Customer Happiness IndexSolution DescriptionTelecommunications Edition

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Do you have enough control over customer satisfaction?

Your business is complex: you offer many products and services, across different technologies and customer channels. This creates many occasions to delight the customer, but also potentially to generate non-satisfaction. To help you navigate these waters, you are tracking various indicators such as number of dropped calls, download speeds, wait-time at point of sales, etc. You are also tracking higher-level indicators such as Net Promoter Score® (NPS) to gain a wider perspective on your business. You know that satisfied customers are less likely to churn, and can attract new customers for you by recommending your brand, which translates into lower retention costs and higher revenues.

But linking a high-level business indicator, such as NPS, to specific operational metrics is not obvious. It can feel sometimes like a black box. John Wanamaker famously said that half the money he spent on advertising was wasted and the trouble is he didn’t know which half! Having spoken to CEOs and CMOs at many telecom operators we have discovered a very similar dynamic with customer satisfaction. While it is a great tool to gain insights on customer promoters or detractors, CSPs still require a

high visibility tool to identify root causes and regain control of customer satisfaction. That is because NPS gives you a score based on a sample that is statistically significant, but it does not segment your entire customer base into promoters, passives and detractors with certainty, and it does not indicate how to improve your score.

Imagine if you could have greater control on how to improve key business indicators. Imagine a framework that lets you control which operational elements to modify in order to improve fundamental metrics such as revenues, churn and ARPU (Average Revenue Per User).

“ CSPs require a high visibility tool to identify root causes and regain control of customer satisfaction.

1: By the end of 2017, 30% of the world’s mobile markets, including the majority of Europe, Russia, the US and Japan, had exceeded 85% penetration of their addressable market (those aged 5 years and older). The Mobile Economy 2018, a report published by GSMA.

Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

An increasing number of mobile markets are approaching saturation1. As a result, Communication Service Providers (CSPs) operate in a hyper-competitive environment, using pricing as the main weapon. But, with limited prospects for subscriber growth, retaining existing customers has become a strategic battleground.

In this context, customer experience is a key differentiator.

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Gain Back Control Over Your Customer Satisfaction

Experience-based Metric designed to predict customer sentiments, beyond mere transactional performances

(e.g. disconnected calls)

Segment-of-1 individual insights for

personalized experiences

Outcome-driven objective scores correlated

with your real business outcomes

The Social View single household view and

friendship graph

Never Stopsautomatic & always-on

for your business

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Customer Happiness Index: The Missing Link

Lynx Analytics has created the Customer Happiness Index to address this very issue: making sure that the sum of customer interactions and experiences amount to a truly satisfying holistic experience, which in turn translates into lower churn rates and increased revenues from new customers.

The Index has been specifically designed to capture the business impact of individual product experiences, linking those metrics to the business outcomes you care about. In a world where customers have access to an array of telecommunication services, keeping them happy is the best strategy to stay ahead of your competition.

The Customer Happiness Index is both a software tool and a methodology to enable your organization to track various customer experience metrics and score every individual subscriber accordingly. It is built using a series of ingredients and structured like a tree. Each ingredient is assigned a weight, which reflects its relative importance to your business. But that is only one part of the story. Methodology (how to use to configure and use the index) plays a very important role. That is why Lynx Analytics has packaged the solution with advisory services to help your internal teams not only deploy, but use the tool to your advantage.

Customer Happiness Index is both a software tool and a methodology.“

What we mean when we say… Customer Happiness: Denotes a level of satisfaction with your products and services and the experience derived from these.

Index: A single measure, on a scale of 0 to 10, which is based on the combination of multiple metrics (see definition of “Ingredient” below) that have been combined according to a set formula.

Ingredient: A single metric used to build the Customer Happiness Index. This is typically an operational-level metric, which comes out of an existing system. For example: experience of dropped calls.

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Network Experience

Digital Experience

Service and Portfolio

Experience

Omnichannel Experience Social

Experience

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1000+ ingredients combine to create a true Segment-of-1 Happiness Index.Each ingredient measures how an individual experience, such as data speed or wifi usage, impacts customer churn, ARPU or NPS scores.

