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Abstract
Smartphone devices have dramatically changed the way consumers consume data. The need to
be connected anywhere and anytime is driving service providers to put focus into customer
experience to grow customers, build loyalty and drive profits through new services. As a result,
the expectations of service experience from the end-user are heightened and cannot be
underestimated. For end-users, customer care expectation and solutions have a real impact on
their customer experience with less time struggling to resolve connection problems and more time
using the service.


Service providers are under pressure to deliver customer experience that separates them from the
competition, while at the same time trying to delicately balance their revenues and managing costs
for near term gain and longer term success. In this paper, we outline the scale of issues faced in
mobile device and service care that impacts both service providers and end-users beyond
connectivity. With a broad range of services and wide variety of applications, the smartphone
requires more complexity to handle a multitude of firmware and software configurations which legacy
CRM systems are inadequate to deal with today’s customers.


Remote device support and service care is a key component to tackle the demands of escalating
costs in customer care. Service providers are seeking integration onto backend systems without
incurring heavy infrastructure changes and ensure the best fit into the existing operations through
automated and proactive customer care mechanisms to ensure service excellence and thus prevent
service quality degradation.




WHITEPAPER
Contents
Overview                                                          01
Conventional CRM Revisited                                        03
Driving New Generation of Self-Care Customer Service              04
 • Revenue
 • Churn
 • Cost
Where is the Cost Savings                                         06
Step by Step Problem Resolution                                   07
An Integrated Approach – Instinq Self Healing Diagnostic System   09
 • Legacy CRM versus Instinq SDS
Conclusion                                                        11
Service Uninterrupted 24/7                                        12
References                                                        13




WHITEPAPER
Overview
The smartphone is becoming common as it replaces handsets into multi-purpose devices to meet business and social
needs of everyday lifestyle. In a report by analyst firm Juniper Research1, the number of global smartphone shipments
will reach 1 billion per annum in 2016, up from 302 million in 2010 and it is not showing signs of slowing down, as these
devices become available at lower price points over the years.


Smartphones can create a number of challenges of their own, including higher device-related support costs and longer
call handling times which leads to an increased need for support, particularly with the configuration of new applications
and services. These support costs can possibly threaten the already thinning profits of services.


Service providers are becoming aware that customer care can play a strategic role and thus are under pressure to ensure
outstanding user experience. The shift of service provider to customer-centric focus has been challenging if not
frustrating to the end-users. Typically, customers who experience Internet connection trouble will call their service
provider and speak to a customer service representative for help with troubleshooting.


Customer complaints due to fault and inability to connect exceed 30%2 on average as illustrated in Figure 1. Most often,
users will give up trying to connect to a service after one or two attempts. Similarly, user complaints point towards
grouses of inability to connect, slow connection and inability to access the Internet.




                                     2%                                 General Enquiry
                          18%
                                                                        Fault / Network Trouble Issue
                                                                        Request on Credit
                6%                                                      Change of Service
                                           33%
                                                                        Complaint Bill Charge
                7%                                                      Enquiry on Bill Charges
                                                                        Follow Up / Complaints
                     9%                                                 Activation
                          2%
                                7%                                      Error Cals (Prank)
                                     8%




Figure 1: Categories of Customer Complaints




                                                                                                                01
1   Source : Smartphone Evolution Strategies: Premium , Standard and Economy Markets 2011-2016,
             Juniper Research
2   Source : P1 Customer complaints, Sept 2009




WHITEPAPER
In a separate study, consulting firm Bain & Company concluded that it is six times costlier to acquire a new customer
than retain an existing one. Looking after subscribers is a key differentiator as reputation for good customer care is harder
to emulate compared to bringing to market new services or price plans, as consumers are quick to switch service
provider in this fiercely competitive market.


Instead of relying on a customer service representative, a customer can enjoy the same assurance of quick and effective
troubleshooting through an intelligent self-care platform. The self-care platform has diagnostic and intelligent analytics
ability that is automated and service provider can achieve savings in its customer care investments in the longer term.
The self-care platform is a based on closed-loop architecture (eg: aggregation of expert knowledge with reduced learning
cycle or staff training over time). This paper will discuss the use of self-care, diagnostics and analytics, challenges and
approaches to address the burgeoning need of service providers to optimize costs and deliver excellent service.




                                                                                                                    02
WHITEPAPER
Conventional CRM Revisited
To date, there are many channels through which service providers reach out to their subscribers; this includes call
centers, website, webchat, email, fax, service centers and of late through social networking sites. Among these
channels, call center is most preferred for the simple reason that there is a fellow human to interact with and most of the
time, the issue is resolved immediately, as opposed to sending an email and waiting for a response within 48 hours –
two key elements here are personal touch and instant resolution.


However, traditional CRM systems are labor intensive and demands extensive retention and training that are costly.
Generally, level 1 technical support agents at the service call center are not able to deal with the query which requires
data retrieval and synchronization from many siloed or fragmented sources within the network. Information such as
firmware updates, applications and subscription profiles that are invariably stored in other databases are closely
administered, with restricted access across the business. Most often, escalation to level 3 technical support with calls
transferred four or five times before reaching the correct support agent to resolve issues.


Adding to the challenge, multiple device types, different operating platforms and a myriad of menu selection makes both
using and supporting the new generation of smart devices increasingly complicated such as configuration options across
multiple access network technologies including WiFi, GSM, GPRS, UMTS, HSPA, LTE. As multiple variables ranging from
network bearers, 3rd party software, firmware etc. must be taken into consideration, the call duration also increases.
Technical support calls across the smartphone sector are typically longer in duration as a result of product and service
complexity, ultimately extending a technical support agent’s diagnosis and resolution times. At worst, the technical
support agent is unable to fix the problem – all the while subjecting the customer to spend more time and money, when
they are not consuming any data services. Finally, it will lead to customer frustration and churn.


