GB962 Customer Experience Management Introduction and Fundamentals R16.0.0

Frameworx Best Practice
Customer Experience
Management
Introduction and Fundamentals
Customer Experience Management Solution Suite

GB962
Release 16.0.0
June 2016
Latest Update: Frameworx Release 16

Version 3.0.1
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TM Forum 2016. All Rights Reserved.
Customer Experience Management Introduction and Fundamentals
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Page 2 of 51
Table of Contents
Notice.................................................................................................................................... 2
Table of Contents ................................................................................................................ 3
Table of Figures ................................................................................................................... 5
Executive Summary ............................................................................................................ 6
1. Introduction ...................................................................................................................... 7
2. Why is Customer Experience Important ........................................................................ 9
3. Differentiating CEM ........................................................................................................ 11
3.1.
CEM & CRM.................................................................................................. 11
3.2.
CEM & Multichannel CIM .............................................................................. 12
3.3.
CEM & SQM.................................................................................................. 13
4. CEM & Social Media....................................................................................................... 14

4.1.
Key Social Media Metrics .............................................................................. 14
4.2.
Impact of Social Media Metrics on Customer Experience ............................ 16
5. Lifecycle of Customer Experience ............................................................................... 17

5.1.
Mapping the Channels with the Lifecycle Experience Model ....................... 18
6. Customer Experience Maturity Model ......................................................................... 19

7. Measuring Customer Experience ................................................................................. 21
7.1.
Customer Experience Lifecycle Metrics ........................................................ 22
7.2.
CEI Calculation Method ................................................................................ 23
7.3.
CEM Index .................................................................................................... 23
8. Omni channel ................................................................................................................. 25

9. Implementation Guide ................................................................................................... 26
9.1.
Business Value Roadmap............................................................................. 27
9.1.1. Linear View ............................................................................................... 28
9.1.2.
Circular View............................................................................................. 28
9.1.3.
As-is Assessment Planning ...................................................................... 29
9.1.4.
Assessment for performance against benchmarks .................................. 31
9.1.5.
Initiate To-Be State ................................................................................... 31
9.1.6.
Prioritize Business Outcomes ................................................................... 31
9.1.7.
Implement Use cases ............................................................................... 31
10.
Relationship with Frameworx ............................................................................. 33
11.
Summary ............................................................................................................... 41
12.
List of TM Forum CEM Specific Documents ...................................................... 42
13.
Bibliography and References .............................................................................. 43
14.
Glossary ................................................................................................................ 44
14.1.
15.
Structure and Convention ............................................................................. 44
Administrative Appendix ..................................................................................... 48

15.1.
About this document ..................................................................................... 48
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15.2.
Document History ......................................................................................... 48
15.2.1. Version History ........................................................................................ 48
15.2.2.
15.3.
Release History ....................................................................................... 50
Acknowledgments ......................................................................................... 50
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Table of Figures
Figure 1 - Why CEM Now? ......................................................................................... 10
Figure 2 - CEM & CRM ............................................................................................... 11
Figure 3 - Comparison of CEM with CRM ................................................................... 12
Figure 4 Key Social Media Metrics ........................................................................... 16
Figure 5 - Lifecycle Experience Model ........................................................................ 18
Figure 6 - Different channels at the Lifecycle Experience Model ................................. 18
Figure 7 - Capability Maturity Model Integration (CMMI) ............................................. 19
Figure 8 Customer Experience Maturity Matrix ......................................................... 20
Figure 9 - Customer Expectations vs. Service Targets................................................ 21
Figure 10 CXM Metrics Framework .......................................................................... 22
Figure 11 - CEI Calculation Scheme ........................................................................... 23
Figure 12 - TM Forum Implementation Guide (GB962D) ............................................. 26
Figure 13 - Implementation Guide Use case template................................................. 27
Figure 14 Business Value Roadmap linear view ...................................................... 28
Figure 15 Business Value Roadmap loop view ........................................................ 29
Figure 16 - TM Forum Business Process Framework (GB921) ................................... 33
Figure 17 - SLA Lifecycle (GB917).............................................................................. 34
Figure 18 - Service Structure ...................................................................................... 35
Figure 19 - SLA Hierarchy .......................................................................................... 36
Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy.. 36
Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149)
................................................................................................................................... 37
Figure 22 - Social Networking Sources ....................................................................... 39
Figure 23 - Telefnica UK CEM Scorecard Dashboard ............................................... 39
Figure 24 List of TM Forum CEM Specific Documents ............................................. 42
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Executive Summary
Customer experience (CX) is the sum of all experiences a customer has with a
services provider, over the duration of their relationship that starts from buying phase
and includes post disconnection processes that may influence the customer.
Customer Experience Management (CEM) is a strategy to transform business and
make it customer centric i.e. service provider exists to earn profit by delighting
customer instead of defining strategy that is business centric where service provide
runs business to earn profit and in journey satisfies customer.
Customer Experience Management uses effective process, cutting edge IT solution
and operational excellence along with underlying enabling technology to make
customer journey comfortable, objective driven and beneficial for service provider as
well as customer. A strong customer experience strategy helps in growing business,
innovating products and increasing brand value for service provider.
Customer Experience is more about understanding customer perspectives and then
defining the solution and strategy. It keeps customer at core and then builds
organization to serve the customer with the help of process, tools, products, people
and solution so that customers are delighted and willing to do more business with
service provider.
This document comprises one element of a Customer Experience Management
Solution Suite. Other components are the Maturity Model, the Customer Experience
Management Index (CEMI), Lifecycle Model, Metrics & KPIs, omni channel best
practices and Implementation Guide use cases.
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1. Introduction
As with other Industry sectors, communications/digital service providers are
recognizing that customer centricity within their standard operational models is
essential to achieve sustainability and foster growth within their business model...
Today, the consumer of digital services holds the reasonable expectation that a fabric
of engaged parties, including service providers, their partners, and third-party suppliers
of content or other merchandise will be entirely focused on delivery of value in easy
and effective way.. No longer does a single party own an exclusive customer
relationship, and the experience of the end user (the customer or their proxy) must be
fully visible in order to ensure that the value is delivered such that the financiallyresponsible party (the customer) will be delighted to pay for said value.
Thus, a shift from an inward focus on departmental and operational goals and
measures (inside-out thinking) to an outward focus of delivery of high-value customer
experience, through continuous customer engagement (outside-in thinking), is an
essential transformation required of todays Digital Services providers. This Guidebook
promotes best practices considered to be most effective in achieving the business
objective of sustained shareholder value delivery via sustained customer engagement.
NOTE:
Terminology used throughout this document is based on the language
contained in the Glossary and, except where noted, supersedes dictionary
definitions or other sources of terminology from non-TM Forum sources.
Customer Experience (CX) is the result of the sum of observations, perceptions,
thoughts and feelings arising from interactions and relationships (direct and indirect)
over an interval of time between a customer and their service provider(s). The
measurement of customer experience is based on measuring the extent to which the
customers needs are satisfied using customer/user centric measures such as:
Would advocate (e.g. churn and loyalty indicators)
Would recommend (e.g. Net Promoter Score)
Acquisition and usage difficulty (e.g. Customer Effort Score)
Would Buy again
Product/Service availability
Product/Service usability
Despite the industrys obvious interest in Customer Experience Management (CEM) it

is only in recent years that we have seen a real move towards establishing CEM in the
service providers organizations.
The reasons for this slow take-up are many fold, but are often founded in the traditional
way in which service providers have managed services in the past, namely focused on
managing the technology that delivers the service rather than on managing the
customer experience. It was driven by an objective to serve the customer with what
was in the service providers portfolio rather understanding what is expected by
customer. While this bottom up approach may have worked for technical services
where all of the service components i.e. resource facing services, were managed
internally, the model does not work today with a wide range of customer facing
services many of which are dependent on service components from partners and third
party suppliers. We will explore the new operating model in more detail in the following
sections.
It is also true to say that the customers expectations have changed in recent years as
they gain a greater maturity in understanding what they want from their service
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providers it is also true to say that this expectation is a dynamic journey maturing over
time as the market accepts new journey delivery models -- not just in terms of the
quality of the technical services but their whole experience soup to nuts. Today,
therefore, service providers have become very conscious that while they may have
gone some way to monitor their customers experience, it is not enough and they have
to be much more proactive in ensuring that the level of service has to be managed
throughout the customer lifecycle and moves in symphony with this dynamic journey
delivery environment.
This issue of the Guidebook marks a transitional stage from managing the customers
experience to managing the engagement with the customer (and the end user proxy).
Customer experience loses no relevance or importance in this shift, rather the
expected delivery of value is seen as the result of effective customer engagement.
The digital service providers enterprise journey from CxM (Customer Experience
Management) to CnM (Customer Engagement Management) is a matter of enterprise
capability maturity, in contrast to an either-or choice. The full elaboration of best
practices for advanced-stage maturity in customer engagement will be an ongoing
effort in this Guidebook and the associated Addenda, which elaborate on key aspects
of Metrics, Maturity Model, and Lifecycle Model approaches.
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2. Why is Customer Experience Important

