Improving Customer Experience: Best Practices for ...€¦ · Marketplaces Digital Storefronts • Offer discounts or promotional prices for content and OTT services when purchased

WHITEPAPER

Improving Customer Experience: Best Practices for Subscriber EngagementAn Industry Whitepaper

Executive SummaryDue to the commoditization of Internet connectivity, it’s critical for communications service providers (CSPs) to demonstrate additional value (beyond price).

Delivering a superior customer experience is the most popular strategy being leveraged by CSPs to distinguish their offerings from their rivals. However, the concept of a strong customer experience is quite vague, so how can a CSP truly improve this facet of their business?

One of the most effective ways for a CSP to enhance their customers’ experience and increase overall profit is to improve subscriber engagement effectiveness.

Although subscriber engagement is straightforward in theory, doing it well takes conscious planning and requires the right tools. In this paper, we’ll share our best practices for subscriber engagement and teach CSPs how to grow top-line revenue and reduce operating costs while improving the overall customer experience.

The six best practices subscriber engagement are:

1. Provide Value

2. Preserve Balance

3. Ensure Relevance

4. Be Transparent

5. Personalize Engagement

6. Optimize the Quality of Experience

ContentsExecutive Summary .............................................................. 1

Introduction to Subscriber Engagement ....................... 2

Approaches to Subscriber Engagement ..................... 2

Best Practices .......................................................................... 4

Provide Value ....................................................................... 4

Preserve Balance ................................................................. 6

Ensure Relevance ................................................................ 7

Be Transparent .................................................................... 8

Personalize each Engagement ....................................... 9

Optimize the Experience .................................................. 9

Conclusions ...........................................................................12

2

Improving Customer Experience: Best Practices for Subscriber Engagement An Industry Whitepaper

Introduction to Subscriber EngagementMany subscribers believe that communications service providers (CSPs) offer largely indistinct services from one another. These subscribers feel that CSPs are doing little more than providing a connection from their devices to the Internet. Because of this perception, subscriber loyalty is low and many subscribers can easily be convinced to switch to new a provider with a small economic incentive. Although price reductions can be an effective marketing tactic, they are easily matched by the competition and negatively impact profit margins for the entire market. Due to this reality, it’s critical for CSPs to demonstrate additional value (beyond price) to customers in order to stand out from the competition and increase profit.

Delivering a superior customer experience is a key strategy being leveraged by CSPs to distinguish their offerings from their rivals. This strategy is becoming so popular that Gartner predicted, “by 2017, 89% of marketers expect customer experience to be their primary differentiator.”1 Forrester Research takes this view even further, believing that a positive customer experience isn’t only a differentiator—it’s also becoming a baseline expectation from customers. In Forrester’s recent Age of the Customer report they stated that, “customers expect consistent and high-value in-person and digital experiences. They don’t care if building these experiences is hard or requires a complex, multifunction approach from across your business. They want immediate value and will go elsewhere if you can’t provide it.”2

Based on these reports, it’s clear that delivering a positive customer experience intersects with financial success. That said, the concept of a strong customer experience is quite vague, so how can a CSP truly improve this facet of their business?

We believe that one of the most effective ways for a CSP to enhance their customers’ experience and increase overall profit is to improve subscriber engagement effectiveness.3 We define subscriber engagement as any customer interaction with a CSP-owned channel. In practical terms, this definition means that any visit to a customer support page, notification or advertisement sent to a subscriber, or data balance check via the CSP’s application is a subscriber engagement opportunity.

Although subscriber engagement is straightforward in theory, doing it well takes conscious planning and requires the right tools. In this paper, we’ll share our subscriber engagement best practices and teach CSPs how to grow top-line revenue and reduce operating costs while improving the overall customer experience. The six best practices for subscriber engagement are:

1. Provide Value

2. Preserve Balance

3. Ensure Relevance

4. Be Transparent

5. Personalize Engagement

6. Optimize the Quality of Experience

Approaches to Subscriber EngagementBefore we jump into our best practices, it’s important to understand how a high quality digital interaction can impact a customer’s experience and what the main digital engagement channels are.

