GB962 Customer Experience Management Introduction and Fundamentals R16.0.0

Frameworx Best Practice

Customer Experience Management Introduction and Fundamentals

Customer Experience Management Solution Suite GB962 Release 16.0.0 June 2016

Latest Update: Frameworx Release 16 Version 3.0.1

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TM Forum 2016. All Rights Reserved.

Customer Experience Management – Introduction and Fundamentals

Notice Copyright © TM Forum 2016. All Rights Reserved. This document and translations of it may be copied and furnished to others, and derivative works that comment on or otherwise explain it or assist in its implementation may be prepared, copied, published, and distributed, in whole or in part, without restriction of any kind, provided that the above copyright notice and this section are included on all such copies and derivative works. However, this document itself may not be modified in any way, including by removing the copyright notice or references to TM FORUM, except as needed for the purpose of developing any document or deliverable produced by a TM FORUM Collaboration Project Team (in which case the rules applicable to copyrights, as set forth in the TM FORUM IPR Policy, must be followed) or as required to translate it into languages other than English. The limited permissions granted above are perpetual and will not be revoked by TM FORUM or its successors or assigns. This document and the information contained herein is provided on an "AS IS" basis and TM FORUM DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY THAT THE USE OF THE INFORMATION HEREIN WILL NOT INFRINGE ANY OWNERSHIP RIGHTS OR ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Direct inquiries to the TM Forum office: 240 Headquarters Plaza, East Tower – 10th Floor, Morristown, NJ 07960 USA Tel No. +1 973 944 5100 Fax No. +1 973 944 5110 TM Forum Web Page: www.tmforum.org

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Table of Contents Notice.................................................................................................................................... 2 Table of Contents ................................................................................................................ 3 Table of Figures ................................................................................................................... 5 Executive Summary ............................................................................................................ 6 1. Introduction ...................................................................................................................... 7 2. Why is Customer Experience Important ........................................................................ 9 3. Differentiating CEM ........................................................................................................ 11 3.1.

CEM & CRM.................................................................................................. 11

3.2.

CEM & Multichannel CIM .............................................................................. 12

3.3.

CEM & SQM.................................................................................................. 13

4. CEM & Social Media....................................................................................................... 14 4.1.

Key Social Media Metrics .............................................................................. 14

4.2.

Impact of Social Media Metrics on Customer Experience ............................ 16

5. Lifecycle of Customer Experience ............................................................................... 17 5.1.

Mapping the Channels with the Lifecycle Experience Model ....................... 18

6. Customer Experience Maturity Model ......................................................................... 19 7. Measuring Customer Experience ................................................................................. 21 7.1.

Customer Experience Lifecycle Metrics ........................................................ 22

7.2.

CEI Calculation Method ................................................................................ 23

7.3.

CEM Index .................................................................................................... 23

8. Omni channel ................................................................................................................. 25 9. Implementation Guide ................................................................................................... 26 9.1. Business Value Roadmap............................................................................. 27 9.1.1. Linear View ............................................................................................... 28 9.1.2.

Circular View............................................................................................. 28

9.1.3.

As-is Assessment Planning ...................................................................... 29

9.1.4.

Assessment for performance against benchmarks .................................. 31

9.1.5.

Initiate To-Be State ................................................................................... 31

9.1.6.

Prioritize Business Outcomes ................................................................... 31

9.1.7.

Implement Use cases ............................................................................... 31

10.

Relationship with Frameworx ............................................................................. 33

11.

Summary ............................................................................................................... 41

12.

List of TM Forum CEM Specific Documents ...................................................... 42

13.

Bibliography and References .............................................................................. 43

14.

Glossary ................................................................................................................ 44 14.1.

15.

Structure and Convention ............................................................................. 44

Administrative Appendix ..................................................................................... 48 15.1.

About this document ..................................................................................... 48


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15.2. Document History ......................................................................................... 48 15.2.1. Version History ........................................................................................ 48 15.2.2. 15.3.

Release History ....................................................................................... 50

Acknowledgments ......................................................................................... 50


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Table of Figures Figure 1 - Why CEM Now? ......................................................................................... 10 Figure 2 - CEM & CRM ............................................................................................... 11 Figure 3 - Comparison of CEM with CRM ................................................................... 12 Figure 4 – Key Social Media Metrics ........................................................................... 16 Figure 5 - Lifecycle Experience Model ........................................................................ 18 Figure 6 - Different channels at the Lifecycle Experience Model ................................. 18 Figure 7 - Capability Maturity Model Integration (CMMI) ............................................. 19 Figure 8– Customer Experience Maturity Matrix ......................................................... 20 Figure 9 - Customer Expectations vs. Service Targets................................................ 21 Figure 10 – CXM Metrics Framework .......................................................................... 22 Figure 11 - CEI Calculation Scheme ........................................................................... 23 Figure 12 - TM Forum Implementation Guide (GB962D) ............................................. 26 Figure 13 - Implementation Guide Use case template................................................. 27 Figure 14 – Business Value Roadmap linear view ...................................................... 28 Figure 15 – Business Value Roadmap loop view ........................................................ 29 Figure 16 - TM Forum Business Process Framework (GB921) ................................... 33 Figure 17 - SLA Lifecycle (GB917).............................................................................. 34 Figure 18 - Service Structure ...................................................................................... 35 Figure 19 - SLA Hierarchy .......................................................................................... 36 Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy.. 36 Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149) ................................................................................................................................... 37 Figure 22 - Social Networking Sources ....................................................................... 39 Figure 23 - Telefónica UK CEM Scorecard Dashboard ............................................... 39 Figure 24 – List of TM Forum CEM Specific Documents ............................................. 42


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Executive Summary Customer experience (CX) is the sum of all experiences a customer has with a services provider, over the duration of their relationship that starts from buying phase and includes post disconnection processes that may influence the customer. Customer Experience Management (CEM) is a strategy to transform business and make it customer centric i.e. service provider exists to earn profit by delighting customer instead of defining strategy that is business centric where service provide runs business to earn profit and in journey satisfies customer. Customer Experience Management uses effective process, cutting edge IT solution and operational excellence along with underlying enabling technology to make customer journey comfortable, objective driven and beneficial for service provider as well as customer. A strong customer experience strategy helps in growing business, innovating products and increasing brand value for service provider. Customer Experience is more about understanding customer perspectives and then defining the solution and strategy. It keeps customer at core and then builds organization to serve the customer with the help of process, tools, products, people and solution so that customers are delighted and willing to do more business with service provider. This document comprises one element of a Customer Experience Management Solution Suite. Other components are the Maturity Model, the Customer Experience Management Index (CEMI), Lifecycle Model, Metrics & KPIs, omni channel best practices and Implementation Guide use cases.


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1. Introduction As with other Industry sectors, communications/digital service providers are recognizing that customer centricity within their standard operational models is essential to achieve sustainability and foster growth within their business model... Today, the consumer of digital services holds the reasonable expectation that a fabric of engaged parties, including service providers, their partners, and third-party suppliers of content or other merchandise will be entirely focused on delivery of value in easy and effective way.. No longer does a single party “own” an exclusive customer relationship, and the experience of the end user (the customer or their proxy) must be fully visible in order to ensure that the value is delivered such that the financiallyresponsible party (the customer) will be delighted to pay for said value. Thus, a shift from an inward focus on departmental and operational goals and measures (“inside-out” thinking) to an outward focus of delivery of high-value customer experience, through continuous customer engagement (“outside-in” thinking), is an essential transformation required of today’s Digital Services providers. This Guidebook promotes best practices considered to be most effective in achieving the business objective of sustained shareholder value delivery via sustained customer engagement. NOTE: Terminology used throughout this document is based on the language contained in the Glossary and, except where noted, supersedes dictionary definitions or other sources of terminology from non-TM Forum sources. Customer Experience (CX) is the result of the sum of observations, perceptions, thoughts and feelings arising from interactions and relationships (direct and indirect) over an interval of time between a customer and their service provider(s). The measurement of customer experience is based on measuring the extent to which the customer’s needs are satisfied using customer/user centric measures such as: 

Would advocate (e.g. churn and loyalty indicators)



Would recommend (e.g. Net Promoter Score)



Acquisition and usage difficulty (e.g. Customer Effort Score)