Most digital service providers have realized a strong correlation between customer
experience & profitability, as well as the importance of retention along with the growth
in the subscriber numbers. A large number of digital services accessed in multiple
ways by customers using different devices, the network-centric approach provides a
one-dimensional incomplete picture.
As the industry moves into a growing market of digital services built on infrastructures
that enable fast development and deployment of new services, the service portfolio
itself is not sufficient to establish a lasting differential in the market place. Such a
differential is quickly eroded by competitive service providers. Having tried to
differentiate through technology and clever pricing models and found the strategy to
be short lived, service providers are realizing that a more solid differentiation can be
gained through managing the customer experience. This does not just mean delivering
service that meets the customers expectations but that all aspects of its business must
support the concept of a superior customer experience.
As we can see from the diagram below, there are a number of reasons why the market
is ready to encourage service providers to introduce CEM programs. Including:
Market Maturity - Maturing traditional service markets change the nature of

competition
Economic Trends - Economic trends impact customer spending and service

provider investments
New Technologies - New capabilities drive new services and the potential for better
customer experience
Customer Behavior & Preferences - Changes in behavior create new risks &
opportunities
Shift in Competition- Competition is shifting towards quality and making customer

journey easy because traditional service have become commoditized and new
services require more customer engagement.
While not the only factor in managing the customer experience, delivering good service
quality is still a cornerstone to achieving customer satisfaction. However, this in itself
has become more demanding as the rapid increase in digital services has brought with
it ever increasingly complex value chains.
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Figure 1 - Why CEM Now?
The service providers are turning back to their customer base in order to differentiate
themselves because the connection between customer experience & the profitability is
widely recognized. The key drivers for introducing a CEM could be internal oriented or
external ones
Loyalty - Creating customer loyalty and stickiness, and therefore controlling churn.
The existing customer base therefore becomes the platform for growth and
profitability.
Promotion - Encouraging existing customers to recommend the digital services to

their trusted environment. This involves developing a strong brand image.
Therefore the CEM program will need to focus on providing both a high perception of
the digital services providers products and services, but as well the actual quality of
these services based on proactively includes rapidly spot issues, diagnose root causes
and prioritize responses.
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3. Differentiating CEM
The requirement of CEM has developed with the level of choices available for the end
customer and for the digital service provider to differentiate its services. This was not a
situation earlier when in most markets there were only a couple of service providers
selling similar products and customers had little choice of whom they used to deliver
their services, the concept of managing customer satisfaction didnt really exist in any
tangible form. At the same time the portfolio of services or products available to the
consumer were very limited and entirely dependent on resource facing services
managed by the providers themselves.
Consequently the need for CEM did not really raise its head until governments around
the world started to remove the monopoly held by the incumbent service providers and
slowly the customer was presented with multiple choices. The smarter providers
began to realize that customer satisfaction was important in order to encourage
consumers to move to them and to discourage its existing customers to look
elsewhere. As the new digital services emerge there is not only duopoly but there are
now several choices when it comes to various types of digital services including
communications, entertainment, digital data, content, e-commerce etc.
3.1. CEM & CRM
Figure 2 - CEM & CRM
Initially the main changes were on the internally focused Customer Relationship
Management (CRM) rather than externally focused CEM. While CRM went some way
to improving the relationship with the customer, the approach was very internally
focused looking at developing the appropriate processes, systems and skills to
manage the relationship with the customer. This certainly improved the customer
experience but it was an inside looking out strategy rather than outside looking in. It
enabled the service provider to assess how well their services, people and processes
were performing, not whether they were meeting the customer expectations. For
example, providers measured the average time to answer a call to the customer help
desk and measured success against an internally set target representing what the
business felt was acceptable but did not necessarily meet the customers expectations.
So while development in CRM helped improve the customer satisfaction it did not go
far enough.
A common misconception in the industry is that CEM is a replacement for CRM which
simply is not correct. A successful transformation into the CEM world can only be
Page 11 of 51
achieved by building on top of good CRM processes and practices. CEM takes us a
step closer to achieving improved customer satisfaction. Instead of asking the
question, This is what we are doing, how well are we doing? which is a CRM
approach, CEM asks, What is important to you, and how well are we doing? CEM is
aimed at turning customers into fans by seeing the world through their own eyes.
As we will see in this document, implementing CEM has a wide impact on the service
providers organization. Whereas CRM was largely centered on the operations groups
within an organization, CEM must be implemented across the entire organization and
cannot be implemented solely through processes and systems. It must become a key
part of the service providers culture.
In their article Understanding Customer Experience" (Harvard Business Review,
February 2007) Christopher Meyer and Andre Schwager prepared a useful table
contrasting the two strategies.
CEM
CRM
What
Captures and distributes what a

customer thinks about a company
Captures and distributes what a

company knows about a customer
When
At points of customer interaction:

touch points
After there is a record of a customer

interaction
How Monitored
Surveys, targeted studies,

observational studies, voice of
customer research
Point-of-sales data, market research,

web site click-through, automated
tracking of sales
Who Uses the

Information
Business or functional leaders, in

order to create fulfill able
expectations and better experiences
with products and services
Customer-facing groups such as

sales, marketing, field service, and
customer service, in order to drive
more efficient and effective execution
Relevance to
Future
Performance
Leading: Locates places to add

offerings in the gap between
expectations and experience
Lagging: Drives cross selling by

bundling products in demand with
ones that arent
Figure 3 - Comparison of CEM with CRM
While this article only goes part of the way to establishing the key differences between
CEM and CRM, it does underline the fundamental principle that CEM drives a
proactive approach to managing the customer, while CRM is a measurement of what
has happened in the past.
This leads us to where we are today with a rapidly increasing movement towards
delivering services whose functionality and performance are underpinned by a good
understanding of what the customer expects.
3.2. CEM & Multichannel

CIM
Customer Interaction Management software is usually dedicated to managing the
interaction between the service providers and the customer. CIM systems aim to
capture knowledge about a customer available from multiple channels, such as e-mail,
SMS, telephone, Instant Messaging, paper documents, and so on. In this manner it is
similar to CRM in a way focusing on a view of the customer from the eye view of the
service provider, and not like CEM where the view is taken from the customers
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perspective. CIM & CRM are often used together with CIM being transaction specific
and CRM providing information and intelligence behind the transaction.
In the context of CEM customer interaction needs to evolve into customer involvement,
integrating the customer in idea generation, choice identification, product creation and
consumption. A natural requirement of this would be a customer profile at each touch
point and map their customer journeys. CIM is ultimately one part of CEM, which
provides the larger picture.
3.3. CEM & SQM

SQM originated during the service centric world, when to the Service Provider the
Quality of Service (QoS) as measured by OSS parameters were paramount. This was
as well the world where a single service was accessed using a single device by a
customer. As the new digital services emerge the customers are usually multi-tasking
on average over several devices.
The SQM was largely connected with the Objective Quality, which in the ITIL terms
were translated into incidents and problems. Incident was defined as a specific
instance of unplanned disruption and degradation of service and therefore a measure
of Quality of Service. A problem was a larger reason causing the incidents, both being
a measure of Service Quality and part of SQM.
CEM on the other hand introduced a more holistic and objective measurements of
customer satisfaction by introducing appropriate metrics at various touch points by
mapping the customer journeys. Instead of Quality of Service (QoS), Quality of
Experience (QoE) is paramount. QoE would be defined as a measure of satisfaction of
a service as perceived by the user of the service. This measurement would start from
the very client or terminal where the service is being used as well as the infrastructure
which is being used to deliver the service. Therefore the definition of QoE includes
QoS. QoE or CEM is customer centric, SQM or QoS is service centric.
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4. CEM & Social Media