To start, McKinsey found that digital interactions provide significantly higher customer satisfaction scores (76% digital vs. 57% traditional) than traditional engagement methods, like call centers.4 These findings are consistent with the Net Promoter Score (NPS) results from an Oliver Wyman study that showed telecoms averaging an NPS of 11% while Online and Digital Services scored much higher with an average NPS of 46%.5 Based on these findings, it is easy to see that a strong digital experience highly correlates with a positive customer experience. 1. https://www.gartner.com/marketing/customer-experience2. https://go.forrester.com/age-of-the-customer/3. Alongside traffic optimization techniques that ensure data delivery itself contributes to high subscriber quality of experience4. http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/why-companies-should-care-about-ecare5. http://www.oliverwyman.com/content/dam/oliver-wyman/ME/publications/2016_Oliver_Wyman_The_Digital_Telecom_Operator_web.pdf

https://www.gartner.com/marketing/customer-experience

https://go.forrester.com/age-of-the-customer/

http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/why-companies-should-care-about-ecare

http://www.oliverwyman.com/content/dam/oliver-wyman/ME/publications/2016_Oliver_Wyman_The_Digital_Telecom_Operator_web.pdf

3


Due to consistent findings on the efficacy of digital engagement, many CSPs are attempting to transform from CSPs into digital service providers (DSPs). To successfully complete this digital transformation, PWC believes that a CSP must “present a truly omnichannel experience that coherently ties together all the possible points of contact with customers—on mobile devices, online at home and work, and in stores”.6 Further to this, PWC stated that “the mobile experience must be at the heart of the reimagined omnichannel strategy, given how quickly smartphones and tablets have transformed how people interact with friends, retailers, and the media.”7

With this context in mind, we recommend that CSPs begin their digital transformation journey by focusing on high quality digital interactions through three foundational subscriber engagement channels: Notifications, Portals, and Applications.

Table 1: Foundational Subscriber Engagement Channels

Foundational Subscriber Engagement Channels

Overview

Notifications Notifications are the most basic method of subscriber engagement. They are typically used to get the attention of a subscriber and alert them to something (e.g., special promotion, roaming alert, data limit warning).

Notification examples include:

• SMS, USSD, and email messages

• In-browser and app overlays

• Push notifications

• HTTP redirection to a Captive Portal or AdvertisementPortals Portals are typically more interactive than notifications and enable customers to

accomplish moderately complex tasks like reviewing data usage, paying bills, or troubleshooting issues.

Portal examples include:

• Self-service (e.g., check balance, troubleshooting via chat bot)

• Account management (e.g., purchase top-ups)

• Digital storefronts (e.g., purchase digital goods)

• Marketing landing pages (e.g., promote a new service)Applications Device applications are the most advanced form of subscriber engagement and

encompass both notification and portal activities. Applications also enable advanced activities like location-based services.

Application examples include:

• CSP branded app (e.g., review usage, purchase top-ups, push relevant notifications)

• WiFi Hotspot locater (e.g., find nearest hotspots)

6. http://www.strategyand.pwc.com/media/file/Strategyand_Becoming-a-digital-telecom.pdf7. http://www.strategyand.pwc.com/media/file/Strategyand_Becoming-a-digital-telecom.pdf

http://www.strategyand.pwc.com/media/file/Strategyand_Becoming-a-digital-telecom.pdf

4


Best PracticesProvide Value The primary objective of subscriber engagement is to improve the customer experience, which in turn increases profitability. To achieve this goal, CSPs must provide a tangible benefit to customers whenever they interact with them. Note that a customer benefit can be a range of things, such as providing an easier way to purchase goods through a portal, or receiving a special gift (e.g., free data) for viewing an advertisement or for downloading a CSPs mobile application.

“CSPs must provide a tangible benefit to customers whenever they interact with them”

On the other hand, if a CSP simply pushed upsell promotions and advertisements (e.g., spam email) without offering something useful to customers, then the CSP would negatively affect their customers’ quality of experience and damage the long-term subscriber relationships. As a result, we recommend that CSPs offer something valuable to customers in exchange for imposing on them. Table 2 below highlights multiple subscriber engagement techniques that CSPs can use to demonstrate value to customers.

Table 2: Subscriber Engagement Use Cases

Subscriber Interaction

How to Demonstrate Value

Customer Alerts Data Usage Updates • Help customers make educated decisions to avoid bill shock and quota exhaustion • Link usage update notifications to self-service portals

Weather Alerts• Keep customers up-to-date on weather warnings and unpleasant conditions

Security Alerts• Alert customers of potentially harmful websites and applications

Promotions and Advertising

Sponsored Data • Offer free access to WiFi or mobile data for viewing advertisements

Upsell Services • Promote trial access or discounts to premium services that are relevant to the customer

Special promotions• Send special offers on physical and digital goods that are relevant to the customer (e.g.,

restaurant discount when customer is in restaurant)• Receive free data for completing surveys

Self-Service and Account Management Portals

Review Usage • Make it easy for subscribers to quickly review current usage

Purchase Top-Ups• Enable customers to quickly and easily purchase top-ups and new CSP services

Modify Services • Allow subscribers to adjust their offerings without calling customer service

