GB962 Customer Experience Management Introduction and Fundamentals R16.0.0
GB962 Customer Experience Management Introduction and Fundamentals R16.0.0
GB962 Customer Experience Management Introduction and Fundamentals R16.0.0
Customer Experience
Management
Introduction and Fundamentals
Member Evaluation
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Notice
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Table of Contents
Notice.................................................................................................................................... 2
Table of Contents ................................................................................................................ 3
Table of Figures ................................................................................................................... 5
Executive Summary ............................................................................................................ 6
1. Introduction ...................................................................................................................... 7
2. Why is Customer Experience Important ........................................................................ 9
3. Differentiating CEM ........................................................................................................ 11
3.1.
3.2.
3.3.
4.2.
7.2.
7.3.
Circular View............................................................................................. 28
9.1.3.
9.1.4.
9.1.5.
9.1.6.
9.1.7.
10.
11.
Summary ............................................................................................................... 41
12.
13.
14.
Glossary ................................................................................................................ 44
14.1.
15.
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15.2.
Document History ......................................................................................... 48
15.2.1. Version History ........................................................................................ 48
15.2.2.
15.3.
Acknowledgments ......................................................................................... 50
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Table of Figures
Figure 1 - Why CEM Now? ......................................................................................... 10
Figure 2 - CEM & CRM ............................................................................................... 11
Figure 3 - Comparison of CEM with CRM ................................................................... 12
Figure 4 Key Social Media Metrics ........................................................................... 16
Figure 5 - Lifecycle Experience Model ........................................................................ 18
Figure 6 - Different channels at the Lifecycle Experience Model ................................. 18
Figure 7 - Capability Maturity Model Integration (CMMI) ............................................. 19
Figure 8 Customer Experience Maturity Matrix ......................................................... 20
Figure 9 - Customer Expectations vs. Service Targets................................................ 21
Figure 10 CXM Metrics Framework .......................................................................... 22
Figure 11 - CEI Calculation Scheme ........................................................................... 23
Figure 12 - TM Forum Implementation Guide (GB962D) ............................................. 26
Figure 13 - Implementation Guide Use case template................................................. 27
Figure 14 Business Value Roadmap linear view ...................................................... 28
Figure 15 Business Value Roadmap loop view ........................................................ 29
Figure 16 - TM Forum Business Process Framework (GB921) ................................... 33
Figure 17 - SLA Lifecycle (GB917).............................................................................. 34
Figure 18 - Service Structure ...................................................................................... 35
Figure 19 - SLA Hierarchy .......................................................................................... 36
Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy.. 36
Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149)
................................................................................................................................... 37
Figure 22 - Social Networking Sources ....................................................................... 39
Figure 23 - Telefnica UK CEM Scorecard Dashboard ............................................... 39
Figure 24 List of TM Forum CEM Specific Documents ............................................. 42
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Executive Summary
Customer experience (CX) is the sum of all experiences a customer has with a
services provider, over the duration of their relationship that starts from buying phase
and includes post disconnection processes that may influence the customer.
Customer Experience Management (CEM) is a strategy to transform business and
make it customer centric i.e. service provider exists to earn profit by delighting
customer instead of defining strategy that is business centric where service provide
runs business to earn profit and in journey satisfies customer.
Customer Experience Management uses effective process, cutting edge IT solution
and operational excellence along with underlying enabling technology to make
customer journey comfortable, objective driven and beneficial for service provider as
well as customer. A strong customer experience strategy helps in growing business,
innovating products and increasing brand value for service provider.
Customer Experience is more about understanding customer perspectives and then
defining the solution and strategy. It keeps customer at core and then builds
organization to serve the customer with the help of process, tools, products, people
and solution so that customers are delighted and willing to do more business with
service provider.
This document comprises one element of a Customer Experience Management
Solution Suite. Other components are the Maturity Model, the Customer Experience
Management Index (CEMI), Lifecycle Model, Metrics & KPIs, omni channel best
practices and Implementation Guide use cases.
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1. Introduction
As with other Industry sectors, communications/digital service providers are
recognizing that customer centricity within their standard operational models is
essential to achieve sustainability and foster growth within their business model...
