This document discusses HKT's customer experience transformation journey in Hong Kong's highly competitive telecommunications market. It outlines initiatives such as establishing customer service centers, implementing a customer experience committee, and partnering with a solutions provider to improve processes. Examples are given of initiatives like empowering frontline staff to resolve billing inquiries faster, prioritizing maintenance to reduce complaints, and involving customers in testing to improve coverage. As a result, HKT saw increases in customer satisfaction, revenue, and market share along with reductions in churn and complaint rates. Key success factors included management commitment, employee motivation, focus on key metrics, and support from an experienced partner.

1. Copyright 2015 QuEST Forum. All Rights Reserved.
1
Increasing Revenue through
Improved Customer Experience
Jonathan Hopkinson
Derek Chen
EMEA BPC Munich June 2015

2. Customer Experience Investment
Makes Business Sense
CE is Delivering Business
Value
• Use Cases: Churn, PTC
Reduction…
• Improved Brand Perception,
NPS
2012
No Longer a “Leap of Faith”
HUAWEI SmartCare CEM®
MWC Booth Visitor Distribution
Percentage of CMO: 0
2015
Percentage of CMO: 10%

3. Highly Competitive Market in Hong Kong
76%
World’s Highest
IPTV Penetration
Rate
101%
Fixed Lines
Penetration,4.3M
Users
90%
Penetration of
Broadband
Users
230%
Penetration of
Mobile Users
4 Mobile, 21 Fixed and 3 Pay-TV Operators

4. “Excellent Customer Experience"
4
The best way to succeed in a highly competitive market
Customer Experience Executive Committee
Chaired by Group MD
Formulates Strategy and Tactics
But How?
We needed a qualified
solution partner!
Established the “HKT Premier” &
Regional Customer Service Centers to
better serve our customers…
Externally, launch the motto
“Here to Serve”
Implement measures to improve CE
Internally, build the
“Best Network, Best Services” to
serve our customers

5. HKT CE Transformation Journey
Dimension
Level 1 Level 2 Level 3 Level 4 Level 5
Initial Repeatable Defined Managed Optimizing
Vision / Strategy
Organization /
Influence
People
Processes
Business Metrics /
KPIs
Tools / Systems
Established Vision
SEA / QIT
CEM
Workshops
CEECMarket Oriented
Continue to
Improve
• PSPU
• Reduced
MTTD/R
• Better
FCR &
AHT
CE across Functions
Focus on KQIs
PSPU Analysis
CE within Functions
Focus on Dept KPIs
Network Focus (NOC)

6. Closed-Loop, Customer-Centric Operations

7. CE Service Quality Monitoring
Journey Design
Customer
Experience
Triggers
Mapping to
Signaling
Process
KQI
Framework
Formulation
KQI
Definition
Web Browsing
Accessibility
Web Browsing
Access Time
Web Browsing
Download Time
Web Browsing
Retainability
2: Some parts of
the website start
showing in the
interface.
1: User inputs the
URL and clicks
ENTER
3: User can see
the whole page of
the website

8. Example Cases
Win-Win
Process to
improve
customer ‘Buy’
experience
Maintenance
Prioritization to
reduce
customer
coverage
complaint rate
Empower front
line staff to
answer
customer
enquiries

9. Example Cases
Win-Win
Process to
improve
customer ‘Buy’
experience
Maintenance
Prioritization to
reduce
customer
coverage
complaint rate
Empower front
line staff to
answer
customer
enquiries

10. Win-win Process to Improve CE
Old
Process
Site Coverage
Test
Sites coverage
Improvement
Field engineers do mobile coverage testing. Make
improvements and report to the customer.
Batch
Migration
Customer Dissatisfaction
Slowing Migration

11. Win-win Process to Improve CE
Customer provides
their subjective
view
PSPU
monitoring to
assure SLAs
New
Process
Commercial customers “test” the network
Involve customer
on acceptance
test.
Provide free SIMs and
devices for testing
Win-Win
Result
Risk is reduced. Responsibility shared.
Leads to fewer complaints.

12. Win-win process to improve CE
Dear Song, I would like
to compliment your
employees, for the
excellent services they
provide. Such a
commitment to great
customer service is to be
commended. We enjoy
doing business with HKT
and for years to come.
(Coverage case from
Retail – Deputy Director)
A successful migration and
good customer service will shift
the share of wallet (SOW)
Planned before migration
Competitor SOW =80%
With smooth migration
Competitor SOW=50% or less
Better CE
Competitor SOW =30%
or less

13. Example Cases
Win-Win
Process to
improve
customer ‘Buy’
experience
Maintenance
Prioritization to
reduce
customer
coverage
complaint rate
Empower front
line staff to
answer
customer
enquiries

14. Empowering Front Line Staff (Previous)
Over 50%+ of enquiries are focused on billing:
Corporate customers can have thousands of users. Billing information
need to be thoroughly checked
Billing Complaint
inquiries
Various
Backend units
Old Route
Corporate Customer ServicesTarget User
Poor experience due to long processing time:
• Slow BSS using image retrieval
• Long waiting time for back end departments
• Information from back end is raw, requiring
further processing

15. Empowering Front Line Staff (Improved)
Billing Complaint
Customer
Care request for
detail billing record
Corporate Customer ServicesTarget User
With new systems and staff training, staff can answer complex billing
enquiries in a matter of minutes with fewer call transfers
 Check profile in CRM
 Check customer call record
 Basic root cause analysis
 Bill adjustment or communication to
settle enquiry
Care Assistant
Improve customer billing enquires response time

16. Empowering Front Line Staff (Result)
Transfer rate decreases by 30%
after system enhancement
Billing enquiry processing time
decreases by 60%

17. Example Cases
Win-Win
Process to
improve
customer ‘Buy’
experience
Maintenance
Prioritization to
reduce
customer
coverage
complaint rate
Empower front
line staff to
answer
customer
enquiries

18. Smarter Prioritization to Reduce Complaints
• Proactively identify cell
sites with poor service
quality
• Prioritize cell sites for
preventive maintenance
• Reduce Enterprise / VIP
complaint on worst cell
sites
• Improve cell site
preventive maintenance
task efficiency
VIP Customer
Satisfied
Service
Management
Optimization
Team
Operation
Team

19. 4G Coverage Complaint Rate Trend
Reduce VIP coverage
complaint rate by 34%
4G Site Volume
4G Complaint Rate
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
Smarter Prioritization to Reduce Complaints

20. Results
• Customer satisfaction increases by 11%
• 10% increase in ARPU to US$29
• Post-paid Churn Rate reduced to 1.5%
• Grand Prize in Customer Service HK
Awards for Industries
• Market Leadership position in Quad-play
(Fixed Voice, Broadband, Mobile, Pay
TV)

21. Mobile Price Plan Charges
119
149
188 198169
198
218 238
238.8
285.6
297.6 298
238
298
388
438
2013 Q4 2014 Q2 2014 Q3 2015 Q1
1G Plan 2.5 G Plan 6G Plan 10 G
Price HKD

22. Key Success Factors
Internal
• Management Commitment
Monthly CEEC with CEO
• Motivated Employees
All staff trained and rated on CE
Monthly and annual CE awards
• Focus on a Few Metrics
Complaints/Compliments per
month, NPS and CSAT
Having too many metrics leads to
lack of focus and manipulation
Balance efficiency and CE
External (Partner)
• Deep Experience
Guide and share best practices
Access to latest industry
thinking
• Flexible and Agile
Willing and able to explore new
ideas and quickly implement
with us
22

23. End
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