“Customer Experience Management
(CEM) Will Increase Customer Loyalty
and Profitability”
2nd Annual CANTO Marketing Forum
July 30-31, 2015
Melissa Harris, MBA
CEO, Telecom Training Corporation
www.telecomtrainingcorporation.com
1
Agenda

CEM Overview

CEM For Retention and Loyalty

CEM Must Be A Company Wide Effort

Ideas to Improve the Customer Experience

NPS Overview

Reasons for Low NPS and How to Improve

Case Studies
2
Telecom Training Corporation
Training, coaching and consulting solutions for
telecommunications, cable TV and wireless
operators/vendors

Soft Skills Training

Customized Training

Sales

Products/Services

Customer Service

Networks

Call Centers

Billing Systems

Tech Support

Software

Leadership

Mergers/Acquisitions

Rightsizing

Culture Change
3
TTC Overview

Founded in 1996 with over 25 years experience
in the industry

750+ professional industry-experienced trainers

Worked with Caribbean operators & vendors for
9 years

CANTO member responsible for the HR and
Marketing Forums

Chairperson and speaker at global industry
events such as CEM NA and CariCam/Mobile VAS
4
TTC Client Examples


Caribbean

Global

BTC

Vodafone

Cable & Wireless / LIME

Telefonica O2

SETAR - Aruba

Telmex

Caribbean Cellular
Telephone (CCT) - BVI

Two Degrees Mobile –
New Zealand

Belize Telemedia (BTL)

Safaricom – Kenya

Smart! / Speednet –
Belize

Manx Telecom – Isle of
Man

Singapore Telecom
US

AT&T

Saudi Arabia Telecom

Sprint

Nortel

Verizon

Alcatel-Lucent

Comcast

TDS Telecom / US
Cellular
5
CEM Overview
6
The Customer Experience
Defined

The sum of all experiences a customer has with a
supplier of goods and/or services, over the
duration of their relationship with the supplier

Includes interactions through:

Traditional channels, such as purchases, customer
service requests and call center communications

Social media channels such as Twitter, Facebook, etc.
The single most important
aspect in achieving success for
companies across all industries
7
Customer Experience
Management (CEM/CXM)

The processes used to comprehensively manage
a customer's cross-channel exposure, interaction
and transaction with an organization throughout
the customer lifecycle

Includes various tools to keep up with the
complex and on-going demands




CEO commitment

Strategy

A focus on all touch points 
Integration of technology 
Business models
Brand management
Customer Journey Roadmaps
Net Promoter Score (NPS)
 Constant employee training and development
8
CEM Goals & Benefits

CEM Goals
 Optimizing
interactions from the
customer's perspective
 Delivering
an exceptional experience
that sets it apart in the eyes of its
customers

CEM Benefits
 Increasing
the amount of consumer
spending
 Inspiring
loyalty to its brand
9
CEM Quotes
“The essence of CEM is treating
customers as individuals.”
"Consumers are statistics.
Customers are people.”
Sources: Forrester and Stanley Marcus
10
CEM for
Retention/Loyalty
11
Loyalty is More Critical Than
Ever

Telecom market challenges
 Market
saturation
 Commoditized
products
 Unsustainable
price differentiation
 Increasing
customer demands
12
Financial Benefits of
Increasing Customer Loyalty


In mobile sector, a 1% point increase
of the Customer Satisfaction Index
leads to:
 2.9%
increase in ARPU
 3.2%
decrease in churn
5% increase in customer retention
yields as much as 75% increase in
profitability
Sources: Arthur D. Little (Consulting); Ericsson
13
Why Do Customer’s Churn?