Purchase Value Added Services• Parental control portals enable customers to set browsing rules and filtering parameters

Self-Help• Provide quick answers to FAQs

5


Marketplaces Digital Storefronts• Offer discounts or promotional prices for content and OTT services when purchased

through the CSP app or portal• Provide access to digital services and OTT content that customers may not have access to

(i.e., markets that don’t have access to credit cards)Mobile Applications

CSP Application• Offer free data for customers that download the app and agree to receive notifications• Enable customers to quickly purchase data packages and top-ups to personalize their data

services

WiFi Locator • Find the nearest CSP-owned hotspots and increase brand exposure to existing and

potential customers

Self-Help• Provide quick answers to FAQs

Figure 1: Customer Notification Examples

Data Usage Update Weather Alert Security Alert

Figure 2: Promotion and Advertisement Examples

Advertisement Top-Up Offer Special Offer

6


Figure 3: Self Service Portal Examples

Review Data Usage Value-Added Services

Figure 4: Marketplace Examples

OTT Service Access Digital Store Fronts

Figure 5: Mobile Application Examples

Purchase Micro Data Packages Self-Help WiFi Locater

7


Preserve BalanceDue to rising customer expectations, it’s more difficult than ever to balance the goals of the CSP with the wants of the subscriber. In the past, CSPs quickly transmitted notifications and easily achieved their promotional and regulatory objectives by sending bulk email messages to every network subscriber; however, because modern-day customers have grown up with best-in-class user interfaces and experienced stunning digital ad campaigns from their favorite consumer brands, customers now expect much more from digital interactions. To ensure that CSPs match their needs and requirements with their subscribers’ desires, we advise all CSPs to adhere to the following recommendations (visually demonstrated in Figure 6):

“Ensure that all subscriber engagement activities are useful to the customer or justified by regulations”

1. Ensure that all subscriber engagement activities are useful to the customer or justified by regulations.

• Don’t disturb customers with notifications, promotions, or advertisements unless they have agreed to receive them or they are receiving a tangible benefit (e.g., free data, security warnings)

• When delivering regulatory requirements (e.g., DMCA notices) to customers, make sure they understand what is happening and what their options are

“Communicate with subscribers through non-invasive methods to preserve a high quality of experience”

2. Communicate with subscribers through non-invasive methods to preserve a high quality of experience.

• Select the least invasive communication method when possible (e.g., don’t spoil the subscriber’s user experience by redirecting them to your website for a special promotion in the middle of a video call)

• Ensure that you have a subscriber engagement platform with multiple digital channels to interact with subscribers. This flexibility will enable you to select the optimal and least invasive channel for your subscriber interaction

Figure 6: Preserving Balance

8


Ensure RelevanceOur third subscriber engagement best practice focuses on customer relevance. In the context of subscriber engagement, relevance is the intersection between all of the things that a CSP wants to say and all of the things that a subscriber will find interesting or worthwhile (Figure 7). Unfortunately for CSPs, the subscriber determines what is considered interesting or relevant and what is considered annoying or intrusive.

Figure 7: What is Relevant to a Subscriber

Even though it’s up to subscribers to gauge relevance, CSPs can leverage contextual data about subscribers to increase the odds of resonating with them. The more context that a CSP has, the more relevant the message will be to the subscriber. As such, we recommend reviewing as much contextual data as possible before interacting with subscribers. Once a CSP understands the context of the subscriber’s situation, they are better equipped to craft the right message, at the right time, through the right digital channel.

To truly detect a subscriber’s moment of need and deliver the optimal digital interaction, a CSP must analyze both real-time network data as well as historical customer data. Real-time network data is critical, because it enables CSPs to learn things like what the subscriber is doing (e.g., what apps are in use) and where the subscriber is located. Historical customer data (pulled from a B/OSS or CRM solution) provides CSPs with valuable information like a subscriber’s name and preferred communication channel. A more thorough list of contextual data that a CSP should examine before engaging with customers can be found in Table 3.

“To truly detect a subscriber’s moment of need and deliver the optimal digital interaction, a CSP must analyze both real-time network data as well as historical customer data”

The combination of real-time and historical customer data is so vital to the success of a digital interaction that we advise all CSPs to select an end-to-end subscriber engagement solution that can directly integrate with their network policy engine (e.g., P-Gateway, PCEF, and PCRF). A real-life example highlighting how contextual data can be leveraged by an operator can be seen in Figure 8.

