SERVICEPOWER AMERICAN INTERNATIONAL GROUP Case Study2018-1.pdf · 2018-08-12 · 4 SERVICEPOWER CASE STUDY AMERICAN INTERNATIONAL GROUP 5 AIG Success. ... since 2005. Deploying and

SERVICEPOWER CASE STUDYAMERICAN INTERNATIONAL GROUP

... when American Cornelius Vander Starr

started an insurance agency in Shanghai.

The AIG story

begins in 1919 ...

QUICK FACTS: AIG insurers paid an average of $111MM in claims worldwide every business

day, which translates to: $17.2B in US Net premiums, and $35B in Statutory Surplus.

The enterprise grew

first across China,

then across the globe,

AIG has helped customers solve problems for almost

a century. They recently came across a challenge that

couldn’t be handled on their own. The need for increased

visibility into their claims workforce management process

so that they could provide the best possible service

to their customers. Based on this need, AIG began a

customer-centric transformation and asked ServicePower

to become the technology partner of choice to help them

solve their problem.

2 SERVICEPOWER CASE STUDY

with every new market and culture, they deepened their understanding

of risk and helped create innovative ways to deliver value to their clients.

AMERICAN INTERNATIONAL GROUP 3

The Challenge Lack of visibility can be a serious problem

when it comes to field service.

Without field-service management technology you won’t know if the techni-

cian is on the way and whether they are able to correctly diagnose the issue

or have the right parts available when they arrive to fix the problem.

Therefore, real-time insight into contractor profiles (who, what, where), job

status and filed claims is crucial to your ultimate success. Customers and

internal stakeholders require constant communication from their field-ser-

vice organization in terms of contractor coverage, dispatched job status and

real-time activity on site.

The right field-service management software will provide you with visibility

into all of these critical areas, but you must be cautious when selecting the

solution platform. If the software is too simple, it won’t send work to the right

servicer/resource. If the software is too complex the servicers won’t under-

stand it.

4 SERVICEPOWER CASE STUDY

Choosing the Right Platform Service technicians don’t have the time or the desire to keep learning new

complex systems. The best new tool will be a waste of time and money if the

technicians are not willing to use it. For help selecting the right software

platform for your organization, download Field Technologies Field Service

Software Selection Survival Guide.

Key elements of AIG’s transformation strategy:

Recreating the business model for customer success

Deploying and fine-tuning technology

Driving efficient business processes

Improving customer satisfaction

Increasing customer profitability

Each element above was critical to the overall success of the strategy and

was driven throughout the business with CEO support. The first step in

the process:

4 SERVICEPOWER CASE STUDY AMERICAN INTERNATIONAL GROUP 5

AIG Success Recreating the business model for customer success

This strategy element required realigning the organization to support customer success, creating customer advocates at every level, and plac-ing the customer first in all decision making. AIG, like all service contract administrators, is a trustee of its client’s customers. Its clients are really the manufacturers of products for whom they provide underwriting and/or service administration and direct marketing services. However, the end consumer, (their client’s customer) is the most important member of the equation. Unhappy customers do not return to purchase additional products, they create negative social posts when service is delivered poorly, and they do not renew or purchase additional service contracts. So, creating a culture focused on the client and the client’s customer is essential to improving customer satisfaction, which drives additional revenue for both AIG and its’ customers.

AIG’s strategy for success focused on the following key tactics:

• Understanding all customer touch points• Creating dashboards to track progress• Continuously improving processes• Transitioning from traditional customer satisfaction metrics

to Net Promoter Scores (NPS)• Empowering technicians to be proactive, rather than reactive

As a result, AIG was able to manage call volume spikes throughout the holiday season and bring its average talk time, handle time, response speed and abandon rates all in line.

QUICK FACTS:

A+ Better Business Bureau Rating

Represent the world’s largest and most respected brands

$450MM Service Contracts written to date

$80MM active contracts in force

$4.5B in Service Contracts underwritten since 2005

Deploying and fine-tuning the technology

The Service Operations platform from ServicePower enables AIG to confidently offer appointments to end customers, and fine tune the composition of its third-party contractor network. AIG intelligent-ly dispatches work to those best suited for the jobs using rules and ranking parameters, such as job rejection percentages and number of claims submitted, as well as those meeting their service/repair KPIs, such as costs, parts utilization and cycle time.

