CVMBoK

As we can see from the three sample lists above, there are many moments that need to be managed at the same time. To achieve coherence between multiple moments of truth they are typically grouped under CVM programs such as Cross-sell, Retention, Lifecycle Management, Loyalty, etc.

Over time multiple programs target the customer in the same moment of truth – for example customer came into the store to fix an issue with billing, but Loyalty program suggest the customer redeem his points in exchange for partner products, while Retention program has a great retention offer. These situations are usually managed by creating an overarching Next Best Action and/or Next Best Offer programs.

The most common CVM program are described in more detail below to provide an overall idea how the Moment of Truth and CVM programs work together.

4.2.1 Customer Lifecycle Management Program #

Customer Lifecycle Management Program’s Purpose

To manage the customer journey comprehensively, enhancing each phase from initial awareness to long-term loyalty, with the objective of maximizing customer satisfaction and the value derived for both the customer and the organization.

Program Key Activities

• Mapping the customer journey to identify key touchpoints and moments of truth.

• Designing targeted communication and marketing strategies for each lifecycle stage like product onboarding, product adoption, renewals management, up-sell, retention, cancelation & winback

• Implementing customer feedback mechanisms to improve products and services.

• Developing loyalty and retention programs to maintain customer engagement.

• Utilizing data analytics to refine customer experience and predict future behaviors.

Program Pros

• Aligns company efforts with customer expectations, improving satisfaction and retention rates.

• Increases the efficiency of marketing spend by targeting customers with relevant offers.

• Encourages a culture of continuous improvement based on customer insights.

• Can lead to a decrease in customer acquisition costs through organic growth via referrals and advocacy.

• Enhances the potential for upselling and cross-selling by understanding customer needs at each stage.

• Reduces churn by ensuring good product adoption early on.

Program Cons

• Presents a linear view of customer progress, which does not reflect reality

• Does not provide a framework to prioritize competing initiatives with a lifecycle stage

• Does not handle well wide product portfolios – it works best within the context of a single product

Impacted MoTs

Customer lifecycle management program is a significant undertaking that impacts many moments of truth. Here is an example list of moments that typically would include activities under Lifecycle program:

4.2.2 Loyalty Program #

Loyalty Program’s Purpose

To foster customer engagement and retention by rewarding continued business and encouraging specific customer behavior (e.g. download app, top-up in a digital channel, etc.) thereby increasing the lifetime value of customers and reinforcing positive customer behavior. Often includes repetitive mechanics stimulating earning of rewards and redeeming of rewards.

Program Key Activities

• Designing a structured system for earning, tracking and redeeming loyalty points or rewards.

• Enrollment and onboarding to the loyalty program.

• Regular communication with program members about their progress and available rewards.

• Management of the redemption process for rewards.

• Tracking and analysis of member engagement and reward utilization.

• Creating tiers of loyalty benefits to incentivize higher levels of spending and engagement.

• Conducting regular assessments of the loyalty program to ensure it meets business goals and customer expectations.

Program Pros

• Encourages repeat business and deeper engagement with products and services.

• Provides a wealth of data on customer preferences and behaviors.

• Can create a competitive advantage and differentiate the brand in the marketplace.

• Fosters a stronger emotional connection between the customer and the brand.

Program Cons

• Can be complex and costly to administer and manage effectively.

• Risks of diluting perceived value if rewards are not meaningful or attainable.

• May attract only price-sensitive customers who may not be loyal in the long term.

• Requires a careful balance to offer value to customers while maintaining profitability.

• Requires a frequent and variable purchase behavior to leverage the earning of points mechanic.

Impacted MoTs

Loyalty program is a smaller undertaking that impacts certain key moments of truth. Here is an example list of moments that typically would include activities under Loyalty program:

4.2.3 Referral Program #

Referral Program’s Purpose

To leverage existing customer relationships to acquire new customers through incentives for both the referrer and the referred, enhancing the customer base and creating a network effect.

Program Key Activities

• Creation and communication of the referral program details to current customers.

• Tracking of referrals and attribution to the referring customer.

• Rewarding both the referrer and the referred customer upon successful acquisition.

• Management of the rewards distribution and any related customer inquiries.

• Analysis of the program effectiveness and adjustments based on performance data.

Program Pros

• Cost-effective customer acquisition as it leverages the existing customer base for marketing.

• Builds trust through word-of-mouth, as referrals come from known and trusted sources.

• Often results in higher customer retention rates for referred customers compared to those acquired through other channels.

• Can quickly expand customer reach if the program gains momentum.

• Encourages and rewards existing customers, deepening their loyalty to the brand.

Program Cons

• Risk of fraud, where customers may try to game the system for rewards.