Today, the consumer of digital services holds the reasonable expectation that a fabric
of engaged parties, including service providers, their partners, and third-party suppliers
of content or other merchandise will be entirely focused on delivery of value in easy
and effective way.. No longer does a single party own an exclusive customer
relationship, and the experience of the end user (the customer or their proxy) must be
fully visible in order to ensure that the value is delivered such that the financiallyresponsible party (the customer) will be delighted to pay for said value.
Thus, a shift from an inward focus on departmental and operational goals and
measures (inside-out thinking) to an outward focus of delivery of high-value customer
experience, through continuous customer engagement (outside-in thinking), is an
essential transformation required of todays Digital Services providers. This Guidebook
promotes best practices considered to be most effective in achieving the business
objective of sustained shareholder value delivery via sustained customer engagement.
NOTE:
Terminology used throughout this document is based on the language
contained in the Glossary and, except where noted, supersedes dictionary
definitions or other sources of terminology from non-TM Forum sources.
Customer Experience (CX) is the result of the sum of observations, perceptions,
thoughts and feelings arising from interactions and relationships (direct and indirect)
over an interval of time between a customer and their service provider(s). The
measurement of customer experience is based on measuring the extent to which the
customers needs are satisfied using customer/user centric measures such as:
Product/Service availability
Product/Service usability
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providers it is also true to say that this expectation is a dynamic journey maturing over
time as the market accepts new journey delivery models -- not just in terms of the
quality of the technical services but their whole experience soup to nuts. Today,
therefore, service providers have become very conscious that while they may have
gone some way to monitor their customers experience, it is not enough and they have
to be much more proactive in ensuring that the level of service has to be managed
throughout the customer lifecycle and moves in symphony with this dynamic journey
delivery environment.
This issue of the Guidebook marks a transitional stage from managing the customers
experience to managing the engagement with the customer (and the end user proxy).
Customer experience loses no relevance or importance in this shift, rather the
expected delivery of value is seen as the result of effective customer engagement.
The digital service providers enterprise journey from CxM (Customer Experience
Management) to CnM (Customer Engagement Management) is a matter of enterprise
capability maturity, in contrast to an either-or choice. The full elaboration of best
practices for advanced-stage maturity in customer engagement will be an ongoing
effort in this Guidebook and the associated Addenda, which elaborate on key aspects
of Metrics, Maturity Model, and Lifecycle Model approaches.
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New Technologies - New capabilities drive new services and the potential for better
customer experience
Customer Behavior & Preferences - Changes in behavior create new risks &
opportunities
While not the only factor in managing the customer experience, delivering good service
quality is still a cornerstone to achieving customer satisfaction. However, this in itself
has become more demanding as the rapid increase in digital services has brought with
it ever increasingly complex value chains.
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The service providers are turning back to their customer base in order to differentiate
themselves because the connection between customer experience & the profitability is
widely recognized. The key drivers for introducing a CEM could be internal oriented or
external ones
Loyalty - Creating customer loyalty and stickiness, and therefore controlling churn.
The existing customer base therefore becomes the platform for growth and
profitability.
Therefore the CEM program will need to focus on providing both a high perception of
the digital services providers products and services, but as well the actual quality of
these services based on proactively includes rapidly spot issues, diagnose root causes
and prioritize responses.
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3. Differentiating CEM
The requirement of CEM has developed with the level of choices available for the end
customer and for the digital service provider to differentiate its services. This was not a
situation earlier when in most markets there were only a couple of service providers
selling similar products and customers had little choice of whom they used to deliver
their services, the concept of managing customer satisfaction didnt really exist in any
tangible form. At the same time the portfolio of services or products available to the
consumer were very limited and entirely dependent on resource facing services
managed by the providers themselves.
Consequently the need for CEM did not really raise its head until governments around
the world started to remove the monopoly held by the incumbent service providers and
slowly the customer was presented with multiple choices. The smarter providers
began to realize that customer satisfaction was important in order to encourage
consumers to move to them and to discourage its existing customers to look
elsewhere. As the new digital services emerge there is not only duopoly but there are
now several choices when it comes to various types of digital services including
communications, entertainment, digital data, content, e-commerce etc.