9


Table 3: Valuable contextual data to review before engaging with subscribers

Real-Time Contextual Data from the Network Contextual Data from a CRM or B/OSS• Access network

• Current activity (e.g., active apps)

• Real-time data usage

• OS and browser versions

• Device model

• Time and location

• Impact of encryption

• Communication urgency

• Communication preference (e.g., SMS, push notification, app overlay)

• Customer demographics (e.g., name, gender, birthday)

• Usage history and trends

• Upgrade eligibility

• Account balance

Figure 8, below, illustrates a subscriber receiving an unlimited Spotify offer. Since the CSP is using a subscriber engagement solution that integrates with their network policy engine, they are able to recognize (in real-time) that the subscriber (e.g., Warren) is currently using Spotify. The CSP also knows that Warren is a frequent Spotify user (information pulled from the B/OSS or CRM system) and would likely be interested in an unlimited Spotify offer. Additionally, the CSP knows that Warren has installed their mobile app and has opted-in to receive overlay notifications. After reviewing this contextual information, the CSP sends a highly visible application overlay (displays on-top of all content) that enables Warren to purchase an unlimited Spotify bundle from the CSP’s mobile application. One can see that, by examining all of the contextual factors, the CSP is able to deliver a relevant message to Warren at the ideal time via his preferred channel.

Figure 8: Sending a Relevant Data Top-Up Notification

In summary, by adhering to the following four steps, CSPs can maximize their odds of being relevant when interacting with subscribers:

1. Leverage a true end-to-end subscriber engagement platform that directly connects to a network policy engine

2. Identify the engagement opportunity by reviewing real-time and historical contextual data

3. Determine the optimal channel to transmit the message

4. Deliver a personalized experience

10


Be TransparentWhen a CSP interacts with a subscriber, the subscriber should never be confused about what is happening. Additionally, subscribers should always have the means to discover more information following a CSP interaction (e.g., link to FAQs, live help, feedback mechanism, etc.). Figure 9, below, highlights a great example of how CSPs8 can keep subscribers in the loop after receiving a notification. In the example:

1. A subscriber is browsing the web and hits a predetermined (by the CSP) data quota threshold

• The threshold in this case was set at 90% of the subscriber’s data quota

2. Once the threshold is hit, the subscriber receives an in-browser notification advising the subscriber of their data quota situation

3. Since the subscriber may be confused about what the 90% threshold warning means, the CSP included a link for more information

4. If the subscriber chooses to click on the link, they can read a quick overview on what the usage notification means or they can download a complete user guide on why the CSP notifies customers at certain usage thresholds

Figure 9: Subscriber Transparency in Action

Personalize each EngagementEven though subscribers know that their CSP is sending out hundreds or thousands of near-identical notifications, personalizing digital interactions can positively impact the customer’s quality of experience and improve loyalty.

Subscribers appreciate personalized interactions because they make users feel like more than a number. In fact, according to an NCBI Brain Research study, hearing your own name triggers greater brain activation than hearing any other name.9

It follows that by addressing subscribers with their given name and by sending other personalized messages (e.g., a birthday greeting), CSPs can take advantage of neurobiology and strengthen their psychological bond with subscribers.

8. In this case, the CSP is Telkom South Africa.9. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1647299/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1647299/

11


Due to the potential benefits of personalized subscriber engagement, we recommend that all CSPs make a concerted effort to enrich their subscriber interactions by leveraging the following information:

1. First and Last Names

2. Location (e.g., to optimize weather alerts, in-store promotions, etc.)

3. Account Data (e.g., current data usage)

4. Customer History (e.g., current device, device upgrade cycle)

Figure 10, below, highlights examples of personalized interactions with subscribers. In the first image (from the left), the CSP is addressing Andrew (the subscriber) with a data usage and weather update (based on his current location). In the middle image, Andrew is receiving a phone upgrade offer. Note that this upgrade offer is unique to Andrew as it’s based on Andrew’s history with the CSP (e.g., device upgrade cycle and device preference). The last image (on the right) is a special message notifying Andrew about a birthday gift (free data usage) from his CSP.

Figure 10: Personalized Interactions

Although we are strong proponents of personalizing all subscriber engagement opportunities, it’s important to give customers the choice to opt-out of receiving notifications. This option ensures that all customers receive an optimal experience based on their own preferences.

Optimize the ExperienceThe last subscriber engagement principle that we will discuss in this paper is optimizing the customer experience. In simpler terms, we believe it’s critical for CSPs to use the most suitable digital channel and the most appropriate design or interface in order to deliver a positive experience to customers. To achieve each of these goals, we recommend that CSPs follow the rules outline in Table 4.

12


Table 4: Rules for Optimizing the Customer Experience

Rule Description ExampleUtilize a multi-channel approach to reach 100% of subscribers effectively

Each digital channel has its strengths and weaknesses so it’s important to use the most appropriate channel within the context of the subscriber’s situation. Simply put, CSPs cannot rely on only one channel.

