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Cellcom Case Study

Cellcom reaches tangible results with Incentives Solutionsb10234851883abccc7e3d35fb3cf5b3c1

Established in 1994, Cellcom Israel Ltd. is a leading Israeli cellular provider. Cellcom Israel provides its 3 million subscribers (as of December 31, 2011) with a broad range of value-added services including cellular and landline telephony, roaming services for tourists in Israel and subscribers, and additional services such as music, video, mobile office etc., all deployed thanks to Cellcom Israel’s technologically advanced infrastructure.

The Need for change

Cellcom, Israel’s leading operator, embarked on a new two-fold strategic plan to increase sales and reduce operating expenses.

Cellcom’s employee and partner incentive management system needed a comprehensive makeover, and Incentives Solutions was called in to manage and implement the company-wide project.

The INCENTIVES-PRO ICM suite was selected by Cellcom after evaluating a SAP module (SAP is Cellcom’s ERP) and a customized option.

Project Scope and Criteria

Cellcom sought a complete solution for Sales, In-bound and Outgoing customer service representatives (CSR) at call centers, retail stores, service depots, and for logistics employees, channels and partners.


The criteria:

  • Implement a centralized enterprise-wide system with inherent divisional empowerment for independent management capabilities by each division.
  • Support complex and creative incentive calculations including offsets, carousels, usage based incentives, competitions and leagues.
  • Analytics module including independent abilities and flexibility to create and update management, operational and analytical reports.
  • Regulatory, financial and internal process compliance with accounting principals.
  • Security and authorization mechanisms.
  • Integration track record with Amdocs Billing system, SAP ERP, contact centers and legacy systems.
  • Solution’s foot print and road map should meet future organizational requirements.

Rapid implementation

Cellcom chose to implement the system across the organization (as opposed to a stepped approach where each division is on its own).

The required time till production was 6 months.

  • A steering committee headed by Cellcom’s VP HR, and Incentives Solutions’ VP Delivery, was formed to oversee the project tasks, Gantt and on-going issues that may arise.
  • Incentives Solutions conducted the discovery phase and received Cellcom’s incentive plan information.
  • Cellcom’s IT personnel and Incentives Solutions’ team finalized the data structure (loads from the Amdocs billing system, SAP and other legacy systems), the required interfaces and the run time.
  • Each division’s incentives analyst assisted with the setup of the pertinent KPI and incentives models.
  • Initial set of operational reports was created.
  • Tests and parallel runs were held for the entire company for one month.

Reaping the rewards

The introduction of the INCENTIVES–PRO solution at Cellcom provided tangible positive results in performance improvements of both sales and service personnel, coupled with a reduction in cost for the incentive management processes. The overall ROI was achieved in less than one year.

Administration, IT and Cultural related Values and Benefits:

  • Administrative process costs were reduced by over 65%
  • Cellcom’s cost of outsourced services supporting the incentive process including, professional and administrative services, were reduced to null, which means 100% savings
  • All self development and maintenance costs were eliminated completely or substantially reduced. The IT division took a strategic management role in the partnership formed between the business users and Incentives Solutions.
  • Trust and a higher level of employee morale were built based upon full transparency of information for all levels and employees. “Shadow accounting” (a common practices of employees not trusting their payouts and company’s calculations) was thus eliminated.
  • 100% accuracy of information and calculations was reached, and mistaken payouts were eradicated
  • Financial accountability was secured
  • Over 200 reports were created to hand out to managers of all levels, in the various related divisions i.e. Sales, Service, HR, Finance etc.
  • Full history (INCENTIVES-Pro data mart db size exceeds 5 Terabyte) enables trend analysis and predictions
  • Special data entry screens have been adapted to replace previous sets of excels and other forms of peripheral information


Sales and Service values and benefits:

  • Sales KPI went up by over 15% (some Marketing Campaign members registered an improvement of 45%!)
  • Customer service level was improved by 4% to reach the top service level in the country at the annual telecom operators’ survey
  • CSR’s productivity is continuously improving, thanks to higher motivation and real-time issues, and team leaders and managers can focus on performance
  • CSR’s training time was reduced and time required for CSR expected performance was shortened
  • Retail store up-sales activities were up consistently.
  • Customer Service Depot managers reported satisfaction with the value-added capabilities that leverage efficiencies, reduce costs and improve service


In our agile and dynamic telecom market we put INCENTIVES-PRO to the test on a daily basis. We realized tangible results in sales effectiveness and service performance KPI. We provide our managers with full visibility tools to support their activities, our employees with a clear picture of Cellcom’s priorities as well as their own incentives opportunities as a means of increasing output and performance. This is one of our most intensive management systems. The system’s reliability and the prompt and attentive services we receive, enable us to concentrate on growing our business. Rafi Magen, Chief Planning and Control Officer, Cellcom, Sales and Service Division

Cellcom Maximizes Its Investment

  • Cellcom was the first to introduce the INCENTIVES-Mobility module.  Now, thousands of text messages are automatically generated and are being sent daily from the system with detailed personal updates and alerts to employees and channels.
  • Cellcom introduced the INCENTIVES i-Focus dashboard for managers and employees. The i-Focus provides middle management with on-line visibility of their subordinates’ performance, and increased agility to respond to opportunities and shortfalls in real time.
  • Cellcom expanded the Incentives Solutions’ System to include the full company bonus program. The program covers 4500 employees and managers. With this module, Cellcom plans, communicates and manages this highly strategic and sensitive process.
  •  Cellcom incorporated the annual merit and wage increase into the system.