Customer Story

How Telefónica Reduced Churn & Increased Customer Satisfaction

Telefónica improves customer satisfaction, lowers customer churn and operational costs of Movistar+ service with Devo Data Analytics Platform

At a Glance
  • Reduced customer churn
  • Reduced volume of helpdesk calls
  • Improved customer satisfaction through rapid time-to-insight
  • Data correlation supports a proactive approach to problem resolution

Industry: Telecommunications

Location: Europe & Latin America

About Movistar

Movistar is a Telefonica brand and service offering. Its mission is to deliver the best communication and media services to its customers. To achieve this, Movistar offers easy-to-use products and services through the delivery of fixed line, mobile, broadband, and television services.

Customer Quick Facts

Challenge

Telefónica wanted to reduce customer churn and improve the quality of experience of its Movistar+ TV service. The telecom leader needed an end-to-end platform to measure, track, and visualize the quality of service to each customer in real-time.

Solution

Devo was implemented to form a single, cloud-based data and analytics platform for Telefónica. This enables full analysis of all data involved in providing service to end customers and highlights potential problems and opportunities in the Movistar+ service

Results

  • Reduced customer churn
  • Reduced volume of helpdesk calls
  • Reduced average client call time
  • Improved customer satisfaction through rapid time-to-insight
  • Real-time analysis and visualization of large data volumes provides at-a-glance customer insight
  • Data correlation supports a proactive approach to problem resolution

End-to-end platform requirement

When Telefónica launched Movistar+ TV, marketed as a unique television offering providing the best content for the best price, it joined an ongoing industry trend that has seen telecoms operators now taking more than a fifth of the pay-TV market. With more than three million homes subscribed to the Movistar+ service, television has become a key service for Telefónica. This is a highly competitive market, making customer satisfaction and retention of the utmost importance.

To improve the customer experience, Telefónica wanted to use data and analytics, as Clara Casas, E2E Service Quality and Operative Improvement Manager at Telefonica explains: “We used a variety of tools to check the performance of the different elements of the network and the decoders in our customers’ homes, but we couldn’t track the user experience and it wasn’t always clear to us when there was a problem with the quality of the images shown in the individual custome ´s TV. This only became apparent when customers called our helpdesk to report problems. In our quest to improve our customers’ quality of experience in our service, we were looking for a single, unified view into our quality of service, enabling us to manage network issues and customer calls much more efficiently and anticipate and even prevent problems.”

It was important to Telefónica that the platform included all the links in the chain, from loading the content at Telefónica’s end all the way to delivery in customer homes, with an emphasis on monitoring quality throughout this process.

Several options were evaluated, but only Devo could effectively collect, correlate, and analyze the data going through the Movistar+ services and deliver the much-needed real-time insights to make a tangible difference to customer quality of experience. Clara Casas emphasized the need for a scalable solution: “Movistar+ TV is a fast-growing service, and the data we generate continues to grow every month. We needed a solution that could grow from Terabytes to Petabytes of data. This was a key requirement for us.”

Leveraging Real-Time Streaming Data

Clara Casas adds, “Introducing Devo into our environment enables us to review all customer-related data at a glance, such as fault logs; all architectural elements; service quality; and the quality of the images offered by the decoder at customer homes. This helps our helpdesk staff immensely. All the information to effectively support an incoming customer call is right there at their fingertips. We have dramatically reduced average client call time as a result, which in turn improves our quality of service.”

Leveraging Devo’s real-time analytics capabilities, information can be accessed by helpdesk staff to solve problems quickly. The Devo platform provides information on the customer location to determine signal strength; fibre optic installation; router and decoder; DSLAM/OLT to which the customer is connected; and the numbers of video errors and restarts the customer has attempted. Access to information about the most recent configuration changes or faults gives the helpdesk further insight into how the problem may be resolved.

Visualizations and dashboards make it easy to correlate and isolate problems related to connectivity and performance issues by infrastructure, location, or operator.

“We were amazed at the speed with which we were fully functional with the Devo platform. The partnership between Telefónica and Devo was great and our time-to-insight, and therefor time-to-value, was much faster than we expected.”

— CLARA CASAS, E2E SERVICE QUALITY AND OPERATIVE IMPROVEMENT MANAGER, TELEFONICA

Increased Customer Satisfaction through Data

Since many reported problems are now managed through the helpdesk service, the number of technician home visits has been reduced substantially. Previously, if a problem could not be solved by the helpdesk, a technician would be dispatched to the customer’s home. Because the information required to identify the problem wasn’t available, the default solution was to swap the decoder for a new one and reset the system. Research showed that a high number of the swapped decoders were actually fully functional, so having real-time data to help solve the problem without sending a technician resulted in substantial cost savings. In fact, support costs have been reduced, home visits reduced, customer churn reduced, and operational expenses have been reduced, while at the same time customer satisfaction has increased.

Telefónica dashboard

“Customer quality of experience is absolutely fundamental to the success of our Movistar+ service and Devo has helped to increase this which is great news for us.”

— CLARA CASAS, E2E SERVICE QUALITY AND OPERATIVE IMPROVEMENT MANAGER, TELEFONICA

Casas says, “We were amazed at the speed with which we were operational with the Devo platform. We were able to go from
concept to full operational deployment in a mere three months, and the partnership between Telefónica and Devo is now one
of our key vendor relationships.”

She concludes: “Customer satisfaction is absolutely fundamental to the success of our Movistar+ TV service and Devo has helped to increase this, which is great news for us. We have also realized annual cost savings of millions of euros by reducing average client call times; reducing customer churn; reducing the overall number of calls coming into our helpdesk; and reducing the number of technician home visits. Devo’s capacity for real-time and historical data collection and analysis have been central to our ability to keep our customers happy and compete in a very competitive market.