Many service providers are transforming to solve these and other problems that can cause customer dissatisfaction.
Having an acceptable performance is no longer good enough. To be successful, providers will need to earn their
customers’ loyalty.




                                                                                                                  03
WHITEPAPER
Driving New Generation of Self-Care Customer Service
The introduction of new products and services that are designed to increase revenue can actually have a negative impact
on profitability in the short to medium term. This is due to the increased support burden often encountered as consumers
(and carriers’ supporting infrastructures) look to navigate new and complex features and functions.


Customer experience transformation is key differentiator in a battle to retain customers. New generation of smart
self-care device management can provide advanced device care functionality to mobile devices including device
detection and monitoring, diagnostics and over-the-air firmware and application updates previously administered
through CRM systems. Revenues, churn and costs are the principal driving factors for service providers to stay ahead of
the game. Staying competitive and relevant plays a role in reducing churn. Ideally, self-care implementation should give
service providers the opportunity to proactively diagnose and troubleshoot device issues, monitoring of services and
analyze predictive churn models.


Benefits of smart self-care include self sufficiency and on the end users part to aid adoption of new and existing
applications and services without relying on call centers and walk-in visits to resolve issues. Ultimately, end users derive
greater value from the services their providers offer, resulting in overall increased satisfaction and a better customer
experience. Meanwhile, service providers see a direct cost savings to their business and growth in average revenue per
user (ARPU).




Revenue

With reduced reliance on call centers, service providers can potentially protect revenues by taking the pressure off on
escalating support cost. The flexibility of the client-server architecture allows for scalable and modular modules to be built
into the smart self-care system through a diagnostic manager allowing concurrent, multiuser access as well as remote
user access to the diagnostic server and diagnostic tools. It provides external interface to integrate into provisioning
server, easing installation, support, administration, and upgrade whenever necessary. Customers continue to have easy
access to applications and generate immediate desire to pursue the value added services. Ultimately, giving rise to better
revenue opportunity.




Churn

The ability to remotely detect configuration settings on devices, monitoring of devices, resolve firmware conflicts, SW
installation, updates and various settings immediately is a powerful tool. The result is a significant savings in reducing call
handling times, as customers do not need to contact their service provider. Through built-in intelligence and proactive
troubleshooting feature, connectivity issues can be queried and detected right up to the users’ devices. Next, either
corrective action can be taken immediately (if possible) or customer service agents can be informed of the situation and
advised on how to counsel users regarding problem solving steps. The smart self-care system can gracefully coordinate
the various statistical reporting, analytics within a centralized server for easy data management.




                                                                                                                     04
WHITEPAPER
Cost

By introducing a smart self-care mechanism to address connectivity issues, reliance on customer support is
reduced. As a result, customer care OPEX costs can be lessened. Meanwhile, customer support efforts are reserved
for more critical issues and a healthy support turnaround time is maintained. Additionally, with built-in knowledge
models, common connectivity issues can be healed automatically without going through manual troubleshooting
efforts. Automated technical support for the entire network is further improved via continuous updates of new
knowledge models.




                                                                                                          05
WHITEPAPER
Where is the Cost Savings
Most service providers are marked by saturation, competition and stagnating revenue growth, while battling customer
care issues, retention and subscriber acquisition. Operators have long appreciated, that the cost of acquiring a new
customer is incrementally greater than the cost of retaining an existing one. An example to briefly illustrates this is clearly
obvious; assume the operator has 1.5 million additions in the year, with average ARPU of $38 per user and churn rate at
4%. Decreasing the churn to 2.5% would deliver a massive revenue gain of $1.4 million and profits3 of up to 0.5 million!


    Total Subscriber Addition                             1.5million

    Average ARPU                                          $38

    Churn Rate                                            4%

    Subscriber Retention (through Instinq SDS)            40%

                 Subscribers          Before Churn Reduction                After Churn Reduction              Savings

    Quarter      Total Number        Nett Loss of       Loss of           Nett Loss of       Loss of       Total Revenue
                 of Subscribers      Customers       Opportunity Cost     Customers       Opportunity Cost      Gain

       Q1           200,000            10,600            402,800             6,625             251,750          251,750

       Q2           515,000            20,600            782,800             12,875            489,250          489,250

       Q3           410,000            17,400            661,200             10,875            413,250          413,250

       Q4           285,000            11,400            433,200             7,125             270,750          270,750

     Total                                              2,280,000                                              1,425,000

Table 1 Cost Savings Simulation with Instinq SDS




3   Note: Assumes a margin of 40% per subscriber and retention call costs at $15 per subscriber.
                                                                                                                     06
WHITEPAPER
Step by Step Problem Resolution
The implementation of CRM-based solutions are time consuming and tactical to retain customers within a network to
extend the average customer lifetime. In order to manage the continued costs that include maintaining customer care,
network maintenance, operations and etc, it is not uncommon for service providers to wait more than 12 months to see
the signs of breakeven and ultimately impacting the subscriber margins. To combat these issues, problem resolution and
troubleshooting can be made more efficiently through business rules driven processes. As demonstrated in the following
pictorial representation in Figure 2.




       Step 1                                                                 Step 2
     Over the air Automatic Configuration                                     Smart Device and Service Monitoring
     • Application install/uninstall                                         • Proactive problem reporting
     • Firmware Update                                                       • Connectivity Monitoring
     • Software Update




                                               SERVICE MANAGEMENT AND
                                               OPERATIONS PLATFORM




       Step 4                                                                 Step 3
     Predictive analysis                                                     Diagnose and Fix
     • Usage Patterns                                                        • Corrective Actions
     • Knowledge Models                                                      • Online Diagnostic and Troubleshooting
                                                                             • Timely Problem Resolution



Figure 2: Problem Resolution with Instinq Self-Healing & Diagnostic System


By means of measurable parameters, the smart self-care system can proactively and accurately respond to device
specific technical support and build knowledge models for predictive analysis - eliminating the need to extensively incur
staff training and business process improvement, brings savings of up to $1.4 million as illustrated in Table 1.