CSPs need to use a subscriber engagement solution that not only supports multiple engagement channels, but also selects the optimal digital channel for each subscriber interaction and then cascades to the next best channel if the prior one cannot be used.

CSPs also must have access to encryption-proof channels like SMS, USSD, browser push, mobile push, chat bots and app overlay notifications to reach subscribers at any time.

Figure 11 highlights the key digital channels for engaging with subscribers.

To illustrate this point, when sending a roaming top-up, a subscriber may prefer to receive a simple SMS message rather than a browser or app overlay as their mobile data may be disabled.

Optimize for each device

With new and different connected devices appearing every day, it’s important for CSPs to use a subscriber engagement platform that creates notifications, landing pages, and app stores that will render or adapt (e.g., adaptive or responsive design) to all device types (mobile, tablet, PC, watch, etc.).

See Figure 12 and Figure 13 for content optimization examples.

Simpler is better

Remember to consider device constraints when building notifications, landing pages and applications.

The detail that appears on a laptop landing page may not work on a tablet or mobile device due to size constraints.

Figure 12 highlights how a CSP can simplify their subscriber engagement channels for mobile devices.

Flexibility Effective subscriber engagement requires front-end frameworks and design tools that provide tremendous flexibility.

Subscriber engagement solutions also need to ensure that digital channels can quickly adapt to changing subscriber tastes and new digital mediums or technologies.

Minimizing the time required to upgrade an existing interface is key for success.

Figure 13 provides an example of design tools and frameworks that enable CSPs to rapidly update notifications, portals, and applications.

Be delightful As previously mentioned, it’s important to provide value and be relevant with subscribers. As a result, CSPs need to make their subscriber engagement channels easy to use, customizable (i.e., lots of options) and highlight the information that is most relevant to each subscriber.

It’s also important to utilize consistent branding (i.e., the look and feel) for all subscriber engagement channels, as this will make customers feel more self-assured when interacting with a CSP’s subscriber engagement initiatives

Lastly, CSPs need to consider context when building their subscriber engagement strategy.

Figure 14 highlights a consistent branding example.

To illustrate the importance of context, imagine if a CSP delivered a personal message that linked to a self-service portal. If the subscriber clicked on this link the CSP shouldn’t require a further login/password when the subscriber reaches the self-service portal.

13


Figure 11: Digital Channels for Subscriber Engagement

Figure 12: High Quality of Experience on Multiple Devices

Figure 13: Design Tools that Enable Engagement Flexibility

14


Figure 14: Consistent Branding Across Devices

ConclusionsProviding best-in-class subscriber engagement is a fantastic way for CSPs to grow their revenue, reduce operating costs, and differentiate from the competition. However, the success of subscriber engagement initiatives is dependent on delivering a great digital customer experience. By following our best practices, CSPs will be able to implement profitable subscriber engagement initiatives in any prepaid or postpaid market.

Subscriber Engagement Best Practice Explanation1. Deliver Value Ensure all subscriber engagement initiatives provide a tangible benefit

to subscribers (e.g., sponsored data advertisement, security warning, self-service).

2. Preserve Balance Balance CSP needs with subscriber wants by only interacting with subscribers when it’s: useful, non-invasive, personalized, and visually appealing.

3. Ensure Relevance Analyze contextual data (both real-time network and B/OSS or CEM customer data) about subscribers before engaging with them to maximize subscriber interest.

4. Be Transparent Ensure subscribers are never confused by engagement initiatives and that they always have a means to learn more following a CSP interaction.

5. Personalize Engagement Personalize every interaction with subscribers to strengthen the relationship and make subscribers feel special.

6. Optimize the quality of experience Before engaging with subscribers, remember to use the appropriate channel, optimize for every device type, and deliver a consistently great experience.

This whitepaper is published by Sandvine Incorporated ULC©. All rights reserved. No part of this publication may be reproduced, copied or transmitted in any form or by any means, or stored in a retrieval system of any nature, without the prior permission of Sandvine Incorporated ULC. Although the greatest care has been taken in the preparation and compilation of this whitepaper, no liability or responsibility of any kind, including responsibility for negligence is accepted by Sandvine Incorporated ULC.

© Copyright: Sandvine Incorporated ULC 2016

408 Albert St. Waterloo, Ontario Canada N2L 3V3

www.sandvine.com

Documents

Improving Customer Experience: Best Practices for ...€¦ · Marketplaces Digital Storefronts • Offer discounts or promotional prices for content and OTT services when purchased