Social media is an essential barometer of customer experience. Digital service
providers among all other companies have been quick to realize the potential and the
risk associated with social media. Many of them are already tracking social media
impact through metrics. Traditional scores of customer experience such as NPS have
become much more accurate and measureable with the analytics and metrics available
from social media. Sites such as Twitter, Facebook & Google Alerts as well as Google
Analytics provide rapid indicators on what and when things had gone wrong.
Using the social media to monitor customer experience could involve an active
monitoring of the social media channels for information about a digital service provider,
its services, its brands etc. It could be proactive where the digital service providers
creates a culture of reading social media about itself or reactive, when it is tracking
social media for customer experience monitoring after an outage. Social media in this
context is not just the more prominent Twitter or Facebook but comprises of a broad
range of publicly available and shared content on the web including blogs, wikis, news
sites, micro-blogs such as Twitter, social networking sites, video/photo sharing
websites, forums, message boards, blogs and user-generated content. All these could
to different degrees provide a complete public picture about a brand or an incident.
In the context of customer experience, social media monitoring is important for the
digital services providers to measure customer experience, visibility and opinion about
a brand. The customer experience solutions may offer a temporal collection of social
data regarding a particular brand or they might also enable proactive response to
respond to specific mentions of the brand. Sites such as twitter TM and Facebook TM
provide rapid indicators on when things are going wrong. Increasingly systems that
automatically monitor key social networking sites are being deployed to flag to the
Service Management Center when traffic increases. Often this is the first sign that a
service is failing or a new service does not work the way that it should. There have
been numerous examples in the past where these sites have provided early feedback
on a new product or service. These social networks are very powerful and ignored at
the service providers peril. All this is important in relation to emerge as a step towards
socially aware organization.
Due to its very spontaneous nature, it is impossible to provide a perfect measurement
or response to social impact of a brand. There are also privacy settings and data
protection issues, preventing development of a full picture. Unfortunately human nature
tends towards using these social networking sites when there is a problem and less for
reporting good services. They tend, therefore, to provide a measure of customer
dissatisfaction rather than satisfaction. Social media provides an asymmetric view to
customer experience since it does not touch all the touch points. Irrespective of its
limitations, Social Media remains an important source of customer experience
measurements.
4.1. Key Social Media

Metrics
This section provides a view to the various categories of social media metrics and how
they can be used to monitor customer experience:
Consumer Activity Metrics- these are direct measurements of what the customer
had actually done based on posts likes etc. Typical examples are post rate,
response rates etc. They are an indirect measure of customer experience
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Brand Reach Metrics- these measure the audience connected to a brand e.g.
audience growth rate, Facebook Organic, Virtual & Paid reach. The viral reach is a
measure of customer experience.
Consumer Engagement Metrics- this measures the actual impact of a

communication on a consumer, it could include applause rate, conversation rate
etc. These may not directly measure customer experience.
Acquisition Metrics- this measure conversion of an engagement into actually a

favorable action towards the brand as a direct measure of satisfaction. These could
include visitor duration, visitor frequency, click through rates etc.
Conversion Metrics- these metrics measure the effectiveness of a social media

activity to monetize customer experience, which could include purchasing a trial or
final product, renewals, subscriptions, downloads etc.
An appropriate selection of the metrics is important to obtain the right picture of

customer experience. This because the goals could be quite different, in one case it
could be introduction of a positioning based on superior customer experience in
another case it could be maintaining the brand equity.
The table below provides an example of some of the key Social Media metrics from the
perspective of customer experience:
Category
Metric
Impact on CEM
Brand Reach Social

connections
This defines the raw number of social connections such as

Facebook fans or Twitter followers a company is likely to have.
This is an indirect measure of CEM as a measure of publicly
stated recommendation based on followers. However followers
only demonstrate interest but not commitment. In addition this is
only applicable for large consumer brands, and not for niche
products.
Consumer
Activity
Social Page
Views
This measures the page views, wherever this information is

available such as in YouTube. However without a measure of
how much time a consumer spends on the page this is not a
useful measure of customer experience.
Consumer
Engagement
Engagement
rate
This metric is the total of likes and comments divided by the total
number of fans, indicating the raw # of engagements per fan.
The engagement level is an indirect measure of relevance of the
media itself and acceptance of the brand
Acquisition
Talking About This is a Facebook specific metric which reports on how many
This
people are talking about the brand and the related pages on
their own pages, as a measure of social sensation created by
the brand. This is an indirect measure of social sensation
caused by a specific campaign or launch.
Consumer
Activity
Retweet rates This is a measure of how many times tweets have been
retweeted, which is an indirect measure of an importance of an
event, for example an outage.
Consumer
Activity
Chatter level
This is an imperfect measure of all posts, tweets and blogs

about a specific topic in social media. This could be an important
measure but will need to be apportioning an appropriate value to
various media based on their relevance and importance.
Conversion
Metric
Sociallyreferred
revenue
This refers to the revenues generated by social media referrals,

which is an indirect measure of customer satisfaction.
Page 15 of 51
Category
Metric
Impact on CEM
Conversion
Metric
Conversion
Rate
This is a measure when a social media referral is converted into

a specific brand friendly action such as either ecommerce or a
newsletter sign-up. This is a measure of effectiveness of a
promotion.
Reach
Reach
This is a Facebook specific metric which measures the

effectiveness or reach of a campaign in terms of organic, paid
and viral reaches. The Organic reach is measured in terms or
number of unique people reaching the post, the paid reach
through an advertisement and a viral reach is indirectly through
a friend referral.
Figure 4 Key Social Media Metrics
4.2. Impact of Social

Media Metrics on
Customer Experience
Social media is a platform for a community of consumers to share their opinions about
a brand and an experience around the brand. This enables them to develop knowledge
about the brand, which is holistic, and depends on actual experience, than what is
communicated by the service provider. A community of users using the product in
various ways is more likely to have a multi-dimensional experience than even a
companys own test labs for its products. Social impact works very well for some
companies, who might get new subscribers based on experience of other trusted
members of their own network, whereas others may lose for the same reason.
As of now the tools to make full use of social media data are still emerging. However
there is an increasing trend that the companies not only want to score more likes, as
well as referrals, but as well the exact wordings and terms used by their consumers. A
future index to compare social media performance has to be based on three criteria;
reach, engagement & influence or action. Viral-style influence is important as well
since the social media does much more than just preaching to the converted.
Page 16 of 51
5. Lifecycle of Customer Experience

GB962C Customer Experience Lifecycle Model in the Customer Experience
Management Solution Suite provides an approach for service providers to categorize
and understand the various interactions a customer has with them. It defines the
interactions of the customer into the various phases and sub phases and models those
based on the unique journeys for various customer personas. Every service provider
and their customers may have unique journeys across the various phases of the
lifecycle. However, it is imperative for the service provider to understand the
interactions and identify the journeys across the various phases and sub phases of the
lifecycle so as to better offer, serve and delight the customer. The mapping of the
Customer Experience Lifecycle model to the operations processes and applications
using the TM Forum Frameworks is essential to ensure alignment and an efficient
mode of execution across the service provider's organization. The document also
provides an initial view in mapping the customer specific journeys to the service
providers processes to develop a mapping between the two.
The Lifecycle Model is an overall approach towards any service provider's initiative of
creating a better customer experience. There are several key components of the model
itself:
End User Segments - The journeys and the defined experiences are based on the
specific end user segments against which the service providers operate.
Profitability - Customer experience is the integral driver behind improving revenue

and profitability behind any service provider's business. The GB962A Customer
Experience Metrics details the list of metrics related to Customer Experience.
However at the highest level any Service Provider metric around profitability is
related to Cost, Churn, Revenue, and Acquisition.
Enterprise Performance - The enterprise performance relates to the various people,

process, systems and technological components within a service provider's
environment delivering to their customers against the core business objectives.
Experience Model - The experience model is the key component holding the model
together. This includes predominantly the customer experience lifecycle model
along with the various channels of interaction of the service provider.
Enterprise Maturity Model - The GB962B describes the various phases of the
Customer Experience Maturity Model. The evolution of the maturity of a service
provider is against the experiences it delivers across the various lifecycle phases of
the customer and the metrics it delivers to its business.
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Figure 5 - Lifecycle Experience Model
5.1. Mapping the

Channels with the
Lifecycle Experience
Model
The various phases of the customer lifecycle can be across a variety of channels. The
channels available for the customer will be dependent on the service provider, the type
of service it provides, the geography wherein it delivers the service and the
functionality available at their disposal.
Considering the nature of how customers can choose to interact using their preferred
choice of the channel with the service provider, it is imperative for service provider's to
consider integration of these channel platforms to ensure consistent data and
information flow across them. This will ensure that the customer journey can continue
even if the channel of interaction changes without the customers having to restart their
journey from the very beginning.
The below figure is meant to show a seamless channel experience across the various
phases of the customer lifecycle. The list of the channels themselves is illustrative and
will be dependent on individual service provider and their customer and service
offerings.
Figure 6 - Different channels at the Lifecycle Experience Model
Page 18 of 51
6. Customer Experience Maturity Model

