Measuring RoI of Customer Happiness...

Every sales or marketing or customer service or engineering initiatives has a cost and reward associated to it. For any company the rewards or benefits should outweigh the cost for it to be adopted by the company's' management. But what happens when it comes to customer experiences, are any short term benefits that can justify immediate implementation of a customer happiness program? Or its long term advantages and what is the most effective way of measuring Returns on Investments (RoI)?

In the financially driven world of business RoI is measured by

• Revenue generated
• Cost Saved
• Profit made

Having said that what is the best way in measuring the RoI of a CEM program? First off we need to understand why a CEM program is put in place... The general answer will always be to keep customer happy and satisfied. However beneath that very general statement are underlying business cases such as:

• Lower number of customer complains.  Just imagine every customer complain can cost say 5$ and if there are 1,000,000 complains avoided every year, that's a 5,000,000$ savings
• Lower the Average Call Handling Time. When calling customer service just imagine how much time is wasted going through the IVR then a long interview with a customer service agent. What if you can reduce this by let's say 1 minute? In an average mobile operator the cost of a customer service call is around 1$ per minute, now consider the 1,000,000 complains where every call handling time is reduced by 1 minutes, that's a 1,000,000$ savings.. In the real world the savings can be as much as 10 minutes
• Improve First Call Resolution rate. For every customer service organization resolving customer issues at the very first instance they complain is very important. Let's just say it will cost 5$ per every complain that is not resolved by first line support so if all the 1,000,000 calls goes to 2nd line support that's a 5,000,000$ cost that can be saved if complains are resolve the first time around.
• Lower Churn rate. Let's just say out of those 1,000,000 callers, 2% churns or departs as customers. That's 20,000 customers, and let's just say they ARPU is 100$ per year that's 2,000,000$ in potential lost revenue saved.
• Increase service usage. Happy customers normally use more services. Let's say as a mobile operator you offer data services for 5$ per month with 1 GB of data, with your customers being happy say about 1,000,000 customers upgrade to 10$ a month. That's an additional revenue of 120,000,000$ per year.
• Deploy wanted services. What a good CEM program will show you are future services that your customers will take. Let's just say your customers move to WiFi every time they use Facebook, now if you know this fact why not offer your subscriber a 1$ a month Facebook usage using your network. For 1,000,000 users who will subscribe to the service that's an additional revenue of 12,000,000$ per year.

There are of course a lot more potential savings and more potential revenue generated with the right solution. Having said that there will be more examples to learn from in Dubai for the CEM Summit  next month. This same topic will be discussed by David Perrota  of Zain, Liz McSorley of Du, Nedal Mostafa of Ufone and Ahmed El-Bana of Mobily.

This group of industry experts will be exploring:

• How to you use the results of your ROI analysis to make the customer experience a strategic priority at a time when all departments are competing for budget?
• How to you monitor and strengthen the link between customer satisfaction, recommendation rates and customer acquisition?
• How to you ensure that your customer experience improvements will increase ARPU?

Now I am tempted to attend....

Embedding the customer in the center of our organizations

In a world where product differentiation is no longer an advantages it is very important that an organization differentiates in how good it delivers the promised customer services.  Most customers today are expecting only the very best service, even if that price for service is dirt cheap. Let's say I dine in an Island in the Philippines, I pay 10$ for an excellent meal coupled with an excellent friendly service so if I dine in London and spends 100$ I will expect the same level of service. If I don't get a good service I might not come back again or might give a bad rating for the place in Yelp or any other social channels. You see I am not the only one with this way of thinking. Do you think the same? Talking of London, I have been to Nobu and to Ramsey's I was surprise to spend less in Ramsey's where the service was a lot better and the food was excellent… Now I can say that Ramsey's is a very good example of providing a wonderful customer service, you leave happy and want to be back again as soon as you can.