The platform independent smart self-care system can also be integrated into the carriers billing systems and thus
minimize the existence of distributed communication. The classic siloed data structures spread across separate
databases, inter-business departments that are unconsolidated results in the inefficiency of information processing which
can create redundant, overlapping and uncoordinated systems. The lack of consolidated data and access to data
undermines the CRM efforts and will likely to result in incorrect diagnosis and resolution, slow response times and
dissatisfactory performance. Consequently leading to inefficiencies at the call centers, less effective marketing and
missed revenue opportunities as a result of poor customer experience.




                                                                                                                       07
WHITEPAPER
Step 2                                   Step 3
                                      Trouble Ticket                              Escalation


                                                                                                       Step 4
                   Step 1
                                                                                                Synchronization of
            Technical Support                                                                   Multiple Databases


                                                      Multiple Customer
                                                     Service Touch Points



                                           Step 6                                   Step 5
                                    Corrective Actions                            Diagnosis




Figure 3: Typical Problem Resolution Scenario without Instinq


The Instinq smart self-care platform, being business-rules driven, determines what the next best action should be, what
to present, when to guide and when to deliver guidance with greater appreciation that all technical support agents are
not created equal.


Instinq refers to the next generation of a help desk system. In traditional help desk systems, subscribers would relate their
ordeal to an agent who mans the help desk system. Issues encountered are diagnosed by the agent to identify a solution
for the subscriber. This time and effort consuming effort will only be useful if the subscriber narrates the problems and
symptoms accurately to the agent. Failing which, zero resolution will only aggravate the subscriber and the only option is
to locate the nearest customer service center or retailer in person. This is even more obvious and desperate in countries,
where geographical distances are far and wide – mobilization of technical support is challenging, if not near impossible.


Typically, Opex constitutes about 60% of the network costs, of which there is only between 5-10% being invested in
customer care service. In contrast, the escalating costs of retaining a customer has risen by two-fold. In one of the
studies conducted by Wireless Operator Strategies4 (WOS) research, it tracked the average cost to retain a customer
has increased for T-Mobile in several countries: Germany (26%), Austria (57%) and the Netherlands (12%). Orange
customer retention costs have increased in France (11%) and Spain (14%). With more smartphone sales, upgrades and
subsidies together with a relentless data traffic growth, carriers must find ways to reverse the falling revenues through
major focus on optimization of pricing, service revenues and costs.




                                                                                                                     08
4   Note: Wireless Operator Strategies (WOS) in a report “Western Europe’s Market Still Searching for Growth,
    OPEX Management a Concern 2010” studied operational and financial performance of over
    200 mobile operators with over 77 percent of global subscribers.




WHITEPAPER
An Integrated Approach –
Instinq Self Healing Diagnostic System
Greenpacket’s Intinq Self-Healing Diagnostic System (Instinq SDS) is an intelligent solution that proactively diagnoses
and automatically resolves connectivity issues in offline and online mode, making support efforts easier than ever.
By incorporating artificial intelligence (AI), it provides a spur-of-the-moment troubleshooting and problem resolution
without the intervention of customer support personnel. This is done through built-in knowledge models that contain
intelligence to identify and solve connectivity glitches. Though there are several factors that contribute to connectivity
problems, a significant fraction can be attributed to devices, particularly in wireless broadband. For example, due to high
frequencies used, radio waves (in wireless connectivity) have poor indoor penetration. If subscribers are guided on how
to place their modems for optimum signal strength, connectivity can be improved.



                              Diagnostic Manager                                             Diagnostic
                                                                                          Knowledge Server
                                 Step 1                        Step 5
                                 Diagnostic Manager            With the updated
                                 starts diagnosing modem       knowledge model.
                                 or dongles after              Diagnostic Knowledge
                                 detecting symptoms.           Server propagates new
                                                               models to other
                                 Step 2                        Diagnostic Managers on
                                                               the network via
                                 Based on the preloaded
                                                               automatic updates.
                                 corrective actions stored
                                 in Diagnostic client, it is
                                 able to determine the
                                 potential root cause,
                                 try to self-heal or
                                 suggest solutions.




                                 Step 3                        Step 4
                                 Diagnostic client sends       Diagnostic Knowledge
                                 symptoms, device              Server collects various
                                 information, connection       client data, analyze,
                                 status and usage              update and train the
                                 information to the server     knowledge engine to
                                 over the internet,            learn about device
                                 at scheduled interval.        behavior.




Figure 4: Components of Instinq SDS


With this in mind, Greenpacket’s Instinq SDS, which can be installed on subscribers’ PCs, laptops and handheld
devices, is able to automatically scan the current environment to diagnose and solve connectivity issues. If required,
subscribers will be prompted with instructional messages to help in the problem-solving process. Instinq SDS is
designed to take self-care beyond profile updates to help operators handle technical hitches at the last mile level without
burdening customer support.




                                                                                                                 09
WHITEPAPER
Instinq SDS consists of two components – Self-Healing Diagnostic Manager (client component) and Diagnostic
Knowledge Server (server component). Self-Healing Diagnostic Manager can be installed on PCs, laptops and handheld
devices to perform auto-diagnosis, online troubleshooting and self-healing on device specific problems in an easy and
Instinqive manner. Possible connectivity issues and corrective actions (called knowledge base) are pre-engineered into
the client component.


