Understanding customer needs through genAI and digital twins
Project companies
> Background
According to GSMA intelligence, the global unique mobile subscribers’ penetration rate has reached 69% in 2023 and is expected to reach 73% by 2030, with a CAGR of only 1.7%. This number will be even smaller in developed areas or dense urban areas. Almost all the CSPs are facing increasing competition, making managing existing customers the key to further business growth, and NPS is the key metric because:
According to Analysys Mason, detractors are much more likely to churn than neutrals and promoters; and according to TMF report, decreasing the churn rate by 5% increases profitability by 25%~95%.
So we consider NPS management will be a long-standing topic to drive sustainable growth in the next decade.
> Challenge
However, there are some long-standing issues that make it difficult to improve NPS if you only use survey results:
(1) It is difficult to find root cause of NPS problems and then solve them, you can only see a general trend, but cannot perform closed-loop management.
(2) Since it is impossible to quantify the impact of various management measures on the improvement of NPS results, it is difficult to make decisions on investing in NPS-related projects or platforms, which restricts the healthy development of this field.
Accordingly we consider to address the challenge through survey and data collaboration manner.
> Solution
We developed an data-driven NPS management solution “Data-to-NPS”, set up a bridge between data and NPS, make data aware NPS. We design the solution based on the Engaging, Using, and Evaluating of the customer journey in the telecom industry, and NPS management is divided into three parts: product, network and service. The TMF DT4DI methodology is also used to analyze and solve NPS problems in a data- and AI-driven manner.
> Team Collaborations
- Special Collaborations on DTW24:
(1) During DTW2024, several activities are arranged for the catalyst project promotion, and all team are well collaborated and assigned:
(1.1) Day 1 15:00~16:30: Session (Telkomsel CTO): Revolutionizing NPS: Unveiling the Potential of AI and Digital Twin Technologies
(1.2) Day 1 12:30~14:00: Lunch Briefing: DT4DI 2.0 (Globe VP): Practice sharing. Attendance from TMF and DT4DI Management are confirmed, all team members are having time to communicate and promote our project to them
(1.3) A short video for Data-to-NPS solution is prepared and will be displayed on Session, Huawei booth and Catalyst booth
- TMF DT4DI/MAMA Project Collaborations
(1) Teams are actively connected with TMF DT4DI/MAMA project, 10+ topics applied by more than 5 parties, 4 use cases contributed, 1 Value Stream Contributed.
- Other Routine Team Collaborations:
(1) Executive management of Champions and Participants are all attach great importance on NPS, totally 100+ experts/managers/executives are involved
(2) All team actively engaged in the routine catalyst team meeting and provided useful ideas and suggestions, and team lead and co-lead drive direction
(3) Champions responsible for clarifying challenges, sharing operation experience and making solution verification, while Participants responsible for solution development and optimization
(4) Together team review the award submission and final presentation.
> TM Forum Assets Usage and Contribution: 20+ TMF assets used to design the solution, 5 TMF assets contributed, to share real practice and give a strong reference for industry.
> Proof of Concept: Our solution has been verified by Champions, and the IT system has been developed and applied live, and already generating value now, such as Network NPS improve 3.5% and Revenue uplift 1.2% in Telkomsel. We also integrated the system interface and partially desensitized data into the live demo for on-site demonstration.
> Industry Value
As the demographic dividend gradually disappears, the retention and value management of existing users have become a problem that telcos must face for sustainable growth. And as user growth slows, the issue will attach increasingly attention. The Data-to-NPS management solution is exactly what the industry needs at present and in the future. It combines with the traditional survey method and adopts the data-driven mode, greatly enhancing the proactivity and certainty of NPS management. It has been verified in Champions and ready for large-scale deployment globally.
> Sustainable Innovation
- Social impact:
(1) Better technical and financial inclusion requires breakthrough in new fundamental theories and methodologies, to address the challenge that user behavior will be affected by the surrounding users, resulting in unproper decision-makings.(2) Long-term investment in the fundamental theoretical and methodologies: UEP (User Evolutionary Process) and LUM (Large User Model). These fundamental theories & methodologies are contributed to IG1307 DT4DI Whitepaper 2.0
- Business growth: As the demographic dividend gradually disappears, the retention and value management of existing users have become a problem that telcos must face for sustainable growth.