Association of Educational Service Agencies · Transformation – Mobile Service – Contact Center Strategy – Online Self-Service Strategy Service Organization restructuring Customer

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Association of Educational Service Agencies “ESA Leadership: Tackling Today's Hard Questions.” Yesterday’s Customer Service is Tomorrow’s Customer Experience 2013 Summer CEO Conference China L. Widener, Principal Deloitte Consulting, LLP

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China L. Widener, Principal

Education and Training

• Certified PMP • Harvard, State and Local Government

Executives • JD, University of Maryland • BS, Eastern Michigan University

• Market – Public Sector Strategy and Operations, Operational Excellence ̶ Business Process Reengineering, Service Delivery Redesign, Service

Optimization, Technology Adoption and Change Management ̶ Clients include MN, PA, IN, TX, MA, KY, CA, NYC, San Bernardino County

• State of Ohio Government Executive (12B budget) ̶ Chief of Staff ̶ Chief of Operations (IT, Fiscal, Legal, Contracts and HR) ̶ Chief of Human Services (Child Support, Child Welfare, Medicaid, TANF and

SNAP programs)

• Public Sector Attorney

C A R E E R

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Drivers for Change in Government

Changes in Government

Technology Solutions

Changing Roles

Customer Capabilities

Performance Focus Fiscal Constraints

Customer Expectations

Customer Needs

Workforce Changes

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Current Market Conditions

Customers have transformed…

Customers expect more

from you than ever before

The strongest influencers

of your brand perception

are likely outside of your

organization

Thrift has become

fashionable resulting in

customers that are more

price sensitive

Customers have more

access to information,

and comparison shopping

is easier than ever

Reliance on traditional

strategies (e.g., low

price, product innovation)

Siloed organizational

structures by function

(e.g., by product, by

channel)

Risk-adverse leadership

Budget scrutiny with

higher expectations to

prove return on

investment

Lack of core analytical

capabilities

yet most organizations have not adapted…

Commercial Challenges Business Imperative

Customer Transformation

making Customer Transformation a necessity

Growth

Differentiation

Profitability S

usta

inab

ility

Current market conditions, commercial challenges and transformation

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Meaningful impact for customers means improved entity value (e.g., increased profits, positive word of mouth, and loyal customers)

1 - Sources: "Extreme Management," Mark Stevens; Deloitte Research, 2006; International Customer Service Association 2010; Forrester 2009

Impetus for Change1

Profitability

Word of Mouth

Loyalty / Retention

It costs between 6 and 7 times more to attract a new customer than to keep an existing one

Companies can boost profits anywhere from 25% to 125% by retaining merely 5% more of existing customers

Companies that make customer service a high priority see 12 times the return on sales than those companies with a low emphasis on service

Happy customers tell 4 to 5 others about their positive experience

Dissatisfied customers tell 9 to 12 others about their bad experience

Social media allows word of mouth to spread faster than ever

68% of customers stop doing business with a company because of poor service

95% of dissatisfied customers would continue doing business with a company if their problem was solved quickly and satisfactorily

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ESC landscape a national view

Ohio – 56 ESCs Texas – 19 RESCs ESCs

Indiana – 9 ESCs NY – 36 BOCES*

* Boards of Cooperative Educational Services

Governance/Structure

Stakeholders

Core Services

Funding Continuum

Professional Development

Special Education

Transportation

Education Technology

Cooperative Purchasing

Energy Management

Extended Services

Career Services

Educational Products

Data Collection

Technical Assistance

Magnate School Operations

Administer Grants

Fee for Services Government Support Teachers Students

Boards of Education Superintendents School Districts

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Innovation

Polling Question 1: As ESA leaders what areas do you think are ripe for innovation?

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Innovation Opportunities

Mobility Performance Management

Customer Expectations Predictive Analytics

Service/Product Creation

Partnerships

Social Media

Pricing

Selling

Marketing

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Key areas of consideration for managing business transformation

To compete, public and Not-for-Profit private entities must think like top performing customer experience organizations.

Customer Transformation Framework

Core Services

Branding and

Vision

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Core Services

Defining those services which are central and paramount to your organization’s business operations (i.e. your bread and butter) and focusing on growing and maturing those services

Polling Question 2: Do you believe that your ESA defines and communicates your core services?