Initially the main changes were on the internally focused Customer Relationship
Management (CRM) rather than externally focused CEM. While CRM went some way
to improving the relationship with the customer, the approach was very internally
focused looking at developing the appropriate processes, systems and skills to
manage the relationship with the customer. This certainly improved the customer
experience but it was an inside looking out strategy rather than outside looking in. It
enabled the service provider to assess how well their services, people and processes
were performing, not whether they were meeting the customer expectations. For
example, providers measured the average time to answer a call to the customer help
desk and measured success against an internally set target representing what the
business felt was acceptable but did not necessarily meet the customers expectations.
So while development in CRM helped improve the customer satisfaction it did not go
far enough.
A common misconception in the industry is that CEM is a replacement for CRM which
simply is not correct. A successful transformation into the CEM world can only be
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achieved by building on top of good CRM processes and practices. CEM takes us a
step closer to achieving improved customer satisfaction. Instead of asking the
question, This is what we are doing, how well are we doing? which is a CRM
approach, CEM asks, What is important to you, and how well are we doing? CEM is
aimed at turning customers into fans by seeing the world through their own eyes.
As we will see in this document, implementing CEM has a wide impact on the service
providers organization. Whereas CRM was largely centered on the operations groups
within an organization, CEM must be implemented across the entire organization and
cannot be implemented solely through processes and systems. It must become a key
part of the service providers culture.
In their article Understanding Customer Experience" (Harvard Business Review,
February 2007) Christopher Meyer and Andre Schwager prepared a useful table
contrasting the two strategies.
CEM
CRM
What
When
How Monitored
Relevance to
Future
Performance
While this article only goes part of the way to establishing the key differences between
CEM and CRM, it does underline the fundamental principle that CEM drives a
proactive approach to managing the customer, while CRM is a measurement of what
has happened in the past.
This leads us to where we are today with a rapidly increasing movement towards
delivering services whose functionality and performance are underpinned by a good
understanding of what the customer expects.
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perspective. CIM & CRM are often used together with CIM being transaction specific
and CRM providing information and intelligence behind the transaction.
In the context of CEM customer interaction needs to evolve into customer involvement,
integrating the customer in idea generation, choice identification, product creation and
consumption. A natural requirement of this would be a customer profile at each touch
point and map their customer journeys. CIM is ultimately one part of CEM, which
provides the larger picture.
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Consumer Activity Metrics- these are direct measurements of what the customer
had actually done based on posts likes etc. Typical examples are post rate,
response rates etc. They are an indirect measure of customer experience
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Brand Reach Metrics- these measure the audience connected to a brand e.g.
audience growth rate, Facebook Organic, Virtual & Paid reach. The viral reach is a
measure of customer experience.
Metric
Impact on CEM
Consumer
Activity
Social Page
Views
Consumer
Engagement
Engagement
rate
This metric is the total of likes and comments divided by the total
number of fans, indicating the raw # of engagements per fan.
The engagement level is an indirect measure of relevance of the
media itself and acceptance of the brand
Acquisition
Talking About This is a Facebook specific metric which reports on how many
This
people are talking about the brand and the related pages on
their own pages, as a measure of social sensation created by
the brand. This is an indirect measure of social sensation
caused by a specific campaign or launch.
Consumer
Activity
Retweet rates This is a measure of how many times tweets have been
retweeted, which is an indirect measure of an importance of an
event, for example an outage.
Consumer
Activity
Chatter level
Conversion
Metric
Sociallyreferred
revenue
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Category
Metric
Impact on CEM
Conversion
Metric
Conversion
Rate
Reach
Reach
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End User Segments - The journeys and the defined experiences are based on the
specific end user segments against which the service providers operate.
Experience Model - The experience model is the key component holding the model
together. This includes predominantly the customer experience lifecycle model
along with the various channels of interaction of the service provider.
Enterprise Maturity Model - The GB962B describes the various phases of the
Customer Experience Maturity Model. The evolution of the maturity of a service
provider is against the experiences it delivers across the various lifecycle phases of
the customer and the metrics it delivers to its business.