Delivering effective customer experience management requires a coordinated program
across the entire organization and is best achieved by adopting a maturity framework
similar to the Capability Maturity Model Integration (CMMI) framework. CMMI is a
proven process improvement approach whose goal is to help organizations improve
their performance. CMMI can be used to guide process improvement across a project,
a division, or an entire organization.
The starting point for the maturity model is for the organization to agree that it has a
problem and to get support across the appropriate parts of the organization to establish
a working program to address the issues. A maturity model introduces a number of
phases to achieve the goal of implementing the program through to developing
continuous improvement process to continue to tune and optimize the business
processes, systems etc.
The TM Forum has created a model for this assessment that consists of five Maturity
Levels across each of six Customer Experience Dimensions. The model is based on
the Customer Lifecycle and the Frameworx business model, providing a structured and
practical approach to creating this best practice. The 5 levels and 6 dimensions of TM
Forums Maturity Model are grounded in the Customer Life Cycle and Frameworx
business model, thus providing practical approaches to actual best practices and
standards.
The five levels chosen for the Maturity Model are patterned after the widely-recognized
Capability Maturity Model used for software engineering maturity assessment.
Figure 7 - Capability Maturity Model Integration (CMMI)
The CEM Maturity level documentation (GB962 Addendum B) includes the

characteristics of these levels as well as the Dimensions of Customer Experience
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Maturity (Strategy, Organization, People, Processes, KPIs & Tool) and the Key
Capability Indicators (KCIs), which provide an example of how qualitative and
quantitative measures of capability in the Dimensions of the CEM Maturity Model can
be captured across the enterprise to develop a baseline of current capability and to
highlight opportunities and challenges for reaching an increased level of maturity.
The picture below is a summary of the tool to for enterprises to self-evaluate the level
of maturity in customer experience by combining the knowledge of the level of maturity
in processes as applicable to the key capability indicators mentioned in this section.
Figure 8 Customer Experience Maturity Matrix
It should be noted that an enterprise is seldom monolithically lodged in one level of

maturity across all dimensions of attributes. The path to comprehensive improvement
in implementing a customer experience management strategy will thus vary according
to factors unique to the circumstances and environment in which the enterprise finds it
at any given time. For an enterprise to plan and execute a program of continuous
improvement around their customer experience management strategy, it is necessary
to have a means to assess their maturity across key defining factors of customer
experience.
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7. Measuring Customer Experience

CEM has been a topic for numerous research projects and activities, including work
done by TM Forum over the last few years. So, how can the customer experience
related to product performance or company perception been measured?
For the context of this section the What and the When of the customer experience
definition provided there are maybe the most relevant.
Too often in the past the provider has set the service operations objectives based on
what they believe to be important to the consumer. Unfortunately these objectives
have often been influenced or set by technologists and have been based on the
performance of the technology components of the service delivery and the functions
within the organization responsible for delivering against those targets.
Figure 9 - Customer Expectations vs. Service Targets
The result is a gap between the customer view of service quality and the service
providers view; with the Service Manager trying to act as the bridge across the chasm.
A simple example is one of the key quality indicators (KQIs) that service providers
regularly use to measure service quality ... Availability. The standard formula for
measuring availability does not consider planned outages as downtime so a service
that requires regular outages for maintenance may still display a high level of
availability. Does the consumer trying to use the service actually care whether the
outage is planned? Of course not! A more customer centric measurement of service
availability is Serviceability which is a simple measurement of the percentage time
that a service is available irrespective of the reason for outage. It would seem to be a
simple task to move from measuring Availability to Serviceability but this is often not
the case especially where the performance of individuals is measured by the
availability of the services that they manage!
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7.1. Customer
Experience Lifecycle
Metrics
It is important to establish a suitable framework within which to identify and organize
the CXM metrics. The TM Forum Customer Experience Lifecycle model (CxLC) has
been selected as the foundation of the metrics framework for two reasons:
1. The CxLC identifies all the key stages in the relationship between the customer and
the DSP, thus facilitating identification of a comprehensive set of metrics covering
the entire Customer Lifecycle.
2. It is widely recognized that customer experience cannot be assessed from single
metrics in isolation, but instead should be assessed in the context of the customers
unique journey, taking into account the customers history, preferences, mood and
expectations. Use of the CxLC readily lends itself to alignment with the individual
customer journey.
The resulting CXM metrics framework is shown in the figure below:
Figure 10 CXM Metrics Framework
The framework of Figure 10 incorporates the nine key stages of the TM Forum CxLC:
Be Aware (Observe, Learn, React)
Interact (Inquire, Request Detail, Reserve)
Choose (Select, Place, Receive)
Consume (Use, Review Use, Evaluate Value)
Manage (Manage Profile/Service, Get Help, Request to Resolve)
Pay (Receive Notification, Verify or dispute, Pay)
Renew (Enhance Selection, Re-contract)
Recommend (Refer Product/Service, Gain Loyalty)
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Leave (Feedback, Discontinue)
The primary partitioning of the metrics is against these nine stages, which are
addressed in turn in GB962 Addendum A CXM Metrics.
7.2. CEI Calculation

Method
The CXM metrics have been designed to allow easy incorporation into higher level
metrics. They are designed to enable an overall per-customer CEI to be determined, as
well as per-customer CEIs for each customer journey experience. These are built up
from the individual KQI scores of the constituent Touch Points. The calculation scheme
is shown in Figure 11:
Figure 11 - CEI Calculation Scheme
7.3. CEM Index

Today Most Customer Experience Management (CEM) measurements are taken from
actual customer interface exchanges via the Network, Call Center, Trouble Desk,
Billing Enquiries, or Customer Surveys, which relate back to the experience that the
customer is undergoing and attempt to correlate these various exchanges into an
experience value.
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However given the world in which we live and the methods of communications
available to the average customer(s), is this method of gathering CEM information
sufficient to understand customer attitudes towards their respective carriers? The
contention is that it is not and hence this report looks at combining other customer
attributes to enhance the view of the customer through a broad business value
approach by the construction of a mathematical model to produce a neutral Customer
Experience Management Index (CEMI).
Please see Technical Specification CEMI for additional details. (TMF066).
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8. Omni channel
Customer experience has become a key differentiator for service providers as excellent
network and service quality become wide spread, and product offerings become similar
across all providers. The key to leveraging this differentiation to maintain a strong
customer base and sustain revenues is to deliver a consistent and personalized
experience to customers across all channels. Taking this a step further, the ultimate
customer experience is one that is completely seamless across all possible channels
regardless of how the interaction started, which channels it traversed, and how it
finished.
This is the concept of omni channel. In the communications industry, service providers
have tackled some of the most obvious initial user journeys, offering joined-up services
like click-to-collect. However, complete, proactive and personalized customer
engagements are still some distance away.
TM Forum has created a set of best practices around omni channel. The best practices
outline several key areas around omni channel.
1. Key imperatives of omni channel the principles that need to be considered in any
omni channel project:
Channel Choice based on Customer Preference
Channel Hopping
Deliver in Context
Right Data, Right Channel
Personalized Engagement
Prioritized Journeys
2. Functional Capabilities for delivering omni channel
Identity
Customer Data Integration
Digital Content Management
Sales Catalog Management
Personalization
Recommendation
Knowledge Management
3. Key Requirements of omni channel
Documenting prioritized user journeys across the Buying, Using, and Sharing
stages of the customer lifecycle.
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9. Implementation Guide
The implementation Guide (GB962D) is a summary of best practices that are relevant
for customer experience management. It presents a methodology for using all the TM
Forum best practices and tools that are available today in a defined, repeatable and
extensible manner. The best practices addressed are for example the maturity model,
metrics, the life-cycle model and big data analytics use cases.
Figure 12 - TM Forum Implementation Guide (GB962D)
The implementation guide is meant as a reference for organizations interested in

practical applications of TM Forum best practices. It is therefore organized by means of
relevant business use cases and it demonstrates how TM Forum recommendations
and best practices can be combined to solve various aspects of a use case. In this
sense the implementation guide is a collection of use cases that represent business
challenges and it provides an outline of a possible solution that involves the TM Forum
best practices, recommendations and also models like the Business Process
Framework (eTOM) and the Information Framework (SID).
An important part of the use case is a solution recommendation. This means that not
only the related business challenge is described, but it comes with a high level solution
proposal. This proposal might not be the only possible solution, but it is providing a
showcase of best practices working together in order to solve a relevant real-life
problem.
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Figure 13 - Implementation Guide Use case template
The unified use case template document as described in Figure 13 is used to collect all
data about a use case. The use case is described in details including its purpose and
business value. Part of this description can be the relation of the use case to other
models like, for example, eTOM.
An important part of the description is the entry conditions. They describe the
prerequisite of an organization or an environment that needs to be met for the use case
solution to be feasible. For example the organization might require a certain level of
maturity. In this respect, the use case might describe various possible solutions with
different entry conditions.
Furthermore, the use case description contains a summary of all metrics and
benchmarks that appear to be the central KPI that govern the business challenge
described in the use case.
Actions and processes are the central part of the use case description. They define the
proposed solution as a business processes and thus as a sequence of actions. The
idea is that an organization can implement the proposed solution by implementing the
described business process. Thus, these processes can be understood as recipes for
solving a business challenge. The actions in the processes often refer directly to TM
Forum best practices or recommendation documents and they describe how these best
practices shall be used in the context of the use case. Also other use cases if the
implementation guide can be used as part of the described solution.
9.1. Business Value

