Calculating the Return on CEM

The TM Forum has released a Customer Experience Management (CEM) RoI calculator, which can be used to determine the business case for CEM projects. The team that developed the calculator is led by Jonathan Hopkinson, Senior Director for Customer Experience Solutions at Huawei. He said:

Customer experience management (CEM) is a tricky thing to get people to invest in. Like a lot of services it’s intangible, but on top of that it is also very difficult to predict and quantifiably demonstrate the business benefits which will ensue. If you’re a service provider and you’ve got some money to spend, if you spend it on base stations, you can see them and drop them on your foot. It’s very obvious you’ve bought something and what the benefit will be. With customer experience, it’s a lot more nebulous. This is why within Huawei we have developed business models to help operators isolate and scientifically quantify the predicted business outcomes of various CEM use cases, so that the investment decision stops being a leap of faith…

At Huawei, we were working with a major Tier 1 operator and we had really strong buy-in, but they wanted a good business case before they could go and put it to their leadership team. We showed them our business case analysis and they said ‘That’s great, but is it certified by the industry?’. That’s what really kicked this project off.

You can learn more about the calculator from here. TMF members can download the calculator from here.

Eric Priezkalns
Eric Priezkalns
Eric is a recognized expert on communications risk and assurance. He was Director of Risk Management for Qatar Telecom and has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and others.

Eric was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He was a member of Qatar's National Committee for Internet Safety and the first leader of the TM Forum's Enterprise Risk Management team. Eric currently sits on the committee of the Risk & Assurance Group. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.

Commsrisk is edited by Eric. Look here for more about Eric's history as editor.