Would Buy again



Product/Service availability



Product/Service usability

Despite the industry’s obvious interest in Customer Experience Management (CEM) it is only in recent years that we have seen a real move towards establishing CEM in the service providers’ organizations. The reasons for this slow take-up are many fold, but are often founded in the traditional way in which service providers have managed services in the past, namely focused on managing the technology that delivers the service rather than on managing the customer experience. It was driven by an objective to serve the customer with what was in the service provider’s portfolio rather understanding what is expected by customer. While this ‘bottom up’ approach may have worked for technical services where all of the service components i.e. resource facing services, were managed internally, the model does not work today with a wide range of customer facing services many of which are dependent on service components from partners and third party suppliers. We will explore the new operating model in more detail in the following sections. It is also true to say that the customers’ expectations have changed in recent years as they gain a greater maturity in understanding what they want from their service


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providers it is also true to say that this expectation is a dynamic journey maturing over time as the market accepts new journey delivery models -- not just in terms of the quality of the technical services but their whole experience ‘soup to nuts’. Today, therefore, service providers have become very conscious that while they may have gone some way to monitor their customers’ experience, it is not enough and they have to be much more proactive in ensuring that the level of service has to be managed throughout the customer lifecycle and moves in symphony with this dynamic journey delivery environment. This issue of the Guidebook marks a transitional stage from managing the customer’s experience to managing the engagement with the customer (and the end user proxy). Customer experience loses no relevance or importance in this shift, rather the expected delivery of value is seen as the result of effective customer engagement. The digital service provider’s enterprise journey from CxM (Customer Experience Management) to CnM (Customer Engagement Management) is a matter of enterprise capability maturity, in contrast to an either-or choice. The full elaboration of best practices for advanced-stage maturity in customer engagement will be an ongoing effort in this Guidebook and the associated Addenda, which elaborate on key aspects of Metrics, Maturity Model, and Lifecycle Model approaches.


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2. Why is Customer Experience Important Most digital service providers have realized a strong correlation between customer experience & profitability, as well as the importance of retention along with the growth in the subscriber numbers. A large number of digital services accessed in multiple ways by customers using different devices, the network-centric approach provides a one-dimensional incomplete picture. As the industry moves into a growing market of digital services built on infrastructures that enable fast development and deployment of new services, the service portfolio itself is not sufficient to establish a lasting differential in the market place. Such a differential is quickly eroded by competitive service providers. Having tried to differentiate through technology and ‘clever’ pricing models and found the strategy to be short lived, service providers are realizing that a more solid differentiation can be gained through managing the customer experience. This does not just mean delivering service that meets the customers’ expectations but that all aspects of its business must support the concept of a superior customer experience. As we can see from the diagram below, there are a number of reasons why the market is ready to encourage service providers to introduce CEM programs. Including: 

Market Maturity - Maturing traditional service markets change the nature of competition



Economic Trends - Economic trends impact customer spending and service provider investments



New Technologies - New capabilities drive new services and the potential for better customer experience



Customer Behavior & Preferences - Changes in behavior create new risks & opportunities



Shift in Competition- Competition is shifting towards quality and making customer journey easy because traditional service have become commoditized and new services require more customer engagement.

While not the only factor in managing the customer experience, delivering good service quality is still a cornerstone to achieving customer satisfaction. However, this in itself has become more demanding as the rapid increase in digital services has brought with it ever increasingly complex value chains.


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Figure 1 - Why CEM Now?

The service providers are turning back to their customer base in order to differentiate themselves because the connection between customer experience & the profitability is widely recognized. The key drivers for introducing a CEM could be internal oriented or external ones 

Loyalty - Creating customer loyalty and stickiness, and therefore controlling churn. The existing customer base therefore becomes the platform for growth and profitability.



Promotion - Encouraging existing customers to recommend the digital services to their trusted environment. This involves developing a strong brand image.

Therefore the CEM program will need to focus on providing both a high perception of the digital services providers products and services, but as well the actual quality of these services based on proactively includes rapidly spot issues, diagnose root causes and prioritize responses.


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3. Differentiating CEM The requirement of CEM has developed with the level of choices available for the end customer and for the digital service provider to differentiate its services. This was not a situation earlier when in most markets there were only a couple of service providers selling similar products and customers had little choice of whom they used to deliver their services, the concept of managing customer satisfaction didn’t really exist in any tangible form. At the same time the portfolio of services or products available to the consumer were very limited and entirely dependent on resource facing services managed by the providers themselves. Consequently the need for CEM did not really raise its head until governments around the world started to remove the monopoly held by the incumbent service providers and slowly the customer was presented with multiple choices. The smarter providers began to realize that customer satisfaction was important in order to encourage consumers to move to them and to discourage its existing customers to look elsewhere. As the new digital services emerge there is not only duopoly but there are now several choices when it comes to various types of digital services including communications, entertainment, digital data, content, e-commerce etc.

3.1. CEM & CRM

Figure 2 - CEM & CRM

Initially the main changes were on the internally focused Customer Relationship Management (CRM) rather than externally focused CEM. While CRM went some way to improving the relationship with the customer, the approach was very internally focused looking at developing the appropriate processes, systems and skills to manage the relationship with the customer. This certainly improved the customer experience but it was an inside looking out strategy rather than outside looking in. It enabled the service provider to assess how well their services, people and processes were performing, not whether they were meeting the customer expectations. For example, providers measured the average time to answer a call to the customer help desk and measured success against an internally set target representing what the business felt was acceptable but did not necessarily meet the customers’ expectations. So while development in CRM helped improve the customer satisfaction it did not go far enough. A common misconception in the industry is that CEM is a replacement for CRM which simply is not correct. A successful transformation into the CEM world can only be


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achieved by building on top of good CRM processes and practices. CEM takes us a step closer to achieving improved customer satisfaction. Instead of asking the question, “This is what we are doing, how well are we doing?” which is a CRM approach, CEM asks, “What is important to you, and how well are we doing? CEM is aimed at turning customers into fans by seeing the world through their own eyes. As we will see in this document, implementing CEM has a wide impact on the service provider’s organization. Whereas CRM was largely centered on the operations groups within an organization, CEM must be implemented across the entire organization and cannot be implemented solely through processes and systems. It must become a key part of the service provider’s culture. In their article “Understanding Customer Experience" (Harvard Business Review, February 2007) Christopher Meyer and Andre Schwager prepared a useful table contrasting the two strategies. CEM

CRM

What

Captures and distributes what a customer thinks about a company

Captures and distributes what a company knows about a customer

When

At points of customer interaction: “touch points”

After there is a record of a customer interaction

How Monitored

Surveys, targeted studies, observational studies, “voice of customer” research

Point-of-sales data, market research, web site click-through, automated tracking of sales

Who Uses the Information

Business or functional leaders, in order to create fulfill able expectations and better experiences with products and services

Customer-facing groups such as sales, marketing, field service, and customer service, in order to drive more efficient and effective execution

Relevance to Future Performance

Leading: Locates places to add offerings in the gap between expectations and experience

Lagging: Drives cross selling by bundling products in demand with ones that aren’t

Figure 3 - Comparison of CEM with CRM

While this article only goes part of the way to establishing the key differences between CEM and CRM, it does underline the fundamental principle that CEM drives a proactive approach to managing the customer, while CRM is a measurement of what has happened in the past. This leads us to where we are today with a rapidly increasing movement towards delivering services whose functionality and performance are underpinned by a good understanding of what the customer expects.

3.2. CEM & Multichannel CIM Customer Interaction Management software is usually dedicated to managing the interaction between the service providers and the customer. CIM systems aim to capture knowledge about a customer available from multiple channels, such as e-mail, SMS, telephone, Instant Messaging, paper documents, and so on. In this manner it is similar to CRM in a way focusing on a view of the customer from the eye view of the service provider, and not like CEM where the view is taken from the customer’s


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perspective. CIM & CRM are often used together with CIM being transaction specific and CRM providing information and intelligence behind the transaction. In the context of CEM customer interaction needs to evolve into customer involvement, integrating the customer in idea generation, choice identification, product creation and consumption. A natural requirement of this would be a customer profile at each touch point and map their customer journeys. CIM is ultimately one part of CEM, which provides the larger picture.