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Maturity (Strategy, Organization, People, Processes, KPIs & Tool) and the Key
Capability Indicators (KCIs), which provide an example of how qualitative and
quantitative measures of capability in the Dimensions of the CEM Maturity Model can
be captured across the enterprise to develop a baseline of current capability and to
highlight opportunities and challenges for reaching an increased level of maturity.
The picture below is a summary of the tool to for enterprises to self-evaluate the level
of maturity in customer experience by combining the knowledge of the level of maturity
in processes as applicable to the key capability indicators mentioned in this section.
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The result is a gap between the customer view of service quality and the service
providers view; with the Service Manager trying to act as the bridge across the chasm.
A simple example is one of the key quality indicators (KQIs) that service providers
regularly use to measure service quality ... Availability. The standard formula for
measuring availability does not consider planned outages as downtime so a service
that requires regular outages for maintenance may still display a high level of
availability. Does the consumer trying to use the service actually care whether the
outage is planned? Of course not! A more customer centric measurement of service
availability is Serviceability which is a simple measurement of the percentage time
that a service is available irrespective of the reason for outage. It would seem to be a
simple task to move from measuring Availability to Serviceability but this is often not
the case especially where the performance of individuals is measured by the
availability of the services that they manage!
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7.1. Customer
Experience Lifecycle
Metrics
It is important to establish a suitable framework within which to identify and organize
the CXM metrics. The TM Forum Customer Experience Lifecycle model (CxLC) has
been selected as the foundation of the metrics framework for two reasons:
1. The CxLC identifies all the key stages in the relationship between the customer and
the DSP, thus facilitating identification of a comprehensive set of metrics covering
the entire Customer Lifecycle.
2. It is widely recognized that customer experience cannot be assessed from single
metrics in isolation, but instead should be assessed in the context of the customers
unique journey, taking into account the customers history, preferences, mood and
expectations. Use of the CxLC readily lends itself to alignment with the individual
customer journey.
The framework of Figure 10 incorporates the nine key stages of the TM Forum CxLC:
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The primary partitioning of the metrics is against these nine stages, which are
addressed in turn in GB962 Addendum A CXM Metrics.
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However given the world in which we live and the methods of communications
available to the average customer(s), is this method of gathering CEM information
sufficient to understand customer attitudes towards their respective carriers? The
contention is that it is not and hence this report looks at combining other customer
attributes to enhance the view of the customer through a broad business value
approach by the construction of a mathematical model to produce a neutral Customer
Experience Management Index (CEMI).
Please see Technical Specification CEMI for additional details. (TMF066).
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8. Omni channel
Customer experience has become a key differentiator for service providers as excellent
network and service quality become wide spread, and product offerings become similar
across all providers. The key to leveraging this differentiation to maintain a strong
customer base and sustain revenues is to deliver a consistent and personalized
experience to customers across all channels. Taking this a step further, the ultimate
customer experience is one that is completely seamless across all possible channels
regardless of how the interaction started, which channels it traversed, and how it
finished.
This is the concept of omni channel. In the communications industry, service providers
have tackled some of the most obvious initial user journeys, offering joined-up services
like click-to-collect. However, complete, proactive and personalized customer
engagements are still some distance away.
TM Forum has created a set of best practices around omni channel. The best practices
outline several key areas around omni channel.
1. Key imperatives of omni channel the principles that need to be considered in any
omni channel project:
Channel Hopping
Deliver in Context
Personalized Engagement
Prioritized Journeys
Identity
Personalization
Recommendation
Knowledge Management
Documenting prioritized user journeys across the Buying, Using, and Sharing
stages of the customer lifecycle.
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9. Implementation Guide
The implementation Guide (GB962D) is a summary of best practices that are relevant
for customer experience management. It presents a methodology for using all the TM
Forum best practices and tools that are available today in a defined, repeatable and
extensible manner. The best practices addressed are for example the maturity model,
metrics, the life-cycle model and big data analytics use cases.
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The unified use case template document as described in Figure 13 is used to collect all
data about a use case. The use case is described in details including its purpose and
business value. Part of this description can be the relation of the use case to other
models like, for example, eTOM.