All customer experiences are rooted to the people who provides them. When it comes to businesses, the customer experience is all that matters, most specially on service industries like Telecom. So the question to most if not all executives is "How do you embed customer centricity in your organizations?". There is no easy answer to this, there are no shortcuts. Its true that we train our front line staff to deliver a good service, but delivering a good service is no longer just a service, it is giving a positive experience that counts. To ensure that we provide positive experiences, our customers expects us to take the extra mile, go a bit further to give them delight and happiness. Doing should not break the bank either, after all as a business we aim for profitability and as executives we are judge on profitability by our shareholders. In April, at the CEM Summit in Dubai, Liz McSorley of du (VP  Customer Experience) will share how they do it in du.

For a product and technology led company like AmanziTel, we ensure that customer centricity is embedded in our corporate DNA by ensuring that each and every one of us understand and embrace customer centricity and the importance of ensuring happiness to our customers. We do this in various ways

• Customer centricity starts from the top, from our board members to our CEO down to our software developers.

• We hire resources who are naturally service and innovation oriented, so no matter how difficult our deployments get we continue to strive to provide happiness to each and everyone of them.

• It is embedded in our product and service design. When we design a product, especially new innovations and ground breaking product, in every decision we take our customer needs and happiness are taken into consideration. We call that customer driven development.

• We treat every customer request with utmost care and respect. Its like having your own baby being born when customer request arrives and ensuring that he or she is always happy and that he or she is raised and developed the right way.

• In times when we are not perfect, we ensure that we make up for our shortcomings by continuously delighting our customers in our own little ways and make that extra effort.. Walk the extra mile…

• We empower our front line resources to make key decisions in delivering customer happiness when they are put on those awkward situations.

• We always keep in mind that our customers are serving Billions of subscribers that at the end of the day each of our customers will have to deliver that happiness to their billions of subscribers

• For each and every one of us in the company we will always ensure our customer's happiness in our own little ways

And since its Valentine's day let me say we love our customers and we love the billions of subscribers they have.

Customer Experience in Telecoms

Being in China last week give me glimpse how fast Customer Experience programs are being rolled-out in the country. This I can lay claim to while observing one of our customer deployments  (server failed, alarms everywhere, engineers panicked, solved with only 3 minutes downtime) where a single Customer IQ server receives more than 800,000 files per day and growing, this means that the update can be as much as 800,000 devices in that day or it can also be 800,000 customer complains to the operator in a single day… Hopefully for that customer, the largest operator in the world, its the former and not the later… On my way back to Nordics I can't help but think about what we in the western world term as big data, how much we stress about meeting big data requirements…. Comparing to China perhaps experiences from 800,000 mobile devices in a day is not yet considered as big data when they have 800,000,000 subscribers…. Seems like our deployment has room to grow still before we can join the Billion subscriber club….

I have been asked a few times to speak on a conference or to blog about an event and while searching for meaningful conference to attend to I stumbled upon CEM in Telecoms Middle East Summit. And after discussions with IQPC's Radhika Sasidharan I agreed to be part of the event. One things that entice me to be part of it are the line up of speakers and the topics being discussed. I attended the event as speaker last year and at the same time as one of the sponsors.. Back then Telecom operators were trying to learn from other verticals such as airports, banks and hotels… A Year later its now very focused in to the Telecoms market. So the trend in the Middle East is similar to Asia where the  subscribers base of our  customers using the Customer IQ solution have exceeded more than a Billion considering the size of the operators we work with.

The CEM in Telecoms MEA will be in Dubai, the melting pot of culture and businesses at the end of March. I am very much looking forward to be there to see the progress that du have achieved with Osman Sultan (CEO, du) talking about how customer centricity starts at the top. Graham Webster of Telefonica will also be sharing how Telfonica O2 managed to engage their subscribers emotionally while Gurul Kurt will be presenting a case study in TeliaSonera about delivering on customer promises. Its going to be an exciting spring in Dubai…. And like last year perhaps I can catch some snow and skiing on the way back to the Nordics after the warm spring in Dubai….

Speaking of the Nordics, I won't make my flight to Norway today so enjoy the snow in Sweden and   contemplate on how customer experiences can be improved in one Nordic operator. Let's see.. how should I do that?