3.3. CEM & SQM SQM originated during the service centric world, when to the Service Provider the Quality of Service (QoS) as measured by OSS parameters were paramount. This was as well the world where a single service was accessed using a single device by a customer. As the new digital services emerge the customers are usually multi-tasking on average over several devices. The SQM was largely connected with the Objective Quality, which in the ITIL terms were translated into incidents and problems. Incident was defined as a specific instance of unplanned disruption and degradation of service and therefore a measure of Quality of Service. A problem was a larger reason causing the incidents, both being a measure of Service Quality and part of SQM. CEM on the other hand introduced a more holistic and objective measurements of customer satisfaction by introducing appropriate metrics at various touch points by mapping the customer journeys. Instead of Quality of Service (QoS), Quality of Experience (QoE) is paramount. QoE would be defined as a measure of satisfaction of a service as perceived by the user of the service. This measurement would start from the very client or terminal where the service is being used as well as the infrastructure which is being used to deliver the service. Therefore the definition of QoE includes QoS. QoE or CEM is customer centric, SQM or QoS is service centric.


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4. CEM & Social Media Social media is an essential barometer of customer experience. Digital service providers among all other companies have been quick to realize the potential and the risk associated with social media. Many of them are already tracking social media impact through metrics. Traditional scores of customer experience such as NPS have become much more accurate and measureable with the analytics and metrics available from social media. Sites such as Twitter, Facebook & Google Alerts as well as Google Analytics provide rapid indicators on what and when things had gone wrong. Using the social media to monitor customer experience could involve an active monitoring of the social media channels for information about a digital service provider, its services, its brands etc. It could be proactive where the digital service providers creates a culture of reading social media about itself or reactive, when it is tracking social media for customer experience monitoring after an outage. Social media in this context is not just the more prominent Twitter or Facebook but comprises of a broad range of publicly available and shared content on the web including blogs, wikis, news sites, micro-blogs such as Twitter, social networking sites, video/photo sharing websites, forums, message boards, blogs and user-generated content. All these could to different degrees provide a complete public picture about a brand or an incident. In the context of customer experience, social media monitoring is important for the digital services providers to measure customer experience, visibility and opinion about a brand. The customer experience solutions may offer a temporal collection of social data regarding a particular brand or they might also enable proactive response to respond to specific mentions of the brand. Sites such as twitter TM and Facebook TM provide rapid indicators on when things are going wrong. Increasingly systems that automatically monitor key social networking sites are being deployed to flag to the Service Management Center when traffic increases. Often this is the first sign that a service is failing or a new service does not work the way that it should. There have been numerous examples in the past where these sites have provided early feedback on a new product or service. These social networks are very powerful and ignored at the service providers peril. All this is important in relation to emerge as a step towards socially aware organization. Due to its very spontaneous nature, it is impossible to provide a perfect measurement or response to social impact of a brand. There are also privacy settings and data protection issues, preventing development of a full picture. Unfortunately human nature tends towards using these social networking sites when there is a problem and less for reporting good services. They tend, therefore, to provide a measure of customer dissatisfaction rather than satisfaction. Social media provides an asymmetric view to customer experience since it does not touch all the touch points. Irrespective of its limitations, Social Media remains an important source of customer experience measurements.

4.1. Key Social Media Metrics This section provides a view to the various categories of social media metrics and how they can be used to monitor customer experience: 

Consumer Activity Metrics- these are direct measurements of what the customer had actually done based on posts likes etc. Typical examples are post rate, response rates etc. They are an indirect measure of customer experience


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

Brand Reach Metrics- these measure the audience connected to a brand e.g. audience growth rate, Facebook Organic, Virtual & Paid reach. The viral reach is a measure of customer experience.



Consumer Engagement Metrics- this measures the actual impact of a communication on a consumer, it could include applause rate, conversation rate etc. These may not directly measure customer experience.



Acquisition Metrics- this measure conversion of an engagement into actually a favorable action towards the brand as a direct measure of satisfaction. These could include visitor duration, visitor frequency, click through rates etc.



Conversion Metrics- these metrics measure the effectiveness of a social media activity to monetize customer experience, which could include purchasing a trial or final product, renewals, subscriptions, downloads etc.

An appropriate selection of the metrics is important to obtain the right picture of customer experience. This because the goals could be quite different, in one case it could be introduction of a positioning based on superior customer experience in another case it could be maintaining the brand equity. The table below provides an example of some of the key Social Media metrics from the perspective of customer experience: Category

Metric

Impact on CEM

Brand Reach Social connections

This defines the raw number of social connections such as Facebook fans or Twitter followers a company is likely to have. This is an indirect measure of CEM as a measure of publicly stated recommendation based on followers. However followers only demonstrate interest but not commitment. In addition this is only applicable for large consumer brands, and not for niche products.

Consumer Activity

Social Page Views

This measures the page views, wherever this information is available such as in YouTube. However without a measure of how much time a consumer spends on the page this is not a useful measure of customer experience.

Consumer Engagement

Engagement rate

This metric is the total of likes and comments divided by the total number of fans, indicating the raw # of engagements per fan. The engagement level is an indirect measure of relevance of the media itself and acceptance of the brand

Acquisition

Talking About This is a Facebook specific metric which reports on how many This people are talking about the brand and the related pages on their own pages, as a measure of social sensation created by the brand. This is an indirect measure of social sensation caused by a specific campaign or launch.

Consumer Activity

Retweet rates This is a measure of how many times tweets have been retweeted, which is an indirect measure of an importance of an event, for example an outage.

Consumer Activity

Chatter level

This is an imperfect measure of all posts, tweets and blogs about a specific topic in social media. This could be an important measure but will need to be apportioning an appropriate value to various media based on their relevance and importance.

Conversion Metric

Sociallyreferred revenue

This refers to the revenues generated by social media referrals, which is an indirect measure of customer satisfaction.


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Category

Metric

Impact on CEM

Conversion Metric

Conversion Rate

This is a measure when a social media referral is converted into a specific brand friendly action such as either ecommerce or a newsletter sign-up. This is a measure of effectiveness of a promotion.

Reach

Reach

This is a Facebook specific metric which measures the effectiveness or reach of a campaign in terms of organic, paid and viral reaches. The Organic reach is measured in terms or number of unique people reaching the post, the paid reach through an advertisement and a viral reach is indirectly through a friend referral.

Figure 4 – Key Social Media Metrics

4.2. Impact of Social Media Metrics on Customer Experience Social media is a platform for a community of consumers to share their opinions about a brand and an experience around the brand. This enables them to develop knowledge about the brand, which is holistic, and depends on actual experience, than what is communicated by the service provider. A community of users using the product in various ways is more likely to have a multi-dimensional experience than even a company’s own test labs for its products. Social impact works very well for some companies, who might get new subscribers based on experience of other trusted members of their own network, whereas others may lose for the same reason. As of now the tools to make full use of social media data are still emerging. However there is an increasing trend that the companies not only want to score more likes, as well as referrals, but as well the exact wordings and terms used by their consumers. A future index to compare social media performance has to be based on three criteria; reach, engagement & influence or action. Viral-style influence is important as well since the social media does much more than just preaching to the converted.


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5. Lifecycle of Customer Experience GB962C Customer Experience Lifecycle Model in the Customer Experience Management Solution Suite provides an approach for service providers to categorize and understand the various interactions a customer has with them. It defines the interactions of the customer into the various phases and sub phases and models those based on the unique journeys for various customer personas. Every service provider and their customers may have unique journeys across the various phases of the lifecycle. However, it is imperative for the service provider to understand the interactions and identify the journeys across the various phases and sub phases of the lifecycle so as to better offer, serve and delight the customer. The mapping of the Customer Experience Lifecycle model to the operations processes and applications using the TM Forum Frameworks is essential to ensure alignment and an efficient mode of execution across the service provider's organization. The document also provides an initial view in mapping the customer specific journeys to the service providers processes to develop a mapping between the two. The Lifecycle Model is an overall approach towards any service provider's initiative of creating a better customer experience. There are several key components of the model itself: 

End User Segments - The journeys and the defined experiences are based on the specific end user segments against which the service providers operate.