Roadmap
Using the various assets of TM Forum, the CEM department of an organization can
quickly arrive at a plan of action to strategize, execute, monitor and improve its CEM
functions. We call this the Business Value Roadmap. Below are two views of the
Business Value Roadmap:
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9.1.1. Linear View

The overall generic use case solution process is shown in Figure 14. It defines the top
level of abstraction that is applicable to any business use case. In this respect it
describes how an organization first of all determines what the important business
drivers are that require action to be taken. The process shows then how to select what
actions to be taken and to execute it. In this step the various use case descriptions of
the implementation guide can be selected and implemented.
The final step in the overall process is then to reassess the business situation after the
action is taken and to decide on further activities. This could then for example loop
back and select further actions.
The final part of the use case description is a collection of implementation stories.
These are documented experiences of organizations that have applied the
recommended solutions. They can describe how successful they were, what obstacles
appeared, how they were solved and where the organization deviated in a certain way
from the proposal.
The use cases and all related solutions and descriptions are collected in a use case
template document. The information will be made available for online searching and
browsing. Thus the implementation guide becomes available in an interactive online
tool.
Figure 14 Business Value Roadmap linear view
9.1.2. Circular View

In contrast to the linear view, a loop view of the Business Value Roadmap (BVR) is
focused on the continuous feedback from the different stages (5) that we have defined.
The following figure depicts the overall approach of the BVR loop view.
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Figure 15 Business Value Roadmap loop view
9.1.2.1. CEM Governance

In order to successfully approach CEM, the first step is to appoint CEM champion(s) at
a board or executive level. These senior personnel should be responsible and
accountable to CE practice, awareness, driving implementation and monitoring
improvements across all functions.
9.1.3. As-is Assessment Planning

The maturity assessment is a continuous process that should be periodically
conducted in a defined manner. In order to do this successfully, it is necessary to
establish or re-establish business goals and outcomes of what is desired and
achievable in the CEM Department. The goals need to be formalized and ratified by a
governance council/body. Once the goals are agreed upon, for this cycle, the maturity
assessment should clearly identify where the company is in terms of its CEM practices
and where it would like to be through the course of this cycle. For this, specific metrics
should be established in a manner such that they can be repeatedly arrived upon and
reported out. Course corrections need to be made, so that by the end of the cycle the
desired goals are achieved.
To aid in the specific process there needs to be a maturity assessment, please refer to
the maturity assessment process in the eTOM for details.
9.1.3.1. Refer to eTOM for assessment processes

The assessment processes should be established according to the eTOM.
9.1.3.2. Identify / establish main business goals

The following are some of the goals that could be adopted by the CEM department.
Corresponding metrics have also been defined here. It is important to have some of
the following dimensions in mind while establishing goals:
External Goals:
Happy Customer
Engaged customer
Repeat/Loyal customer
Exceed customer expectation
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Step change improvement in customer experience, etc.
Internal Goals:
Champions with clear roles and responsibilities
Fully staffed processes
Improvements in certain dimensions of CEM Maturity
9.1.3.2.1. CUSTOMER SENTIMENT/ BRAND/REPUTATION including LOYALTY
CSAT score improvement
NPS score improvement
Social score
Product/service co-creation rate
Prompted and unprompted brand awareness
Brand position in the market
CEM as differentiator
Brand reputation betterment
Loyalty/stickiness/retention improvement
Lifetime customer value improvement
9.1.3.2.2. OPERATIONAL EFFICIENCY
Reduced revenue leakage,
OpEx reduction in CEM processes
Reduced cost of sale
Customer Effort Score improvement,
Predictive/proactive response to customers
Improvement in Selfcare/DIY
Gating threshold for elimination of non-performing products/services
9.1.3.2.3. IMPROVED SALES
Upsell and cross-sell increase
ARPU
Product/service uptake increase
Revenue uplift
9.1.3.3. Maturity model-level

The current maturity Model provides a skeletal outline of the various aspects of
business that you should be considering. It should be enhanced to provide specifics of
what each dimension should contain in order to map the progress from one level of
maturity to another. For example, in the dimension of People, training can be a key
areas to monitor and mature, then different types of training/skills are required at each
level of maturity for the given business goals that you will be establishing.
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9.1.4. Assessment for performance against benchmarks

Once the defined goals have been identified and established, business performance is
measured along the key metrics defined in the assessment planning phase. In this
stage the Key Business Objectives (KBOs) may be reviewed and refined. If current
maturity for a given dimension is at level 2, the plan should be to move to level 3 rather
than jump to level 4.
9.1.5. Initiate To-Be State

9.1.5.1. Identify gaps
In order to mature your CEM practices, it is important to call out the key dimensions on
which you want to progress during this cycle
9.1.5.2. Prioritize journeys most impact on business goals

For the prioritized dimensions, it is important to consider which customer journeys
these dimensions will be worked on for improvement.
9.1.5.3. Identify the Use Case that best meet business goals
The next step would be to identify for the current library of Use cases, which one (s)
would best meet the journeys which you seek to improve. Please note that the tagging
on the library of use cases should help to identify the UC that best meet business goals
in terms of the following processes: B2B or B2C, Customer care, Interaction,
Understanding, Retention, Personalization, Revenue, Business optimization and Cost
reduction.
9.1.5.4. Establish mature process

The last step in the Initiate To-Be-State is to establish the mature process. Depending
on the outcoming of this stage, it might be necessary to reassess maturity model; in
that case, it leads to As-is Assessment Planning stage.
9.1.6. Prioritize Business Outcomes

In this stage the business outcomes are prioritized by means of calculating the ROI for
the UCs, and depending on the result on the investment decision the UCs will be
implemented or not.
9.1.6.1. ROI calculation set of use cases.

Once we have identified the UC that best meet business goals, we calculate the ROI
for this set of Use cases. This way, the prediction of business outcomes is estimated in
terms of ROI estimation for the related UCs. All in all, this can be considered as a
Business Value Roadmap calculator.
9.1.6.2. Investment decision

Upon calculating the estimated ROI for the selected UCs, the investment decision
should be agreed. Three different actions should be taken depending on the decision.
If the investment decision is positive, it leads to the final stage to Implement the UCs.
Elsewhere, if the investment decision is negative, depending on whether we can
evaluate the UCs (to the previous stage, Initiate To-Be State) or not (then it leads to
the initial stage, As-is Assessment Planning).
9.1.7. Implement Use cases

During the last stage, once the business outcomes have been prioritized and the
investment decision is positive, the UCs are implemented.
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9.1.7.1. Execute UC
First of all the UCs are executed by implementing the attributes available in the UC
template.
9.1.7.2. Evaluate business results

Then, the business results are evaluated to determine whether they are aligned to what
was expected from the Prioritize Business Outcomes stage.
9.1.7.3. Lessons learned

Finally, the lessons learned are captured by the organization and it can go back to
Assessment for performance against benchmarks stage where the Key Business
Objectives (KBOs) may be reviewed and refined.
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10. Relationship with Frameworx

A detailed analysis of the full CEM process or processes is outside the scope of this
document but could be summarized by the Business Process Framework diagram
shown below. In a nutshell, CEM touches on many of the processes in the framework
from Strategy to Billing and from Supply Chain to Customer Relationship Management.
Figure 16 - TM Forum Business Process Framework (GB921)
As more and more providers realize the benefits of a fully embracing CEM
environment, so we will see a growth in the adoption of frameworks such as the TM
Forums Business Process Framework. Much of the framework exists today and will
be strengthened by wider adoption as is inevitable. For a provider to develop their own
process framework will prove not only costly but will lead to delays in achieving the allimportant market differentiation through improved customer experience. As mentioned
earlier CEM is more than just good processes and there is plenty of scope to establish
differentiation while adopting a common process framework.
It is not just the service functionality that must embrace the customers expectations
from the early design phases. The performance characteristics of the service must
also meet the consumers expectations. As we will discuss in the next section, good
Service Level Agreement (SLA) management is a corner stone to managing service
quality especially in the highly distributed service delivery structures of the modern
digital services. The following diagram taken from the TM Forums SLA Handbook
(GB917) shows how the development of the various forms of SLA spans the various
domains of the Business Process Framework, from strategy to in-life management and
service retirement.
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Figure 17 - SLA Lifecycle (GB917)
A full description of this process flow is documented in the TM Forum.

