Churn Rate Subscriber Retention (through Instinq SDS) Subscribers Quarter Total Number of Subscribers 200,000 515,000 410,000 285,000
1.5million $38 4% 40% After Churn Reduction Nett Loss of Customers 6,625 12,875 10,875 7,125 Savings
Before Churn Reduction Nett Loss of Customers 10,600 20,600 17,400 11,400 Loss of Opportunity Cost 402,800 782,800 661,200 433,200 2,280,000
Loss of Total Revenue Opportunity Cost Gain 251,750 489,250 413,250 270,750 251,750 489,250 413,250 270,750 1,425,000
Q1 Q2 Q3 Q4 Total
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Note: Assumes a margin of 40% per subscriber and retention call costs at $15 per subscriber.
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By means of measurable parameters, the smart self-care system can proactively and accurately respond to device specic technical support and build knowledge models for predictive analysis - eliminating the need to extensively incur staff training and business process improvement, brings savings of up to $1.4 million as illustrated in Table 1. The platform independent smart self-care system can also be integrated into the carriers billing systems and thus minimize the existence of distributed communication. The classic siloed data structures spread across separate databases, inter-business departments that are unconsolidated results in the inefciency of information processing which can create redundant, overlapping and uncoordinated systems. The lack of consolidated data and access to data undermines the CRM efforts and will likely to result in incorrect diagnosis and resolution, slow response times and dissatisfactory performance. Consequently leading to inefciencies at the call centers, less effective marketing and missed revenue opportunities as a result of poor customer experience.
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Step 3 Escalation
Step 5 Diagnosis
The Instinq smart self-care platform, being business-rules driven, determines what the next best action should be, what to present, when to guide and when to deliver guidance with greater appreciation that all technical support agents are not created equal. Instinq refers to the next generation of a help desk system. In traditional help desk systems, subscribers would relate their ordeal to an agent who mans the help desk system. Issues encountered are diagnosed by the agent to identify a solution for the subscriber. This time and effort consuming effort will only be useful if the subscriber narrates the problems and symptoms accurately to the agent. Failing which, zero resolution will only aggravate the subscriber and the only option is to locate the nearest customer service center or retailer in person. This is even more obvious and desperate in countries, where geographical distances are far and wide mobilization of technical support is challenging, if not near impossible. Typically, Opex constitutes about 60% of the network costs, of which there is only between 5-10% being invested in customer care service. In contrast, the escalating costs of retaining a customer has risen by two-fold. In one of the studies conducted by Wireless Operator Strategies4 (WOS) research, it tracked the average cost to retain a customer has increased for T-Mobile in several countries: Germany (26%), Austria (57%) and the Netherlands (12%). Orange customer retention costs have increased in France (11%) and Spain (14%). With more smartphone sales, upgrades and subsidies together with a relentless data trafc growth, carriers must nd ways to reverse the falling revenues through major focus on optimization of pricing, service revenues and costs.
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Note: Wireless Operator Strategies (WOS) in a report Western Europes Market Still Searching for Growth, OPEX Management a Concern 2010 studied operational and nancial performance of over 200 mobile operators with over 77 percent of global subscribers.
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Diagnostic Manager
Step 1
Diagnostic Manager starts diagnosing modem or dongles after detecting symptoms.
Step 2
Based on the preloaded corrective actions stored in Diagnostic client, it is able to determine the potential root cause, try to self-heal or suggest solutions.
Step 3
Diagnostic client sends symptoms, device information, connection status and usage information to the server over the internet, at scheduled interval.
Step 4
Diagnostic Knowledge Server collects various client data, analyze, update and train the knowledge engine to learn about device behavior.
With this in mind, Greenpackets Instinq SDS, which can be installed on subscribers PCs, laptops and handheld devices, is able to automatically scan the current environment to diagnose and solve connectivity issues. If required, subscribers will be prompted with instructional messages to help in the problem-solving process. Instinq SDS is designed to take self-care beyond prole updates to help operators handle technical hitches at the last mile level without burdening customer support.
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Instinq SDS consists of two components Self-Healing Diagnostic Manager (client component) and Diagnostic Knowledge Server (server component). Self-Healing Diagnostic Manager can be installed on PCs, laptops and handheld devices to perform auto-diagnosis, online troubleshooting and self-healing on device specic problems in an easy and Instinqive manner. Possible connectivity issues and corrective actions (called knowledge base) are pre-engineered into the client component. On the other hand, the Diagnostic Knowledge Server can reside on the Operators core network or engaged through a hosted business model. It is an articial intelligence expert system that hosts the central knowledge models of the system, based on Bayesian network. This server components aggregates and shares new or unknown connectivity issues between client components within the network. It facilitates rule updates and generates predictive reports that aid in churn management efforts. The following table below illustrates the differences and impacts between legacy CRM system and Instinq Self-Healing & Diagnostics System.
Social Media Web-based channels such as live chat Digital assistants/software (installed on subscribers device)
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Conclusion
Many operators are faced with the issues of truly effective end to end (E2E) service platform that consolidates the components for service support, operations, maintenance and customer care. The merging of all these components can be achieved with a client-server based diagnostic system pushing for greater degree of self-management. The focus should change and encourage self-help methods that are assisted by systems-oriented proactive troubleshooting. Another impediment faced over network operation lies in the backend system. A host of separate network entities and platforms lacks coherent information processing, sharing and storing mechanism which prevents timely problem resolution by technical support agent which is not empowered to deal with the query. By collapsing the multiple entities into a unied operation, optimization, planning and management system, operators have greater visibility and clarity in delivering service and target problem resolution wherever it ts. Knowledge-based modeling is designed to analyze the learned diagnostic relationships over a period of time. Updates can be automated to the diagnostic server, upon discovering new diagnostic relationship as a direct result from changes in usage patterns of the network. The increased attention on self-care is mainly driven by cost-savings but it also gives subscribers control at his/her convenience, making life easier for both operators and subscribers. To date, self-care tools are conned to query choices, prole updates and subscription information (such as bonus points, package details etc). Through Instinq SDS, service providers can extend their self-care options to include assistance on connectivity issues and reporting capabilities on the overview of the health of users devices, causes for breakdown and the right solution. This allows service provider to stay in control of their device and being informed of possible connectivity issues for necessary remedial actions and thus reduce device-related connectivity disruptions for enhanced user experience. Additionally, Instinq SDS provides predictive statistics that help operators gain deeper understanding of subscribers usage patterns and preferences for the development of effective customer retention strategies and a more focused marketing campaign. Through specially tailored programs, subscribers stay loyal and the positive user experience aids in attracting new subscribers.
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Free Consultation
If you would like a free consultation on how you can implement Instinq, feel free to contact us at marketing.gp@greenpacket.com (kindly quote the reference code SWP1011 when you contact us).
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References
1. Western Europes Mobile Market Still Searching for Growth, OPEX Management a Concern, Q4 2010 Wireless Operator Strategies (WOS) of Strategy Analytics. 2. http://www.businesswire.com/news/home/20110412006677/en/Strategy-Analytics-Western-European-MobileOperator-EBITDA 3. Can communications service providers earn their customers love? - Domenico Azzarello and Mark Kovac; Bain & Company 4. Smartphones: Building protability and loyalty in the mass-market WDS Global
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