Profitability - Customer experience is the integral driver behind improving revenue and profitability behind any service provider's business. The GB962A Customer Experience Metrics details the list of metrics related to Customer Experience. However at the highest level any Service Provider metric around profitability is related to Cost, Churn, Revenue, and Acquisition.



Enterprise Performance - The enterprise performance relates to the various people, process, systems and technological components within a service provider's environment delivering to their customers against the core business objectives.



Experience Model - The experience model is the key component holding the model together. This includes predominantly the customer experience lifecycle model along with the various channels of interaction of the service provider.



Enterprise Maturity Model - The GB962B describes the various phases of the Customer Experience Maturity Model. The evolution of the maturity of a service provider is against the experiences it delivers across the various lifecycle phases of the customer and the metrics it delivers to its business.


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Figure 5 - Lifecycle Experience Model

5.1. Mapping the Channels with the Lifecycle Experience Model The various phases of the customer lifecycle can be across a variety of channels. The channels available for the customer will be dependent on the service provider, the type of service it provides, the geography wherein it delivers the service and the functionality available at their disposal. Considering the nature of how customers can choose to interact using their preferred choice of the channel with the service provider, it is imperative for service provider's to consider integration of these channel platforms to ensure consistent data and information flow across them. This will ensure that the customer journey can continue even if the channel of interaction changes without the customers having to restart their journey from the very beginning. The below figure is meant to show a seamless channel experience across the various phases of the customer lifecycle. The list of the channels themselves is illustrative and will be dependent on individual service provider and their customer and service offerings.

Figure 6 - Different channels at the Lifecycle Experience Model


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6. Customer Experience Maturity Model Delivering effective customer experience management requires a coordinated program across the entire organization and is best achieved by adopting a maturity framework similar to the Capability Maturity Model Integration (CMMI) framework. CMMI is a proven process improvement approach whose goal is to help organizations improve their performance. CMMI can be used to guide process improvement across a project, a division, or an entire organization. The starting point for the maturity model is for the organization to agree that it has a problem and to get support across the appropriate parts of the organization to establish a working program to address the issues. A maturity model introduces a number of phases to achieve the goal of implementing the program through to developing continuous improvement process to continue to tune and optimize the business processes, systems etc. The TM Forum has created a model for this assessment that consists of five Maturity Levels across each of six Customer Experience Dimensions. The model is based on the Customer Lifecycle and the Frameworx business model, providing a structured and practical approach to creating this best practice. The 5 levels and 6 dimensions of TM Forum’s Maturity Model are grounded in the Customer Life Cycle and Frameworx business model, thus providing practical approaches to actual best practices and standards. The five levels chosen for the Maturity Model are patterned after the widely-recognized Capability Maturity Model used for software engineering maturity assessment.

Figure 7 - Capability Maturity Model Integration (CMMI)

The CEM Maturity level documentation (GB962 Addendum B) includes the characteristics of these levels as well as the Dimensions of Customer Experience


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Maturity (Strategy, Organization, People, Processes, KPIs & Tool) and the Key Capability Indicators (KCIs), which provide an example of how qualitative and quantitative measures of capability in the Dimensions of the CEM Maturity Model can be captured across the enterprise to develop a baseline of current capability and to highlight opportunities and challenges for reaching an increased level of maturity. The picture below is a summary of the tool to for enterprises to self-evaluate the level of maturity in customer experience by combining the knowledge of the level of maturity in processes as applicable to the key capability indicators mentioned in this section.

Figure 8– Customer Experience Maturity Matrix

It should be noted that an enterprise is seldom monolithically lodged in one level of maturity across all dimensions of attributes. The path to comprehensive improvement in implementing a customer experience management strategy will thus vary according to factors unique to the circumstances and environment in which the enterprise finds it at any given time. For an enterprise to plan and execute a program of continuous improvement around their customer experience management strategy, it is necessary to have a means to assess their maturity across key defining factors of customer experience.


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7. Measuring Customer Experience CEM has been a topic for numerous research projects and activities, including work done by TM Forum over the last few years. So, how can the “customer experience” related to product performance or company perception been measured? For the context of this section the “What” and the “When” of the customer experience definition provided there are maybe the most relevant. Too often in the past the provider has set the service operations objectives based on what they believe to be important to the consumer. Unfortunately these objectives have often been influenced or set by technologists and have been based on the performance of the technology components of the service delivery and the functions within the organization responsible for delivering against those targets.

Figure 9 - Customer Expectations vs. Service Targets

The result is a gap between the customer view of service quality and the service provider’s view; with the Service Manager trying to act as the bridge across the chasm. A simple example is one of the key quality indicators (KQIs) that service providers regularly use to measure service quality ... Availability. The standard formula for measuring availability does not consider planned outages as downtime so a service that requires regular outages for maintenance may still display a high level of availability. Does the consumer trying to use the service actually care whether the outage is planned? Of course not! A more customer centric measurement of service ‘availability’ is ‘Serviceability’ which is a simple measurement of the percentage time that a service is available irrespective of the reason for outage. It would seem to be a simple task to move from measuring Availability to Serviceability but this is often not the case especially where the performance of individuals is measured by the availability of the services that they manage!


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7.1. Customer Experience Lifecycle Metrics It is important to establish a suitable framework within which to identify and organize the CXM metrics. The TM Forum Customer Experience Lifecycle model (CxLC) has been selected as the foundation of the metrics framework for two reasons: 1. The CxLC identifies all the key stages in the relationship between the customer and the DSP, thus facilitating identification of a comprehensive set of metrics covering the entire Customer Lifecycle. 2. It is widely recognized that customer experience cannot be assessed from single metrics in isolation, but instead should be assessed in the context of the customer’s unique journey, taking into account the customer’s history, preferences, mood and expectations. Use of the CxLC readily lends itself to alignment with the individual customer journey.

The resulting CXM metrics framework is shown in the figure below:

Figure 10 – CXM Metrics Framework

The framework of Figure 10 incorporates the nine key stages of the TM Forum CxLC:

Be Aware (Observe, Learn, React)



Interact (Inquire, Request Detail, Reserve)



Choose (Select, Place, Receive)



Consume (Use, Review Use, Evaluate Value)



Manage (Manage Profile/Service, Get Help, Request to Resolve)



Pay (Receive Notification, Verify or dispute, Pay)



Renew (Enhance Selection, Re-contract)



Recommend (Refer Product/Service, Gain Loyalty)


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

Leave (Feedback, Discontinue)

The primary partitioning of the metrics is against these nine stages, which are addressed in turn in GB962 Addendum A CXM Metrics.

7.2. CEI Calculation Method The CXM metrics have been designed to allow easy incorporation into higher level metrics. They are designed to enable an overall per-customer CEI to be determined, as well as per-customer CEIs for each customer journey experience. These are built up from the individual KQI scores of the constituent Touch Points. The calculation scheme is shown in Figure 11:

Figure 11 - CEI Calculation Scheme

7.3. CEM Index Today Most Customer Experience Management (CEM) measurements are taken from actual customer interface exchanges via the Network, Call Center, Trouble Desk, Billing Enquiries, or Customer Surveys, which relate back to the experience that the customer is undergoing and attempt to correlate these various exchanges into an experience value.


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However given the world in which we live and the methods of communications available to the average customer(s), is this method of gathering CEM information sufficient to understand customer attitudes towards their respective carriers? The contention is that it is not and hence this report looks at combining other customer attributes to enhance the view of the customer through a broad business value approach by the construction of a mathematical model to produce a neutral Customer Experience Management Index (CEMI). Please see Technical Specification CEMI for additional details. (TMF066).


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8. Omni channel Customer experience has become a key differentiator for service providers as excellent network and service quality become wide spread, and product offerings become similar across all providers. The key to leveraging this differentiation to maintain a strong customer base and sustain revenues is to deliver a consistent and personalized experience to customers across all channels. Taking this a step further, the ultimate customer experience is one that is completely seamless across all possible channels regardless of how the interaction started, which channels it traversed, and how it finished. This is the concept of omni channel. In the communications industry, service providers have tackled some of the most obvious initial user journeys, offering joined-up services like click-to-collect. However, complete, proactive and personalized customer engagements are still some distance away. TM Forum has created a set of best practices around omni channel. The best practices outline several key areas around omni channel. 1. Key imperatives of omni channel – the principles that need to be considered in any omni channel project: 

Channel Choice based on Customer Preference



Channel Hopping



Deliver in Context



Right Data, Right Channel



Personalized Engagement



Prioritized Journeys

2. Functional Capabilities for delivering omni channel 

Identity



Customer Data Integration



Digital Content Management



Sales Catalog Management



Personalization



Recommendation



Knowledge Management

3. Key Requirements of omni channel



Documenting prioritized user journeys across the Buying, Using, and Sharing stages of the customer lifecycle.


