SHERIDAN, WYOMING – Jan. 23, 2025 – In an era where telecom operators face slowing growth and increasing product homogeneity, a new white paper by Omdia and Huawei highlights the critical role of data-driven Net Promoter Score (NPS) management in enhancing customer experience and securing pricing power.
The Limitations of Traditional NPS Management
Traditional methods of measuring customer satisfaction and NPS, primarily through surveys, have inherent limitations. "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," says James Crawshaw, practice leader in Service Provider Transformation at Omdia and author of the white paper. These limitations hinder operators' ability to gain a comprehensive and real-time understanding of customer experience.
Embracing a Data-Driven Approach
To address these challenges, the white paper advocates for a data-driven approach. This involves gathering objective customer experience data from various system sources and leveraging advanced technologies like spatio-temporal digital twins and artificial intelligence. This approach enables proactive and comprehensive customer experience management, allowing operators to identify and address issues more effectively.
The Customer Experience Lifecycle
The key to successful data-driven NPS management lies in covering all aspects of the customer experience lifecycle, from product selection and purchase to usage, retention, and upselling. This encompasses three key dimensions: network experience, customer care experience, and product fit.
China Mobile Guangxi: A Success Story
The white paper showcases China Mobile Guangxi as a pioneer in data-driven customer satisfaction management. By collaborating with Huawei's SmartCare team and implementing advanced techniques like constructing a customer experience index and creating spatio-temporal digital twins of the customer journey, China Mobile Guangxi achieved significant improvements in customer satisfaction in pilot cities.
Data-Driven NPS Management: An Industry Consensus
The white paper emphasizes that survey-based NPS management is akin to "driving while only relying on the rearview mirror—it only serves to look back at the past." Instead, operators need to adopt data-driven approaches to gain forward-looking insights into network experience, customer care experience, and product fit. This proactive approach can help attract new customers, enhance customer value, and reduce churn rates.
The concept of data-driven NPS management is gaining widespread recognition. At the Mobile World Congress (MWC) held earlier this year, representatives from 24 leading global operators reached a similar consensus during a roundtable discussion hosted by Huawei. Furthermore, a catalyst innovation project led by Huawei and several prominent operators, rooted in Huawei's SmartCare Solution, received the Attendee's Choice Award at the Digital Transformation World (DTW) Summit organized by the TM Forum.
The release of the Omdia and Huawei white paper signifies a broader acceptance of data-driven NPS management, paving the way for wider adoption of this innovative approach within the telecom industry.