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Apply behavior-based insight to bridge the gap between NPS scores and customer experience

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Industry Director, Big Data and Analytics, Stratecast | Frost & Sullivan

Broadband everywhere could leave communications service providers (CSPs) nowhere. CSPs may have thought they were facing a competitive environment before. Now, the rise of over-the-top (OTT) communications—over-the-Internet video, messaging and calls—is forcing CSPs to really feel the heat.

Lost in the crowd

Many consumers enjoy broadband access, and after a consumer is connected to a broadband pipe, theoretically, anyone can be a CSP. That growing pool of competitors stretches far beyond other carriers to web giants and content providers such as Facebook, Google, Hulu, Netflix and more. If you’re a CSP executive, you may think this scenario is bad news for you, right? Well, here’s some more bad news: while CSPs have an opportunity to rise above the products-and-prices, commoditized services fray, right now many are failing miserably at the things that could help them grab hold of that opportunity.

Consider several factors. By the year 2020, customer experience is expected to overtake product and price as the key brand differentiator across all industries. Only one in six customers is an advocate for his or her CSP, and just under 12 percent strongly agree that their CSP listens to them and collects the right amount of information to meet their communications needs. Moreover, no CSP cracks the top 100 in Temkin Ratings, or the top 50 in Brand Keys rankings. And the wireless industry ranks a painful 44 among 50 industries in the American Customer Satisfaction Index (ACSI). CSPs are also lowest in Satmetrix Net Promoter Score (NPS) among the seven industry groups that were evaluated.

http://www.ibmbigdatahub.com/sites/default/files/subscriber_blog.jpgNot everyone is a fan of NPS, primarily because a CSP is at the mercy of a small sample of subscribers who have taken a survey. And CSPs have no way to match up what customers are telling Satmetrix with the experience information they provide about the CSP’s network and services.

Insight perspective

IBM views NPS as a valid customer satisfaction indicator—not on its own, but when viewed with other indicators. CSP executives need to respect NPS because their compensation is probably tied to it.

IBM has created a way to close the gap between NPS scores and subscriber experience data. The IBM Behavior-based Customer Insight solution correlates subscribers’ transactional NPS scores with their experiences with CSP network and services. The IBM Behavior-based Customer Insight solution builds on this correlated data to create likely NPS scores for nearby subscribers with similar usage patterns and take corrective action. This solution also combines usage, experience and NPS data with customer care and provisioning data to create customer profiles that enable targeted marketing offers. In essence, the Behavior Based Customer Insight solution helps a CSP play defense to retain subscribers, and then go on offense to generate more revenue from them.

In what is fast becoming a golden age of OTT communications, the IBM Behavior-based Customer Insight solution may be just the way for CSPs to restore some of their financial luster.