The TM Forums SLA Management Handbook (GB917) is one of the Forums longest
running initiatives and provides a detailed description of how to develop and manage
SLAs. The handbook has been widely adopted within the communications industry
and beyond and has been developed based on real experiences of member
companies implementing SLA Management.
The term SLA is a generic term that is often used to describe a much wider universe of
service objectives and agreements, some formal and some informal. The following
diagram extracted from GB917 shows the universe of agreements that exist or should
exist in most service providers organization.
The service delivery chain for modern digital services can be complex with a high
dependency on third party delivered services. A simplified generic structure can be
described as follows:
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Figure 18 - Service Structure
As can be seen from the diagram, there is a clear hierarchy in a service structure that
shows Customer Facing Services (CFS) being constructed from a number of Resource
Facing Services (RFS) where each of these components may be delivered internally to
the service provider or from an external partner or supplier. One or more CFS are then
packaged into the Product that is supplied to the customer. Whereas RFS and CFS
may be provided by a third party, the Product is almost always the responsibility of the
service provider and tied in to other offerings and the service providers brand. The
quality of service at the product level, therefore, has significant impact on the service
providers brand value. Consequently it is imperative to monitor and manage the
product quality especially where one or more components (services) are dependent on
a third party and outside the direct management of the service providers operational
capability.
Establishing service agreements at each component level as shown below, enables
the service provider to not only manage the quality of service delivered to the customer
but also that delivered by suppliers, partners and internal groups.
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Figure 19 - SLA Hierarchy
Most of the types of service agreement shown will be familiar to the reader with the
possible exception of the Implicit SLA. An Implicit SLA uses the same specification
format as an SLA or an OLA, i.e. with a Service Level Specification (SLS) and a
description of measurement points and violation procedures, but does not exist within
the context of an agreement (whether commercial or internal). It represents a one
sided goal stated internally by a service provider, aiming at achieving a certain level of
quality for a service, corresponding to the service provider understanding of what the
customer expectations are.
Importantly when developing the service agreements all of the SLAs and OLAs must
be joined up. In other words, the commitment made to the customer in the Customer
SLA must be underpinned by the SLA at the product level which in turn must be
supported by the CFS level SLAs and so on through the hierarchy. This does not
mean that the Customer SLA has to match the product SLAs, more that they should
not exceed the latter without a good business reason to do so.
While the SLA may be the corner stone for managing service quality it forms only part
of a much wider source of information required to understand the customer experience.
The true picture has to be constructed from many sources gathered at the different
levels of the hierarchy as shown in the following diagram:
Figure 20 - Key Quality Indicator (KQI) / Key Performance Indicator (KPI) Hierarchy
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Traditionally this model has been applied bottom up i.e. from the resources up to the
Customer SLA an approach that supported the what do we think the customer is
concerned about strategy. In many cases there is actually little correlation between
the SLA offered to the customer and the service agreements associated with the
components that the service depends on. The result is unsupportable customer SLAs!
CEM turns this approach on its head by starting with what is the customer actually
concerned about and mapping these Critical Success Factors (CFS) to the lower
level measurements and other data sources.
Figure 21 - Value Chain view of e2e Holistic Customer Experience Framework (TR149)
As we can see from the above diagram, measuring the customer experience involves
capturing data from a much wider source of data than has been used in the past for
technology biased performance measurements. The addition of service testing probes
adds an important additional source of information as, if used correctly, they provide
true end to end service performance data. The TM Forum Managing Customer
Experience program has carried out a significant piece of work on the use of probes
and this is documented in TR148 Managing the Quality of Customer Experience. This
work includes descriptions of different types of probes including:
Passive service and network.
Active user probes that emulate end user activity.
Active services probes.
Embedded agents inside end users devices.
But even probes have a limitation, with the exception of embedded agents, they only
test the service from a limited number of access points and rarely provide information
of how the service is performing at the user application, equipment or edge devices.
There are two approaches that can help to fill this gap.
The first is to use embedded agents to extract performance data from the users
devices, or at least a sample of them. More and more we are seeing that user
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application vendors are including the collection of performance data that can then be
uploaded to a central service performance management system. Unfortunately there is
still a wide reluctance in the user community to allow access to this performance data
and service providers sometimes find that they are restricted to collecting data from
their own internal users. Even so this technique does provide a good measurement of
how a service is performing.
Another technique that is becoming more widely deployed is Business Transaction
Management (BTM) which allows the provider to track real user transactions and
monitor a number of different performance criteria such as success rate and
transaction speed. While this approach may seem to offer the best option, it too has its
limitations. Firstly BTM only provides information when a service is being used; it does
not enable a provider to monitor the service during dark hours. Secondly BTM
solutions often rely on the deployment of agents at different points in the service
delivery chain which can prove difficult when components are being delivered by third
party providers. The answer therefore is a wide range of data sources aggregated into
a single view of service performance as described in much more detail in TR148 and
TR149.
Even this comprehensive approach to gathering data from a wide range of sources
does not really go far enough. One problem is that it still has a tendency to support a
CRM strategy rather than CEM in that it relies on setting up measurement of what the
service provider considers to be important to the consumer. If driven by strong input
from the user domain the technique does help a service provider to understand the
customer experience. There is of course one problem with basing management on
input from the user ... they do not always know what is important until they start to use
the service, and even then, what is important changes as the maturity of the service
progresses.
So how can we measure satisfaction without knowing what to measure? One
approach has been used for many years and continues to be a good source of
customer satisfaction data, this is the customer survey. Regular polling of a sample of
customers using well-formed questions continues to enable the service provider to
assess what they are doing well and the level of satisfaction that their customers are
experiencing. The survey also helps to build the fan base by sending the message that
the service provider wants to engage with them and cares about their experiences.
Surveys however can be expensive and can suffer from significant latency between
defining the questions and evaluating the results. They can also suffer from yesterday
syndrome. For example, while the survey may be intended to measure customer
experience over a three month period the answers that they will hear will be heavily
biased by the most recent experience of using a service.
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Figure 22 - Social Networking Sources
Recognizing that the CEM view is complex, forward looking service providers are
developing an OSS/BSS environment that enables them to display this disparate data
in one single vital signs view. The following is a picture of such a scorecard being
developed by Telefnica U.K. for them to be able to monitor the various performance
aspects that represent the customer experience.
Figure 22
Figure 23 - Telefnica UK CEM Scorecard Dashboard
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The above is an early design view using test data but provides an insight of how
Telefnicas approach towards managing the customer experience embraces a
multitude of critical success factors including customer surveys, social media activity,
contact center stats and service specific data. From this single view Telefnica UK are
able to calculate various Customer Satisfaction Index values which they can then use
to drive their customer centric quality improvement programs.
In summary, there is no silver bullet when it comes to measuring and monitoring the
customer experience. There is however a clear movement in the industry to rely less
on purely internally generated CRM data and broaden the approach to listen to
anything that the consumer has to say without trying to best guess what the customer
thinks is important. Data from the social networks and consumers interactions with the
service provider e.g. via customer services are becoming more dominant as a source
for understanding the customer experience. It does not matter what the internal
systems are telling the provider; if the user are saying that the service is poor ... it is
poor!
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11. Summary
Companies are increasingly recognizing that customer experience is a key
differentiator in a competitive marketplace. However the implementation of customer
experience management is relatively new to the digital world and while there has been
quite a lot of work carried out on service management and customer relationship
management that underpin CEM, good guidelines and working practices are only just
starting to appear. As it did with service management and CRM, the TM Forum,
through its member companies, is driving out the CEM boundaries and expanding its
widely adopted Frameworx to support CEM.
There is a great push to establish and enhance CEM programs in many of the leading
service provider companies today. This will inevitably lead to better standardization in
the industry. Having said that, the nature of CEM and the fact that it touches on many
aspects of a service providers business, it is unlikely that there will be a fully defined
set of standards for CEM. We will, however, see an extension of existing frameworks
and development of new best practices that will enable service providers to establish
CEM programs with shorter lead times, reduced risk and lower costs.
The establishment of CEM as a corner stone for achieving market differentiation is
already understood by many and because of this the industry will see new and
innovative ideas underpinned by CEM. After many years saying the customer is king
the industry is starting to believe it and the culture change needed to support that
standpoint has started. For some it may be a difficult journey but the pain will surely be
worth the gain.
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12. List of TM Forum CEM Specific Documents