An important part of the description is the entry conditions. They describe the
prerequisite of an organization or an environment that needs to be met for the use case
solution to be feasible. For example the organization might require a certain level of
maturity. In this respect, the use case might describe various possible solutions with
different entry conditions.
Furthermore, the use case description contains a summary of all metrics and
benchmarks that appear to be the central KPI that govern the business challenge
described in the use case.
Actions and processes are the central part of the use case description. They define the
proposed solution as a business processes and thus as a sequence of actions. The
idea is that an organization can implement the proposed solution by implementing the
described business process. Thus, these processes can be understood as recipes for
solving a business challenge. The actions in the processes often refer directly to TM
Forum best practices or recommendation documents and they describe how these best
practices shall be used in the context of the use case. Also other use cases if the
implementation guide can be used as part of the described solution.
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Happy Customer
Engaged customer
Repeat/Loyal customer
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Internal Goals:
Social score
CEM as differentiator
Loyalty/stickiness/retention improvement
Improvement in Selfcare/DIY
ARPU
Revenue uplift
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9.1.5.3. Identify the Use Case that best meet business goals
The next step would be to identify for the current library of Use cases, which one (s)
would best meet the journeys which you seek to improve. Please note that the tagging
on the library of use cases should help to identify the UC that best meet business goals
in terms of the following processes: B2B or B2C, Customer care, Interaction,
Understanding, Retention, Personalization, Revenue, Business optimization and Cost
reduction.
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9.1.7.1. Execute UC
First of all the UCs are executed by implementing the attributes available in the UC
template.
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As more and more providers realize the benefits of a fully embracing CEM
environment, so we will see a growth in the adoption of frameworks such as the TM
Forums Business Process Framework. Much of the framework exists today and will
be strengthened by wider adoption as is inevitable. For a provider to develop their own
process framework will prove not only costly but will lead to delays in achieving the allimportant market differentiation through improved customer experience. As mentioned
earlier CEM is more than just good processes and there is plenty of scope to establish
differentiation while adopting a common process framework.
It is not just the service functionality that must embrace the customers expectations
from the early design phases. The performance characteristics of the service must
also meet the consumers expectations. As we will discuss in the next section, good
Service Level Agreement (SLA) management is a corner stone to managing service
quality especially in the highly distributed service delivery structures of the modern
digital services. The following diagram taken from the TM Forums SLA Handbook
(GB917) shows how the development of the various forms of SLA spans the various
domains of the Business Process Framework, from strategy to in-life management and
service retirement.
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As can be seen from the diagram, there is a clear hierarchy in a service structure that
shows Customer Facing Services (CFS) being constructed from a number of Resource
Facing Services (RFS) where each of these components may be delivered internally to
the service provider or from an external partner or supplier. One or more CFS are then
packaged into the Product that is supplied to the customer. Whereas RFS and CFS
may be provided by a third party, the Product is almost always the responsibility of the
service provider and tied in to other offerings and the service providers brand. The
quality of service at the product level, therefore, has significant impact on the service
providers brand value. Consequently it is imperative to monitor and manage the
product quality especially where one or more components (services) are dependent on
a third party and outside the direct management of the service providers operational
capability.
Establishing service agreements at each component level as shown below, enables
the service provider to not only manage the quality of service delivered to the customer
but also that delivered by suppliers, partners and internal groups.
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Most of the types of service agreement shown will be familiar to the reader with the
possible exception of the Implicit SLA. An Implicit SLA uses the same specification
format as an SLA or an OLA, i.e. with a Service Level Specification (SLS) and a
description of measurement points and violation procedures, but does not exist within
the context of an agreement (whether commercial or internal). It represents a one
sided goal stated internally by a service provider, aiming at achieving a certain level of
quality for a service, corresponding to the service provider understanding of what the
customer expectations are.
Importantly when developing the service agreements all of the SLAs and OLAs must
be joined up. In other words, the commitment made to the customer in the Customer
SLA must be underpinned by the SLA at the product level which in turn must be
supported by the CFS level SLAs and so on through the hierarchy. This does not
mean that the Customer SLA has to match the product SLAs, more that they should
not exceed the latter without a good business reason to do so.
While the SLA may be the corner stone for managing service quality it forms only part
of a much wider source of information required to understand the customer experience.