45% changed because they had a bad
customer service experience

52% got a better deal from another service
provider

39% switched based on recommendation

38% switched service providers within the
last 24 months

35% switched because their needs had
changed
Source: amdocs
14
The Bad News/The Good News

80% of businesses state that they
offer a "great customer experience".
 This
contrasts starkly with the 8% of
customers who feel the same way
(Source: James Allen)

One bad experience increases the
risk of “jumping ship” by 89%

80% of subscribers say their
operator could have prevented them
from churning
Source: Database Marketing Institute 2014
15
CEM Must Be A
Company-Wide Effort
16
CEM Must Be A Company Wide
Effort

CEM is not tied to any one department

Marketing

Sales

Product

Engineering

Customer Service

Customer Support

Finance
17
Marketing

Is marketing setting the right
expectations in the lead generation
process?

Or are they looking to get as many leads
as possible and letting sales sort it out?

If marketing isn’t setting the right
expectations or sending the right
messages, it can lead to confusion during
the sales process that can last through
becoming a customer
18
Sales

Is sales setting the right
expectations during the closing
process?

Are they up front about limitations
or realistic about a road map?

Or do they say things that are
approximately correct that the leads
want to hear so they can hit quota?
19
Product and Engineering

Product

is where
most companies
focus
Engineering
 This
 Are
 Is
 Are
the product
getting the
customer the
value they want?
 Is
it easy to use or
too complicated?
there a lot
of little and
annoying bugs?
there major
bugs, or do they
fail to deliver
within promised
time frames?
20
Customer Service

Is your customer team putting the
customer first?

Are the setting the right long term
expectations?

Are they really getting customers setup and seeing value or just pointing
them in the right direction?

Are they constantly having to reset
false expectations set by sales and
marketing?
21
Customer Support

How long is your hold time?

Are issues resolved in a timely fashion?

Do you focus on one call resolution?

Are reps empowered to make decisions in
the customers interest without having to
escalate to their supervisors?

Are customers kept in the loop or given
proper time frames?

Does support go out of its way to make sure
customers hang up happy or are they just
fixing the issue and moving on?
22
Finance

Is it easy to get an invoice?

Is billing clear?

Is the credit policy fair?

Do customers find out they are in arrears
right away or do they get slapped with a
huge bill several months later?

Do we work with delinquent accounts in a
way to encourage payment?

How effective are contracts and
termination fees?
23
Summary
Everyone focused and working
together on the customer experience
will result in dramatic increases in the
Customer Experience will which allow
companies to survive/thrive in a
competitive environment and
experience growth, sustainability, and
profitability
24
Ideas to Improve the
Customer Experience
25
What “Delights” Our
Customers

Do it right the first time

Make it easy to do business with

Employees have knowledge and power to
solve problems

Service is reliable and fixed quickly when
there is an issue

Operator proactively manages
relationships
Source: Comcast
26
Ideas to Engage Customers
1.
Stop the waiting game
2.
Be a Value Provider vs. a Service
Provider
3.
Proactively contact customers to
perform a free bill analysis
4.
Offer free services
5.
Divert marketing dollars to existing
customers
27
1. Stop the Waiting Game

Where
Customers Wait
 On
the phone
 At
home
 In
long lines
 On
line

Solutions
 Self-help
across
multiple platforms
2
hour windows for
installation / repair
appointments
 Kiosks
28
2. Be A Value Provider, Not A
Service Operator

Most customers see telecom operators as service
providers, not as value providers


To become a value provider, you must go “above and
beyond” while providing a fee-based service
Most on line service providers – Google, LinkedIn,
Netflix – start by creating “value” first, thereby
engaging customers, and “paid” services next

The engagement index (NPS) of online service
providers is much higher than telecom ISPs
Online services: +53
Software: +29
Airlines: +23
Telecom: +5
29
3. Proactively Contact Customers
To Perform A Free Bill Analysis

Even if it means putting them on lower
monthly plans

Use 12, 24, and 36 month agreements with
termination fees

Use existing subscribers’ own activity data

Be sure callers are skilled to avoid
creating customer dissatisfaction

Use this as an opportunity to transition
into upselling/cross selling (see article in
CANTO Cancion Magazine)
30
4. Offer Free Services