Ingredients

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First Results in Weeks, Not Months

Deploying the Customer Happiness Index is a straightforward project, which can deliver early results within weeks. This is where Lynx Analytics’ intimate knowledge of CSP operations comes in, helping you not only with project planning, but also with technical decisions such as, which ingredients to select and the data infrastructure required for your needs. Lynx Analytics also helps you with the often overlooked human aspects such as how to mobilize and link internal teams so they can use the insights generated by the solution.A typical deployment is as illustrated in Figure 2:

1. Data Assessment (and Setup)2. Pilot Launch3. Full-Scale Deployment

In the first phase, business objectives are identified with your internal teams (e.g. finance, marketing, operations, etc.) The Index is customized to fit these objectives, while taking into account the available data sources A specialized team from Lynx Analytics performs data cleansing at this stage, if necessary.

The second phase is a pilot typically focused on a single Business Unit or product group, with a focused number of data sources and a subset of subscribers. Here we would zoom in on one area of the customer’s experience, such as network performance. To accelerate results and tap on industry best practices Lynx has compiled a standard set of 5-10 “happiness ingredients” in one area of service such as network experience. These are granular, broken down experiences such as wifi auto-connect, network complaints, call drop rate, video streaming, etc. While each ingredient will have its own set of business outcomes assigned to measure their impact on revenue, churn, and customer satisfaction, all of them are seamlessly synchronized so that they add up to one index that covers the whole business. This significantly simplifies the scale-up process and new ingredients and departments can be added quickly within the same framework and infrastructure. It is that easy.

In many cases, Lynx Analytics is able to plug into existing systems and use the Customer Happiness Index to improve existing programs, thereby accelerating deployment times and minimizing change management efforts. Lynx Analytics has demonstrated through the years that simple projects can make significant contributions to a CSP’s performance.

“ One index that rules the whole business.

Figure 2. Customer Happiness Index Deployment Timeline

• Goal Setting and user requirements

• Co-select from standard ingredients

• Data assessment• Data preparation

and ingestion

DATA ASSESSMENT14 weeks

• Deployment of first 8-10 ingredients

• Non-automated, customer trends

• Business dashboard• Focused customer

experience tracking• Predict NPS (and other

business outcomes)

2 PILOT LAUNCH

4 months from start

• 20 ingredients deployed, with option to expand• Automated index, update daily• Enhanced dashboard with journey tracking• Expert recommendation on actions

3 FULL-SCALE DEPLOYMENT

1 year from start

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Happier Customers Make a Stronger Business

With the Customer Happiness Index from Lynx Analytics you can map the impact of each customer experience to business outcomes you care about; things such as revenue, NPS, and churn. Its bottom up nature, using weighted KPIs and a transparent structure, unites teams vertically through the hierarchy and also horizontally across functional teams. It federates groups that sometimes had diverging views on the business because they relied on data from different silos.

By capturing the complexity of your business and linking operational aspects under your control with business outcomes such as revenue, churn and NPS, the Customer Happiness Index creates alignment and a clear path for action throughout your organization. The Customer Happiness Index helps you grow your business, playing a key role in improving customer experience where and when it matters.

Wide: Taking into account and providing actionable information for every subscriber, not just a sample or segment.

Deep: Using data from different customer touch points: product, network, billing, customer service, point-of sales, etc. to obtain a richer and truly experience-based metric.

Granular: Providing a score for every subscriber with drill-down capabilities to look at underlying KPIs driving a particular score and identifying the root cause of problems.

Timely: Scoring for every subscriber is available at any time and refreshed on a daily basis.

Personalized: Providing subscriber segmentation based on experience similarities, enabling targeted actions for marketing but also preventive or corrective measures.

Experience-centric: Typical operational KPIs are based on transactions. For example network teams measure the number of cut calls, but a call could be bad quality and voluntarily canceled by one of the callers. The Happiness Index estimates which calls were canceled based on a poor experience, versus a purely transaction view.

Solution Highlights

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How We Solve It

The Customer Happiness Index is powered by advanced analytics technology, and can be applied on top of existing systems. Lynx Analytics’ proprietary algorithms, rooted in machine learning and big data, can analyze millions of data points, detecting hidden correlations with ease.