On the other hand, the Diagnostic Knowledge Server can reside on the Operator’s core network or engaged through a
hosted business model. It is an artificial intelligence expert system that hosts the central knowledge models of the
system, based on Bayesian network. This server components aggregates and shares new or unknown connectivity
issues between client components within the network. It facilitates rule updates and generates predictive reports that aid
in churn management efforts. The following table below illustrates the differences and impacts between legacy CRM
system and Instinq Self-Healing & Diagnostics System.




Legacy CRM versus Instinq SDS


                                      Definition/Scope                             Channels                         Impact

                           Two key things about legacy CRM systems        • Telephone/Fax                 • Often a connectivity issue
       Legacy CRM System




                           are that it is designed to be reactive and       (Customer Service Hotline)      is not resolved at first
                           manual.                                        • Email                           contact leading to
                                                                                                            subscriber frustration
                                                                          • Physical visit to
                           The operator-subscriber relationship here is                                   • Labour intensive
                                                                            CRM centers
                           initiated when subscriber stumbles upon a
                                                                                                          • High cost – labour,
                           problem (reactive) and the operator
                                                                                                            training efforts
                           responds through a CRM system managed
                           by a human resource (manual).                                                  • Risks losing knowledge
                                                                                                            when agents leave

                           Instinq advocates automation and proactive     • Social Media                  • Encourages subscribers
                           help. This CRM system automates problem        • Web-based channels              to help themselves
                           identification for proactive troubleshooting.     such as live chat             • Knowledge is stored
  Instinq Self-Healing &




                                                                                                            in a system
   Diagnostics System




                                                                          • Digital assistants/software
                           Subscribers are also encouraged to help
                                                                            (installed on subscriber’s    • Knowledge models
                           themselves through provided channels.
                                                                            device)                         proactively and
                                                                                                            automatically provide
                           The objectives of this system are
                                                                                                            intelligent solutions
                           automation, proactiveness and self-help.
                                                                                                            anytime, anywhere
                                                                                                          • Analytics for decision
                                                                                                            making and churn
                                                                                                            management
                                                                                                          • Improves customer
                                                                                                            loyalty and retention




                                                                                                                               10
WHITEPAPER
Conclusion
Many operators are faced with the issues of truly effective end to end (E2E) service platform that consolidates the
components for service support, operations, maintenance and customer care. The merging of all these components can
be achieved with a client-server based diagnostic system pushing for greater degree of self-management. The focus
should change and encourage self-help methods that are assisted by systems-oriented proactive troubleshooting.


Another impediment faced over network operation lies in the backend system. A host of separate network entities and
platforms lacks coherent information processing, sharing and storing mechanism which prevents timely problem
resolution by technical support agent which is not empowered to deal with the query. By collapsing the multiple entities
into a unified operation, optimization, planning and management system, operators have greater visibility and clarity in
delivering service and target problem resolution wherever it fits. Knowledge-based modeling is designed to analyze the
learned diagnostic relationships over a period of time. Updates can be automated to the diagnostic server,
upon discovering new diagnostic relationship as a direct result from changes in usage patterns of the network.


The increased attention on self-care is mainly driven by cost-savings but it also gives subscribers control at his/her
convenience, making life easier for both operators and subscribers. To date, self-care tools are confined to query
choices, profile updates and subscription information (such as bonus points, package details etc). Through Instinq SDS,
service providers can extend their self-care options to include assistance on connectivity issues and reporting capabilities
on the overview of the health of users’ devices, causes for breakdown and the right solution. This allows service provider
to stay in control of their device and being informed of possible connectivity issues for necessary remedial actions and
thus reduce device-related connectivity disruptions for enhanced user experience.


Additionally, Instinq SDS provides predictive statistics that help operators gain deeper understanding of subscribers’
usage patterns and preferences for the development of effective customer retention strategies and a more focused
marketing campaign. Through specially tailored programs, subscribers stay loyal and the positive user experience aids
in attracting new subscribers.




                                                                                                                   11
WHITEPAPER
Service Uninterrupted 24/7
All around the world, operators are looking for better and more creative ways to support their subscribers better and
reduce costs at the same time. At Greenpacket, we understand the demands placed on operators. That is why,
we empower you to offer subscribers more than just high-speed connectivity, our innovation will provide you with endless
ways to engage with subscribers and enhance relationships.


With Greenpacket, limitless freedom begins now!




Free Consultation

If you would like a free consultation on how you can implement Instinq, feel free to contact us at
marketing.gp@greenpacket.com (kindly quote the reference code SWP1011 when you contact us).




                                                                                                               12
WHITEPAPER
References
1. “Western Europe’s Mobile Market Still Searching for Growth, OPEX Management a Concern, Q4 2010 – Wireless
   Operator Strategies (WOS) of Strategy Analytics.
2. http://www.businesswire.com/news/home/20110412006677/en/Strategy-Analytics-Western-European-Mobile-
   Operator-EBITDA
3. Can communications service providers earn their customers’ love? - Domenico Azzarello and Mark Kovac;
   Bain & Company
4. Smartphones: Building profitability and loyalty in the mass-market – WDS Global




                                                                                                    13
WHITEPAPER
About Green Packet
     Greenpacket is the international arm of the Green Packet Berhad group of companies which is listed on the Main Board
     of the Malaysian Bourse. Founded in San Francisco’s Silicon Valley in 2000 and now headquartered in Kuala Lumpur,
     Malaysia, Greenpacket has a presence in 9 countries and is continuously expanding to be near its customers and in
     readiness for new markets.


     We are a leading developer of Next Generation Mobile Broadband and Networking Solutions for Telecommunications
     Operators across the globe. Our mission is to provide seamless and unified platforms for the delivery of user-centric
     multimedia communications services regardless of the nature and availability of backbone infrastructures.


     At Greenpacket, we pride ourselves on being constantly at the forefront of technology. Our leading carrier-grade
     solutions and award-winning consumer devices help Telecommunications Operators open new avenues, meet new
     demands, and enrich the lifestyles of their subscribers, while forging new relationships. We see a future of limitless
     freedom in wireless communications and continuously commit to meeting the needs of our customers with leading
     edge solutions.


