1 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
May 27, 2015
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COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
David Stevenson, VP/GM Customer Experience SolutionsOctober 23, 2012
CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCEANALYTICS KEY NEW TREND FOR TELCOS
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• 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 PREDICTING THE FUTURE
Big Data Opportunity Heat Map by Industry
Source: Gartner, July 2012
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CUSTOMER EXPERIENCE RELATED TO ENTIRE JOURNEY
MAPPING STRUCTURE FOR CATEGORIES OF INDICATORS
SELECTION OF KEY CUSTOMER SERVICES IMPACTING KBOs
MAPPING STRUCTURE FOR KQI TO KPI RELATIONSHIP
YOU DON’T NEED HUNDREDS OF KPIs – ONLY THE RIGHT KQIs TO MEASURE AND IMPROVE CUSTOMER SATISFACTION
Awareness Interact Agree/GetConsume Use/Support Reward LeavePay
1 2 3 4 5 6 7 8THE CUSTOMER JOURNEY
SERVICE PROVIDER JOURNEY
AcquireMarket Sell
FulfillOrder
ManageCustomer
ServiceAssurance
RetainOptimize
RetireChargeBill
1 2 3 4 5 6 7 8
e.g. end-user satisfaction with video service quality
Key businessobjectives
KBOs
e.g. increasedprofitability
Key business indicatorsKBIs
e.g. average revenue per user (ARPU)
Key quality indicatorsKQIs
Key performance indicatorsKPIs
e.g. video packet loss
BUSINES
S LA
YER
NETWORK LAYER
OPE
RAITONAL
LAYE
R
CUSTOMER
EXPERIENCE
OPERATIONA
L
EXCELLENCE
DASHBOARD
S
AND
REPORTING
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Quality Care ValuePerception
& Ease
IDENTIFY THE KEY KBO’S AND KQI’S ACROSS ENTIRE CUSTOMER JOURNEYS
Awareness Interact Agree/GetConsume Use/Support Reward LeavePay
1 2 3 4 5 6 7 8THE CUSTOMER JOURNEY SERVICE PROVIDER JOURNEY
AcquireMarket Sell
FulfillOrder
ManageCustomer
ServiceAssurance
RetainOptimize
RetireChargeBill
1 2 3 4 5 6 7 8
Care Perception
ValueEase
KBOs
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Still Picture or Evolving Landscape?
• Excessively slow mobile Web loading
15 PP100 for 4G LTE-enabled devices
22 PP100 for WiMAX devices
23 PP100 for HSPA+ devices
vs. 20 PP100 industry average
• Mobile hotspot adoption rate 35% higher for LTE
• LTE: best network performance (reliability, spectrum efficiencies, increased data connection speeds, etc.)
TOP 10 WIRELESS NETWORK PROBLEMS AFFECTING CUSTOMER EXPERIENCE WHILE CALLING, MESSAGING AND USING DATA IN THE US
Source: J.D. Power and Associates, Aug. 2012
1 Dropped calls2 Calls not connected3 Audio issues4 Failed/late voicemails5 Lost calls6 Text transmission
failures7 Late text message
notifications8 Web connection
errors9 e-mail connection
errors10 Slow downloads
PP100 = problems per 100 network connections
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IMPORTANCE OF THE CEM-RELATED METRICS
Source: Heavy Reading, Sept. 2012
0 10 20 30 40 50 60 70 80 90
Customer satisfaction
Network availability data
Service availability data
8456 27
8343 39
8142 39
Time/cost to resolve customer issue
First call resolution/CRR
Customer behavior data
8038 43
7937 42
7844 34
Service usage data 7548 27
Average call handle time
Time to launch new service
Time/cost to provision
6930 39
6727 39
6826 43
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MOVING FROM A FRAGMENTED VIEW TO AN INTEGRATED CUSTOMER EXPERIENCE
From fragmentation
To integrationOPTIMIZED CUSTOMER EXPERIENCE THROUGH ANALYTICS AND ACTIONS
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StandardCritical
CRITICAL FUNCTIONS FOR CUSTOMER EXPERIENCE-DRIVEN DIFFERENTIATION
0 10 20 30 40 50 60 70 80
Support for big data
B/OSS integration
Individual service quality metrics for customer care
Dashboard with tailored views for different stakeholders
Service quality metrics for individual customers
Unified view of the customer
Per-subscriber, per service of network performance
Library of ready-to-go customer experience indicators
Consistent customer identity management across services
Support for real-time zero touch processes
Extensible analytics engine
Network probes/instrumentation
Third-party source integration
7040 30
7040 30
7036 34
6838 30
6540 25
6540 25
6338 25
6227 35
6131 30
6038 22
5524 31
5329 24
5122 29
Source: Heavy Reading, Sept. 2012
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NETWORK AND DEVICE ANALYTICS
SERVICE QUALITY ANALYTICS
CUSTOMER ANALYTICS
Engineering is monitoring, analyzing and optimizing network and device performance, capacity planning, etc.