Online subscriber
safety

Disable malware

Notify infected users

Parental controls

Customer Loyalty
Programs

Free mobile minutes

Upgrade to higher
broadband speeds

Upgrade phones
every 2 years

Proactive care/alerts

Network maintenance

Usage cap notifications

Self care (i.e., mobile app)

Staggered bill recovery

Browser messaging with
customer care campaigns
Be sure to educate customers
on these added value services
in various ways!!!
31
5. Divert Marketing Dollars To
Existing Subscribers

Retaining customers is cheaper than getting new
customers


With new subscriber growth flattening, revenue
growth should come from upsell and cross sell of
new services targeted to existing customers


It costs 4x as much to acquire a new customer as it
does to retain an existing customer
We need to determine the “true cost” of generating
revenues to new customers vs. existing customers
Offer attractive incentives when customers call to
cancel
Telecom’s BIGGEST ASSETS are existing customers
32
Ten More Ideas to Improve the
Customer Experience
6.
Move from silos to
collaborative
interdepartmental focus
Employees must be enthusiastic,
coached, and customer-focused with
benefits and consequences tied to
performance
7.
Cohesive and simplified
strategy instead of each
functional area working
solo
Employees and union must understand
why they must change and be
accountable
8.
Delegate to front line to help with
projects
1.
Be proactive and prioritize
2.
Focus on retaining existing
high-value customers
3.
4.
5.
9. Communicate effectively, proactively
Focus on transforming the
and in various ways to employees and
culture to focus on both
customers
the “internal” and
external customer
10. When we stumble (i.e., don’t get it
right the first time), recover rapidly
33
NPS Overview
34
Net Promoter Score (NPS)
Overview

The worldwide standard to measure,
understand, and improve their
customer experience
 In
use for 10 years
 Very
popular and widely used
 48%
of large companies (over $500 US in
revenues) use
35
NPS Customer Categories


Customers can be divided into three
categories

Promoters

Passives

Detractors
Ask one simple question — How likely is it
that you would recommend BTC to a
friend or colleague?

Track these groups

Clearly measure your company’s performance
through your customers’ eyes
36
NPS Customer Categories

Customers respond on a 0-to-10
point rating scale
 Promoters
(score 9-10)
 Loyal
enthusiasts who will keep buying and
refer others, fueling growth
 Passives
(score 7-8)
 Satisfied
but unenthusiastic customers who
are vulnerable to competitive offerings
 Detractors
(score 0-6)
 Unhappy
customers who can damage your
brand and impede growth through negative
word-of-mouth
37
Satisfying vs. Delighting
Customers
Satisfying Customers

Like getting a “C” in
school

It’s average and ordinary

Vanilla ice cream

Story of purchase at
grocery store
Delighting Customers

Exceeding expectations

Doing more than what is
expected

“Going the extra mile”

They are surprised and
grateful

Usually tell friends and
family

(P.S. Employees have to be
delighted before they can
delight customers)
38
Calculating NPS

Take the percentage of customers
who are Promoters

Subtract the percentage who are
Detractors
Example: 30% - 10%
= +20
39
NPS Scores - CALA

Wireline: +7

Broadband/Internet: +12

Cable/TV: +14

Wireless: +8
An industry leader has a NPS more than double
its competitors
40
Source: Coleman Parkes
NPS Varies By Industry

A score of 50 to 80 is typically considered “good”

Average companies have Net Promoter Scores of 5 to 10



They have almost as many unhappy customers as happy
customers

The result is they struggle to achieve sustainable growth
Well known US brands with the highest growth rates
operate at NPS efficiency ratings of 50 - 80%

Amazon

Harley-Davidson

Zappos

Costco

Dell
In general, a NPS score of over 30 means a company is
doing okay
41
How to Ensure NPS Makes A
Difference

Must be part of a broader ecosystem




The entire organization must live and breathe by it
Requires:

Company-wide buy-in and effort

Leadership sponsorship
Supports the Customer Experience eco-system

The influence of every single employee and external
partner on every single customer interaction

Challenging to manage the complex set of relationships
Works in conjunction with a strong Voice of the
Customer (VOC) program and/or Customer
Satisfaction (CSAT)
Source: Medalia
42
Reasons for Low NPS
and How to Improve
43
How Customer Experience
Affects NPS

The NPS measurement is simply a way to
quantify directional performance over a long
period of time


Improving NPS is tightly linked to retention,
revenue increase and cost reduction
The real operational focus needs to be on customer
experience, not NPS

By delivering a rewarding experience that
customers will want to talk about, your NPS will
automatically reflect those improvements you
have made to both your brand recognition and
business operations as a whole
44
Reasons NPS so Low for
Service Providers



Lack of consistent and personal service

Only 17% of consumers agree that they always get a
consistent response across channels

65% say they are always treated like anonymous
customers
Irrelevant proactive notifications

3 out of 4 (73%) proactive notifications are not useful
in resolving customer issues

1 out of 4 (24%) result in a call to the contact center
Ineffective mobile self-service apps

78% of the people that use mobile self-service apps
found them hard to use

51% abandoned an online purchase
Source: amdocs
45
A Loyalty/Engagement Metric –
Influenced by Multiple Factors

Technical issues





Network quality of
service
Customer service across
channels

Call center
Proper functioning of
equipment

Retail stores

Corporate accounts
Coverage using the
device

Self service

Indirect
sales/agents/dealers
Billing issues

Pricing and value

Bill overage, bill errors,
etc.

Hidden fees,
unexplained charges

Complicated, hard-toSource: amdocs
understand bills

Price of service

Value for money
46
Deemphasize the “N”


NPS improves by:

Eliminating Detractors

Increasing Promoters
Netting removes clarity since these 2
customer categories can offset each other

Look at the rise and fall of Promoters and
Detractors independently since changes
needed to improve in these areas are
different
Source: Word Press
47
Focus on Keeping Promoters
vs. Uplifting Detractors


It costs more to uplift
Detractors than keep
Promoters
Detractors:

File complaints

Bog down customer
service

Require more time
and resources

Won’t buy from you

Bad mouth you to
others

Promoters:

Buy more from you

Need less service

Refer others

Act like you own marketing
department

6x more likely to forgive

>5x likely to repurchase

2x likely to recommend
48
Source: Medallia
What Can Move the NPS
Needle?

84% more likely to recommend if the
service provider
 Was
able to identify and proactively
resolve customer care issues that
impact them

83% more likely to recommend if the
service provider
 Would
empower them with consistent,
easy-to-use self-service via their
smartphone
Source: amdocs
49
AT&T Best NPS Practices


Contact the customer prior to the survey
distribution

Explain the purpose of the survey

Ask them their feedback on the company

Commit to follow up on any negative comments

Ask them to rate you highly

Find out which survey method they prefer – end
of call, email, SMS, snail mail
Only survey customers who have
purchased/installed products/services in 6
months
50
Wrap-Up
51
10 Steps to Improve the
Customer Experience
1. Get employee buy-in
2. Run an open,
transparent business
3. Deliver consistent
customer experiences
4. Train customer-facing
employees sufficiently
5. Give customers a
personalized experience
6. Measure and analyze
customer emotions
7. Act on customer
feedback
8. Take the customer's
point of view
9. Create a well-balanced
customer experience team
10. Design the total
customer experience
Source: SearchCRM.com
52
Contact Info
 Melissa
Harris, MBA
 President,
Telecom Training
Corporation
 615
298 5429 office
 615
838 2535 cell

melissa@telecomtrainingcorporation.com
53
Case Studies
•
Comcast
•
TDS Telecom/US Cellular
•
Telkom South Africa
•
SETAR, BTL, Telesur, C&W
54
Who is Comcast?