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9. Implementation Guide The implementation Guide (GB962D) is a summary of best practices that are relevant for customer experience management. It presents a methodology for using all the TM Forum best practices and tools that are available today in a defined, repeatable and extensible manner. The best practices addressed are for example the maturity model, metrics, the life-cycle model and big data analytics use cases.

Figure 12 - TM Forum Implementation Guide (GB962D)

The implementation guide is meant as a reference for organizations interested in practical applications of TM Forum best practices. It is therefore organized by means of relevant business use cases and it demonstrates how TM Forum recommendations and best practices can be combined to solve various aspects of a use case. In this sense the implementation guide is a collection of use cases that represent business challenges and it provides an outline of a possible solution that involves the TM Forum best practices, recommendations and also models like the Business Process Framework (eTOM) and the Information Framework (SID). An important part of the use case is a solution recommendation. This means that not only the related business challenge is described, but it comes with a high level solution proposal. This proposal might not be the only possible solution, but it is providing a showcase of best practices working together in order to solve a relevant real-life problem.


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Figure 13 - Implementation Guide Use case template

The unified use case template document as described in Figure 13 is used to collect all data about a use case. The use case is described in details including its purpose and business value. Part of this description can be the relation of the use case to other models like, for example, eTOM. An important part of the description is the entry conditions. They describe the prerequisite of an organization or an environment that needs to be met for the use case solution to be feasible. For example the organization might require a certain level of maturity. In this respect, the use case might describe various possible solutions with different entry conditions. Furthermore, the use case description contains a summary of all metrics and benchmarks that appear to be the central KPI that govern the business challenge described in the use case. Actions and processes are the central part of the use case description. They define the proposed solution as a business processes and thus as a sequence of actions. The idea is that an organization can implement the proposed solution by implementing the described business process. Thus, these processes can be understood as recipes for solving a business challenge. The actions in the processes often refer directly to TM Forum best practices or recommendation documents and they describe how these best practices shall be used in the context of the use case. Also other use cases if the implementation guide can be used as part of the described solution.

9.1. Business Value Roadmap Using the various assets of TM Forum, the CEM department of an organization can quickly arrive at a plan of action to strategize, execute, monitor and improve its CEM functions. We call this the Business Value Roadmap. Below are two views of the Business Value Roadmap:


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9.1.1. Linear View The overall generic use case solution process is shown in Figure 14. It defines the top level of abstraction that is applicable to any business use case. In this respect it describes how an organization first of all determines what the important business drivers are that require action to be taken. The process shows then how to select what actions to be taken and to execute it. In this step the various use case descriptions of the implementation guide can be selected and implemented. The final step in the overall process is then to reassess the business situation after the action is taken and to decide on further activities. This could then for example loop back and select further actions. The final part of the use case description is a collection of implementation stories. These are documented experiences of organizations that have applied the recommended solutions. They can describe how successful they were, what obstacles appeared, how they were solved and where the organization deviated in a certain way from the proposal. The use cases and all related solutions and descriptions are collected in a use case template document. The information will be made available for online searching and browsing. Thus the implementation guide becomes available in an interactive online tool.

Figure 14 – Business Value Roadmap linear view

9.1.2. Circular View In contrast to the linear view, a loop view of the Business Value Roadmap (BVR) is focused on the continuous feedback from the different stages (5) that we have defined. The following figure depicts the overall approach of the BVR loop view.


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Figure 15 – Business Value Roadmap loop view

9.1.2.1. CEM Governance In order to successfully approach CEM, the first step is to appoint CEM champion(s) at a board or executive level. These senior personnel should be responsible and accountable to CE practice, awareness, driving implementation and monitoring improvements across all functions.

9.1.3. As-is Assessment Planning The maturity assessment is a continuous process that should be periodically conducted in a defined manner. In order to do this successfully, it is necessary to establish or re-establish business goals and outcomes of what is desired and achievable in the CEM Department. The goals need to be formalized and ratified by a governance council/body. Once the goals are agreed upon, for this cycle, the maturity assessment should clearly identify where the company is in terms of its CEM practices and where it would like to be through the course of this cycle. For this, specific metrics should be established in a manner such that they can be repeatedly arrived upon and reported out. Course corrections need to be made, so that by the end of the cycle the desired goals are achieved. To aid in the specific process there needs to be a maturity assessment, please refer to the maturity assessment process in the eTOM for details.

9.1.3.1. Refer to eTOM for assessment processes The assessment processes should be established according to the eTOM.

9.1.3.2. Identify / establish main business goals The following are some of the goals that could be adopted by the CEM department. Corresponding metrics have also been defined here. It is important to have some of the following dimensions in mind while establishing goals: External Goals: 

Happy Customer



Engaged customer



Repeat/Loyal customer



Exceed customer expectation


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

Step change improvement in customer experience, etc.

Internal Goals: 

Champions with clear roles and responsibilities



Fully staffed processes



Improvements in certain dimensions of CEM Maturity

9.1.3.2.1. CUSTOMER SENTIMENT/ BRAND/REPUTATION including LOYALTY 

CSAT score improvement



NPS score improvement



Social score



Product/service co-creation rate



Prompted and unprompted brand awareness



Brand position in the market



CEM as differentiator



Brand reputation betterment



Loyalty/stickiness/retention improvement



Lifetime customer value improvement

9.1.3.2.2. OPERATIONAL EFFICIENCY 

Reduced revenue leakage,



OpEx reduction in CEM processes



Reduced cost of sale



Customer Effort Score improvement,



Predictive/proactive response to customers



Improvement in Selfcare/DIY



Gating threshold for elimination of non-performing products/services

9.1.3.2.3. IMPROVED SALES 

Upsell and cross-sell increase



ARPU



Product/service uptake increase



Revenue uplift

9.1.3.3. Maturity model-level The current maturity Model provides a skeletal outline of the various aspects of business that you should be considering. It should be enhanced to provide specifics of what each dimension should contain in order to map the progress from one level of maturity to another. For example, in the dimension of People, training can be a key areas to monitor and mature, then different types of training/skills are required at each level of maturity for the given business goals that you will be establishing.


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9.1.4. Assessment for performance against benchmarks Once the defined goals have been identified and established, business performance is measured along the key metrics defined in the assessment planning phase. In this stage the Key Business Objectives (KBOs) may be reviewed and refined. If current maturity for a given dimension is at level 2, the plan should be to move to level 3 rather than jump to level 4.

9.1.5. Initiate To-Be State 9.1.5.1. Identify gaps In order to mature your CEM practices, it is important to call out the key dimensions on which you want to progress during this cycle

9.1.5.2. Prioritize journeys most impact on business goals For the prioritized dimensions, it is important to consider which customer journeys these dimensions will be worked on for improvement.

9.1.5.3. Identify the Use Case that best meet business goals The next step would be to identify for the current library of Use cases, which one (s) would best meet the journeys which you seek to improve. Please note that the tagging on the library of use cases should help to identify the UC that best meet business goals in terms of the following processes: B2B or B2C, Customer care, Interaction, Understanding, Retention, Personalization, Revenue, Business optimization and Cost reduction.

9.1.5.4. Establish mature process The last step in the Initiate To-Be-State is to establish the mature process. Depending on the outcoming of this stage, it might be necessary to reassess maturity model; in that case, it leads to As-is Assessment Planning stage.

9.1.6. Prioritize Business Outcomes In this stage the business outcomes are prioritized by means of calculating the ROI for the UCs, and depending on the result on the investment decision the UCs will be implemented or not.

9.1.6.1. ROI calculation set of use cases. Once we have identified the UC that best meet business goals, we calculate the ROI for this set of Use cases. This way, the prediction of business outcomes is estimated in terms of ROI estimation for the related UCs. All in all, this can be considered as a Business Value Roadmap calculator.