The true picture has to be constructed from many sources gathered at the different
levels of the hierarchy as shown in the following diagram:
Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy
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Traditionally this model has been applied bottom up i.e. from the resources up to the
Customer SLA an approach that supported the what do we think the customer is
concerned about strategy. In many cases there is actually little correlation between
the SLA offered to the customer and the service agreements associated with the
components that the service depends on. The result is unsupportable customer SLAs!
CEM turns this approach on its head by starting with what is the customer actually
concerned about and mapping these Critical Success Factors (CFS) to the lower
level measurements and other data sources.
Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149)
As we can see from the above diagram, measuring the customer experience involves
capturing data from a much wider source of data than has been used in the past for
technology biased performance measurements. The addition of service testing probes
adds an important additional source of information as, if used correctly, they provide
true end to end service performance data. The TM Forum Managing Customer
Experience program has carried out a significant piece of work on the use of probes
and this is documented in TR148 Managing the Quality of Customer Experience. This
work includes descriptions of different types of probes including:
But even probes have a limitation, with the exception of embedded agents, they only
test the service from a limited number of access points and rarely provide information
of how the service is performing at the user application, equipment or edge devices.
There are two approaches that can help to fill this gap.
The first is to use embedded agents to extract performance data from the users
devices, or at least a sample of them. More and more we are seeing that user
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application vendors are including the collection of performance data that can then be
uploaded to a central service performance management system. Unfortunately there is
still a wide reluctance in the user community to allow access to this performance data
and service providers sometimes find that they are restricted to collecting data from
their own internal users. Even so this technique does provide a good measurement of
how a service is performing.
Another technique that is becoming more widely deployed is Business Transaction
Management (BTM) which allows the provider to track real user transactions and
monitor a number of different performance criteria such as success rate and
transaction speed. While this approach may seem to offer the best option, it too has its
limitations. Firstly BTM only provides information when a service is being used; it does
not enable a provider to monitor the service during dark hours. Secondly BTM
solutions often rely on the deployment of agents at different points in the service
delivery chain which can prove difficult when components are being delivered by third
party providers. The answer therefore is a wide range of data sources aggregated into
a single view of service performance as described in much more detail in TR148 and
TR149.
Even this comprehensive approach to gathering data from a wide range of sources
does not really go far enough. One problem is that it still has a tendency to support a
CRM strategy rather than CEM in that it relies on setting up measurement of what the
service provider considers to be important to the consumer. If driven by strong input
from the user domain the technique does help a service provider to understand the
customer experience. There is of course one problem with basing management on
input from the user ... they do not always know what is important until they start to use
the service, and even then, what is important changes as the maturity of the service
progresses.
So how can we measure satisfaction without knowing what to measure? One
approach has been used for many years and continues to be a good source of
customer satisfaction data, this is the customer survey. Regular polling of a sample of
customers using well-formed questions continues to enable the service provider to
assess what they are doing well and the level of satisfaction that their customers are
experiencing. The survey also helps to build the fan base by sending the message that
the service provider wants to engage with them and cares about their experiences.
Surveys however can be expensive and can suffer from significant latency between
defining the questions and evaluating the results. They can also suffer from yesterday
syndrome. For example, while the survey may be intended to measure customer
experience over a three month period the answers that they will hear will be heavily
biased by the most recent experience of using a service.
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Recognizing that the CEM view is complex, forward looking service providers are
developing an OSS/BSS environment that enables them to display this disparate data
in one single vital signs view. The following is a picture of such a scorecard being
developed by Telefnica U.K. for them to be able to monitor the various performance
aspects that represent the customer experience.
Figure 22
Figure 23 - Telefnica UK CEM Scorecard Dashboard
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The above is an early design view using test data but provides an insight of how
Telefnicas approach towards managing the customer experience embraces a
multitude of critical success factors including customer surveys, social media activity,
contact center stats and service specific data. From this single view Telefnica UK are
able to calculate various Customer Satisfaction Index values which they can then use
to drive their customer centric quality improvement programs.
