smme fixed line churn the role of customer experience

SMME Fixed Line Churn

The Role of Customer Experience

2For Telkom use onlyProprietary & confidential company information

Contents

• Overview of Telkom Churn

• Telkom Churn Initiatives that worked

• The Impact of ongoing focus

• Customer Experience

• The Future of Telkom Churn Management

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Minus:• Cease part of Move• Cancelled Provide Part of Move• Moves not provided within

3 months

Minus:• Telkom Initiated Dismantlements• Deceased• Emigration • Liquidations• Successful Moves

Churn management landscape

DismantlementsReal Churn

Addressable Churn

Churn management

Retained Customers

• Propensity to churn (Churn Prediction)

• Customer indicate he wants to dismantle his service

TOC – Manage efficiency of churn

Churned Customers

• Customer indicates he wants to dismantle his service

Process to generate leads to new owner to be

developed

Customer Base

Churn prediction model – predict customer

about to churn

Churn unpredicted

Retained through pro active initiatives

Customer indicates wish to churn

Outside our control

In our control


Reasons or Disconnections

Strong Links to Customer Experience

Dissatisfied

Migration

Affordability

Customer request

Customer migration to another product

Insolvency, liquidation and administration

Cease due to collection


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What we did

Dedicated Function• Adequate Human resources• Dedicated manager• Incentives• Tools• Offers• Centralised learning’s and specialised

training• Correct profiling of agents• Mover’s desk

Adapted Business Processes• Red phone

Educated Value Chain• Internal Communication

Enforced terms and conditions• Notice periods

Research• Customer insights leading to offers

Relooked all Value Propositions• Profiled customers when doing targeted

campaigns

Contract Renewals• Increased focus


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What not to do when running a retention unit

Lack of incentives

Removing components e.g. the mover’s desk due to resource limitation

Outdated retention offers

Reporting that is not geared to manage the different levels – e.g. retention centre, line

management and senior management

Not responding to changes in customer requirements – Not having ongoing customer

insights.

Not keeping up with increasing and changing customer expectations especially around customer

experience


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Customer First Overview

Come work here!

Buy from here!

Enthusiasm, innovation

Excellence, trust, value

Growth, opportunity

EmployeePromoters

Objective Objective

To create an army of employee and customer Promoters

To change customer perceptions

• Complicated • Broken • Complex

That we are…

To we are…

• Friendly

• Uncomplicated

• Reliable

• Competent


Approach: Focus on a core set of products and episodes to start with within the volume market segments

Exploreand Buy

GetStarted

PayBill Use Get Help Fix Fault

Compare and choose service that suits need

Get my service connected and

working

Understand and pay my bill

(conveniently)

Experience the service (e.g. make

calls, surf)

Receive prompt and effective help to

account problems

Connection problems are

fixed promptly

Upgrade/ Change

Change plan as needs/circum-stances change

Product focus

DSL ISP POTS

Episode focus

Enquiry Fulfilment Assurance


Use

“Always as needed”

• The product performance is consistent with what I purchased (“true to label”)

• Telkom Internet always remains connected and the speed enables me to use the product as I need

Explore and Buy Get Started

Each episode has a defined ambition, informed by customer feedback, fact-based diagnostics output and from the top-down BB survey

“Easy to find, choose, and buy”

“Conveniently connected”

• Easy to access Telkom in the channel that I choose

• Easy to compare and choose best products for me

• Easy to apply - short form, no mistakes, quick process

• Convenient appointment windows are respected

• Telkom products are easy to install - ideally plug-and-play

• Get quickly connected how and when I choose

Fix Fault

“One contact,one day”

• Quick and easy to report faults to Telkom , e.g. short wait time on the phone

• Fault is resolved in a timely and efficient manner (and does not recur)


Net Promoter Score (NPS) is a central element in our approach

Would you recommend Telkom to a friend?

% of Promoters - % of Detractors = Net Promoter Score (NPS)

How the score is calculated:


The NPS question separates our customers into three groups based on their answer

•Dissatisfied by their experience

•Frequently make complaints

•Bad-mouth Telkom to others

•Got what they asked for but nothing more

• Indifferent about which operator to use

•Talk with low energy about Telkom

• Loyal customers

•Make repeat purchases

•Talk with energy about Telkom to friends and colleagues


High-velocity continuous improvement process

Analyze scores

Call backcustomer

Gather reactions

and analyze them

Take action, incl. coaching

Measure NPS and

KPIs

Train employees based on facts: dashboards & customer case

examples

‘Downstream’ Implement structural improvements (e.g.

adjustment of invoices) based on

closed loop feedback insights and other

analyses

‘Upstream’

Capture & codify

root causesAnalyze

root causes

Come up with

actions and prioritize

Implement structural

improvements

Feedback improvements to employees and

customers


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What we will do for Churn Management going forward

Reporting into COO OPCOM

Reconfigured Retention centre

increase focus, and adequate resources (tools systems etc.)

Developing new TOC Offers

CEX program for DSL etc

Renewed focus on contract renewal

Implement Churn Prediction Model

Revised definitions for proper reporting

smme fixed line churn the role of customer experience

Documents

churn prediction customer

churn unpredicted

customer requirements

ongoing customer insights

focus slide

customer expectations

line management

collection slide