9.1.6.2. Investment decision Upon calculating the estimated ROI for the selected UCs, the investment decision should be agreed. Three different actions should be taken depending on the decision. If the investment decision is positive, it leads to the final stage to Implement the UCs. Elsewhere, if the investment decision is negative, depending on whether we can evaluate the UCs (to the previous stage, Initiate To-Be State) or not (then it leads to the initial stage, As-is Assessment Planning).

9.1.7. Implement Use cases During the last stage, once the business outcomes have been prioritized and the investment decision is positive, the UCs are implemented.


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9.1.7.1. Execute UC First of all the UCs are executed by implementing the attributes available in the UC template.

9.1.7.2. Evaluate business results Then, the business results are evaluated to determine whether they are aligned to what was expected from the Prioritize Business Outcomes stage.

9.1.7.3. Lessons learned Finally, the lessons learned are captured by the organization and it can go back to Assessment for performance against benchmarks stage where the Key Business Objectives (KBOs) may be reviewed and refined.


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10. Relationship with Frameworx A detailed analysis of the full CEM process or processes is outside the scope of this document but could be summarized by the Business Process Framework diagram shown below. In a nutshell, CEM touches on many of the processes in the framework from Strategy to Billing and from Supply Chain to Customer Relationship Management.

Figure 16 - TM Forum Business Process Framework (GB921)

As more and more providers realize the benefits of a fully embracing CEM environment, so we will see a growth in the adoption of frameworks such as the TM Forum’s Business Process Framework. Much of the framework exists today and will be strengthened by wider adoption as is inevitable. For a provider to develop their own process framework will prove not only costly but will lead to delays in achieving the allimportant market differentiation through improved customer experience. As mentioned earlier CEM is more than just good processes and there is plenty of scope to establish differentiation while adopting a common process framework. It is not just the service functionality that must embrace the customers’ expectations from the early design phases. The performance characteristics of the service must also meet the consumers’ expectations. As we will discuss in the next section, good Service Level Agreement (SLA) management is a corner stone to managing service quality especially in the highly distributed service delivery structures of the modern digital services. The following diagram taken from the TM Forum’s SLA Handbook (GB917) shows how the development of the various forms of SLA spans the various domains of the Business Process Framework, from strategy to in-life management and service retirement.


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Figure 17 - SLA Lifecycle (GB917)

A full description of this process flow is documented in the TM Forum. The TM Forum’s SLA Management Handbook (GB917) is one of the Forum’s longest running initiatives and provides a detailed description of how to develop and manage SLAs. The handbook has been widely adopted within the communications industry and beyond and has been developed based on real experiences of member companies implementing SLA Management. The term SLA is a generic term that is often used to describe a much wider universe of service objectives and agreements, some formal and some informal. The following diagram extracted from GB917 shows the universe of agreements that exist or should exist in most service providers’ organization. The service delivery chain for modern digital services can be complex with a high dependency on third party delivered services. A simplified generic structure can be described as follows:


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Figure 18 - Service Structure

As can be seen from the diagram, there is a clear hierarchy in a service structure that shows Customer Facing Services (CFS) being constructed from a number of Resource Facing Services (RFS) where each of these components may be delivered internally to the service provider or from an external partner or supplier. One or more CFS are then packaged into the Product that is supplied to the customer. Whereas RFS and CFS may be provided by a third party, the Product is almost always the responsibility of the service provider and tied in to other offerings and the service provider’s brand. The quality of service at the product level, therefore, has significant impact on the service providers brand value. Consequently it is imperative to monitor and manage the product quality especially where one or more components (services) are dependent on a third party and outside the direct management of the service provider’s operational capability. Establishing service agreements at each component level as shown below, enables the service provider to not only manage the quality of service delivered to the customer but also that delivered by suppliers, partners and internal groups.


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Figure 19 - SLA Hierarchy

Most of the types of service agreement shown will be familiar to the reader with the possible exception of the Implicit SLA. An Implicit SLA uses the same specification format as an SLA or an OLA, i.e. with a Service Level Specification (SLS) and a description of measurement points and violation procedures, but does not exist within the context of an agreement (whether commercial or internal). It represents a one sided goal stated internally by a service provider, aiming at achieving a certain level of quality for a service, corresponding to the service provider understanding of what the customer expectations are. Importantly when developing the service agreements all of the SLAs and OLAs must be ‘joined up’. In other words, the commitment made to the customer in the Customer SLA must be underpinned by the SLA at the product level which in turn must be supported by the CFS level SLAs and so on through the hierarchy. This does not mean that the Customer SLA has to match the product SLAs, more that they should not exceed the latter without a good business reason to do so. While the SLA may be the corner stone for managing service quality it forms only part of a much wider source of information required to understand the customer experience. The true picture has to be constructed from many sources gathered at the different levels of the hierarchy as shown in the following diagram:

Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy


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Traditionally this model has been applied bottom up i.e. from the resources up to the Customer SLA an approach that supported the “what do we think the customer is concerned about” strategy. In many cases there is actually little correlation between the SLA offered to the customer and the service agreements associated with the components that the service depends on. The result is unsupportable customer SLAs! CEM turns this approach on its head by starting with “what is the customer actually concerned about” and mapping these ‘Critical Success Factors (CFS)’ to the lower level measurements and other data sources.

Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149)

As we can see from the above diagram, measuring the customer experience involves capturing data from a much wider source of data than has been used in the past for technology biased performance measurements. The addition of service testing probes adds an important additional source of information as, if used correctly, they provide true end to end service performance data. The TM Forum Managing Customer Experience program has carried out a significant piece of work on the use of probes and this is documented in ‘TR148 Managing the Quality of Customer Experience’. This work includes descriptions of different types of probes including: 

Passive service and network.



Active user probes that emulate end user activity.



Active services probes.



Embedded agents inside end users’ devices.

But even probes have a limitation, with the exception of embedded agents, they only test the service from a limited number of access points and rarely provide information of how the service is performing at the user application, equipment or edge devices. There are two approaches that can help to fill this gap. The first is to use embedded agents to extract performance data from the users’ devices, or at least a sample of them. More and more we are seeing that user


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application vendors are including the collection of performance data that can then be uploaded to a central service performance management system. Unfortunately there is still a wide reluctance in the user community to allow access to this performance data and service providers sometimes find that they are restricted to collecting data from their own internal users. Even so this technique does provide a good measurement of how a service is performing. Another technique that is becoming more widely deployed is Business Transaction Management (BTM) which allows the provider to track real user transactions and monitor a number of different performance criteria such as success rate and transaction speed. While this approach may seem to offer the best option, it too has its limitations. Firstly BTM only provides information when a service is being used; it does not enable a provider to monitor the service during ‘dark’ hours. Secondly BTM solutions often rely on the deployment of agents at different points in the service delivery chain which can prove difficult when components are being delivered by third party providers. The answer therefore is a wide range of data sources aggregated into a single view of service performance as described in much more detail in TR148 and TR149. Even this comprehensive approach to gathering data from a wide range of sources does not really go far enough. One problem is that it still has a tendency to support a CRM strategy rather than CEM in that it relies on setting up measurement of what the service provider considers to be important to the consumer. If driven by strong input from the user domain the technique does help a service provider to understand the customer experience. There is of course one problem with basing management on input from the user ... they do not always know what is important until they start to use the service, and even then, what is important changes as the maturity of the service progresses. So how can we measure satisfaction without knowing what to measure? One approach has been used for many years and continues to be a good source of customer satisfaction data, this is the customer survey. Regular polling of a sample of customers using well-formed questions continues to enable the service provider to assess what they are doing well and the level of satisfaction that their customers are experiencing. The survey also helps to build the fan base by sending the message that the service provider wants to engage with them and cares about their experiences. Surveys however can be expensive and can suffer from significant latency between defining the questions and evaluating the results. They can also suffer from ‘yesterday syndrome’. For example, while the survey may be intended to measure customer experience over a three month period the answers that they will hear will be heavily biased by the most recent experience of using a service.


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Figure 22 - Social Networking Sources

Recognizing that the CEM view is complex, forward looking service providers are developing an OSS/BSS environment that enables them to display this disparate data in one single ‘vital signs’ view. The following is a picture of such a scorecard being developed by Telefònica U.K. for them to be able to monitor the various performance aspects that represent the customer experience.