An American mass media company

Largest broadcasting and cable company in the world by revenue

Largest cable company and home ISP in the US

Nation's third largest home telephone service provider

Offer a triple play solution + home security + Verizon Wireless

Owner of NBC Universal

Operates:

Multiple cable-only channels (including E! Entertainment Television, the
Golf Channel, and NBCSN)

Over-the-air national broadcast network channels (NBC and Telemundo)

Universal Pictures and Universal Parks & Resorts

In February 2014 the company agreed to merge with Time Warner
Cable worth $45.2 billion

Comcast's customer satisfaction often ranks among the lowest in
the communications industry
55
Comcast Case Study - Customer Guarantee
We Make The Following Guarantees To Our
Customers
1.
We will give you a 30-day, money-back guarantee on our
video, voice, high-speed or Home Secure and Control
services.
2.
We will always be on time within your 2 hour appointment
window or we'll credit you $20 or give you a free premium
channel for three months.
3.
We will resolve routine issues in one visit or we'll credit you
$20 or give you a free premium channel for three months.
4.
We will treat you and your home with courtesy and respect.
5.
We’re Here For You, 24 Hours A Day, 7 Days A Week To
Answer Questions At Your Convenience
6.
We Will Quickly Address Any Problem You Experience
7.
We Will Continually Offer The Best And Most Video Choices
56
Case Study: Comcast Customer
Satisfaction Guarantee

Since 1963, Comcast has been dreaming big.

We bring exciting products and unparalleled choices to
customers across America with our state-of-the-art
video, high-speed Internet, phone and online services.

We push the boundaries of innovation and creativity
because we want to exceed our customers' expectations.

We are committed to providing Comcast customers with
a consistently superior customer experience.

If for any reason something goes wrong, we will work to
resolve the issue quickly and as professionally as we can.
57
We Make The Following
Guarantees To Our Customers
1.
We will give you a 30-day, money-back guarantee on our video,
voice, high-speed or Home Secure and Control services.
2.
We will always be on time within your 2 hour appointment window
or we'll credit you $20 or give you a free premium channel for
three months.
3.
We will resolve routine issues in one visit or we'll credit you $20 or
give you a free premium channel for three months.
4.
We will treat you and your home with courtesy and respect.
5.
We’re Here For You, 24 Hours A Day, 7 Days A Week To Answer
Questions At Your Convenience
6.
We Will Quickly Address Any Problem You Experience
7.
We Will Continually Offer The Best And Most Video Choices
58
1. We Will Give You A 30-day, Money-Back
Guarantee On Our Video, Voice, High-speed
Or Home Secure And Control Services*

If you’re not satisfied with these services and wish
to cancel for any reason, you can do so in the first
30 days and get your money back.

Simply return all equipment in good working order
and we’ll refund the monthly recurring fee for
your first 30 days of service, any charges you paid
for standard installation and any Home Secure and
Control equipment purchased.
* Home Secure is a 24/7 professionally monitored security solution for
residential customers. Home Control is a low-priced self-monitored
security solution for residential customers.
59
2. We Will Always Be On Time Within Your 2
Hour Appointment Window Or We'll Credit
You $20* Or Give You A Free Premium Channel
For Three Months
 As a courtesy, we will call you before we
arrive at your home.

And if we fail to arrive for a scheduled
visit during the appointment window, we
will credit you $20 or give you a free
premium channel for three months.
60
3. We Will Resolve Routine Issues In One Visit
Or We'll Credit You $20 Or Give You A Free
Premium Channel For Three Months

After the first visit to your home, if we do
not satisfactorily complete installation or
can’t resolve a routine issue, we will
credit you $20 or give you a free premium
channel for three months.

Additionally, we won’t charge you for a
service visit that results from a Comcast
equipment or network problem.
61
4. We Will Treat You And Your
Home With Courtesy And Respect

Our technicians will display their Comcast
identification clearly when they arrive at
your home.

