SHARE



ABOUT THE AUTHOR


Gary Audin
Gary Audin is the President of Delphi, Inc. He has more than 40 years of computer, communications and security...
Read Full Bio >>
SHARE



Gary Audin | July 24, 2015 |

 
   

Fine-Tuning CEM to Produce Loyalty

Fine-Tuning CEM to Produce Loyalty Measuring and processing big data relating to customer satisfaction and tweaking customer experience management is universal.

Measuring and processing big data relating to customer satisfaction and tweaking customer experience management is universal.

Creating customer loyalty is profitable, and customer churn is a negative cost. This especially true for communications service providers (CSP) such as wireless providers. Collecting, collating, and processing customer requirements, aspirations, and complaints can transform the CSP into a big data processor. Although there can be many problems dealing with a CSP, network service quality remains the biggest driver of customer dissatisfaction.

Customer Loyalty Produces Business Performance

This is the conclusion of a survey performed by IBM and reported in a white paper titled, " Driving Customer Loyalty Through Network Service Quality ." Customer satisfaction of network service quality out polled every other factor measured, including billing -- one of my personal pet peeves.

Although the report covered wireless service providers, the lessons learned can be applied to any customer service center. Measuring and processing big data relating to customer satisfaction is universal.

portable


IBM's 2014 study of over 4,000 C-level executives across worldwide groups of multiple industries found a strong correlation between organizations that perform well and a focus on customer experience management.

Defining Customer Experience Management (CEM)

CEM involves three elements. First, the organization must use relevant insights about the customer. The organization has to understand the customer and his or her evaluation of and response to the experience. This involves approaches to customer care, policies, and finally network quality itself. Not all things measured will be useful, but you may not know what data is important until you analyze how the organization treats the customer.

Second, the CSP must use those insights to develop actions to satisfy the customer. Who determines the insights can affect the conclusions drawn. Whether the actions taken should be at the sole discretion of the marketing and/or sales organization is an open question. This is where IT can help by providing flexible tools to determine the actions to be taken.

Third, and probably most important, is to measure if the actions produced the desired results. This is where big data enters the picture.

The report mentions that 67% of CSPs believe that they have adequate or good visibility into network service quality. A small number, 16%, think they have excellent visibility. Those who have pursued CEM strategy for over a year (24%) reported success, which compares to 5% who have less than one year of operation. It appears that just creating the CEM environment is not enough. It needs to be tuned and improved over time. Those who measure network quality (IT) need to work closely with those responsible for customer satisfaction. The first day of operation does not automatically deliver the desired results.

Mapping the Scores to Customer Loyalty

The report demonstrated that there a multiple CEM mechanisms to analyze customer loyalty:

  • 25% have in-house developed CEM systems
  • 36% use standard tools for intelligence gathering and data warehousing tools that support the mapping of service metrics to customer loyalty
  • A smaller number of respondents (15%) use a third-party CEM tool
  • A surprising 14% do not have any mechanism for measuring customer loyalty
  • The smallest number (10%) is in the process of creating their customer metrics and matching them against the service delivery

Data collection security and delivery methods from third-party sources are limiting factors. Can the organization trust the third-party source's security controls?

Next-Gen CEM

Up to this point, most organizations have not had to process big data. It is becoming apparent that big data analysis is the next step, but there are challenges to this approach. Customer loyalty data is probably in different formats, from different sources, measuring different metrics. Data may come from focus groups, emails, Web interactions, mobile apps, third-party data collectors, messaging systems, Twitter, Facebook, and other social media sites.

The second challenge is to create service quality data sets that can be used with the loyalty data to produce meaningful conclusions. Both of these challenges mean that most organizations have work to do, as is shown in the following chart from the report. Each survey respondent was allowed to report his or her three highest priority efforts.

portable

Like other organizations, most CSPs are proceeding to expand their CEM systems to better understand how customer loyalty is measured and processed.

What Does This Mean for the Network?

The diversity of data sources presents problems for internal network operations. I am referring to the organization's own network, not the network that is servicing customers. My recent blog The Network Impact of Big Data generated well over 100 retweets, demonstrating a high interest in the network problems produced by big data collection.

My greatest concern is not the accuracy of the data sources or the information formats. The external sources of loyalty data all have different levels of security -- in access, content, and transmission. I would be cautious about whom to collect information from. Their security policies and procedures may not be those of my network. Due diligence is called for before accessing third-party networks for customer loyalty data.





COMMENTS



August 16, 2017

Contact centers have long been at the leading edge of innovation in communications technology, given their promise of measurable ROI and the continual need to optimize customer interactions and sta

July 12, 2017

Enterprises have been migrating Unified Communications & Collaboration applications to datacenters - private clouds - for the past few years. With this move comes the opportunity to leverage da

May 31, 2017

In the days of old, people in suits used to meet at a boardroom table to update each other on their work. Including a remote colleague meant setting a conference phone on the table for in-person pa

August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular BlogGeek.me blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.