Operations is monitoring, analyzing and optimizing the services that are running over the network, performing root cause analysis, managing SLAs, etc
Marketing, customer care, etc. are monitoring, analyzing, and optimizing the individual customer’s (or group’s) experience.
MINED INSIGHTS
Batch Usage and Customer Data (OSS, BSS, CDRs, CSR, roaming data, social media, etc.)
COMPLETE VIEW OF THE CUSTOMER SUPPORTS DIFFERENT STAKEHOLDERS AND ACTIONS
MINED INSIGHTS
MINED INSIGHTS
Real time Network and Customer Data (RAN, GGSN, IP Core, etc.)
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MANAGING THROUGH ANALYTICS BASED ACTIONS
Time
$
Acquisition costs:- Promotion- Device- Activation- Etc.
$
Cash generation:- Activation fees- Monthly bills
Up-sell:-Trialing new features
Upgrade:- Increased
monthly bill
Care:- Customer
care calls Retention:- 1 Free month
Downgrade:- Reduced bill
Churn:- Stop using
Termination cost:- Administrativ
e- De-activation
Cumulated Cash Flow over Customer Lifetime
MAXIMIZING CUSTOMER LIFETIME VALUE (CLV)
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TOP RANKED USE CASES
MANAGEMENT
ANALYTICSOPTIMIZATION
ACTION USE CASE
Reduce Churn
1. Service Quality Analysis (4.0/ 5.0)
2. Targeted Retention Campaign for VIP customers with high churn prediction (3.75/ 5.0)
3. Targeted campaign for Customers with poor QoS (4.5/ 5.0)
Up-sell4. Mobile Security Threat Remediation (4.0/
5.0)
Revenue Assurance
5. Fraudulent Use Prevention (4.5/ 5.0)
Troubleshooting
6. Root cause analysis for IPTV, on-line video, mobile and fixed (including IMS) (4.5/ 5.0)
Proactive Customer Care
7. Trends analysis and proactive problem solving (3.5/ 5.0)
Reactive Customer Care
8. Customer problem solving (4.0/ 5.0)
Prioritized Access
9. Analytics Driven Intelligent Service Optimization and Contextual Offers (4.25/ 5.0)
Capacity Planning
10.Capacity Insights (3.5/ 5.0)Ratings based on Service Provider survey, ALU June 2012
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TURNING CELL UTILIZATION INTO AN OPPORTUNITYANALYTICS DRIVEN INTELLIGENT SERVICE OPTIMIZATION AND CONTEXTUAL OFFERS
CONGESTED CELL TRIGGERS ALERT
1
LIST OF ALL USERS IN CONGESTEDCELL IS SENT TO OPTIMIZATION & PCCSYSTEMS
2 ANALYTICS ENGINE SCORESUSERS BY CLV AND CHURN.OPTIONAL: EVALUATE TARIFF PLAN AND QoE PER CUSTOMER
CLV
Churn
1 2
3 4
4
5
PERSONALISED CONTEXTUAL SERVICE OFFER SENT TO OPTIMIZED CUSTOMERS
FLEXIBLE & SCALABLE POLICY AND CHARGING CONTROL
(PCC)OPTIMIZES SERVICE DELIVERY
BASED UPON SUBSCRIBER PROFILE
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SECURING THE CUSTOMER EXPERIENCE
THREATS DETECTED BY NETWORK INTRUSION DETECTION SENSOR
ANALYTICS IDENTIFIES VALUED CUSTOMER AND SENDS OFFER FOR MOBILE SECURITY
SEND INFORMATION ON COMPROMISED DEVICE TO POLICY SYSTEM
ADJUST POLICY FOR COMPROMISED DEVICE
