alcatel-lucent motive: customer insights to improve performance by david stephenson

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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


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


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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

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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

3

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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

1

2 3

4

5

6

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BEING PROACTIVE ABOUT SERVICE INTERRUPTION

1

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


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


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


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


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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

alcatel-lucent motive: customer insights to improve performance by david stephenson

Documents

customer insights

customer data ran

customer dataoss

customer experience27

customer issue384380first

service availability

service usage data

customer behavior data44