• Management complexity, particularly in tracking and attributing referrals accurately.

• Can lead to customer expectation for continuous rewards, potentially affecting profitability.

• If not well designed, the program may not provide sufficient incentive for customers to participate.

• Quality of acquired customers may vary, as not all referrals may fit the ideal customer profile.

Impacted MoTs

Referral program is a smaller undertaking that impacts certain key moments of truth. Here is an example list of moments that typically would include activities under Referral program:

4.2.3 Up-sell and Cross-sell Program #

Up-sell and Cross-sell Program’s Purpose

To increase average order value and customer lifetime value by strategically offering complementary or premium products and services that align with the customer’s existing purchases.

Program Key Activities

• Analyzing customer purchasing patterns to identify up-sell and cross-sell opportunities.

• Developing targeted marketing campaigns to promote higher-tier products or complementary services.

• Training sales and support staff to implement up-sell and cross-sell strategies effectively during customer interactions.

• Monitoring customer responses to up-sell and cross-sell offers to refine the sales approach.

Program Pros

• Drives incremental revenue by increasing the value of each customer transaction.

• Improves customer satisfaction by offering products or services that enhance their initial purchase.

• Strengthens customer engagement by demonstrating an understanding of their needs and preferences.

• Can lead to improved product awareness and diversified use of the company’s offerings.

Program Cons

• If not executed with sensitivity to customer needs, can be perceived as aggressive selling.

• Risk of overwhelming customers with too many options, which can lead to choice paralysis.

• Potentially high training costs for staff to effectively carry out sophisticated sales strategies.

• Requires careful balance to avoid negatively impacting the customer experience.

Impacted MoTs

Upsell/Cross-sell program is a midsize undertaking that impacts certain key moments of truth. Here is an example list of moments that typically would include activities under this program:

4.2.4 Engagement, Education and Branding Programs #

Engagement, Education and Branding Program’s Purpose

To strengthen the telecom brand’s presence in the market and to educate customers about product offerings and best usage practices, thereby fostering deeper brand connections and informed customer choices.

Program Key Activities

• Design and dissemination of educational content that helps customers make the most of their services (e.g., tutorials, webinars, user guides).

• Regular brand messaging through various media to solidify the brand identity and value proposition.

• Engagement initiatives like community forums and customer feedback sessions to build brand advocacy.

• Conducting market research to align brand communication strategies with customer expectations and industry trends.

Program Pros

• Enhances customer understanding and appreciation of the telecom products, leading to more informed and satisfied customers.

• Builds a reputable brand image that can attract and retain customers, differentiating the telecom provider in a competitive market.

• Empowers customers to make better use of telecom services, potentially reducing customer service costs and improving service perceptions.

• Fosters loyalty as customers value the brand not just for its products but also for its educational value and community engagement.

Program Cons

• Requires significant investment in content creation and marketing campaigns.

• The effectiveness of educational programs can be difficult to measure directly against sales or customer retention.

• Risks of information overload for customers, which could lead to disengagement.

• Must be carefully tailored to diverse customer segments to avoid mismatched communication that does not resonate with all customers.

Impacted MoTs

Branding/Education program is a smaller undertaking that impacts certain key moments of truth. Here is an example list of moments that typically would include activities under this program:

4.2.5. Proactive Customer Service Program #

Proactive Customer Service Program’s Purpose

To proactively identify and resolve potential customer issues such as bill shock, service disruptions, and quality concerns before they escalate, enhancing customer satisfaction and loyalty, and reducing the volume of inbound service-related queries.

Program Key Activities

• Implementing monitoring systems to detect and address service issues like outages or degradations proactively.

• Analyzing billing patterns to identify and mitigate instances of bill shock before they affect the customer.

• Engaging with customers through predictive analytics to foresee and solve potential issues.

• Establishing a preemptive communication protocol to inform customers of potential issues and the steps being taken to resolve them.

• Providing self-service tools and resources that enable customers to troubleshoot and resolve minor issues independently.

Program Pros

• Reduces customer churn by addressing service issues promptly, leading to increased trust and loyalty.

• Decreases the burden on customer service centers by reducing the volume of complaint calls and queries.

• Enhances the overall customer experience by demonstrating a commitment to high service standards and customer care.

• Can lead to positive word-of-mouth and an improved public image by exceeding customer expectations for service.

Program Cons

• May require a significant initial investment in technology and systems to monitor and analyze service quality and billing.

• Requires training and development for customer service teams to handle proactive service measures effectively.

• Needs sophisticated data analytics capabilities to predict and prevent potential issues accurately.

• Potential resistance from customers who may not appreciate proactive contact if not executed with the right frequency and messaging.

