www.greenpacket.com
APPLICATION NOTE
Help Desk 2.0: Subscribers Help Themselves.
Operators Reduce Churn.
Abstract
Over the last decade, customer service excellence has emerged as a core strategy for
telecommunications operators with the aim of satisfying subcribers and keeping them loyal. Over
time, various customer service channels have surfaced, with call centers being highly preferred due
to the personal touch and instant response, however, this option weighs heavily on OPEX and
resources.
This paper examines an alternative and more cost-effective approach, through the means of
personal digital assistants. This method encourages self-care amongst subscribers and reduces
reliance on call centers. It brings about a whole new era in error diagnosis and problem resolution,
hence the term Help Desk 2.0. Find out more about how Help Desk 2.0 works and benefits
operators, particularly in the area of cost savings and churn reduction.
APPLICATION NOTE
01APPLICATION NOTE
Operators Say: Our Subscribers Are Important To Us!Throughout the world, the telecommunications industry shares something in common – it ranks top three on the
customer complaint index. This love-hate relationship between subscribers and their operators is nothing new, but of
late, it is more apparent through progandas via social networking channels and blog sites.
The danger of customer complaints is its impact on churn rates. In research conducted by TOTE-M, the second highest
factor contributing to churn is complaints at 22% as shown in Figure 1.
Source: TOTE-M
Figure 1: Factors contributing to churn
The good news is operators do care about the complaints raised against them and are taking efforts to change things
around. Looking after subscribers is a key differentiator as reputation for good customer care is harder to emulate
compared to new services or price plans. According to Telecoms Asia, in a survey of mobile operators in UK, the MVNO
Virgin Mobile ranked higher compared to its network provider – an outcome contributed by excellent customer service.
In a separate study also conducted by Telecom Asia, more than 60% of respondents said that customer-oriented
functions, comprising of customer care/self-care and customer experience management (CEM) are gaining momentum
as shown in Figure 2. Operators around the world who are running CEM initiatives have doubled, indicating a growing
emphasis on customer service quality as a sizeable concern in an operator’s business.
39%
22%
20%
10%
10%
9%
８%
6%
5%
Price
Complaints
Outdated Product Features
Forced Change
Friend’s Recommendation
Involvement with Company
Customer Service
Company Image
Annoyed by Welcome Offer
02
Source: Telecom Asia, April 2010 Source: Telecom Asia
Figure 2: Customer-oriented functions receiving the most attention Figure 3: The increasing percentage of
operators worldwide running CEM initiatives
Today’s Customer Care Channels
To date, there are many channels through which operators reach out to their subscribers; this includes call centers,
website, webchat, email, fax, service centers and of late through social networking sites. Among these channels, call
center is most preferred (refer to Figure 4) for the simple reason that there is a fellow human to interact with and most of
the time, the issue is resolved immediately, as opposed to sending an email and waiting for a response within 48 hours
– two key elements here are personal touch and instant resolution.
Source: Ovum/Genesysm Survey
Figure 4: Typical customer service channels
Call center agents
Web
Web chat
SMS
Others
9%
5%3%
56%
3%
24%
APPLICATION NOTE
63.6%
61%
32.5%
31.2%
29.9%
27.3%
23.4%
22.1%
19.5%
０%
Customer care/self-care
Customer experience management
Business analytics/business intelligence
Content partner management
Billing (rating and charging)
Product lifecycle management
Interconnect and cost management
Revenue assureance and fraud
Usage data mediation
Other (please specify)
2008 2009 2010
30
40
50
60
70
0
10
20
%
34%
58%
66%
03APPLICATION NOTE
Though subscribers favour call center, it is the most expensive channel to implement and maintain. As such, the
challenge for operators is to gentlely migrate subscribers to alternative support systems to reduce call center traffic and
save resources. One of the ways to reduce reliance on call centers is by encouraging a self-care habit amongst
subscribers. Weaning subscribers away from their preferred channel i.e. the call center can be a daunting task, especially
when other channels do not provide the fundamental factor of personal touch and instant resolution.
Hence, how can operators meet these factors to promote self-care among subscribers? Which channel do they deploy?
The answer lies in introducing personal, digital assistants to each subscriber – let’s call this Help Desk 2.0. Read more
about Help Desk 2.0 in the next section.