As a result, AIG has been able to reduce the percentage of rework, or second truck rolls, across the third-party network. It has also reduced its work-in-progress span to fewer days, as well as reduce time-to-site, which measures the number of days from dispatch to physically

arriving for a scheduled appointment.

Driving Efficient Business Processes

AIG continuously works with its third-party networks to ensure accurate profile and capacity information in service operations, which contributes to higher percentages of accurate appointments. Working with its Information Technology and Operational teams, AIG

enhanced its Open Call Management (OCM) process, which every dispatch follows, through enhancements to:

• the AIG CRM System:• realigned and revised processes, as well as:• new messaging services.

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As a result,

AIG has

been able

to reduce:

percentage

of rework ...

work-in-

progress

days

span ...

as well as

reduce

time-to-site.

AMERICAN INTERNATIONAL GROUP 7

Elements of the OCM process include:

• Ranking emergency jobs as a priority, as well as increasing thefrequency of follow up for these jobs

• Proactively reviewing and managing the dispatch status• Contacting the Servicers with dispatches not accepted within

parameters• Immediately handling dispatches rejected by Servicers• Communicating with the End customer for follow up immediately if

an appointment is in danger of being missed• Deployment of an Outbound “day after” IVR

In addition, AIG contacts 100% of its customers the day after a scheduled appointment if a claim has not been filed or a status has not changed, such as ordering a part. They also follow a seven-day follow-up rule after an appointment’s scheduled date if the call status is not determined as completed.

AIG also defined several agent actions throughout the OCM process that were essential to improving end customer satisfaction.

Key actions taken by AIG agents during the OCM process:

• Contact consumer directly at critical points in the process, via bothphone and email;

• Contact servicers directly for status checks;• Escalate dispatches with back-ordered parts to ensure parts are

sourced in a timely manner and appointment commitments are notimpacted.

• Order parts directly on behalf of servicers when needed• Provide customers with status information regularly

Several

agent

actions

throughout

the OCM

process

were

essential to

improving

customer

satisfaction.

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Improving Customer Satisfaction

Thanks to ServicePower and Pega technology, AIG has demonstrated an increase in customer satisfaction, as indicated in the following metrics:

• Decreased escalations related to service provider issues• Positive Net Promoter Scores (NPS)• Increased proactive touches with end customers• Decreased time-to-site• Decreased progress time• Improved first-time fix rates

Increasing Customer Profitability

The transformation not only increased customer satisfaction, but it also yielded increased customer profitability, including:

• Decreased cost-per-claim, in terms of phone minutes• Decreased concession costs• Reduced labor costs• Lowered parts utilization and overall parts costs• Decreased concessions, in terms of gift cards and

product replacements• Increased end customer sales, in terms of subsequent product

purchases, contract renewals and new contract sales

AIG is an example of a field-service organization that truly understands what analysts like Aberdeen and Strategies for Growth have discussed. They have implemented a customer-centric strategy that ensures the customer is always number one.

Customer

satisfaction

is the top

metric

field-service

providers

need to

focus on

today.

The field service environment has changed significantly. Though it’s still important to focus

on internal metrics that decrease service costs and improve efficiencies, field-service

organizations must focus on the end customer. The end customer holds the power in our

service ecosystem. They expect more than repair service. They expect field service to be

proactive, utilizing technology that improves processes at every step of the customer’s

journey. They want skilled technicians who can also provide something extra, like ‘how to’

information. They want service providers to recognize their value and focus on satisfaction

as the number one most important task. Customer satisfaction impacts every repeat

purchase decision, every new customer referral and social media post, and any additional

revenue from renewals or new sales.

Customer satisfaction is the top metric field-service providers need to focus on today. AIG has transformed their organization to do just that and with the help of ServicePower the company is reaping the rewards of a customer-centric organization.

ServicePower is an integrated field service management solution focused on helping companies

deliver an exceptional customer experience at the lowest cost. Trusted by field service organiza-

tions around the world such as GE Appliances, ADT, Johnson Controls, John Lewis Partnership,

Electrolux, Mitsubishi, LG, BSH and AIG Warranty, ServicePower is the only workforce management

solution enabling organizations to efficiently manage both captive and 3rd party service providers.

Our digital technology enables improved customer satisfaction, reduces costs and generates new

revenue streams.

ServicePower also offers a fully managed network of 3rd party service providers to enable rapid and

on-demand servicing at peak times and in hard-to-reach locations across North America and Europe.

For more, visit www.servicepower.com