Figure 22 – Figure 23 - Telefónica UK CEM Scorecard Dashboard


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The above is an early design view using test data but provides an insight of how Telefónica’s approach towards managing the customer experience embraces a multitude of critical success factors including customer surveys, social media activity, contact center stats and service specific data. From this single view Telefónica UK are able to calculate various Customer Satisfaction Index values which they can then use to drive their customer centric quality improvement programs. In summary, there is no silver bullet when it comes to measuring and monitoring the customer experience. There is however a clear movement in the industry to rely less on purely internally generated CRM data and broaden the approach to listen to anything that the consumer has to say without trying to best guess what the customer thinks is important. Data from the social networks and consumers interactions with the service provider e.g. via customer services are becoming more dominant as a source for understanding the customer experience. It does not matter what the internal systems are telling the provider; if the user are saying that the service is poor ... it is poor!


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11. Summary Companies are increasingly recognizing that customer experience is a key differentiator in a competitive marketplace. However the implementation of customer experience management is relatively new to the digital world and while there has been quite a lot of work carried out on service management and customer relationship management that underpin CEM, good guidelines and working practices are only just starting to appear. As it did with service management and CRM, the TM Forum, through its member companies, is driving out the CEM boundaries and expanding its widely adopted Frameworx to support CEM. There is a great push to establish and enhance CEM programs in many of the leading service provider companies today. This will inevitably lead to better ‘standardization’ in the industry. Having said that, the nature of CEM and the fact that it touches on many aspects of a service provider’s business, it is unlikely that there will be a fully defined set of standards for CEM. We will, however, see an extension of existing frameworks and development of new best practices that will enable service providers to establish CEM programs with shorter lead times, reduced risk and lower costs. The establishment of CEM as a corner stone for achieving market differentiation is already understood by many and because of this the industry will see new and innovative ideas underpinned by CEM. After many years saying “the customer is king” the industry is starting to believe it and the culture change needed to support that standpoint has started. For some it may be a difficult journey but the pain will surely be worth the gain.


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12. List of TM Forum CEM Specific Documents Reference Description GB962

Guidebook

GB962A

CEM Lifecycle Metrics

GB962B

Maturity Model

GB962C

Lifecycle Experience Model

GB962D

CEM Use Cases

GB962E

CEM ROI Calculator User Guide

GB962F

CEM ROI Calculator

RN339

Customer Experience Solution Suite Release Notes

TMF066

Customer Experience Management Index (CEMI)-Establishment of a Methodology

TMF066A Customer Experience Management Index (CEMI)-KPI Calculation Method IG1125

Omni Channel Introductory Guide

IG1134

360 Degree View of A Customer

Figure 24 – List of TM Forum CEM Specific Documents


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13. Bibliography and References Reference

Description

Source

TR148

Managing the Quality of Customer Experience

TM Forum

TR149

Holistic e2e Customer Experience Framework

TM Forum

GB917

SLA Management Handbook

TM Forum

GB923

Wireless Services Handbook

TM Forum

GB921

Business Process Framework (eTOM)

TM Forum

GB929

Application Framework (TAM)

TM Forum

GB922

Information Framework (SID)

TM Forum

Understanding Customer Experience

Paper written by Christopher Meyer and Andre Schwager

Harvard Business Review 2007

Customer Satisfaction Survey

Independent customer satisfaction surveys

J. D. Power and Associates


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14. Glossary 14.1. Structure and Convention This glossary is structured to allow terms to be detailed by use, in order of the following precedence: 

Terms adopted from other TM Forum or Industry standard terms



Prior terms from this Glossary



Dictionary primary definition.

Thus, the convention for detailing a term is that the term will rely for its definition on the terms preceding it, using the precedence above. All terms defined in this Glossary will be capitalized in use throughout the rest of the document. Terms

Definition

Customer

[1] --a specific Party[2] Role[3], liable for the legal obligation to pay for a Product[4]. A Customer takes the form of one of two Party Roles: 

Individual (personal legal liability)



Organization (enterprise legal liability) [1] See GB922 Addendum 2 Customer. [2] See GB922 Addendum 1 Party. [3] See GB922 -1UR Users and Roles [4] See GB922 Addendum 3 Product [5] See GB922 Addendum 8 Supplier Partner. [6] See GB922 Addendum 8 Supplier Partner.

End-user

the proxy for the Customer in the role of consuming Products.

Customer- facing  Roles

Provider—the value network Party with whom the Customer has agreed to pay for Products.



Partner[1]



Supplier[2]

[1] See GB922 Addendum 8 Supplier Partner. [2] See GB922 Addendum 8 Supplier Partner. Journey

a specific Customer need (e.g. I need help, I need to make a call, I need to pay, I need to complain…)

Experience

the sum of all journeys a Customer has with a Provider, calibrated with the correlation of their expectations to their perceptions, over the duration of their relationship with that Provider.

Engagement

sustained positive differentiating Experiences to ensure that the Customer loves the Provider.


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Terms

Definition

Lifecycle

a linear, organizing view, expressed in terms of Customer tenure stages (e.g. welcome (first 3 months), grow & keep (last 3 months))

Process

sequential flow of activities to achieve Customer Journey outcome

Touch point

active Customer contact with the Provider to engage in a Process, expressed in three interaction modes: Use (network), Serve (channel), Offer (tariff behavior / outcome)

Customer Experience (Cx)

the result of interactions between a Provider and a Customer, compared and measured against the Customer expectations while interacting with brand and Product.

Customer Experience Management (CxM)

the methodology of designing, executing, monitoring and optimizing the customer experience across touch points while building brand perception, addressing customer expectations and enhancing the long term profitability.

Customer Relationship Management (CRM)

Customer Relationship Management (CRM) refers to systems that manage all aspects of a company’s interaction with its customers. These are often integrated with other OSS/BSS systems such as billing, trouble ticketing, order entry, marketing, etc.

Customer Life Cycle (CLC)

the various steps a Customer goes through when shopping, using and preferring a Product

End to end Service Quality Management

the management of technical performance of the resources in service delivery chain to produced measurement of the e2e technical performance service delivery chain. See TR148.

Key Quality Indicator (KQI)

a measurement of a specific aspect of the performance of a product, product components (services) or service elements and draw their data from a number of sources, including the KPIs. See GB923 Wireless Service Measurements.

Key Performance a measurement of a specific aspect of the performance of service resource Indicator (KPI) (network or non-network) or group of service resources of the same type. A KPI is restricted to a specific resource type. See GB923 Wireless Service Measurements. Mean Opinion Score (MOS)

an estimation of the perceived quality of a multimedia service from the edge end perspective. The MOS is expressed as a figure in the range from 1 (worst) to 5 (best) as specified by ITU-T recommendation P.800 for voice service.

Net Promoter Score (NPS®)

a customer loyalty metric developed by (and a registered trademark of) Fred Reichheld, Bain & Company, and Satmetrix NPS®, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors. By asking one simple question: “How likely is it that you would recommend [Company X] to a friend or colleague?” you can track these groups and get a clear measure of your company’s performance through its customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows: 

Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.



Passives (score 7-8) are satisfied but unenthusiastic customers who are


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Terms

Definition vulnerable to competitive offerings. 

Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

To calculate your company’s Net Promoter Score (NPS®), take the percentage of customers who are Promoters and subtract the percentage who are Detractors. American Customer Satisfaction Index TM

the American Customer Satisfaction Index is an economic indicator measuring customer satisfaction by the eponymous ACSI, a privately held company. A company's ACSI score is derived from three variables, which are actually survey questions rated on a 1-10 scale, by interviewing consumers in United States. The survey is a benchmark of customer satisfaction in US including more than 200 companies in around 40 industries and 10 economic sectors.