DEVICE MANAGEMENT MAKES SECURITY CLIENT APPLICATION AVAILABLE & CURRENT
REINSTATE POLICY FOR REMEDIATED DEVICE
DEVICE REMEDIATED ALERT
DEVICE INFECTED WITH MALICIOUS APPS
SEND INFORMATION ON COMPROMISED DEVICE TO CSR1
2
3
4
5
6
7
8
9
10
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FRAUDULENT USE DETECTION
SUBSCRIBER USAGE
ANALYTICS MONITORS CUSTOMER USAGE FROM NETWORK CDRs & ALSO BILLING/CHARGING RATED CDRs
ANALYTICS DETECTS USAGE PATTERN NOT ALIGNED WITH CUSTOMER USAGE PROFILE (eg roaming calls for a customer never been in foreign country, nb of today’s calls x% higher than usual)
USER RESPONDS (“ENABLE” OR “DISABLE”)
IF RESPONSE IS “DISABLE”, INFORM POLICY ENGINE TO DISABLE DATA SERVICE UNTIL ROAMING STATUS IS DISABLED
FOR CUSTOMER HAVING USAGE PROFILE ALERTS, CALL TO HOME PHONE FROM CALL CENTER OR SYSTEM SENDS SMS REQUESTING “ENABLE / “DISABLE DATA” RESPONSE
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2 3
4
5
6
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BEING PROACTIVE ABOUT SERVICE INTERRUPTION
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ARE MY CUSTOMERS IMPACTED BY SERVICE INTERRUPTION?
SERVICE ANALYSIS PER KEY
CUSTOMERS
2
NOC INTERVENTION
5IDENTIFICATION OF A FAULTY CELL
4SERVICE ANALYSIS
AND CLV DASHBOARDS
3
MARKETING TO DECIDE IF CUSTOMER COMMUNICATION REQUIRED
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SERVICE INTERRUPTIONRESOLUTION
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SERVICE QUALITY INSIGHTS
Alcatel-Lucent
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ANALYTICS MONITORS SERVICE KPI & CUSTOMER KQI.GENERATES ALERTS WHEN KQI DOESN’T MEET CUSTOMER SLA.
MOTIVE / SMP RECEIVES TRANSACTION EVENT PER SLA ALERTS
NETWORK DATA COLLECTION ON-THE-FLY FOR ALL CUSTOMERS
NOC
NOC IS ALERTED AUTOMATICALLY WITH SERVICE KQI/SLA INFORMATION
CUSTOMER CARE AGENT IS NOTIFIED ON CUSTOMERS HAVING SLA ALERTS IN ORDER TO PROCEED ACTION (CALL, SMS, …)
ANALYTICS
IPTV, MOBILE AND FIXED
PROACTIVE/REACTIVE CARE ON SLA NOTIFICATIONS
1 2
34
4
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BELL LABS RESEARCH ACTIVITIES IN ANALYTICS
APPLICATIONS
BASIC METHODOLOGIES
Indoor Localization
Recommender Systems
Public Space Surveillance
Speaker Gesture Recognition
Smart Grid Data Mining
Network Monitoring
Network Performance Diagnosis
Customer Experience Discovery
Social Media Monitoring
UNDERSTANDING SIGNALS AND EQUIPMENT SYSTEMS
UNDERSTANDING PEOPLE’S INTEREST AND BEHAVIOR
Intrusion Detection
Text Mining
Sensor Fusion
ForecastingCompressive Sampling / Streaming Data Analysis
Data Complexity & Model Selection
Anomaly Detection
Interactive Data Visualization
Audio-Video Analytics
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PREDICTIVE ANALYTICSTRULY UNDERSTAND CUSTOMER BEHAVIOR
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.