Definition

• Clearly articulates internally and externally what the organizations core services are

• Provides organizational focus and reinforcement

• Helps determine priorities

Benefits Challenges • Defining the right type and mix of

services to provide • Diversified services for diverse

customers • Identifying the next “big thing” • Identifying the services to retire

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Branding and Vision

Clearly defining your organizations identity internally and externally through a shared and communicated vision and brand

Polling Question: Within what CY did your organization last update/affirm its vision? • 2012 or 2010 • 2010 or 2009 • 2008 or earlier • Never

Definition

• Clearly defines what the organization is and is not

• Provides direction for the organization next hire, next dollar invested

• Aligns priorities and performance with the vision and brand

Benefits Challenges • Creating a vision that is broad

enough to accommodate shifting trends but clear to customers and staff

• Determining what of the organization become in 3-5 years

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Texas Region 4 ESC Defines and Refines their Service Offer

In Texas, Region 4 ESC has clearly defined their core services and has become a global leader in providing Braille Solutions

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Client X Customer Journey

Best Practices from Other Industries

Pre-Journey Journey Post-Journey ESAs

Research Choose Order Use Service Evolve Typically

Cus

tom

er C

onta

ct C

hann

els Inte

rmed

iate

s D

igita

l M

ultic

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el

Pape

r

Friends / Family

Professional Support

Website

Mobile

Information Boards / Points

Call Centre Call Centre

Web Chat Web Chat

Brochures / Maps / Tour Guides / Leaflets / Press Ads

Information Posters

Stranger on a Street

Staff/Instructors/Facilitators

Professional Support

Social Media (e.g. Twitter, Facebook, Jive)

A few examples of cutting edge solutions that improve customer journey

2 3 1 4 5 6 7

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Customer Experience

Delivering a consistent brand promise across touch points that enables more value to be gained from customer relationships

Polling Question: How would you define your ESA’s current Customer Experience Strategy techniques in regards to maturity? • High • Medium • Low

• Applies the standard processes and procedures to all activities related to customers

• Allows for a uniform customer experience with an organization

Benefits Challenges • Reliance on technology can improve

productivity and effectiveness, however, can be expensive and possess a training need

Definition

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Customer Transformation offerings can be delivered as holistic transformational efforts or as individual projects that target specific areas or capabilities a client wants to improve.

Customer Experience

Customer Insights & Analytics

Marketing Transformation

Sales Transformation

Customer Service Transformation

Proj

ect T

ypes

Customer Experience (CE) Transformation

Channel Specific CE Transformation

– Contact Center CE Transformation

– Online CE Transformation

– In-store CE Transformation

Voice of the Customer Audit

Loyalty Program Development

Customer Segmentation Strategy

Customer Data Management and Mining

Performance Analytics

Advanced Analytics and Predictive Modeling

Customer Insights & Analytics Roadmap Development

Marketing Strategy/ Vision Transformation

Brand Effectiveness/ Valuation

Campaign Management

Marketing ROI Optimization

Marketing Organizational Design

Enabling Marketing Technology

Sales Transformation

Go-to-Market Strategy

Partner & Channel Strategy

Sales Process Design

Sales Force Effectiveness

Enabling Sales Technology

Customer Service Transformation

Channel Specific CS Transformation

– Mobile Service – Contact Center

Strategy – Online Self-Service

Strategy

Service Organization restructuring

Customer Service Metrics and Performance Management

Enabling Service Technology

The foundational and functional capabilities through a variety of project types

Customer Experience

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Cus tomer Insights & Analytics

Customer Experience

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Customer Insights & Analytics

Customer Experience

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Cus tomer Insights & Analytics

Customer Experience

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Cus tomer Insights & Analytics

Customer Experience

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Customer Transformation Project Types

Foundational Functional

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Technology Tools and Infrastructure

This includes automated tools, applications and infrastructure frameworks for use by staff, customers and managers. This infrastructure includes automated tools (laptops, notebooks, hand held devices) as well as mobile software, data centers, and networks.

• Can increase and streamline the flow of information to and within an organization

• Can increase sales opportunities, personalized, customer advertising

• Add efficiency and creates opportunities for productivity management

Benefits Challenges

• Initial investment • Adoption by customers • Adoption by staff • Proper governance

Definition

Polling Question: On a scale of 1-5 is your technology strategy aligned to your vision? Do the practices support how you go to market? • Very aligned: completed assessment of the management structure and tools • Aligned: no assessment but achieving most performance targets • Unknown: no assessment and no established performance indicators • Misaligned: performance targets are inconsistently met • Discordant: performance targets routinely not met , morale is a challenge, retention

is a challenge

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There are steps you can take today to begin improving your customer profitability

Ways to get more value now

Put the customer at the center of everything

you do

Reward behaviors

Bring your customer segments to life

Recognize that all customers are not

created equal

Create your vision

Start with your customers in mind

Experience what it’s like to be a customer by shopping your company’s channels and contacting your office/call centers/website. Do the same with your competitors. Talk to customer-facing employees to gain their insights. Validate your experiences with research, surveys, and focus groups.

Set your transformation trajectory by developing a customer experience vision for the organization and the strategy for executing it. Begin by defining your brand promise and how it will differ from your competitors’ in the eyes of customers and employees.

Capture data that provides insight into your customers and their interaction preferences, and measure your organization’s progress toward fulfilling its vision. Use this information to drive strategic and operational decisions and empower customer interactions at the front line.