Quality of Service the collective effect of service performances, which determine the degree of (QoS) satisfaction of a user of the service (ITU-T Rec. E.800). So the term Quality of Service is used in this document as a quality figure rather than referring to the ability to reserve resources, i.e. level of Quality of Service. Service Level a formal regulated agreement between two parties, sometimes called a Agreement (SLA) Service Guarantee. It is a contract (or part of one) that exists between the Service Provider and the Customer, designed to create a common understanding about services, priorities, responsibilities, etc. (TMF 701 modified). An SLA or Contract is a set of appropriate procedures and targets formally or informally agreed between Network Operators/Service Providers (NOs/SPs) or between NOs/SPs and Customers, in order to achieve and maintain specified Quality of Service (QoS) in accordance with ITU (ITU-T and ITU-R) Recommendations. The SLA may be an integral part of the Contract. These procedures and targets are related to specific circuit/service availability, error performance, Ready for Service Date (RFSD), Mean Time between Failures (MTBF), Mean Time to Restore Service (MTRS), and Mean Time to Repair (MTTR) (ITU-T Rec. M.1340). Service Level Objective (SLO)

an agreement within an enterprise that has the same characteristics as a SLA but without the inter-enterprise contractual aspects. See GB917.

Service Quality Management (SQM)

the management of the end to end Quality & health of a specific service or a product offered by a service provider.

Additional Common Customer Experience Related Definitions Terms

Definition

QoE

is a measure of satisfaction of a service as perceived by the user of the service.

Customer Loyalty

a measured tendency of a customer to choose a particular product or a service over alternative choices of products and services with similar characteristics

Customer Satisfaction

a measure that a customer service or product has a higher customer experience than the customer expectation

User Experience the result of interactions between a Provider of a product or a service and


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Additional Common Customer Experience Related Definitions the end user, compared and measured against the user expectations while using the product or service Customer Service

the steps taken by a provider for the customer to ensure customer satisfaction

Customer Lifetime Value

the monetary contribution by a single customer towards the provider during the lifetime of a specific product or a service

Customer Attrition Rate

the percentage of customers for a specific product or a service lost out of the overall customer base for that product or service.

Customer Retention Rate

the percentage of customers for a specific product or a service retained out of the from the overall customer base for that product or service.

Customer Churn the percentage of customers for a specific product or a service lost to an Rate equivalent service from a competitor on a periodic basis from the overall customer base for that product or service. Cross Selling

the process of extending the customer lifetime & customer lifetime value by selling an existing customer an additional service or product, which is different from what they currently have.

Customer Retention

the process of extending the customer lifetime by offering either new products or services or customer service

Breakage

the unredeemed or expired part of a loyalty program in monetary value, which is a measure of effectiveness of this program

Customer Analytics

the process of collection of structured data from a customer or a service or a product or a set of transactions considered relevant for predicting customer behavior

Customer Insight

the process of obtaining customer feedback through multiple channels including unstructured and unsolicited feedback such as social media comments, tweets, online chats etc.


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15. Administrative Appendix This Appendix provides additional background material about the TM Forum and this document. In general, sections may be included or omitted as desired; however, a Document History must always be included.

15.1. About this document This is a TM Forum Guidebook. The guidebook format is used when: 

The document lays out a ‘core’ part of TM Forum’s approach to automating business processes. Such guidebooks would include the Telecom Operations Map and the Technology Integration Map, but not the detailed specifications that are developed in support of the approach.



Information about TM Forum policy, or goals or programs is provided, such as the Strategic Plan or Operating Plan.



Information about the marketplace is provided, as in the report on the size of the OSS market.

15.2. Document History 15.2.1. Version History

Version Number

Date Modified

Modified by:

Description of changes

0.1

31/03/2012 Ian Best

First draft

0.2

16/4/2012

Ian Best

Updated the Customer Experience Lifecycle diagram and associated text.

0.3

16/4/2012

Ian Best

Updates following review comments

0.4

30/9/2012

Shai Shamir

Terminology/definitions Maturity Model update

1.0

2/10/2012

Mary Amalfitano

Submitted for Team Approval

1.1

8/11/2012

Alicja Kawecki

Minor cosmetic corrections prior to posting and Member Evaluation

1.2

4/12/2013

Steve Cotton

Team Approved

1.3

4/25/2013

Alicja Kawecki

Corrected Notice & copyright in footer, updated branding, minor cosmetic fixes prior to posting for Member Evaluation

Version 1

30/06/2013 Sandeep Chowdhury

Draft following the Team Action Week in Baltimore

Version 1

31/07/2013 Sandeep

Draft containing the Glossary inputs provided


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Version Number

Date Modified

Modified by:


Chowdhury

by Steve Cotton

Version 2

12/07/2013 Sandeep Chowdhury

Draft with the updated Glossary provided by Steve Cotton (TM Forum) as well as some updates from Sandeep Chowdhury (Ericsson) in the Glossary section

Version 3

9/19/2013

Draft with the following changes:

Version 4

9/20/2013

Sandeep Chowdhury

Sandeep Chowdhury



updated comments from Steve



a new section on CEM & Social Media

The chapter on differentiating CEM is enhanced after adding new sections on CEM & CIM as well as CEM & SQM Also added Quality of Experience to the Glossary

Version 5

9/26/2013

Sandeep Chowdhury

Replaced the chapter `Customer Experience from the Customer Perspective´ with the Updated the section on Customer Life Cycle Experience Model based on the contribution from Rohit Batra from Oracle.

Version 7

9/26/2013

Sandeep Chowdhury

Replaced the chapter Customer Experience Maturity Model based on the contributions from John D’Amour from Amdocs contribution in GB962-B Maturity Model v1 3.

Version 8

9/27/2013

Sandeep Chowdhury

Replaced the chapter How to do we measure the Customer Experience? based on the GB962 CXM Metrics v2 5 by Jonathan Hopkinson & Trevor Cheung from Huawei

Version 9 –

9/27/2013

Sandeep Chowdhury

Submitted for approval by Member Review

Version 1.5.1

10/8/2013

Alicja Kawecki

Updated cover, header & footer, minor style & formatting fixes

Version 1.5.2

6/24/2014

Alicja Kawecki

Corrected numbering of figures to address Member Evaluation feedback

Version 1.5.3

8/28/2014

Alicja Kawecki

Updated cover and Notice to reflect TM Forum Approved status

Version 1.5.4

10/22/2014 Rebecca Sendel, Jörg Niemöller, Ericsson and Antonio Cuadra, Indra

Version 1.5.5

10/29/2014 Dharmendra Misra, Added content in executive summary, Cognizant reviewed and added comments

(upversioned to 1.5 to align correctly)

Version 2.0.0

Antonio Cuadra,

Updated document to include the work of the CEM Implementation Guide team.

Released For review


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Version Number

Date Modified

Modified by:


Indra Version 2.0.1

11/03/2014 Paul Morrissey

Comments added

Version 2.1.0

11/3/2014

Rebecca Sendel

Addition of Omni-Channel content; accepted all the changes; minor edits. Ready for Team Review

Version 2.1.1

12/1/2015

Rebecca Sendel

Minor updates for Fx15.5

Version 2.1.2

12/2/2015

Alicja Kawecki

Corrected cover, Notice; minor formatting/cosmetic fixes prior to publishing

Version 3.0.0

6/2/2016

Snigdha Mitra

Updates for Fx16

Version 3.0.1

6/6/2016

Alicja Kawecki

Updated cover; minor formatting/style edits prior to publication for Fx16

15.2.2. Release History

Release Number

Date Modified

Modified by:


12.5

31/04/2012

Ian Best

First release of Customer Experience Management Solution Suite

13

20/03/2013

Sandeep Chowdhury

Draft following the Team Action Week in Madrid

13.5

30/06/2013

Sandeep Chowdhury

Ongoing Draft version for the new 13.5 Release

13.5

27/09/2013

Sandeep Chowdhury

Submitted for approval by Member Review

14.5.0

November 2014

CEM Team

New sections on implementation guide and omni channel; significant clean up and editing to make current

15.5.0

December 2015

CEM Team

Minor updates

16

June 2016

CEM Team

Updates for Fx16

15.3. Acknowledgments

Mark Ady, Colin Cunningham and Eva Franconetti (Telefonica UK) for permission to use the Telefonica UK Vital Signs work Members of the Holistic e2e Customer Experience Framework team for their great work


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Andy Chalmers (TM Forum and Chalmers Associates) for the TM Forum CEM training material Joann O’Brien, Steve Cotton and Rebecca Sendel (TM Forum) for their contributions The many members of the TM Forum Collaboration teams past and present for the hard work on the projects that support CEM.


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GB962 Customer Experience Management Introduction and Fundamentals R16.0.0

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