|
|
article page
| 1 | 2 | 3 |
-
encouraged recommendation to try the website’s trouble shooting. The customer is also given the option of paying to get service from an agent immediately. Net-net, the pre-paid customer gets treated well, in a cost-effective manner that prevents further erosion of the lifetime value.
Identifying and Leveraging Value Drivers
The ability to deliver superior service experiences, as in the above scenarios, begins with making use of the operator’s own customer data. But out of the mountains of data available in OSS/BSS and CRM systems, which is the most important? McKinsey & Company’s Customer Lifecycle Management (CLM) process, a pioneering initiative, set the stage for data selection and management methodologies now used in lifetime value optimization.
|
|
The ability to deliver superior service experiences, as in the above scenarios, begins with making use of the operator’s own customer data. |
|
-
Event Analysis: The policy engine evaluates the event in context, applying factors ranging from pre-calculated value to demographics, age, purchase habits, and risk of churn.
-
Policy Selection: The engine recommends actions based on relevant policies.
-
Prioritization: If multiple actions are possible, the system lists the most optimal.
|
|
|
Working with Tier 1 operators, McKinsey standardized data collection by focusing on 19 customer data areas. Data in hand, they applied special algorithms to calculate the value of each customer, then examined key process areas to determine the effectiveness of existing business systems.
This analysis revealed business process “value drivers” that directly linked financial performance to the customer. In one instance, manual policy improvements in a Tier 1 operator’s value drivers increased EBITDA by 20 percent.
How Lifetime Value Optimization Works
Lifetime value optimization today combines McKinsey’s CLM methodology with advanced automation to produce a rules-based, standardized set of care policies that delivers consistent results. In any customer care scenario, the same 5-step process is repeated.
Event Detection: The system sees an event and sends it to the policy engine.
|
|
-
Policy Enforcement: The appropriate value-based care is communicated to the right channel, and action is taken.
Time elapsed: real-time. In addition to speed, lifetime value optimization solutions offer another advantage: the ability to “think,” adjusting policies based on customer feedback and results. For example, if an action consistently yields positive results it moves to the head of the list. Systems that learn, continuously improve.
Picking the Right Solution
Operators can choose from among a number of solutions in the market today. The following criteria can help guide the selection:
article page
| 1 | 2 |
3 |
|
|
|