The solution runs on standard Big Data IT infrastructure and leverages data you are already collecting. Specific inputs will depend on the selected ingredients, but will typically involve a mix of CDRs, network data, call center data, Point-of-Sales data, CRM data, campaign responses, etc. This solution does not require the installation of new capture mechanisms or activation of new data sources. Visualization and analysis is performed via cloud-hosted dashboards with different access controls for your different user groups.

Lynx Analytics understands the importance of data privacy and regulatory compliance in various jurisdictions. This is why multiple masking and hashing features for Personally Identifiable Information (PII) have been implemented, in line with relevant regulations, such as The EU General Data Protection Regulation (GDPR).

It federates groups that sometimes had diverging views on the business because they relied on data from different silos.“

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What Is In The Sauce?

Here is how Lynx Analytics used our technology and expertise for a CSP in Asia-Pacific that had a balanced mix of pre and postpaid subscribers, in a few simple steps.

Find out more about Lynx Analytics’ unique graph AI at www.lynxanalytics.com

More text here...

Ready to

Deploy

Today, most individuals are connected with more than just one device. To truly get insight of segment-of-1, we will collate data across different devices that are used by a single individual. By linking multiple devices back to the singular user, your business gains a more holistic understanding of your customers.

Data has shown that family and friends tend to influence subscribers’ sentiments over a service. Using Lynx’s proprietary graph engine and machine learning algorithms, we build a single household view based on locations, mobility patterns and shared billing information.

Here we explore and derive on a list of relevant ingredients and observe their statistical impacts on measured business outcomes; churn, ARPU and NPS scores. All of the ingredients are grouped into sub-indices that are built to form your company’s Customer Happiness Index.

Scoring subscribers based on actual experiences of each ingredient - these scores are refreshed daily and pushed to management dashboards to support effective business decision-making.

Your Customer Happiness Index is ready and will start reporting individualized, segment-of-1 scores of your customers on a scale of 0 (unsatisfied) to 10 (very satisfied).

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Build Single Customer View

Single Household View

Derive Impactful Ingredients

A Score for Each Subscriber

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Customer Success Story

The Customer Happiness Index results enables CSPs to:

ROI with Mobile Subscribers

10+ Times ROI

Tens of Millions of USD Saved Annually

Reduced monthly churn from 1.3% to 1.1% (Post-Paid)

Results in Weeks, Not Months

Client Profile:

Profile: leading CSP in Hong Kong

Customers: 4.5M mobile subscribers

Core services: mobile, broadband, fixed, cable TV• Identify root causes for customer discontent

by linking to granular ingredient insights provided by the Index

• Create individually personalized experiences powered by intelligence gathered by understanding the segment-of-1

• Supercharge marketing campaigns by mapping out subscriber clusters based on individual preferences and lifestyle

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What Telcos Say...

“Our churn rates have gone down from 1.3% a month to 1.1% a month; that represents thousands of customers and saved us millions of dollars.”

Paul Berriman, Group CTO, HKT, Hong Kong’s premier telecommunications service provider for the public, local and international businesses.

“Customer satisfaction is a lagging metric. I cannot decide to grow it. Yes, it is predictive of churn but I cannot influence it directly. The question is: what levers will move customer satisfaction? What are the key activities I can undertake to increase this satisfaction?”

VP of a Latin American operator.

“The solution is to combine NPS with other customer metric tools that are more focused on identifying what actions need to take place to improve the customer experience”.

CMO of a European operator.

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© Lynx Analytics 2018

marketing@lynxanalytics.com

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Unit 03-03/07Singapore 139953

Contact us today

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Why Lynx Analytics

With over a decade of experience transforming telecom data for customer experience monetization and establishment of single household views, we at Lynx Analytics are proud to be a pioneer in graph analytics with 120+ embedded algorithms for our Customer Happiness Index - powered by graph AI.

Our unique and constantly-evolving technology is made possible with our highly-skilled diverse team of data scientists, data engineers and telecom business transformation experts. With Lynx Analytics, we bring to you the science behind every loyal customer.