Creanord EchoNEWS: November 2009
Welcome to the November issue of Creanord EchoNEWS. Creanord EchoNEWS aims to keep you informed of the latest developments at Creanord
and in the fields of automated Ethernet service delivery, SLA assurance and Operations, Administration and Maintenance (OAM).
In this November issue we will address the need for Customer Experience Mangement (CEM). Creanord Feature Spotlight highlights the key benefits of Intelligent Traffic Shaping.
Customer Experience Management
Customer Experience Management (CEM) is about driving customer loyalty and eventually improving profitability. But CEM execution often falls short within Service Providers who struggle to implement CEM compared to other industries - which affects the bottom line.
The Service Provider market area is also maturing, changing the nature of competition - hence a need to differentiate. In addition the customer acquisition costs are going up and end customer prices are stabilizing. All this sums up as a need for better customer
lifecycle management and optimization which not only enables you to keep your existing customers happy but upsell over time.
Improved CEM not only increases the bottom line but increases the value for the customers alike, making the Service Provider more important to customers. Moreover a market entry for a new competitor is more difficult if the Customer Experience Management is taken care of.
CEM and High Average Revenue Per Customer (ARPC)
For business customers and for carriers purchasing high-capacity transport services and wireless backhauls the importance of providing excellent CEM is vital. Losing a single transport service customer usually means losing a customer who would have been bound to purchase more capacity and services over time.
This not only means that you are losing the current revenue from this customer but your competitor is having this revenue and the upselling revenues to come. Meaning you just lost three times.
When you look at the profitability through Customer Lifetime Value true CEM comes even more important. The following summarizes the benefits of a successfull CEM.
- Avoidance of acquisition costs through retention
- Increasing spending over time, less price sensitive
- Lower support costs as customer increases understanding of company
- Free "word-of-mouth" promotions and referrals
Losing customers because of poor CEM not only means losing revenue but it also makes it harder for acquiring new customers from competitors.
Critical success factors for Customer Experience Programs
Regardless of industry there are some critical elements that affect the success of any CEM program.
- Program governance is critical for thriving the achievements of program goals on time and on budget. This has always been a big challenge for service providers
- Speeding up the transition from legacy system
- Top management support speeds up consolidation
- Given the big nature of the CEM the challenge is in the change management of attitudes and the way to work as the CEM affects through different organizations and departments.
Customer Experience Management for Service Providers
For Service Providers looking to improve CEM few key areas are above others.
Service quality. There is a direct link between customer experience and service quality. Service Providers need to make sure that quality, availability, usability and performance are in the levels of customer satisfaction.
Services and products portfolio. Customers want to have the latest and best services. In addition also your customers want to stay ahead in the competition. Getting rid of old legacy services and providing services that are simple and convenient to use is essential.
Customer support. In the end customer support is the factor that can either ruin or save the customer experience. Every service provider has problems but the key to success in customer experience is how the customer support solves the problem situations. Availability, speed and effectiveness are in the key roles.
Learn more about how Creanord EchoVault can help you to provide proven service quality, broaden your service portfolio and enhance your customer support - providing real carrier class tools for Customer Experience Management.
Creanord Feature Spotlight - Intelligent Traffic Shaping
Maximize the bandwidth usage - while protecting priority traffic
- Available in MetroNID Managed Ethernet Access Devices with no additional license cost
- Lower priority traffic gets all the available capasity unless priority traffic needs bandwidth.
- Priority traffic is protected up to the maximum bandwidth capacity from e.g. bandwidth-hungry TCP applications
- Priority traffic is by-passing queues through our unique zero-latency fast-lane
Previous issues of Creanord EchoNEWS
Creanord EchoNEWS October 2009
Creanord EchoNEWS September 2009
Creanord EchoNEWS August 2009
Creanord EchoNEWS July 2009
Creanord EchoNEWS June 2009
Creanord EchoNEWS April - May 2009
Creanord EchoNEWS March 2009
Creanord EchoNEWS February 2009
Creanord EchoNEWS January 2009
Creanord EchoNEWS December 2008
Creanord EchoNEWS November 2008
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