The above factors prove the growth potential of WiMAX. It is important to note that while these countries are rich with
natural and human resources, affordability is relatively low. With this in mind, WiMAX Operators have to offer affordable
packages without jeopardizing ARPU. In addition to requiring fixed (indoor) modems, emerging markets need
economical WiMAX modems.
04
Help Desk 2.0 - The New Age Customer Self-Care Tool Web 2.0 was introduced in conjunction with the evolution of World Wide Web, facilitating rich interactivity, information
sharing, interoperability, user-centered design and collaboration via the Internet. In short, Web 2.0 referenced the next
generation of Internet.
Likewise, Help Desk 2.0 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 fruitful if the subscriber narrates
the problems and symptoms accurately to the agent. Failing which, a useless or zero solution can be rendered.
Help Desk 2.0 mitigates these problems. Through the advantages of artificial intelligence and information systems,
operators can offer digital assistants to each subscriber for the purpose of automated troubleshooting and
problem-solving from the subscriber’s end. The digital assistant will be in the form of a software which can be installed
on subscriber’s PC or mobile devices. Subscribers can launch the software for troubleshooting assistance and resolution
without having to get in touch with the call center. In short, with Help Desk 2.0, operators are tranferring the help desk to
subscribers’ PCs and empowering them with the right technology to solve their own problems or update their profile.
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 confined to query
choices, profile updates and subscription information (such as bonus points, package details etc). Through Help Desk
2.0, operators can extend their self-care options to include assistance on connectivity issues.
Why connectivity? From Greenpacket’s research on a selected operator1 in Asia Pacific, findings report that 84% of
customer complaints are connectivity-based as shown in Figure 5. Further results on this operator are also shared in
upcoming sections to illustrate how Instinq SDS offers cost savings and reduces churn related costs.
Figure 5: 84% of subscriber complaints are due to connectivity issues
How can operators embark on their very own Help Desk 2.0 to combat connectivity concerns faced by subscribers?
1 Name has been withheld to protect the interest of the operator. Figures stated may vary significantly in different
regions and countries.
APPLICATION NOTE
Unable to Connect
Unable to Surf
Slow Connection
Others
16%
24%
36%
24%
Breakdown of Subscriber Complaints
05APPLICATION NOTE
The Way Into Help Desk 2.0:Greenpacket’s Instinq Self-Healing Diagnostic SystemGreenpacket’s Instinq Self-Healing Diagnostic System (Instinq SDS) is an intelligent solution that proactively diagnoses
and automatically resolves connectivity issues in offline and online mode, making support efforts easier than ever. By
incorporating artificial intelligence (AI), it provides a spur-of-the-moment troubleshooting and problem resolution without
the intervention of customer support personnel. This is done through built-in knowledge models that contain intelligence
to identify and solve connectivity glitches.
Figure 6: Self-Healing Diagnostic Manager (client component)
Though there are several factors that contribute to connectivity problems, a significant fraction can be attributed to
devices, particularly in wireless broadband. For example, due to high frequencies used, radio waves (in wireless
connectivity) have poor indoor penetration. If subscribers are guided on how to place their modems for optimum signal
strength, connectivity can be improved.
With this in mind, Greenpacket’s 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 profile updates to help operators handle technical hitches at the last mile level without burdening
customer support.
06
How Does Instinq SDS Work?
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 specific problems in an easy and intuitive 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 Operator’s core network or engaged through a
hosted business model. It is an artificial 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.
Figure 7: A Summary of How Instinq Works in a WiMAX Network
APPLICATION NOTE
Step 2Based on the preloaded corrective actions stored, Self-Healing Diagnostic Manager determine the potential root cause and attempts to self-heal or suggests corrective actions.
Self-HealingDiagnostic Manager
DiagnosticKnowledgeServer
Step 5With the updated knowledge model, Diagnostic Knowledge Server propagates new models to other Self-Healing Diagnostic Managers within the network via automatic updates.
Step 1Self-Healing Diagnostic Manager begins diagnosing WiMAX modem after detecting symptoms on connectivity issues.
Step 4Diagnostic Knowledge Server receives data from the Self-Healing Diagnostic Manager, then analyzes, updates and trains the knowledge engine to learn about the device behavior.
