HKT-1

HKT is Hong Kong's premier telecommunications service provider and leading operator in fixed-line, broadband and mobile communication services. It meets the needs of the Hong Kong public and local and international businesses with a wide range of services including local telephony, local data and broadband, international telecommunications, mobile, enterprise solutions, and other telecommunications businesses such as customer premises equipment sales, outsourcing, consulting, and contact centers.

Challenges of HKT

HKT wanted to identify unhappy customers from their entire customer base and understand the drivers that impact churn, ARPU and other business outcomes.

Network Experience was identified as a key driver and was actively managed by HKT’s network teams. The Network Experience shows the impact an individual’s network experience – data speed, wifi usage, etc – has on his or her ARPU, NPS score or propensity to churn.

In this case study we will show how the Customer Happiness Index identified a significant proportion of HKT’s customer base who were likely to churn due to network performance and the remedial actions that could be taken.

 

How did Lynx CHI solve the problem?

The Customer Happiness Index aggregated data sets from network, billing, customer service, point-of sales, and more. It allowed HKT to assign a happiness score for each customer on a scale of 0 to 10. Customers with the highest score are least likely to churn and most likely to increase ARPU.

Using Customer Happiness Index, HKT identified the customer segment with a low happiness score. The root cause for the low happiness score was a particular driver called ‘high round trip time’ and approximately 4.2% of customers from that segment were at risk of churning. 

 

HKT use case

 

Simulating Business Outcomes

With the Customer Happiness Index simulator, HKT was able to predict that by improving the network experience, they would be able to increase the happiness score for approximately 32% of the customers from that segment. By doing so, the risk of churn would decrease from 4.2% to 2.3% and the expected average revenue per user in that segment would increase from $146 to $148.   

 

For HKT new

The Outcome

Upon identifying this, HKT marketing team were able to initiate targeted campaigns which offered these unhappy customers a device upgrade. They were also able to take various measures to inform their customers on how they can optimise their device for a better network experience.

As a result, they were able to:

  1. Increase the happiness score for approximately 35% of the customers from that segment and decrease the risk of churn
  2. Increase average revenue by user
  3. Make a tangible saving of 14% of their customer service operating costs

 

 

Interested in exploring the Customer Happiness Index for your business?

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