Bell Labs also works with local data analytics partners (where appropriate).
Better understanding of customer value, happiness and influence are key enablers of a differentiated service approach so that investments are better matched to the expected returns per customer.
Personalize and differentiate service based on a deep understanding of each customer.
TargetedCampaign
CustomerTrends & Patterns
Churn Prediction
CustomerQoE
CUSTOMER EXPERIENCE ANALYTICS
Analytics Infrastructure(ETL, DB Model & BI Reports)
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SERVICE PROVIDER JOURNEY
AcquireMarket Sell
FulfillOrder
ManageCustomer
ServiceAssurance
RetainOptimize
RetireChargeBill
1 2 3 4 5 6 7 8
KEY BUSINESS OBJECTIVES
KBO CALIBRATION
Identify key metrics
Example KBO Calibration:Customer Satisfaction of Mobile Broadband Service and Key Drivers
Awareness Interact Agree/GetConsume Use/Support Reward LeavePay
1 2 3 4 5 6 7 8THE CUSTOMER JOURNEY
QUALITY CAREPERCEPTION
VALUE
Statistical Analysis and Machine Learning
Models
Network KPIs/KQIs
Historical Scores/Touchp
oints
Customer Care
KPIs/KQIs
Calibration data
Usage Metrics
KPIs/KQIs from other
Touch Points
Additional Subscriber
Data
KBO
KQI
KPI
KPI
KPI
KPI
KQI
KPI
KPI
KQI
KPI
KPI
KPI
KPI
KBO
KQI
KPI
KPI
KPI
KPI
KQI
KPI
KPI
KQI
KPI
KPI
KPI
KPIKPI
KQI
KBO
KPI
KPI
KPI
KPI
KPI
KQI
• Really understand drivers
• Build accurate KBO “formula”
EASE
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NET PROMOTER SCORE (NPS) PREDICTION
Predicted NPS Score and Key NPS Drivers
Identify key metrics
KBO
KQI
KPI
KPI
KPI
KPI
KQI
KPI
KPI
KQI
KPI
KPI
KPI
KPI
KBO
KQI
KPI
KPI
KPI
KPI
KQI
KPI
KPI
KQI
KPI
KPI
KPI
KPIKPI
KQI
KBO
KPI
KPI
KPI
KPI
KPI
KQI
Statistical Analysis and Machine Learning
Models
Network KPIs/KQIs
Historical Scores/Touchp
oints
Customer Care
KPIs/KQIs
Usage Metrics
KPIs/KQIs from other
Touch Points
Additional Subscriber
Data
Key NPS Metrics/Touchpoint
Touchpoint NPS Score
Statistical Analysis and Machine Learning
Models
Overall NPS Scores
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TOP 8 LAWS OF BIG DATA ACCORDING 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
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The most effective marketers use three tactics:
1. minimize the number of information sources consumers must touch as they move confidently toward a purchase
2. provide trustworthy sources of product information and recommendations
3. offer tools that allow consumers to weigh their options by identifying the features that are most relevant to them.
CONSUMERS WANT SIMPLICITYANALYTICS ARE ENABLERS
CONSUMERS' ACTUAL REASONS; BUSINESSES' PERCEIVED REASONS (SOURCE IBM INSTITUTE FOR BUSINESS VALUE)
Source: Harvard Business Review, May 2012
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Difficulty in securing cross-organizational co-
operation
Poor understanding of benefits of improving
CEM
Poor data quality
Third most important
Second most important
Most important
0 10 20 30 40 50 60
551317
541715
201512
25
22
47
THREE LARGEST BARRIERS TO IMPLEMENTING CUSTOMER EXPERIENCE MANAGEMENT
Source: Heavy Reading, Sept. 2012
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• 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
CUSTOMER EXPERIENCE MATTERS
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Abstract:
• 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.
TITLE: CUSTOMER INSIGHTS IMPROVE BUSINESS PERFORMANCE: ANALYTICS KEY NEW TREND FOR TELCOS
SHORT TITLE: ANALYTICS KEY NEW TREND FOR TELCOS