1. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 CASE STUDY analysysmason.com SOCIAL CUSTOMER SERVICE SOLUTION HELPS T-MOBILE AUSTRIA IMPROVE ONLINE CUSTOMER ENGAGEMENT ATUL ARORA

2. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 1: Customer service through social media channels 2 T-Mobile Austria, as part of its brand differentiation strategy, deployed a social customer service solution to improve customer support and experience on the social media channel. T-Mobile Austria is part of the Deutsche Telekom group. It is Austria’s second largest mobile service provider. The company operates under two brand names, T-Mobile Austria and tele.ring, focusing, respectively, on the high-value and budget end of the market. This case-study describes how T-Mobile Austria deployed a software-as-a-service (SaaS) based social customer service platform to support its technology savvy customers with their issues and complaints on social media. The company wanted to increase its customer interaction on the social channels, as a means of building a reputation of offering differentiated customer service, than its competitor brands. For this purpose, the company wanted to automate the workload distribution process, while also having access to information from multiple sources at a single location. In addition, it wanted to use social media for understanding industry developments as well as send out key messages to its customers. T-Mobile Austria worked with Brand Embassy to deploy a social customer service platform that enables it to offer an improved level of customers interaction. Its machine learning and automation capability reduced the time for interaction, while single-platform allowed easy monitoring of performance KPIs. Executive summary Source: Analysys Mason Facebook Twitter Google+ Instagram Source: Analysys Mason BRAND EMBASSY PLATFORM CUSTOMER SERVICE AGENTS SERVICE INTERACTION AUTOMATED DISTRIBUTION SOCIAL CHANNELS YouTube

3. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 2: Active SIMs by type and smartphones as a percentage of handsets, Austria, 2010– 2014* 3 *AUSTRIA TELECOMS MARKET REPORT 2015AUSTRIA TELECOMS MARKET REPORT 2015 Austria has a highly penetrated mobile market with 11.6 million active mobile SIMs and a population penetration of 136% at the end of 2014. It is predominantly a post-paid mobile market accounting for 76% of active mobile SIMs subscriptions in 2014. The market is driven by the adoption of smartphones in the country, more than doubling from 33% in 2010 to 79% in 2014. This has resulted in increased demand for mobile services as well as a higher usage of data. In addition to the smartphone growth, Austria has seen rapid growth in 4G SIMs since the launch of first LTE services in 2012, accounting for 20% of the active SIMs at the end of 2014. There are 3 major mobile Communication Service Providers (CSPs) competing in this market. Telekom Austria leads, accounting for 44% of the market, while T-Mobile Austria and 3 (Drei) account for 31% and 25%, respectively. In line with the increasing smartphone penetration in the country, the revenue from data (excluding SMS/MMS messaging) has grown continuously, at a CAGR of 6% between 2010-2015. While the growth is slower than previous years, it has increased its contribution to overall mobile service revenues during this time, from 19% in 2010 to 32% in 2014. Business environment: Austria is a mature market with increasing data usage Source: Analysys Mason

4. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 3: T-Mobile Austria service revenues 2012 – 2014* 4 *AUSTRIA TELECOMS MARKET REPORT 2015AUSTRIA TELECOMS MARKET REPORT 2015 T-Mobile Austria is the second-largest mobile operator in Austria. The company is part of the Deutsche Telekom group. It operates under two brand names. T-Mobile Austria is focused on the high- value customers, while ‘tele.ring’ brand, the name which the company retained after the acquisition of rival operator, is targeted towards the budget end of the market. The company only offers mobile-based services in the country. T-Mobile Austria’s mobile services revenues have been declining over the past few years, primary due to the decline of voice revenues. In comparison, data (including SMS/MMS messaging) contribution continues to increase, standing at more than 42% of the overall service revenue of the company in 2014. The company’s strategic focus is on retaining and acquiring high- value customers. It has been increasing its LTE coverage to provide a consistent experience to its customers. In addition, the company launched offers that empower customer while providing them with clear information on offered services and plans. As an example, the CSP allows its customers to change their smartphones every 12 months, while also separating the cost of the smartphone from the tariff plan. Furthermore, to promote fairness, it is offering opportunity to existing customers to switch to new tariff plans that are offered to new customers, while also offering all new smartphones in unlocked mode. T-Mobile Austria is the second largest mobile operator with strong focus on high-value customers Source: Analysys Mason 1030 964 921

5. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 5: Overall mobile market-share in Austria* 5 Austria had 11.6 million Active SIMs at the end of 2014, which was a decrease of 2.9% from 12.0 million SIMs at the end of 2012. With the population penetration standing at 136%, the subscriber growth in the country has declined for the past couple of years. In addition, the ARPU for the mobile sector has shrunk by 28% between 2010 and 2014. As 4G services grow, the CSPs in the country are pushing for mobile data replacing broadband services. This has resulted in intensified attempts, by CSPs, to gain and keep high-value customers. As a result, CSPs are offering highly subsidised handsets to their customers as a means to drive contract penetration or increase customer lifetime value. Adding to this increase in competitive pressure, regulations have been eased for MVNOs in the country, further increasing the threat to the business. As a result, T-Mobile Austria has lost more than 25% of its service revenue between 2010 and 2014, while its ARPU has declined by 32% during the same time period. The operator realised that in order to maintain its user-base while also attracting new subscribers, it needed to differentiate itself from its competitors. Social media channel presented this opportunity to the CSP. Figure 4: Overall mobile ARPU in Austria* Business challenge: T-Mobile wanted to improve customer experience by offering customer service and engagement on social channels Source: Analysys Mason *AUSTRIA TELECOMS MARKET REPORT 2015AUSTRIA TELECOMS MARKET REPORT 2015

6. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 6: T-Mobile Austria’s objectives and solution requirements 6 T-Mobile Austria wanted to benefit from the growing importance of social media in the business world. In addition to its usage for providing customer service, it wanted to use the channel to better understand the developments taking place in the market, in real-time. T-Mobile Austria was observing the growing usage of social media among its customers. It wanted to leverage the channel for creating a differentiated experience for its customers, while adding value to the business. The CSP was looking for a solution that would help it achieve the following objectives: Engage with customers across social media channel Monitor industry developments Publish updates and inform customers Automate workload distribution process Report on team performance Following its review of the available social media solutions in the market, including multiple pilots, the CSP selected Brand Embassy’s solution for its simplicity, usability and feature set, including automation and machine learning capabilities. Solution approach Source: Analysys Mason Customer engagement Industry monitoring Publish information Internal reporting Workload automation T-Mobile Austria objectives and requirements

7. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 7: Diagrammatic representation of interaction on social channels 7 T-Mobile Austria implemented Brand Embassy’s social platform solution for both its high-value and budget-focused brand. The solution enables the CSP to manage interaction on the social channels through a single platform. It enables the CSP representatives to respond and interact with the subscriber in a timely and efficient manner. The solution using machine learning to route and distribute incoming messages to available agents in an automated manner. In addition, It also allows for keyword- based monitoring as well as defining roles for the CSP agents, helping the automation process. The solution is offered through a SaaS delivery model. T-Mobile Austria deployed the solution to monitor multiple social networks, including Facebook, Twitter, Google+, YouTube and Instagram. The company did not integrate the solution with its legacy CRM system. Once the customers identity is confirmed, the process of connecting this information to legacy CRM is manual. The time taken to deploy the solution was minimal. Following the provisioning of the platform from the vendor, the CSP was able to connect all five social platforms of choice within a few hours. Implementation details Source: Analysys Mason CSR Customer interaction channels Customers CRM Subscriber management CUSTOMER CARE BRAND EMBASSY PLATFORM SOCIAL CHANNEL INTERACTION Traditional interaction FACEBOOK TWITTER YOUTUBE INSTAGRAM GOOGLE+ Posts on social media Monitoring & Engagement Automated workload distribution

8. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Figure 8: Benefits achieved from the deployed social customer service solution 8 The deployment of Brand Embassy’s solution has helped T-Mobile Austria with improved response rates to customer queries and trouble-reports on social media. The automation capability has reduced the time required to assist customers. Customer interaction: The solution has helped T-Mobile Austria serve more customers through social media, without deploying additional resources. The interactions on these channels have more than doubled between October 2014 and 2015. However, the team-size has stayed the same during this period, helped by the solutions’ ease of use, and automated workload distribution capability. The solution also allows for releasing important information, such as network outages and maintenance updates. Increase in number of cases handled: Using the deployed social customer service solution, the customer service agent is able to serve 3-4 times more customers as compared to an agent handling call-based interactions. Monitor and measure: The solution enables managers to measure the performance of their department and team members, for any given period. It allows them to monitor key KPIs such as first response time, resolution time, as well as information around customer journey. Furthermore, it helps CSP in monitoring industry trends, using keyword-based monitoring, on online channels and its own forums. This enables the CSP to better understand customer opinion on its own services, as well as that of its competitors. Benefits include automation and increased engagement on social channels Source: Analysys Mason Call-based supportSupport using solution CSRs using a customer service solution handled up to four times more customer cases than call-based CSRs SOCIAL ENGAGEMENTS WITH CUSTOMERS MORE THAN DOUBLED AUTOMATION EASE OF USE PERFORMANCE MANAGEMENT

9. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 9 Further reading TypeTitleAuthor(s)Link Country report Austria telecoms market report 2015 Enrique Velasco-Castillo, William Hare http://www.analysysmason.com/Research/Cont ent/Country-reports/Austria-country-report- RDDC0/ Strategy report Social media is entering the mainstream of CSP customer care operations Atul Arora, Mark H Mortensen http://www.analysysmason.com/Research/Cont ent/Reports/social-media-customers-Jan2015- RMA11/ Article Customer service via OTT messaging apps is the next step in social media for CSPs Atul Arora http://www.analysysmason.com/Research/Cont ent/Comments/Customer-service-chat-Sep2015- RMA11/

10. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 Atul Arora (Analyst) is a member of Analysys Mason's Telecoms Software research team and contributes to the Analytics, Customer Care and Digital Economy Platforms programmes. His areas of interest include omni-channel customer care, context-aware analytics and digital enablement. He has published reports on use of social media in customer care, data monetisation through contextual marketing and mobile advertising. Atul has worked on a range of projects for telecoms operators and vendors, which have included forecast modelling, RFP preparation and market assessment for vendors. He holds a bachelor's degree from Jaypee University (India) and a Master's degree in Neuroscience from University College London. 10 About the author

11. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 11 About Analysys Mason Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Our focus is exclusively on TMT. We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit www.analysysmason.com/consulting Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit www.analysysmason.com/research 11 Consumer and SME services Digital economy Regional markets Network technologies Telecoms software Strategy and planning Transaction support Performance improvement Regulation and policy

12. Social customer service solution helps T-Mobile Austria improve online customer engagement © Analysys Mason Limited 2016 PUBLISHED BY ANALYSYS MASON LIMITED IN Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0)20 7395 9000 Email: research@analysysmason.com www.analysysmason.com/research Registered in England No. 5177472 © Analysys Mason Limited 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party. February 2016