Internet
Step 3Self-Healing Diagnostic Manager sends new systoms, device information, connection status and usage information to the Diagnostic Knowledge Server over the Internet, at scheduled interval.
07APPLICATION NOTE
Why Operators Need Greenpacket’s Self-Healing Diagnostic System?
Figure 8: Benefits gained by implementing Greenpacket’s Instinq Self-Healing Diagnostic System
Cost Savings
Call centers or traditional help desk systems weigh heavily on human capital, time and financial resources. This is
undeniably one of the main factors that is prompting operators to look for cost-effective alternatives in supporting their
subscribers. By letting subscribers help themselves through a self-care mechanism to address connectivity issues,
reliance on customer support is reduced. As a result, customer care OPEX costs can be reduced.
CostSavings
ReduceCall Center
Traffic
ReduceChurn
GainCompetitive
Edge
HappyCustomers
Instinq SDS
Simulation
A simulation on cost savings gained through Instinq SDS was conducted on the above-mentioned operator. For
the purpose of this simulation, the following is assumed:
Target Customer Support Call Reduction 10% (4,000 calls are targetted to be reduced per month)
Cost per Call (in USD) $ 1.00
Customer Call Ratio 40%
Average Total Customer Support Call per Month
Total Subscriber Base
40,000
100,000 (at growth rate of 10,000 new subscribers/month)
08APPLICATION NOTE
Reduce Call Center Traffic
All call centers have a limited numbers of agents serving the entire subscriber base of an operator. Studies have shown
that 15% of calls to a call center do not require contact with a customer support executive. Hence, it is important to utilize
the available resources in the most effective way.
As Instinq SDS is able to automatically diagnose and solve connectivity issues from the subscriber’s end, calls to the call
center can be reduced. 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.
Reduce Churn
Churn is every operator’s pain area and it impacts the bottomline. According to Chorleywood Consultancy, decreasing
churn rate by 1% will increase operator’s profit by 6%. What’s more, every subscriber churned translates to lost future
revenue (from the subscriber) and a waste of resources spent to acquire the subscriber. Due to intense competition in
the telecoms industry, it costs hundreds of dollars to acquire a new subscriber.
Aside from the cost factors, every unsatisfied subscriber will share his/her negative experience with at least twice as
many people as he/she would with a positive experience. This form of unconstructive testimonials can increase churn
and deteriorates the operator’s reputation.
From Greenpacket’s analysis, root causes for churn include connectivity. Figure 9 gives a breakdown
of factors contributing to churn and connectivity issues contribute 37%.
Total Cost Saving in 1 year = $ 74,400
Q4 2009
Q3 2009
Q2 2009
Q1 2009
600,000
540,000
420,000
330,000
240,000
204,000
168,000
132,000
$240,000
$204,000
$168,000
$132,000
$216,000
$194,400
$151,200
$118,800
$216,000
$183,600
$151,200
$118,800
$24,000
$20,400
$16,800
$13,200
$24,000
$21,600
$16,800
$13,200
Quarter Total Numberof Subscribers
Total Number ofCustomer Calls
Total Cost(USD)
Total Cost(USD)
Total CustomerCalls
Total Number ofCall Reduced
Total Savings(USD)
Cost Profile (Before Reduction) Cost Profile (After Reduction) Cost Savings
TOTAL $744,000 $669,600 $74,400
09
Connectivityissues
37%
No coverage
51%
Others
12%
APPLICATION NOTE
Figure 9: Root causes of churn
Instinq SDS is designed to improve users’ satisfaction and
reduce churn. Firstly, through automated diagnosis and
self-healing capabilities, connectivity issues are reduced and
satisfaction rate is maintained. Secondly, based on connectivity
behaviour, subscribers at risk can be predicted through churn
statistics and this prepares the operator to implement more
effective CRM initiatives targetting affected subscribers and
prevent possible churn.