Calculate the potential lifetime value for each customer segment, including the cost to serve them. Develop strategies that build loyalty and referrals from the most valuable customers. Likewise develop strategies to increase the value of less-profitable segments.

Make customer capability improvement an integral part of the day-to-day planning processes, corporate behaviors, and performance metrics.

Drive a customer focus from top to bottom as an executive priority coordinated across the whole organization. Align cross-functional goals, reward performance with incentives, and enforce accountability for results.

Embed a customer focus in technology management

Collaborate directly with IT as a business partner and customer advocate. Establish customer-centric principles as guidelines for technology investments and IT development roadmaps.

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Q&A

Two Ways: 1. Raise Your Hand 2. Use the Polling Process

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Contact Information

China L. Widener Principal Strategy and Operations | Public Sector Deloitte Consulting LLP 250 E. 5Th Street, Suite 1900 Cincinnati, OH 45202 Tel/Direct: +1 513 723-4174 | Mobile: +1 614 288-7135 Fax:+1 614-222-1179 or +1 866-259-3146 [email protected] | www.deloitte.com

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Customer Transformation efforts can provide sustainable improvement

Customer Transformation Strategies

Customer Transformation Strategies...

Customer Experience – Create consistent, positive customer interactions that improve profitability and loyalty across channels and touch-points.

Customer Insights & Analytics – Recognize patterns in customer behavior, across marketing, sales, and service interactions; and make insights quickly actionable at the front line.

Customer Service Transformation – Improve end-to-end enterprise service processes, create differentiation, and find ways to turn cost centers into profit centers.

Marketing Transformation – Develop, track, and analyze marketing metrics and brand perception to optimize return on marketing investments and enhance brand strength.

Sales Transformation – Improve ability to target specific customer segments and align incentives of sales force to increase success and efficiency of lead generation and conversion.

Increasing market share by differentiating your brand, establishing market leadership, and creating entry barriers for new competitors

Lowering the cost of acquiring new customers and increasing referrals and recommendations

Reducing customer support costs through more efficient operations that reduce customer frustration

Enhancing cross-channel capabilities to increase share of wallet across multiple customer touch points

Improving customer loyalty and satisfaction, resulting in customers who stay with the company longer, purchase more frequently, and demonstrate less price sensitivity.

Gaining higher returns on marketing and advertising investments

…can bring tangible benefits to organizations seeking sustainable improvement

Customer Transformation Benefits

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There are typically four key categories of leading practices associated with consumer websites

Navigation Content

Functionality Personalization

Position the home page as a directory and one-stop navigation page

Provide easier access to information

Design page layout to highlight key information

Provide descriptive hyperlinks

Compose prominent page titles

Enhance search capabilities and quality of results

Provide tools and calculators on key pages

Simplify online account registration

Support online self-service

Improve text legibility

Help consumers make decisions about your products

Provide comprehensive support content

Provide information on privacy and security policies

Sell the agency along with the product

Provide information to set online sales expectations

Market the benefits of purchasing online

Promote enrollment and registration

Recommend products to the consumers throughout the process

Segment site visitors to better focus content and tools

Best practices provide country specific websites

Keep a track of consumer’s pervious purchases

Request the consumer to provide product reviews

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Changing Customer Preferences

Research clearly shows a shift in customer preference for more mobile-based and individually-tailored experience

over

50% of mobile users in a

survey said they were

willing to share their location

in exchange for more relevant advertising

40% of mobile consumers

said they would be more likely to

interact with an ad if it was relevant to

their current location

2 3 1 4 5 6 7

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66% of consumers cross at least 1 channel for typical purchases (e.g. research online, purchase directly “in store”)

mobile phones have overtaken PCs as the most common Web access device worldwide

Only 13% of customers trust traditional advertising, while consumer reviews are trusted by 50%

Organizations that have chosen to make CE a top priority do so for a variety of reasons including to:

– increase sales from existing customers

– expand customer base

– raise customer satisfaction/ reduce attrition

49% of companies rate their capabilities of using real-time analytics to support personalization and offer optimization as poor/below average

There are significant disconnects between CEOs and CIOs on espoused priorities and understanding of how tactical value is derived from technology

The facts on how Customers and Organizations are changing

Customer Statistics Commercial Statistics

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Today, customers expect to be able to navigate the entire customer lifecycle using only their mobile devices

Discovery

Set Up Relationship

Maintain Relationship

Demonstrate benefits

Closure

Customer

More customers are expecting a seamless end-to-end consumer experience that is available anytime, anywhere. Mobile quoting, servicing, and claims transactions should be available in an app that is intuitive and provides the ability to send information to brokers in real-time.

Customers learn about the client services, options etc., .

Customers use the app to update information and data.

Customers can access benefits or information remotely.

Customers stop their relationships

Customers launch the app to connect.