In summary, there is no silver bullet when it comes to measuring and monitoring the
customer experience. There is however a clear movement in the industry to rely less
on purely internally generated CRM data and broaden the approach to listen to
anything that the consumer has to say without trying to best guess what the customer
thinks is important. Data from the social networks and consumers interactions with the
service provider e.g. via customer services are becoming more dominant as a source
for understanding the customer experience. It does not matter what the internal
systems are telling the provider; if the user are saying that the service is poor ... it is
poor!
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11. Summary
Companies are increasingly recognizing that customer experience is a key
differentiator in a competitive marketplace. However the implementation of customer
experience management is relatively new to the digital world and while there has been
quite a lot of work carried out on service management and customer relationship
management that underpin CEM, good guidelines and working practices are only just
starting to appear. As it did with service management and CRM, the TM Forum,
through its member companies, is driving out the CEM boundaries and expanding its
widely adopted Frameworx to support CEM.
There is a great push to establish and enhance CEM programs in many of the leading
service provider companies today. This will inevitably lead to better standardization in
the industry. Having said that, the nature of CEM and the fact that it touches on many
aspects of a service providers business, it is unlikely that there will be a fully defined
set of standards for CEM. We will, however, see an extension of existing frameworks
and development of new best practices that will enable service providers to establish
CEM programs with shorter lead times, reduced risk and lower costs.
The establishment of CEM as a corner stone for achieving market differentiation is
already understood by many and because of this the industry will see new and
innovative ideas underpinned by CEM. After many years saying the customer is king
the industry is starting to believe it and the culture change needed to support that
standpoint has started. For some it may be a difficult journey but the pain will surely be
worth the gain.
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Guidebook
GB962A
GB962B
Maturity Model
GB962C
GB962D
GB962E
GB962F
RN339
TMF066
IG1134
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Description
Source
TR148
TM Forum
TR149
TM Forum
GB917
TM Forum
GB923
TM Forum
GB921
TM Forum
GB929
TM Forum
GB922
TM Forum
Understanding Customer
Experience
Harvard Business
Review 2007
Customer Satisfaction
Survey
J. D. Power and
Associates
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14. Glossary
14.1. Structure and
Convention
This glossary is structured to allow terms to be detailed by use, in order of the following
precedence:
Thus, the convention for detailing a term is that the term will rely for its definition on the
terms preceding it, using the precedence above. All terms defined in this Glossary will
be capitalized in use throughout the rest of the document.
Terms
Definition
Customer
[1] --a specific Party[2] Role[3], liable for the legal obligation to pay for
a Product[4]. A Customer takes the form of one of two Party Roles:
End-user
Customer- facing
Roles
Partner[1]
Supplier[2]
a specific Customer need (e.g. I need help, I need to make a call, I need to
pay, I need to complain)
Experience
the sum of all journeys a Customer has with a Provider, calibrated with the
correlation of their expectations to their perceptions, over the duration of
their relationship with that Provider.
Engagement
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Terms
Definition
Lifecycle
Process
Touch point
Customer
Experience (Cx)
Customer
Experience
Management
(CxM)
Customer
Relationship
Management
(CRM)
Customer Life
Cycle (CLC)
the various steps a Customer goes through when shopping, using and
preferring a Product
End to end
Service Quality
Management
Key Quality
Indicator (KQI)
Net Promoter
Score (NPS)
Promoters (score 9-10) are loyal enthusiasts who will keep buying and
refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are
Page 45 of 51
Terms
Definition
vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your
brand and impede growth through negative word-of-mouth.
Quality of Service the collective effect of service performances, which determine the degree of
(QoS)
satisfaction of a user of the service (ITU-T Rec. E.800). So the term Quality
of Service is used in this document as a quality figure rather than referring
to the ability to reserve resources, i.e. level of Quality of Service.
Service Level
a formal regulated agreement between two parties, sometimes called a
Agreement (SLA) Service Guarantee. It is a contract (or part of one) that exists between the
Service Provider and the Customer, designed to create a common
understanding about services, priorities, responsibilities, etc. (TMF 701
modified).