     With product development centers in USA, Shanghai, and Taiwan, we are on the cutting edge of new developments in
     4G (particularly WiMAX and LTE), as well as in software advancement. Our leadership position in the Telco industry is
     further enhanced by our strategic alliances with leading industry players.


     Additionally, our award-winning WiMAX modems have successfully completed interoperability tests with major WiMAX
     players and are being used by the world’s largest WiMAX Operators. We are also the leading carrier solutions provider
     in APAC catering to both 4G and 3G networks.


     For more information, visit: www.greenpacket.com.




San Francisco · Kuala Lumpur · Singapore · Shanghai · Taiwan · Sydney · Bahrain · Bangkok · Hong Kong




                   Associate
                    Member


Copyright © 2001-2011 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form
by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.

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Self Service Customer Care For Next Generation Networks

  • 1. Carerks mer two usto n Ne ice C ratio erv ene elf-S xt G S Ne for www.greenpacket.com WHITEPAPER
  • 2. Abstract Smartphone devices have dramatically changed the way consumers consume data. The need to be connected anywhere and anytime is driving service providers to put focus into customer experience to grow customers, build loyalty and drive profits through new services. As a result, the expectations of service experience from the end-user are heightened and cannot be underestimated. For end-users, customer care expectation and solutions have a real impact on their customer experience with less time struggling to resolve connection problems and more time using the service. Service providers are under pressure to deliver customer experience that separates them from the competition, while at the same time trying to delicately balance their revenues and managing costs for near term gain and longer term success. In this paper, we outline the scale of issues faced in mobile device and service care that impacts both service providers and end-users beyond connectivity. With a broad range of services and wide variety of applications, the smartphone requires more complexity to handle a multitude of firmware and software configurations which legacy CRM systems are inadequate to deal with today’s customers. Remote device support and service care is a key component to tackle the demands of escalating costs in customer care. Service providers are seeking integration onto backend systems without incurring heavy infrastructure changes and ensure the best fit into the existing operations through automated and proactive customer care mechanisms to ensure service excellence and thus prevent service quality degradation. WHITEPAPER
  • 3. Contents Overview 01 Conventional CRM Revisited 03 Driving New Generation of Self-Care Customer Service 04 • Revenue • Churn • Cost Where is the Cost Savings 06 Step by Step Problem Resolution 07 An Integrated Approach – Instinq Self Healing Diagnostic System 09 • Legacy CRM versus Instinq SDS Conclusion 11 Service Uninterrupted 24/7 12 References 13 WHITEPAPER
  • 4. Overview The smartphone is becoming common as it replaces handsets into multi-purpose devices to meet business and social needs of everyday lifestyle. In a report by analyst firm Juniper Research1, the number of global smartphone shipments will reach 1 billion per annum in 2016, up from 302 million in 2010 and it is not showing signs of slowing down, as these devices become available at lower price points over the years. Smartphones can create a number of challenges of their own, including higher device-related support costs and longer call handling times which leads to an increased need for support, particularly with the configuration of new applications and services. These support costs can possibly threaten the already thinning profits of services. Service providers are becoming aware that customer care can play a strategic role and thus are under pressure to ensure outstanding user experience. The shift of service provider to customer-centric focus has been challenging if not frustrating to the end-users. Typically, customers who experience Internet connection trouble will call their service provider and speak to a customer service representative for help with troubleshooting. Customer complaints due to fault and inability to connect exceed 30%2 on average as illustrated in Figure 1. Most often, users will give up trying to connect to a service after one or two attempts. Similarly, user complaints point towards grouses of inability to connect, slow connection and inability to access the Internet. 2% General Enquiry 18% Fault / Network Trouble Issue Request on Credit 6% Change of Service 33% Complaint Bill Charge 7% Enquiry on Bill Charges Follow Up / Complaints 9% Activation 2% 7% Error Cals (Prank) 8% Figure 1: Categories of Customer Complaints 01 1 Source : Smartphone Evolution Strategies: Premium , Standard and Economy Markets 2011-2016, Juniper Research 2 Source : P1 Customer complaints, Sept 2009 WHITEPAPER
  • 5. In a separate study, consulting firm Bain & Company concluded that it is six times costlier to acquire a new customer than retain an existing one. Looking after subscribers is a key differentiator as reputation for good customer care is harder to emulate compared to bringing to market new services or price plans, as consumers are quick to switch service provider in this fiercely competitive market. Instead of relying on a customer service representative, a customer can enjoy the same assurance of quick and effective troubleshooting through an intelligent self-care platform. The self-care platform has diagnostic and intelligent analytics ability that is automated and service provider can achieve savings in its customer care investments in the longer term. The self-care platform is a based on closed-loop architecture (eg: aggregation of expert knowledge with reduced learning cycle or staff training over time). This paper will discuss the use of self-care, diagnostics and analytics, challenges and approaches to address the burgeoning need of service providers to optimize costs and deliver excellent service. 02 WHITEPAPER
