Omdia, global analyst and advisory leader, and Huawei jointly held the global launch of "Data-driven NPS Management White Paper." This white paper expounds on the importance and challenges of current NPS (Net Promoter Score) management in the telecommunications industry, describes how to transform NPS management in a data-driven way, and introduces excellent practices at China Mobile Guangxi, providing valuable references for global operators.
Data-driven NPS Management Provides a New Growth Strategy for the Telecommunications Industry
According to James Crawshaw, the author of the white paper and the practice leader in Service Provider Transformation at Omdia, amidst the current slow growth of the telecommunications industry, operators must secure pricing power by enhancing customer experience. This is particularly crucial in a market where product homogeneity is increasingly prevalent. Customer Satisfaction (CSAT) and Net Promoter Score (NPS) are key indicators for measuring customer experience.
However, traditional survey-based methods for measuring CSAT and NPS have certain limitations, such as small sample size, long periods between measurements, and unclear what action to take. To overcome these issues, Omdia recommends adopting a data-driven approach, obtaining objective data that truly reflects customer experience from multiple system sources, and leveraging advanced technologies like spatio-temporal digital twins and artificial intelligence to enable comprehensive and proactive customer experience management. This approach allows for more accurate and real-time identification of customer experience issues, facilitating effective closed-loop management.
The key to this method lies in comprehensively covering all aspects of the customer experience lifecycle, from product selection to purchase, usage, and even customer retention and upselling. Specifically, it encompasses three dimensions: network experience, customer care experience, and product fit.
China Mobile Guangxi: A Pioneer in Data-driven Customer Satisfaction Management
At the launch event, China Mobile Guangxi also shared its successful practice of data-driven satisfaction management. By leveraging the aforementioned data-driven approach and collaborating with Huawei's SmartCare team, China Mobile Guangxi achieved significant improvements in customer satisfaction in pilot cities through advanced means such as constructing a customer experience index plus and creating spatio-temporal digital twins of customer journey.
Moving Forward Together and Making Joint Efforts: Data-driven NPS Management is Becoming an Industry Consensus
The white paper concludes by stating that survey-based NPS management is like driving while only relying on the rearview mirror—it only serves to look back at the past. Instead, operators need to cultivate forward-looking insights through objective, data-driven approaches, enabling them to more swiftly perceive network experience, customer care experience, and product fit. This will help attract new customers, enhance customer value, and reduce churn rates.
The idea of data-driven NPS management has gained traction across various platforms. At the Mobile World Congress (MWC) held in February of this year, a roundtable discussion hosted by Huawei saw representatives from 24 top global operators arrive at a comparable consensus. Moreover, during the Digital Transformation World (DTW) Summit organized by the TM Forum in June, a catalyst innovation project—led by Huawei and several leading operators—was awarded the Attendee's Choice Award. This project was rooted in Huawei's SmartCare Solution, effectively embodying the data-driven NPS management concept.
The release of this white paper marks the broader recognition of the data-driven NPS management concept, paving the way for wider industry adoption of this innovative approach.
Source: https://www.huawei.com/en/news/2024/12/datadriven-nps-whitepaper-smartcare