They will be trained and equipped to
complete the job on the first visit.

Our Customer Account Executives (CAEs)
will be courteous and knowledgeable when
you contact us.
62
5. We’re Here For You, 24 Hours A
Day, 7 Days A Week To Answer
Questions At Your Convenience

You can contact us regarding any
service-related issue by calling 1800-COMCAST or in any of the
following ways:
 Live
Chat online with a Comcast
Technician
 Online
community forum
63
6. We Will Quickly Address
Any Problem You Experience

If we do not satisfactorily complete
installation or can’t resolve the routine
issue during the 30 days following the
first visit to your home, we will extend a
complimentary service to your account.

Additionally, we won’t charge you for a
service visit that results from a Comcast
equipment or network problem.
64
7. We Will Continually Offer
The Best And Most Video
Choices

We’re working hard to bring more choices
to our customers instantaneously by using
the full power of our advanced network
and decades of television experience.

We will use On Demand to bring you
dramatically more content choices,
including more movies, more sports, more
kids programs, more network TV shows
and more HD than anyone else.
65
TDS Telecom / US Cellular
(USCC)

Largest regional communications provider and one of the
top 5 wireless service providers in the US

NPS question – “Based on your experience with US
Cellular call center representative, how likely are you to
recommend US Cellular to your family, friends, or work
associates?”

Conducted Voice of the Customer (VOC) analysis

Determined the top 2 negative drivers of NPS were:


Insufficient product knowledge

Billing – new billing types and billing format

Product features
Poor communication skills

No defined process for escalations

No established guidelines for callbacks

Poor accent, courtesy and comprehension
Source: Telus International
66
TDS/USCC Solutions


Process improvements

Escalation and call back
processes were created
and standardized

Resolution Specialists
(RS) and Mentors were
made accountable for
handling escalated calls
Quality assurance
improvements



Quality audit guidelines
were aligned with the
guidelines of the NPS
metric

Communications skills
assessment was
incorporated into the
quality guidelines
Training improvements

Job aids and frequently used
applications were incorporated
into an Intranet for easy access

Agents are required to take the
monthly Program Mastery
Assessment (PMA) exams to
measure their understanding
and evaluate their progress
Capability building

Operations managers and team
supervisors underwent
certification to expand their
process management knowledge
and improve their analytical and
problem-solving skills

Team supervisors were crossskilled with senior agents to
improve their process and 67
product knowledge
Source: Telus International
TDS/USCC Results

NPS was +62.5

Exceeded program target of +50

To date, NPS performance is consistently
monitored and sustained
68
Source: Telus International
Telkom South Africa


Challenges for Africa’s largest integrated
communications company

High churn risk from its much criticized service approach

Increased competition from new players

Issues outside its control

Saturation in the fixed line market

Decreased revenue from its traditional income services
Goal – create a customer-centric organization to:

Protect the subscriber base

Develop next generation offerings that would contribute to
long-term growth
69
Source: Peppers & Rogers Group
Telkom South Africa Solutions

Executive team workshops to define the customercentric vision

Benchmarking its current customer-focused
capabilities against cross-industry best practices

Customer journey map

Customer-centric roadmap with 70 initiatives over
30 months

24 projects chosen as “quick win”

Generated near-term results

Building momentum for the overall program

Included change management for employees
Source: Peppers & Rogers Group
70
Other Company Examples



BTL

Company wide “wake up” training when competition entered market

Executive visits to employees

Measurable goals and objectives in performance review plans tied to bonuses to promote
accountability

Culture change

Management and supervisory training

New retail sales channel to move from reactive order taking to consultative selling
Setar

Annual Christmas Event for top customers

Company wide “wake up” training when competition entered market
Telesur


Customer Service now upselling and cross selling
C&W

East Caribbean - Selling and Supporting 3G Mobile Data Training

St Kitts & Nevis - Customer Service Sales Training when competition entered market
71