  • 6. Conventional CRM Revisited To date, there are many channels through which service providers reach out to their subscribers; this includes call centers, website, webchat, email, fax, service centers and of late through social networking sites. Among these channels, call center is most preferred for the simple reason that there is a fellow human to interact with and most of the time, the issue is resolved immediately, as opposed to sending an email and waiting for a response within 48 hours – two key elements here are personal touch and instant resolution. However, traditional CRM systems are labor intensive and demands extensive retention and training that are costly. Generally, level 1 technical support agents at the service call center are not able to deal with the query which requires data retrieval and synchronization from many siloed or fragmented sources within the network. Information such as firmware updates, applications and subscription profiles that are invariably stored in other databases are closely administered, with restricted access across the business. Most often, escalation to level 3 technical support with calls transferred four or five times before reaching the correct support agent to resolve issues. Adding to the challenge, multiple device types, different operating platforms and a myriad of menu selection makes both using and supporting the new generation of smart devices increasingly complicated such as configuration options across multiple access network technologies including WiFi, GSM, GPRS, UMTS, HSPA, LTE. As multiple variables ranging from network bearers, 3rd party software, firmware etc. must be taken into consideration, the call duration also increases. Technical support calls across the smartphone sector are typically longer in duration as a result of product and service complexity, ultimately extending a technical support agent’s diagnosis and resolution times. At worst, the technical support agent is unable to fix the problem – all the while subjecting the customer to spend more time and money, when they are not consuming any data services. Finally, it will lead to customer frustration and churn. Many service providers are transforming to solve these and other problems that can cause customer dissatisfaction. Having an acceptable performance is no longer good enough. To be successful, providers will need to earn their customers’ loyalty. 03 WHITEPAPER
  • 7. Driving New Generation of Self-Care Customer Service The introduction of new products and services that are designed to increase revenue can actually have a negative impact on profitability in the short to medium term. This is due to the increased support burden often encountered as consumers (and carriers’ supporting infrastructures) look to navigate new and complex features and functions. Customer experience transformation is key differentiator in a battle to retain customers. New generation of smart self-care device management can provide advanced device care functionality to mobile devices including device detection and monitoring, diagnostics and over-the-air firmware and application updates previously administered through CRM systems. Revenues, churn and costs are the principal driving factors for service providers to stay ahead of the game. Staying competitive and relevant plays a role in reducing churn. Ideally, self-care implementation should give service providers the opportunity to proactively diagnose and troubleshoot device issues, monitoring of services and analyze predictive churn models. Benefits of smart self-care include self sufficiency and on the end users part to aid adoption of new and existing applications and services without relying on call centers and walk-in visits to resolve issues. Ultimately, end users derive greater value from the services their providers offer, resulting in overall increased satisfaction and a better customer experience. Meanwhile, service providers see a direct cost savings to their business and growth in average revenue per user (ARPU). Revenue With reduced reliance on call centers, service providers can potentially protect revenues by taking the pressure off on escalating support cost. The flexibility of the client-server architecture allows for scalable and modular modules to be built into the smart self-care system through a diagnostic manager allowing concurrent, multiuser access as well as remote user access to the diagnostic server and diagnostic tools. It provides external interface to integrate into provisioning server, easing installation, support, administration, and upgrade whenever necessary. Customers continue to have easy access to applications and generate immediate desire to pursue the value added services. Ultimately, giving rise to better revenue opportunity. Churn The ability to remotely detect configuration settings on devices, monitoring of devices, resolve firmware conflicts, SW installation, updates and various settings immediately is a powerful tool. The result is a significant savings in reducing call handling times, as customers do not need to contact their service provider. Through built-in intelligence and proactive troubleshooting feature, connectivity issues can be queried and detected right up to the users’ devices. Next, either corrective action can be taken immediately (if possible) or customer service agents can be informed of the situation and advised on how to counsel users regarding problem solving steps. The smart self-care system can gracefully coordinate the various statistical reporting, analytics within a centralized server for easy data management. 04 WHITEPAPER
  • 8. Cost By introducing a smart self-care mechanism to address connectivity issues, reliance on customer support is reduced. As a result, customer care OPEX costs can be lessened. Meanwhile, customer support efforts are reserved for more critical issues and a healthy support turnaround time is maintained. Additionally, with built-in knowledge models, common connectivity issues can be healed automatically without going through manual troubleshooting efforts. Automated technical support for the entire network is further improved via continuous updates of new knowledge models. 05 WHITEPAPER
  • 9. Where is the Cost Savings Most service providers are marked by saturation, competition and stagnating revenue growth, while battling customer care issues, retention and subscriber acquisition. Operators have long appreciated, that the cost of acquiring a new customer is incrementally greater than the cost of retaining an existing one. An example to briefly illustrates this is clearly obvious; assume the operator has 1.5 million additions in the year, with average ARPU of $38 per user and churn rate at 4%. Decreasing the churn to 2.5% would deliver a massive revenue gain of $1.4 million and profits3 of up to 0.5 million! Total Subscriber Addition 1.5million Average ARPU $38 Churn Rate 4% Subscriber Retention (through Instinq SDS) 40% Subscribers Before Churn Reduction After Churn Reduction Savings Quarter Total Number Nett Loss of Loss of Nett Loss of Loss of Total Revenue of Subscribers Customers Opportunity Cost Customers Opportunity Cost Gain Q1 200,000 10,600 402,800 6,625 251,750 251,750 Q2 515,000 20,600 782,800 12,875 489,250 489,250 Q3 410,000 17,400 661,200 10,875 413,250 413,250 Q4 285,000 11,400 433,200 7,125 270,750 270,750 Total 2,280,000 1,425,000 Table 1 Cost Savings Simulation with Instinq SDS 3 Note: Assumes a margin of 40% per subscriber and retention call costs at $15 per subscriber. 06 WHITEPAPER