Reference Description
GB962
Guidebook
GB962A
CEM Lifecycle Metrics
GB962B
Maturity Model
GB962C
Lifecycle Experience Model
GB962D
CEM Use Cases
GB962E
CEM ROI Calculator User Guide
GB962F
CEM ROI Calculator
RN339
Customer Experience Solution Suite Release Notes
TMF066
Customer Experience Management Index (CEMI)-Establishment of a Methodology
TMF066A Customer Experience Management Index (CEMI)-KPI Calculation Method

IG1125
Omni Channel Introductory Guide
IG1134
360 Degree View of A Customer
Figure 24 List of TM Forum CEM Specific Documents
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13. Bibliography and References

Reference
Description
Source
TR148
Managing the Quality of Customer

Experience
TM Forum
TR149
Holistic e2e Customer Experience

Framework
TM Forum
GB917
SLA Management Handbook
TM Forum
GB923
Wireless Services Handbook
TM Forum
GB921
Business Process Framework (eTOM)
TM Forum
GB929
Application Framework (TAM)
TM Forum
GB922
Information Framework (SID)
TM Forum
Understanding Customer
Experience
Paper written by Christopher Meyer and

Andre Schwager
Harvard Business
Review 2007
Customer Satisfaction
Survey
Independent customer satisfaction

surveys
J. D. Power and
Associates
Page 43 of 51
14. Glossary
14.1. Structure and
Convention
This glossary is structured to allow terms to be detailed by use, in order of the following
precedence:
Terms adopted from other TM Forum or Industry standard terms
Prior terms from this Glossary
Dictionary primary definition.
Thus, the convention for detailing a term is that the term will rely for its definition on the
terms preceding it, using the precedence above. All terms defined in this Glossary will
be capitalized in use throughout the rest of the document.
Terms
Definition
Customer
[1] --a specific Party[2] Role[3], liable for the legal obligation to pay for
a Product[4]. A Customer takes the form of one of two Party Roles:
Individual (personal legal liability)
Organization (enterprise legal liability)

[1] See GB922 Addendum 2 Customer.
[2] See GB922 Addendum 1 Party.
[3] See GB922 -1UR Users and Roles
[4] See GB922 Addendum 3 Product
[5] See GB922 Addendum 8 Supplier Partner.
End-user
the proxy for the Customer in the role of consuming Products.
Customer- facing
Roles
Providerthe value network Party with whom the Customer has

agreed to pay for Products.
Partner[1]
Supplier[2]

Journey
a specific Customer need (e.g. I need help, I need to make a call, I need to
pay, I need to complain)
Experience
the sum of all journeys a Customer has with a Provider, calibrated with the
correlation of their expectations to their perceptions, over the duration of
their relationship with that Provider.
Engagement
sustained positive differentiating Experiences to ensure that the Customer

loves the Provider.
Page 44 of 51
Terms
Definition
Lifecycle
a linear, organizing view, expressed in terms of Customer tenure stages

(e.g. welcome (first 3 months), grow & keep (last 3 months))
Process
sequential flow of activities to achieve Customer Journey outcome
Touch point
active Customer contact with the Provider to engage in a Process,

expressed in three interaction modes: Use (network), Serve (channel), Offer
(tariff behavior / outcome)
Customer
Experience (Cx)
the result of interactions between a Provider and a Customer, compared

and measured against the Customer expectations while interacting with
brand and Product.
Customer
Experience
Management
(CxM)
the methodology of designing, executing, monitoring and optimizing the

customer experience across touch points while building brand perception,
addressing customer expectations and enhancing the long term profitability.
Customer
Relationship
Management
(CRM)
Customer Relationship Management (CRM) refers to systems that manage

all aspects of a companys interaction with its customers. These are often
integrated with other OSS/BSS systems such as billing, trouble ticketing,
order entry, marketing, etc.
Customer Life
Cycle (CLC)
the various steps a Customer goes through when shopping, using and
preferring a Product
End to end
Service Quality
Management
the management of technical performance of the resources in service

delivery chain to produced measurement of the e2e technical performance
service delivery chain. See TR148.
Key Quality
Indicator (KQI)
a measurement of a specific aspect of the performance of a product,

product components (services) or service elements and draw their data
from a number of sources, including the KPIs. See GB923 Wireless
Service Measurements.
Key Performance a measurement of a specific aspect of the performance of service resource

Indicator (KPI)
(network or non-network) or group of service resources of the same type. A
KPI is restricted to a specific resource type. See GB923 Wireless Service
Measurements.
Mean Opinion
Score (MOS)
an estimation of the perceived quality of a multimedia service from the edge

end perspective. The MOS is expressed as a figure in the range from 1
(worst) to 5 (best) as specified by ITU-T recommendation P.800 for voice
service.
Net Promoter
Score (NPS)
a customer loyalty metric developed by (and a registered trademark of)

Fred Reichheld, Bain & Company, and Satmetrix
NPS, is based on the fundamental perspective that every companys
customers can be divided into three categories: Promoters, Passives, and
Detractors.
By asking one simple question: How likely is it that you would recommend
[Company X] to a friend or colleague? you can track these groups and get
a clear measure of your companys performance through its customers
eyes. Customers respond on a 0-to-10 point rating scale and are
categorized as follows:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and
refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are
Page 45 of 51
Terms
Definition
vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your
brand and impede growth through negative word-of-mouth.
To calculate your companys Net Promoter Score (NPS), take the

percentage of customers who are Promoters and subtract the percentage
who are Detractors.
American
Customer
Satisfaction
Index TM
the American Customer Satisfaction Index is an economic indicator

measuring customer satisfaction by the eponymous ACSI, a privately held
company. A company's ACSI score is derived from three variables, which
are actually survey questions rated on a 1-10 scale, by interviewing
consumers in United States. The survey is a benchmark of customer
satisfaction in US including more than 200 companies in around 40
industries and 10 economic sectors.
Quality of Service the collective effect of service performances, which determine the degree of
(QoS)
satisfaction of a user of the service (ITU-T Rec. E.800). So the term Quality
of Service is used in this document as a quality figure rather than referring
to the ability to reserve resources, i.e. level of Quality of Service.
Service Level
a formal regulated agreement between two parties, sometimes called a
Agreement (SLA) Service Guarantee. It is a contract (or part of one) that exists between the
Service Provider and the Customer, designed to create a common
understanding about services, priorities, responsibilities, etc. (TMF 701
modified).
An SLA or Contract is a set of appropriate procedures and targets formally
or informally agreed between Network Operators/Service Providers
(NOs/SPs) or between NOs/SPs and Customers, in order to achieve and
maintain specified Quality of Service (QoS) in accordance with ITU (ITU-T
and ITU-R) Recommendations. The SLA may be an integral part of the
Contract. These procedures and targets are related to specific
circuit/service availability, error performance, Ready for Service Date
(RFSD), Mean Time between Failures (MTBF), Mean Time to Restore
Service (MTRS), and Mean Time to Repair (MTTR) (ITU-T Rec. M.1340).
Service Level
Objective (SLO)
an agreement within an enterprise that has the same characteristics as a

SLA but without the inter-enterprise contractual aspects. See GB917.
Service Quality
Management
(SQM)
the management of the end to end Quality & health of a specific service or
a product offered by a service provider.
Additional Common Customer Experience Related Definitions

Terms
Definition
QoE
is a measure of satisfaction of a service as perceived by the user of the

service.
Customer
Loyalty
a measured tendency of a customer to choose a particular product or a

service over alternative choices of products and services with similar
characteristics
Customer
Satisfaction
a measure that a customer service or product has a higher customer

experience than the customer expectation
User Experience the result of interactions between a Provider of a product or a service and
Page 46 of 51
Additional Common Customer Experience Related Definitions

the end user, compared and measured against the user expectations while
using the product or service
Customer
Service
the steps taken by a provider for the customer to ensure customer

satisfaction
Customer
Lifetime Value
the monetary contribution by a single customer towards the provider during

the lifetime of a specific product or a service
Customer
Attrition Rate
the percentage of customers for a specific product or a service lost out of the
overall customer base for that product or service.
Customer
Retention Rate
the percentage of customers for a specific product or a service retained out

of the from the overall customer base for that product or service.
Customer Churn the percentage of customers for a specific product or a service lost to an
Rate
equivalent service from a competitor on a periodic basis from the overall
customer base for that product or service.
Cross Selling
the process of extending the customer lifetime & customer lifetime value by
selling an existing customer an additional service or product, which is
different from what they currently have.
Customer
Retention
the process of extending the customer lifetime by offering either new

products or services or customer service
Breakage
the unredeemed or expired part of a loyalty program in monetary value,

which is a measure of effectiveness of this program
Customer
Analytics
the process of collection of structured data from a customer or a service or a

product or a set of transactions considered relevant for predicting customer
behavior
Customer
Insight
the process of obtaining customer feedback through multiple channels

including unstructured and unsolicited feedback such as social media
comments, tweets, online chats etc.
Page 47 of 51
15. Administrative Appendix