An SLA or Contract is a set of appropriate procedures and targets formally
or informally agreed between Network Operators/Service Providers
(NOs/SPs) or between NOs/SPs and Customers, in order to achieve and
maintain specified Quality of Service (QoS) in accordance with ITU (ITU-T
and ITU-R) Recommendations. The SLA may be an integral part of the
Contract. These procedures and targets are related to specific
circuit/service availability, error performance, Ready for Service Date
(RFSD), Mean Time between Failures (MTBF), Mean Time to Restore
Service (MTRS), and Mean Time to Repair (MTTR) (ITU-T Rec. M.1340).
Service Level
Objective (SLO)
Service Quality
Management
(SQM)
the management of the end to end Quality & health of a specific service or
a product offered by a service provider.
Definition
QoE
Customer
Loyalty
Customer
Satisfaction
User Experience the result of interactions between a Provider of a product or a service and
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Customer
Lifetime Value
Customer
Attrition Rate
the percentage of customers for a specific product or a service lost out of the
overall customer base for that product or service.
Customer
Retention Rate
Customer Churn the percentage of customers for a specific product or a service lost to an
Rate
equivalent service from a competitor on a periodic basis from the overall
customer base for that product or service.
Cross Selling
the process of extending the customer lifetime & customer lifetime value by
selling an existing customer an additional service or product, which is
different from what they currently have.
Customer
Retention
Breakage
Customer
Analytics
Customer
Insight
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Information about the marketplace is provided, as in the report on the size of the
OSS market.
Version
Number
Date
Modified
Modified by:
Description of changes
0.1
First draft
0.2
16/4/2012
Ian Best
0.3
16/4/2012
Ian Best
0.4
30/9/2012
Shai Shamir
Terminology/definitions
Maturity Model update
1.0
2/10/2012
Mary Amalfitano
1.1
8/11/2012
Alicja Kawecki
1.2
4/12/2013
Steve Cotton
Team Approved
1.3
4/25/2013
Alicja Kawecki
Version 1
30/06/2013 Sandeep
Chowdhury
Version 1
31/07/2013 Sandeep
Page 48 of 51
Version
Number
Date
Modified
Modified by:
Description of changes
Chowdhury
by Steve Cotton
Version 2
12/07/2013 Sandeep
Chowdhury
Version 3
9/19/2013
Version 4
9/20/2013
Sandeep
Chowdhury
Sandeep
Chowdhury
Version 5
9/26/2013
Sandeep
Chowdhury
Version 7
9/26/2013
Sandeep
Chowdhury
Version 8
9/27/2013
Sandeep
Chowdhury
Version 9
9/27/2013
Sandeep
Chowdhury
Version 1.5.1
10/8/2013
Alicja Kawecki
Version 1.5.2
6/24/2014
Alicja Kawecki
Version 1.5.3
8/28/2014
Alicja Kawecki
Version 1.5.4
Version 1.5.5
(upversioned to
1.5 to align
correctly)
Version 2.0.0
Antonio Cuadra,
Page 49 of 51
Version
Number
Date
Modified
Modified by:
Description of changes
Indra
Version 2.0.1
Comments added
Version 2.1.0
11/3/2014
Rebecca Sendel
Version 2.1.1
12/1/2015
Rebecca Sendel
Version 2.1.2
12/2/2015
Alicja Kawecki
Version 3.0.0
6/2/2016
Snigdha Mitra
Version 3.0.1
6/6/2016
Alicja Kawecki
Release
Number
Date
Modified
Modified by:
Description of changes
12.5
31/04/2012
Ian Best
13
20/03/2013
Sandeep
Chowdhury
13.5
30/06/2013
Sandeep
Chowdhury
13.5
27/09/2013
Sandeep
Chowdhury
14.5.0
November
2014
CEM Team
15.5.0
December
2015
CEM Team
Minor updates
16
June 2016
CEM Team
15.3. Acknowledgments
Mark Ady, Colin Cunningham and Eva Franconetti (Telefonica UK) for permission to
use the Telefonica UK Vital Signs work
Members of the Holistic e2e Customer Experience Framework team for their great
work
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Andy Chalmers (TM Forum and Chalmers Associates) for the TM Forum CEM training
material
Joann OBrien, Steve Cotton and Rebecca Sendel (TM Forum) for their contributions
The many members of the TM Forum Collaboration teams past and present for the
hard work on the projects that support CEM.
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