  • 10. Step by Step Problem Resolution The implementation of CRM-based solutions are time consuming and tactical to retain customers within a network to extend the average customer lifetime. In order to manage the continued costs that include maintaining customer care, network maintenance, operations and etc, it is not uncommon for service providers to wait more than 12 months to see the signs of breakeven and ultimately impacting the subscriber margins. To combat these issues, problem resolution and troubleshooting can be made more efficiently through business rules driven processes. As demonstrated in the following pictorial representation in Figure 2. Step 1 Step 2 Over the air Automatic Configuration Smart Device and Service Monitoring • Application install/uninstall • Proactive problem reporting • Firmware Update • Connectivity Monitoring • Software Update SERVICE MANAGEMENT AND OPERATIONS PLATFORM Step 4 Step 3 Predictive analysis Diagnose and Fix • Usage Patterns • Corrective Actions • Knowledge Models • Online Diagnostic and Troubleshooting • Timely Problem Resolution Figure 2: Problem Resolution with Instinq Self-Healing & Diagnostic System By means of measurable parameters, the smart self-care system can proactively and accurately respond to device specific technical support and build knowledge models for predictive analysis - eliminating the need to extensively incur staff training and business process improvement, brings savings of up to $1.4 million as illustrated in Table 1. The platform independent smart self-care system can also be integrated into the carriers billing systems and thus minimize the existence of distributed communication. The classic siloed data structures spread across separate databases, inter-business departments that are unconsolidated results in the inefficiency of information processing which can create redundant, overlapping and uncoordinated systems. The lack of consolidated data and access to data undermines the CRM efforts and will likely to result in incorrect diagnosis and resolution, slow response times and dissatisfactory performance. Consequently leading to inefficiencies at the call centers, less effective marketing and missed revenue opportunities as a result of poor customer experience. 07 WHITEPAPER
  • 11. Step 2 Step 3 Trouble Ticket Escalation Step 4 Step 1 Synchronization of Technical Support Multiple Databases Multiple Customer Service Touch Points Step 6 Step 5 Corrective Actions Diagnosis Figure 3: Typical Problem Resolution Scenario without Instinq The Instinq smart self-care platform, being business-rules driven, determines what the next best action should be, what to present, when to guide and when to deliver guidance with greater appreciation that all technical support agents are not created equal. Instinq refers to the next generation of a help desk system. In traditional help desk systems, subscribers would relate their ordeal to an agent who mans the help desk system. Issues encountered are diagnosed by the agent to identify a solution for the subscriber. This time and effort consuming effort will only be useful if the subscriber narrates the problems and symptoms accurately to the agent. Failing which, zero resolution will only aggravate the subscriber and the only option is to locate the nearest customer service center or retailer in person. This is even more obvious and desperate in countries, where geographical distances are far and wide – mobilization of technical support is challenging, if not near impossible. Typically, Opex constitutes about 60% of the network costs, of which there is only between 5-10% being invested in customer care service. In contrast, the escalating costs of retaining a customer has risen by two-fold. In one of the studies conducted by Wireless Operator Strategies4 (WOS) research, it tracked the average cost to retain a customer has increased for T-Mobile in several countries: Germany (26%), Austria (57%) and the Netherlands (12%). Orange customer retention costs have increased in France (11%) and Spain (14%). With more smartphone sales, upgrades and subsidies together with a relentless data traffic growth, carriers must find ways to reverse the falling revenues through major focus on optimization of pricing, service revenues and costs. 08 4 Note: Wireless Operator Strategies (WOS) in a report “Western Europe’s Market Still Searching for Growth, OPEX Management a Concern 2010” studied operational and financial performance of over 200 mobile operators with over 77 percent of global subscribers. WHITEPAPER
  • 12. An Integrated Approach – Instinq Self Healing Diagnostic System Greenpacket’s Intinq Self-Healing Diagnostic System (Instinq SDS) is an intelligent solution that proactively diagnoses and automatically resolves connectivity issues in offline and online mode, making support efforts easier than ever. By incorporating artificial intelligence (AI), it provides a spur-of-the-moment troubleshooting and problem resolution without the intervention of customer support personnel. This is done through built-in knowledge models that contain intelligence to identify and solve connectivity glitches. Though there are several factors that contribute to connectivity problems, a significant fraction can be attributed to devices, particularly in wireless broadband. For example, due to high frequencies used, radio waves (in wireless connectivity) have poor indoor penetration. If subscribers are guided on how to place their modems for optimum signal strength, connectivity can be improved. Diagnostic Manager Diagnostic Knowledge Server Step 1 Step 5 Diagnostic Manager With the updated starts diagnosing modem knowledge model. or dongles after Diagnostic Knowledge detecting symptoms. Server propagates new models to other Step 2 Diagnostic Managers on the network via Based on the preloaded automatic updates. corrective actions stored in Diagnostic client, it is able to determine the potential root cause, try to self-heal or suggest solutions. Step 3 Step 4 Diagnostic client sends Diagnostic Knowledge symptoms, device Server collects various information, connection client data, analyze, status and usage update and train the information to the server knowledge engine to over the internet, learn about device at scheduled interval. behavior. Figure 4: Components of Instinq SDS With this in mind, Greenpacket’s Instinq SDS, which can be installed on subscribers’ PCs, laptops and handheld devices, is able to automatically scan the current environment to diagnose and solve connectivity issues. If required, subscribers will be prompted with instructional messages to help in the problem-solving process. Instinq SDS is designed to take self-care beyond profile updates to help operators handle technical hitches at the last mile level without burdening customer support. 09 WHITEPAPER
  • 13. Instinq SDS consists of two components – Self-Healing Diagnostic Manager (client component) and Diagnostic Knowledge Server (server component). Self-Healing Diagnostic Manager can be installed on PCs, laptops and handheld devices to perform auto-diagnosis, online troubleshooting and self-healing on device specific problems in an easy and Instinqive manner. Possible connectivity issues and corrective actions (called knowledge base) are pre-engineered into the client component. On the other hand, the Diagnostic Knowledge Server can reside on the Operator’s core network or engaged through a hosted business model. It is an artificial intelligence expert system that hosts the central knowledge models of the system, based on Bayesian network. This server components aggregates and shares new or unknown connectivity issues between client components within the network. It facilitates rule updates and generates predictive reports that aid in churn management efforts. The following table below illustrates the differences and impacts between legacy CRM system and Instinq Self-Healing & Diagnostics System. Legacy CRM versus Instinq SDS