Impacted MoTs

Proactive customer care program is a mid-size undertaking that impacts certain key moments of truth. Here is an example list of moments that typically would include activities under this program:

4.2.6 Next Best Offer Program #

Next Best Offer is a usually an umbrella type of program that unifies other CVM programs such as Lifecycle Management, Up-sell / Cross-sell, Retention, etc. This program is extremely important when multiple commercial programs are targeting the same MoTs e.g.: Customer visits/messages in digital channel, or comes to store, etc. In this situation NBO decides which commercial offer is the most important at any given point of time.

The purpose of Next Best Offer program

To enhance customer value and increase revenue by selecting the best commercial offer for the customer during the moments of truth related to purchase. This includes recommendations for the optimal price plans (including price / resource optimisation), the best device recommendation, the best cross-sell offers, etc.

Program Key Activities

• Utilizing advanced analytics and customer data to predict and identify the next logical product or service each individual customer is most likely to purchase.

• Personalizing communication strategies to present these offers to customers through their preferred channels.

• Integrating NBO strategies into customer service and sales interactions to ensure timely and relevant offer presentation.

• Continually refining the NBO model with the latest customer interaction data to improve accuracy and effectiveness.

Program Pros

• Provides customers with highly relevant offers, increasing the likelihood of conversion and enhancing customer satisfaction.

• Optimizes the timing of offers, potentially increasing the uptake rate compared to non-targeted promotions.

• Supports more efficient use of marketing resources by focusing on high-probability opportunities.

• Reinforces customer perception of the brand as attentive and responsive to individual needs and preferences.

Program Cons

• Dependence on the quality and granularity of customer data, which requires robust data management systems.

• Risk of customer pushback if the offers are too frequent or perceived as invasive.

• The complexity of integrating predictive models with real-time interaction channels can be technologically challenging.

• Requires continuous evaluation and updating to ensure that offers remain relevant and effective in a dynamic market environment.

Impacted MoTs

NBO program is a significant undertaking that impacts most key moments of truth. Here is an example list of moments that typically would include activities under this program:

4.2.7 Next Best Action (NBA) Program #

Next Best Action is a highest level umbrella type of program that combines all (commercial ones like NBO and experience related ones like Loyalty, Branding or Proactive Support) CVM programs and all Customer’s moments of truth.

NBA Program’s Purpose

To optimize customer value management (CVM) by identifying and prioritizing the most impactful actions at every significant customer interaction point, ensuring that the customer’s immediate needs are met in a way that aligns with long-term business objectives.

Program Key Activities

• Developing predictive models to analyze customer data and behavior, identifying potential ‘moments of truth’ where specific actions can significantly affect the customer relationship.

• Integrating NBA logic into all customer touchpoints, ensuring that the most relevant actions are prioritized across all channels, whether in customer service, sales, or digital interactions.

• Coordinating across various CVM programs to ensure that actions taken are harmonious and follow a customer-centric strategy.

• Implementing real-time decisioning capabilities that can suggest next best actions during live customer interactions.

• Continuously refining the criteria for action selection based on outcomes and feedback to improve relevance and effectiveness.

Program Pros

• Enhances the customer experience by providing timely and personalized responses to customer needs and preferences.

• Increases the likelihood of cross-sell and up-sell opportunities by aligning offers with customer’s immediate context and history.

• Reduces churn by proactively addressing issues and offering solutions before customers consider leaving.

• Improves resource allocation by prioritizing actions that are most likely to drive customer satisfaction and value.

Program Cons

• Requires complex integration of systems and data sources to provide a unified view of the customer and inform the next best action.

• The dynamic nature of customer interactions means that the program must be highly adaptive, necessitating ongoing investment in machine learning and AI technologies.

• Potential risk of decision fatigue for customers if too many actions are taken or suggested in a short timeframe.

• Balancing the prioritization of actions across different business objectives and customer segments can be challenging and may require constant recalibration.

Impacted MoTs

NBA program is the largest undertaking that impacts all moments of truth. Here is an example list of moments that typically would include activities under this program:

4.2.8 Other programs #

Programs for specific customer segments

Activities tailored to specific customer segments, based on their unique needs, behaviors, attributes or characteristics. Some examples:

• Children program, e.g. bundle of children content + e-sim + smart watche for children.

• Students program, e.g. special mobile price plans, discounts on mobile devices and computers.

• Seniors program, e.g. special mobile price plans bundled with educational services and special devices.

Programs for specific products

Promoting or enhancing a specific product or service. Some examples:

• Migrating mobile customers from 4G to 5G plans.

• Migrating home customers to fibre optic technology.

• Introducing of converged products.

• etc.

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