Connecting network performance with customer experience
With Experience Centric Managed Services, Ericsson has led the way using its insights and experience to develop an innovative service solution that addresses the disconnect between network performance and customer experience and the consumer’s perception of service performance.
There is a clear trend towards paying a premium for experiences in the Networked Society, and we are finding that operators can increase economic value through experience. We can support in transforming the network into an experience platform with experience centric managed services.
By putting customer experience at the center, we can drive value in several dimensions, addressing the top-line, OPEX and CAPEX through:
- Decreased churn, enabling lower customer acquisition cost
- Increased ARPU, when customers perceive value from their experience
- Effective network operations and investments, by prioritizing spend based on service performance.
Experience delivers greater returns when done well
All industries are facing a trend towards commoditization. That includes the telecommunications industry as well where there is opportunity when viewing the network as an experience platform. We believe that a key enabler for operators to create the necessary differentiating experiences is to create reliable performance of services everywhere the customer expects.
The performance paradox
One of the challenges to this progress that we have identified through our research is the performance paradox. There are several scenarios that illustrate a paradox where existing network KPIs are green, showing the network is performing as it should. Meanwhile, the actual experience a customer may have in using their operator's service is that it is not performing according to expectations, in effect they could be seeing red.
This becomes more apparent when we compare Net Promoter Scores for the telecommunications industry with others. The average Net Promoter Score for operators in the US is currently at 11%. Compare that to 50% in the retail industry, and it shows that there is room to improve when it comes to meeting customer expectations.
The performance paradox – a reality for many operators in the experience era
The evolution of managed services is experience-centric
Our offering is a service innovation that takes on the performance paradox by measuring service performance and customer experience as a continuous process working systematically across all valuable and relevant areas for the operator and their customers.
Experience centric managed services addresses the performance paradox
It is an overarching holistic experience-centric managed services engagement that consists of two components that work in unison:
- Our experience management center (EMC) continuously tracks how customers experience their operator's services.
- Our service operations center (SOC) monitors in real time how well services perform using network probes and shallow packet inspection.
The EMC and SOC feed all this data back into the network operations center and network development to give operators the insights they need to improve service performance.