‹#›#GenCX

A Quest for the Financial Linkage Quadfecta in Telecom

Thomas Leber, Director Customer Experience, SunrisePeter Kriss, Senior Research Scientist, Medallia

Medallia © Copyright 2016.

Our values

Sunrise is the only non state-owned telco provider in Switzerland that covers every aspect of telecommunications.

Sunrise at a glance

Our KPIOur business

Mobile

Internet

Landline

TV

Customers >3m

Revenue CHF 1,976m

EBITDA CHF 627m

• Fairness

• Transparency

• Customer orientation

Medallia © Copyright 2016.

The Sunrise CX roadmap: a multi-year, company-wide NPS program to become the leading brand for customer service

Step 12013-2014

Fix the basics & transform touchpoint experience

Step 22014-2015

Great progress on experience of our current

customers

Step 32015+

Meet and exceed tomorrow’s customers’

expectations

Medallia © Copyright 2016.

Results so far: Strong improvement of transactional customer experience in main touchpoints…

Touchpoint NPS

Contact Center

Retail

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…while consistently increasing the usage experience and retention rate of our existing customers.

Customer Base Relationship NPS

NPS

Promoters

Passives

Detractors

Churn

-18%

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Strong outside recognition of Customer Service excellence generating tangible marketing impact

Best national telecom provider in the private/business customers segment

Best customer service in SwitzerlandHighest rating for quality and accuracy

Medallia © Copyright 2016.

Wireless subscription economics

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] Number of Customersx( )Cost per

customer–

Medallia © Copyright 2016.

Retention

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] x( )Cost per customer– Number of

Customers

Medallia © Copyright 2016.

Customer experience drives churn

6x

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CFO wants proof? Close the loop and show off!

Closing the loop reduces churn by over 40%

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Text analytics reveals greatest opportunities

Up to 76% churn reduction for some problem types

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Revenue per customer

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] Number of Customersx( )Cost per

customer–

Medallia © Copyright 2016.

Revenue per retained customer

• Average account size is in decline industry-wide

• But detractor accounts shrink at 2.4x the speed

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Over 110% more cross-sell among mobile promoters

Cross-sell Opportunity

Over 60% more cross-churn among mobile detractors

Why? Because CX affects other lines of business

Cross-churn Risk

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And these differences add up over time

Best experiences lead to 2.5x projected

long-term revenue

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Cost to serve

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] Number of Customersx( )Cost per

customer–

Medallia © Copyright 2016.

Improving CX leads to fewer inbound calls

Call volume down over 20%

Calls

Complaints

Complaints down 60%

Call Volume over Time

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Why? Because CX impacts callback frequency

Improving the worst experiences leads to 38% decrease in callbacks

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Cost to acquire

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] x( )Cost per customer– Number of

Customers

Medallia © Copyright 2016.

Stores now have an easier time selling

• Store-level NPS change is a leading indicator of sales conversion rate

• Why? Because word-of-mouth makes potential customers come in more ready to buy

Medallia © Copyright 2016.

Wireless subscription economics

Revenue per customer 1 / churnx Cost to

acquire–}{Invested Capital

Return on Invested Capital =

[ ] x( )Cost per customer– Number of

Customers

Medallia © Copyright 2016.

Bonus: Efficiency of capital investment

Revenue per customer 1 / churnx Cost to

acquire–}{

Return on Invested Capital =

[ ] Number of Customersx( )Cost per

customer–

Invested Capital

Medallia © Copyright 2016.

Improving efficiency of capital investment

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…and customers notice network improvement

Scale Question Comment Sentiment

Pe

rce

nt o

f re

spo

nse

s

Sco

re

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The next frontier:CX is replacing traditional marketing

Q&A