Definition/Scope Channels Impact Two key things about legacy CRM systems • Telephone/Fax • Often a connectivity issue Legacy CRM System are that it is designed to be reactive and (Customer Service Hotline) is not resolved at first manual. • Email contact leading to subscriber frustration • Physical visit to The operator-subscriber relationship here is • Labour intensive CRM centers initiated when subscriber stumbles upon a • High cost – labour, problem (reactive) and the operator training efforts responds through a CRM system managed by a human resource (manual). • Risks losing knowledge when agents leave Instinq advocates automation and proactive • Social Media • Encourages subscribers help. This CRM system automates problem • Web-based channels to help themselves identification for proactive troubleshooting. such as live chat • Knowledge is stored Instinq Self-Healing & in a system Diagnostics System • Digital assistants/software Subscribers are also encouraged to help (installed on subscriber’s • Knowledge models themselves through provided channels. device) proactively and automatically provide The objectives of this system are intelligent solutions automation, proactiveness and self-help. anytime, anywhere • Analytics for decision making and churn management • Improves customer loyalty and retention 10 WHITEPAPER
  • 14. Conclusion Many operators are faced with the issues of truly effective end to end (E2E) service platform that consolidates the components for service support, operations, maintenance and customer care. The merging of all these components can be achieved with a client-server based diagnostic system pushing for greater degree of self-management. The focus should change and encourage self-help methods that are assisted by systems-oriented proactive troubleshooting. Another impediment faced over network operation lies in the backend system. A host of separate network entities and platforms lacks coherent information processing, sharing and storing mechanism which prevents timely problem resolution by technical support agent which is not empowered to deal with the query. By collapsing the multiple entities into a unified operation, optimization, planning and management system, operators have greater visibility and clarity in delivering service and target problem resolution wherever it fits. Knowledge-based modeling is designed to analyze the learned diagnostic relationships over a period of time. Updates can be automated to the diagnostic server, upon discovering new diagnostic relationship as a direct result from changes in usage patterns of the network. The increased attention on self-care is mainly driven by cost-savings but it also gives subscribers control at his/her convenience, making life easier for both operators and subscribers. To date, self-care tools are confined to query choices, profile updates and subscription information (such as bonus points, package details etc). Through Instinq SDS, service providers can extend their self-care options to include assistance on connectivity issues and reporting capabilities on the overview of the health of users’ devices, causes for breakdown and the right solution. This allows service provider to stay in control of their device and being informed of possible connectivity issues for necessary remedial actions and thus reduce device-related connectivity disruptions for enhanced user experience. Additionally, Instinq SDS provides predictive statistics that help operators gain deeper understanding of subscribers’ usage patterns and preferences for the development of effective customer retention strategies and a more focused marketing campaign. Through specially tailored programs, subscribers stay loyal and the positive user experience aids in attracting new subscribers. 11 WHITEPAPER
  • 15. Service Uninterrupted 24/7 All around the world, operators are looking for better and more creative ways to support their subscribers better and reduce costs at the same time. At Greenpacket, we understand the demands placed on operators. That is why, we empower you to offer subscribers more than just high-speed connectivity, our innovation will provide you with endless ways to engage with subscribers and enhance relationships. With Greenpacket, limitless freedom begins now! Free Consultation If you would like a free consultation on how you can implement Instinq, feel free to contact us at marketing.gp@greenpacket.com (kindly quote the reference code SWP1011 when you contact us). 12 WHITEPAPER
  • 16. References 1. “Western Europe’s Mobile Market Still Searching for Growth, OPEX Management a Concern, Q4 2010 – Wireless Operator Strategies (WOS) of Strategy Analytics. 2. http://www.businesswire.com/news/home/20110412006677/en/Strategy-Analytics-Western-European-Mobile- Operator-EBITDA 3. Can communications service providers earn their customers’ love? - Domenico Azzarello and Mark Kovac; Bain & Company 4. Smartphones: Building profitability and loyalty in the mass-market – WDS Global 13 WHITEPAPER
  • 17. About Green Packet Greenpacket is the international arm of the Green Packet Berhad group of companies which is listed on the Main Board of the Malaysian Bourse. Founded in San Francisco’s Silicon Valley in 2000 and now headquartered in Kuala Lumpur, Malaysia, Greenpacket has a presence in 9 countries and is continuously expanding to be near its customers and in readiness for new markets. We are a leading developer of Next Generation Mobile Broadband and Networking Solutions for Telecommunications Operators across the globe. Our mission is to provide seamless and unified platforms for the delivery of user-centric multimedia communications services regardless of the nature and availability of backbone infrastructures. At Greenpacket, we pride ourselves on being constantly at the forefront of technology. Our leading carrier-grade solutions and award-winning consumer devices help Telecommunications Operators open new avenues, meet new demands, and enrich the lifestyles of their subscribers, while forging new relationships. We see a future of limitless freedom in wireless communications and continuously commit to meeting the needs of our customers with leading edge solutions. With product development centers in USA, Shanghai, and Taiwan, we are on the cutting edge of new developments in 4G (particularly WiMAX and LTE), as well as in software advancement. Our leadership position in the Telco industry is further enhanced by our strategic alliances with leading industry players. Additionally, our award-winning WiMAX modems have successfully completed interoperability tests with major WiMAX players and are being used by the world’s largest WiMAX Operators. We are also the leading carrier solutions provider in APAC catering to both 4G and 3G networks. For more information, visit: www.greenpacket.com. San Francisco · Kuala Lumpur · Singapore · Shanghai · Taiwan · Sydney · Bahrain · Bangkok · Hong Kong Associate Member Copyright © 2001-2011 Green Packet Berhad. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language, in any form by any means, without the written permission of Green Packet Berhad. Green Packet Berhad reserves the right to modify or discontinue any product or piece of literature at anytime without prior notice.