TXU Energy and TELUS International - Building Strategic Partnerships

TXU Energy Strategic Partner Evolution Story

March 4, 2014

Utility Credit & Collections Symposium

Shane McDonald, Sr. Manager of Credit Strategy, TXU Energy

Jay Metcalf, Sr. Manager of Planning & Contract Management , TXU Energy

Scott Weeth, VP Account Management TELUS International

About TXU Energy

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Our TXU Energy Vision

Be the preferred retail energy partner in the communities we serve, by delivering superior value to our customers and stakeholders by having the finest people and solutions.

About TXU Energy

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Leading provider of electricity in the state of Texas Serving 1.7 million households and businesses Texas Electricity market was deregulated in 2001

Texas has the highest consumption of electricity in all of the US roughly equivalent to Kansas, New Mexico, Colorado, Arkansas, Louisiana, Oklahoma and Mississippi combined

Customers in Texas have Choice

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TXUE differentiates itself through Innovation providing customers Choice, Convenience and Control

Superior service is the foundation of our business

Texas is a growing market with intense competition Brand is important and ours is Trustworthy, Customer Centric,

Dependable, and Innovative

- 5 regions - 50 competitors - 250 plans / region - 5.5 million competitive households

About TELUS International

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Global arm of TELUS, our $13B telco parent with 13M customer connections

TELUS is a top 500 global brand worth over $3.6B (Brand Finance) Since 2005, TELUS International provides CCO & BPO solutions 16,000 team members across North America, Central America, Asia

and Europe serving global clients Care, tech support, sales, credit and collections for some of the world’s

largest brands 150M+ customer interactions via voice, email, chat and social media

Finding the right partner:

Our Partnership – Evolved Over Time

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Our partnership started in 2005 with a pilot Today, ~50% of FTEs serve front and back office requirements Locations: Guatemala, El Salvador and Xela

New lines of business added over the years:- Sales- Retention- Service- Chat - Issue Management- Exceptions- Credit & Collections- Back Office

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Trusted advisor role - reinventing processes:- Training- Complaint Reduction- Efficiencies- Use of Six Sigma

- D

Finding the right partner:

Vendor to Partner – What Got Us There?

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Vendor Partner

Productivity Focused Quality Focused

• Primarily low-complexity or low value contracts

• Emphasis on front line rep productivity

• Focus on substantial labor cost savings

• Utilize outsourcers for a growing variety of contract types and segments

• Look to vendor for customer insight and experience improvement areas

• Balance saving and efficiency with quality goals

Service Organization Priority:

Outsourcing Approach:

In house Operations

Vendor

Productivity Focused

In house Operations

Partner

Collaborative Relationship

Relationship with Vendor:

Finding the right partner:

1. Align on Culture

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Lessons learned:

One team, one goal, one customer experience We live the same brand values

We enable customer

experience innovation through spirited teamwork, agile thinking, and a caring culture

that puts customers first.

TXU Energy TELUS International

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2. Make Innovation Part of Your DNA

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In our competitive industry, product and service innovation is essential. Why?

Makes it easy for customers Makes them want to stay

But this requires our partners to keep pace

Responsive, expert, consistent support on our latest products and services

Supported by transparency and trust with open access to all TXU Energy systems

Help customers “use less of what we sell.”

Lessons learned:

3. Deliver Omnichannel Service

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Customers are creating more self-serve interactions than ever before. Agents are becoming Trusted Advisors.

Omnichannel service is expected via mobile, self-serve, social media, chat, email and voice.

Agents must be flexible, yet consistent when serving customers in their preferred contact channel

Partners must support seasonality and channel spikes

Natural Voice IVR

Web Self-Serve

Mobile – TXU Energy App

Social Media Support

Lessons learned:

4. Invest in Your People

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Help your team members excel both professionally and personally

Video: http://youtu.be/OEtgkWV1oSM

Establish a community of learning and engagement: T.Life

Put “career first, company” second: TELUS International University (TIU)

Create future leaders: TXU Energy Intern Program graduates

Lessons learned:

5. Deliver on Your Customer Experience Commitment

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“Meaningful” CSAT measurement takes time to get it right:

Evolves as your products change Evolves as your customers change Evolves as your competitors change

Today:

- Voice of the Customer (VOC)- Net Promoter Model - CSAT outbound calls- 300 to 500 sample calls/month

Evolution of Measurement at TXU Energy:

Post Call Survey: - Customer Effort- Customer Satisfaction- Agent Ownership- 40K calls per month

Lessons learned:

6. Build a “Caring” Culture

Brands need to stand for something bigger – have meaning A shared commitment to giving back enables better CSAT

26 TXU Energy team members + 150 TELUS International team members Built an entire classroom in one day

TELUS (and TXU Energy) Day of GivingTXU Energy in Action

Video: http://youtu.be/8abM7fO139A

Lessons learned:

7. Invest in Recognition and Fun!

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Themed rooms provide a cultural reference to client geo location

Company branded items show agents they are an extension of the team (the TXU Energy shoe!)

Team building events to get to know the global team – climbing a volcano!

Recognition programs keep agents engaged

Lessons learned:

Results from a True Partnership

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Sales Performance #1 partner in Sales for more than 3 consecutive

years Lowest historical attrition – below 20% annualized The partner to beat for conversion and customer

retention rates

Customer Satisfaction Took ownership to create an agent level dashboard

for Post Call Survey. Which was later adopted by TXUE for enterprise wide reporting.

Back Office Continuous improvements and efficiencies =

reduced FTEs, but more TXU Energy lines of business

A shared counterintuitive commitment to “use less of what we sell.”

Results:

Results from Transforming the Customer Experience

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2008 2009 2010 2011 2012 2013 2014

BPO Transformation Stabilization Optimization Customization

CRM Platform Upgrade Reconfiguration Initiative

TENETS

Self Service

Innovation

Best In Class

Low Effort CE

MethodologyFast

Cheap

QualityGood Customer Experience (CE)

Cost Conscious

Improving QualityImproving CEBest In Class

Calls (mm)

PERFORMANCE BASELINE

Future years represented as

variance to BASELINE

(20%) (33%) (50%) (53%)

Satisfaction + 1% + 3% + 6% + 7%

FCR + 8% + 12% + 13% + 15%

Web (mm) + 0.9 + 1.4 + 1.8 + 1.8

IVR Completion + 15% + 22% + 23% + 23%

Regulatory Complaints (38%) (69%) (82%) (88%)

Contact Center Reconfiguration strategy represents a phased evolution of the Customer Experience by engaging with high quality Partners aligned with our brand expectations, a

better experience for our customers and improved operating metrics.

Results:

Thank you! Questions?

Learn more:

Shane McDonald | TXU EnergySr. Manager, Credit [email protected]://txu.com

Jay Metcalf | TXU EnergySr. Manager, Vendor [email protected]://txu.com

Scott Weeth | TELUS International [email protected]://telusinternational.com