Subscriber Retention Rate (through Instinq SDS) 50%
Current Churn Rate 5%
Customer Lifetime Value (CLV) of Each Subscriber
Total Subscriber Base
$ 25
100,000 (at growth rate of 10,000 new subscribers/month)
Total Churn Cost Savings in 1 year = $ 1,162, 500
Q4 2009
Q3 2009
Q2 2009
Q1 2009
600,000
510,000
420,000
330,000
30,000
25,500
21,000
16,500
$750,000
$637,500
$525,000
$412,500
15,000
12,750
10,500
8,250
$375,000
$318,750
$262500
$206,250
$375,000
$318,750
$262500
$206,250
15,000
12,750
10,500
8,250
Quarter Total Numberof Subscribers
Nett Loss ofCustomers
Total Loss ofOpportunityCost (USD)
Total Loss ofOpportunityCost (USD)
Total Numberof Customer
Retained
Nett Loss ofCustomers
Total Savings(USD)
Cost Profile (Before Churn Reduction) Cost Profile (After Churn Reduction) Cost Savings
TOTAL $2,325,000 $1,162,500 $1,162,500
Simulation
A simulation on cost savings gained a lesser churn rate was conducted on the earlier mentioned operator. For the
purpose of this simulation, the following is assumed:
10APPLICATION NOTE
Gain Competitive Edge
Gain competitive advantage by offering subscribers a variety of customer support channels and at the same time be
innovative by offering state-of-the-art self-care solutions like Instinq SDS which give subscribers the ability to stay in
control of their device and being informed of possible connectivity issues for necessary remedial actions. This reduces
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.
Happy Customers
Subscribers expect nothing less than a stable and meaningful connectivity experience from their telco operators. Hence,
the very issue of poor connectivity can lead to unhappy customers.
Through Instinq SDS, operators are able to address connectivity issues contributed by the device and provide easy,
step-by-step instructions to subscribers where required. Additionally, subscribers are in control of their usage and are
able to help themselves anytime, again resulting in better user experience.
11APPLICATION NOTE
Implement Your Help Desk 2.0 System Now! All around the world, operators are looking for better and more creative ways to support their subscribers better and
reduce cost at the same time. At Greenpacket, we understand the demands placed on operators. That is why we
empower you to offer subscribers more than just high-speed connectivity, our innovation will provide you with endless
ways to engage with subscribers and enhance relationships.
With Greenpacket, limitless freedom begins now!
Free Consultation!
If you would like a free consultation on how you can implemetn your Help Desk 2.0 system, please contact us at
[email protected] (kindly quote the reference code, AP0510 when you contact us).
12
References 1. Challenges of the Telecom Customer Care Center, Steve Kaish, CosmoCom Inc
2. The Winning Ingredient: Customer Care, Joseph Waring, Telecom Asia (April 2010)
3. Improve Service with Better IVR Design, Max Parry – Value Partners, Telecom Asia (April 2010)
4. CRM for Telecoms: Nailing the Customer Experience, E Commerce Times (http://www.ecommercetimes.com)
5. Report on Loyalty, (Potential) Churn and Testimonials 2009, TOTE-M
APPLICATION NOTE
About Green PacketGreenpacket is the international arm of the Green Packet Berhad group of companies which is listed on the Main Board
of the Malaysian Bourse. Founded in San Francisco’s Silicon Valley in 2000 and now headquartered in Kuala Lumpur,
Malaysia, Greenpacket has a presence in 9 countries and is continuously expanding to be near its customers and in
readiness for new markets.
We are a leading developer of Next Generation Mobile Broadband and Networking Solutions for Telecommunications
Operators across the globe. Our mission is to provide seamless and unified platforms for the delivery of user-centric
multimedia communications services regardless of the nature and availability of backbone infrastructures.
At Greenpacket, we pride ourselves on being constantly at the forefront of technology. Our leading carrier-grade
solutions and award-winning consumer devices help Telecommunications Operators open new avenues, meet new
demands, and enrich the lifestyles of their subscribers, while forging new relationships. We see a future of limitless
freedom in wireless communications and continuously commit to meeting the needs of our customers with leading edge
solutions.
With product development centers in USA, Shanghai, and Taiwan, we are on the cutting edge of new developments in
4G (particularly WiMAX and LTE), as well as in software advancement. Our leadership position in the Telco industry is
further enhanced by our strategic alliances with leading industry players.
Additionally, our award-winning WiMAX modems have successfully completed interoperability tests with major WiMAX
players and are being used by the world’s largest WiMAX Operators. We are also the leading carrier solutions provider
in APAC catering to both 4G and 3G networks and aim to be No. 1 globally by the end of 2010.
For more information, visit: www.greenpacket.com.
Copyright © 2001-2010 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.
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