This Appendix provides additional background material about the TM Forum and this
document. In general, sections may be included or omitted as desired; however, a
Document History must always be included.
15.1. About this

document
This is a TM Forum Guidebook. The guidebook format is used when:
The document lays out a core part of TM Forums approach to automating

business processes. Such guidebooks would include the Telecom Operations Map
and the Technology Integration Map, but not the detailed specifications that are
developed in support of the approach.
Information about TM Forum policy, or goals or programs is provided, such as the

Strategic Plan or Operating Plan.
Information about the marketplace is provided, as in the report on the size of the
OSS market.
15.2. Document History

15.2.1. Version History
Version
Number
Date
Modified
Modified by:
Description of changes
0.1
31/03/2012 Ian Best
First draft
0.2
16/4/2012
Ian Best
Updated the Customer Experience Lifecycle

diagram and associated text.
0.3
16/4/2012
Ian Best
Updates following review comments
0.4
30/9/2012
Shai Shamir
Terminology/definitions
Maturity Model update
1.0
2/10/2012
Mary Amalfitano
Submitted for Team Approval
1.1
8/11/2012
Alicja Kawecki
Minor cosmetic corrections prior to posting

and Member Evaluation
1.2
4/12/2013
Steve Cotton
Team Approved
1.3
4/25/2013
Alicja Kawecki
Corrected Notice & copyright in footer,

updated branding, minor cosmetic fixes prior
to posting for Member Evaluation
Version 1
30/06/2013 Sandeep
Chowdhury
Draft following the Team Action Week in

Baltimore
Version 1
31/07/2013 Sandeep
Draft containing the Glossary inputs provided
Page 48 of 51
Version
Number
Date
Modified
Modified by:
Chowdhury
by Steve Cotton
Version 2
12/07/2013 Sandeep
Chowdhury
Draft with the updated Glossary provided by

Steve Cotton (TM Forum) as well as some
updates from Sandeep Chowdhury (Ericsson)
in the Glossary section
Version 3
9/19/2013
Draft with the following changes:
Version 4
9/20/2013
Sandeep
Chowdhury
Sandeep
Chowdhury
updated comments from Steve
a new section on CEM & Social Media
The chapter on differentiating CEM is

enhanced after adding new sections on CEM
& CIM as well as CEM & SQM
Also added Quality of Experience to the
Glossary
Version 5
9/26/2013
Sandeep
Chowdhury
Replaced the chapter `Customer Experience

from the Customer Perspective with the
Updated the section on Customer Life Cycle
Experience Model based on the contribution
from Rohit Batra from Oracle.
Version 7
9/26/2013
Sandeep
Chowdhury
Replaced the chapter Customer Experience

Maturity Model based on the contributions
from John DAmour from Amdocs contribution
in GB962-B Maturity Model v1 3.
Version 8
9/27/2013
Sandeep
Chowdhury
Replaced the chapter How to do we measure

the Customer Experience? based on the
GB962 CXM Metrics v2 5 by Jonathan
Hopkinson & Trevor Cheung from Huawei
Version 9
9/27/2013
Sandeep
Chowdhury
Submitted for approval by Member Review
Version 1.5.1
10/8/2013
Alicja Kawecki
Updated cover, header & footer, minor style &

formatting fixes
Version 1.5.2
6/24/2014
Alicja Kawecki
Corrected numbering of figures to address

Member Evaluation feedback
Version 1.5.3
8/28/2014
Alicja Kawecki
Updated cover and Notice to reflect TM

Forum Approved status
Version 1.5.4
10/22/2014 Rebecca Sendel,

Jrg Niemller,
Ericsson and
Antonio Cuadra,
Indra
Version 1.5.5
10/29/2014 Dharmendra Misra, Added content in executive summary,

Cognizant
reviewed and added comments
(upversioned to
1.5 to align
correctly)
Version 2.0.0
Antonio Cuadra,
Updated document to include the work of the

CEM Implementation Guide team.
Released For review
Page 49 of 51
Version
Number
Date
Modified
Modified by:
Indra
Version 2.0.1
11/03/2014 Paul Morrissey
Comments added
Version 2.1.0
11/3/2014
Rebecca Sendel
Addition of Omni-Channel content; accepted

all the changes; minor edits. Ready for Team
Review
Version 2.1.1
12/1/2015
Rebecca Sendel
Minor updates for Fx15.5
Version 2.1.2
12/2/2015
Alicja Kawecki
Corrected cover, Notice; minor

formatting/cosmetic fixes prior to publishing
Version 3.0.0
6/2/2016
Snigdha Mitra
Updates for Fx16
Version 3.0.1
6/6/2016
Alicja Kawecki
Updated cover; minor formatting/style edits

prior to publication for Fx16
15.2.2. Release History
Release
Number
Date
Modified
Modified by:
12.5
31/04/2012
Ian Best
First release of Customer Experience Management

Solution Suite
13
20/03/2013
Sandeep
Chowdhury
Draft following the Team Action Week in Madrid
13.5
30/06/2013
Sandeep
Chowdhury
Ongoing Draft version for the new 13.5 Release
13.5
27/09/2013
Sandeep
Chowdhury
Submitted for approval by Member Review
14.5.0
November
2014
CEM Team
New sections on implementation guide and omni

channel; significant clean up and editing to make
current
15.5.0
December
2015
CEM Team
Minor updates
16
June 2016
CEM Team
Updates for Fx16
15.3. Acknowledgments
Mark Ady, Colin Cunningham and Eva Franconetti (Telefonica UK) for permission to
use the Telefonica UK Vital Signs work
Members of the Holistic e2e Customer Experience Framework team for their great
work
Page 50 of 51
Andy Chalmers (TM Forum and Chalmers Associates) for the TM Forum CEM training
material
Joann OBrien, Steve Cotton and Rebecca Sendel (TM Forum) for their contributions
The many members of the TM Forum Collaboration teams past and present for the
hard work on the projects that support CEM.
Page 51 of 51

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Frameworx Best Practice

Customer Experience Management Solution Suite

Latest Update: Frameworx Release 16

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

CEM & CRM.................................................................................................. 11

CEM & Multichannel CIM .............................................................................. 12

CEM & SQM.................................................................................................. 13

4. CEM & Social Media....................................................................................................... 14

Key Social Media Metrics .............................................................................. 14

Impact of Social Media Metrics on Customer Experience ............................ 16

5. Lifecycle of Customer Experience ............................................................................... 17

Mapping the Channels with the Lifecycle Experience Model ....................... 18

6. Customer Experience Maturity Model ......................................................................... 19

Customer Experience Lifecycle Metrics ........................................................ 22

CEI Calculation Method ................................................................................ 23

CEM Index .................................................................................................... 23

8. Omni channel ................................................................................................................. 25

As-is Assessment Planning ...................................................................... 29

Assessment for performance against benchmarks .................................. 31

Initiate To-Be State ................................................................................... 31

Prioritize Business Outcomes ................................................................... 31

Implement Use cases ............................................................................... 31

Relationship with Frameworx ............................................................................. 33

List of TM Forum CEM Specific Documents ...................................................... 42

Bibliography and References .............................................................................. 43

Structure and Convention ............................................................................. 44

Administrative Appendix ..................................................................................... 48

About this document ..................................................................................... 48

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

Release History ....................................................................................... 50

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

Would advocate (e.g. churn and loyalty indicators)

Would recommend (e.g. Net Promoter Score)

Acquisition and usage difficulty (e.g. Customer Effort Score)

Would Buy again

Despite the industrys obvious interest in Customer Experience Management (CEM) it

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

2. Why is Customer Experience Important

Market Maturity - Maturing traditional service markets change the nature of

Economic Trends - Economic trends impact customer spending and service

Shift in Competition- Competition is shifting towards quality and making customer

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

Figure 1 - Why CEM Now?

Promotion - Encouraging existing customers to recommend the digital services to

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

3.1. CEM & CRM

Figure 2 - CEM & CRM

TM Forum 2016. All Rights Reserved.

Customer Experience Management Introduction and Fundamentals

Captures and distributes what a