Cashing in on the Customer Experience

L E A D E R S H I P P R O B L E M SO L V I N G V A L U E C R E A T I O N

Copyright 2007. Alvarez & Marsal. All Rights Reserved.

Alvarez & Marsal

November 16, 2007

Cashing in on the Customer Experience

Optimizing the Customer Experience

Empiria Group

Copyright 2007. Alvarez & Marsal. All Rights Reserved. 2

Agenda

• Why Call Centers are Focusing on the Customer Experience?

• Measuring the Impact of Call Center’s Profitability on the Customer Experience

• Lessons Learned

• Q&A


What Humans and Vampire Bats Have in Common

Trust is the perception by customers that a firm is doing what’s best for them and not just for the firm’s bottom line.

According to Forrester Research, customer advocacy is the best indicator of whether financial services companies are able to achieve cross-sell success to a customer base. Consumer Trust is a critical driver for Consumer Authenticity


The Trust Gap Between Companies & Consumers Widening


So Let Me Ask a Question…..

“Thinking about our experiences with call centers, what drives us to ‘love’ or ‘hate’ a particular experience?”


Call Center Experiences Influences the Value Proposition

“The Call Center’s Impact on Company Brand and Image” by Dr. Jon Anton and Anita Rockwell


“Moments of Truth” Defined

Surprises, trials and tribulations

(Contact Center Agents making non-routine

decisions)

Predictable customer lifecycle events

Threats to cost efficiency Business as usual

High

Cu

sto

mer

E

ng

ag

emen

t

Low

Low HighProcess Standardization


Competitive Pressures Facing Most Call Center Organizations


Is Your Call Center a “Liability” or an “Asset?”

Develop tactics to close the expected-vs.-actual gap (incorporate VOC and benchmarking)

1a. Review SLAs with hosting vendor1b. Minimize size of graphics to speed page loads

Determine actual customer experience

Determine critical customer touch points (aka, “Moments of Truth”) from customer’s viewpoint

“Interest Me” “Meet My Initial Need”“Keep Meeting

My Needs”

Develop reward & recognitionfor achieving or exceeding expected customer experience

Develop appropriate set of rewards and recognition5

4

3

2

1

1a. Website available = x%1b. Website satisfaction = y2. Recognition factor = z

1a. Website available > 99.99%

1b. Website satisfaction > 4.5

2. Recognition factor > x

1. Marketing web site2. Advertisements

Defining the Customer Experience

Document Expected Customer experience (incorporate VOC and benchmarking)

Sales Fulfillment ServiceProcess

1. Apply by phone2. Apply by website3. Get notification of decision4. Close financial transaction

1. Account issue raise by phone or email

2. Complain by web mail3. Receive solution to complaint4. Hear about other products5. Take part in surveys

1a. Average hold time < 2 min1b. Application time < 10 min2a. Website available > 99.99%2b. Application time < 15 min

1a. Average hold time < 2 min1b. 1st time resolution > 95%



Alvarez & Marsal

November 16, 2007

Measuring the Impact of Call Center’s Profitability on Customer Experience


Customer Experience & Shareholder Value

Source: The Journal of Marketing


…You Are Not Crazy If You Are Listening to Your Customers

“The voice of the customer IS NOT in your head; it’s the ACTUAL

voice of the customer!”


Case Study: NetBank*

• Acquisition, share of wallet and retention are top priorities

• Execution of world class relationship management and seamless customer service across multiple channels

• Organizational focus on customer churn

• Quality improvement projects in our control could make a difference in attrition

* As of September 28, 2007, NetBank was acquired by ING Direct


Case Study: NetBank*

• After Call Based Survey Administration

• Receive alerts in real time when the customer expresses a pain point

– NetBank Customer Care and Outsourcer are copied on all alerts

– Team Lead from NetBank contacts the customer to resolve issue no later than 48 hours from the time the alert is received

– Once issue is resolved, Team Lead shares the information to customer care management team and outsourcer

• Quality improvement initiatives are created to close gaps

• Agent coaching is administered when necessary


Voice of the Customer & Call Center Profitability

Our call center profitability was operating at 227% within 12 months of implementation

Formula for calculating Contact Center ROI

Captured by monthly VOC

Provided by marketing

Lessons Learned

Reduce costs

Emphasize Customer Retention

Reduce costs that impact the customer experience

Understand why customers are not profitable

Differentiate customer treatment

Partner with Marketing

Eliminate “dumb” contact drivers

Move the customer closer to the experts

Empower agents to make non-routine decisions

Change agent behavior

Develop a sales process

Use QA & Sales Coaches

Sell where it makes sense

Short-loop learning & implementation

Managing moments of truths

Incentives & Concessions

Incrementally improve revenues

Focus on Customer Lifetime Value


Questions & Answers

Art Hall

Former Vice President, Sales & Customer Care, NetBank

Management Consultant, Alvarez & Marsal

3399 Peachtree Road, Suite 1900

Atlanta, Georgia 30326

Office: 404-260-4152

Email: [email protected]



Alvarez & Marsal

November 16, 2007

Cashing in on the Customer Experience

Optimizing the Customer Experience

Empiria Group