Channel Shift – AKA Successful Customer Contact Management

Sarah Fogdenwww.trapeze-transformation.com

Chapter 1Channel Shift - The Long and Winding

Road

My “Channel Shift” World

• The Office of the e-Envoy• e-Government• Transformational Government• David Varney• The Service Transformation Agreement• NI14 and Avoidable Contact • “Digital by Default”• The Government Digital Strategy

Too many re-iterations of some very sound principles?

The Bigger Picture - The New Digital World

Technology Uptake 2000-2012

Everything should be made as simple as possible, but not one bit simpler.

Albert Einstein

i. Making The Case for Change

• Digital channel shift should be an organisation wide change programme, driven by a clear vision

• In addition you also need the support of stakeholders to provide the resources to deliver change

• It needs to be supported by a clear business case and sound project delivery plan

Laying Firm Foundations

CoreProposition

FinancialCase

TechnicalCase

QualityCase

How will the quality of outcomes as perceived by customers and politicians change?

Will it work for those delivering the services and is it technically sound?

Is it affordable and will it lead to cashable benefits?

ii. Matching the Channel to the Task

• Each channel will have its own specific strengths and weaknesses

• Each customer demographic will have different channel preferences

• Each channel proposition must meet the needs of specific services and processes

Three Simple Yet Key Questions to Ask About a Channel/Service

Combination

• Is it capable of achieving the outcome desired?

• Is it an economically sensible choice?

• Will your target customers use it?

iii. Targetting Services and Processes for Channel Shift

• Digital channel shift should be precisely targeted to areas where there is clear evidence that it will yield benefits

• All available information should be used to determine where channel shift is likely to work

• Channel shift needs to be delivered as part of a broader strategy for efficiency improvement across your organisation

Hard Benefits

(Cashable Savings)

• Headcount Reduction

• Estates Rationalisation

• Lower costs for contracted services and consumables

First - Know Your Benefits

Soft Benefits

(Qualitative Improvements)

• Easier to Access/Use

• Faster Delivery

• Offers ‘Value Add’ beyond existing service

Volumes of Customer Contact by Service

Service Telephone Face to Face White Mail Email Web TOTAL Estimated Cost

Benefits 60,000 45,000 50,000 4,000 2,000 161,000 1550400Switchboard 150,000 150,000 750000Revenues 110,000 13,000 0 3,000 800 126,800 747160Refuse 120,000 700 500 0 6,000 127,200 617000School Admissions 33,000 7,500 5,500 20,000 2,500 68,500 436500Registrars 35,000 1,900 700 1,000 1,500 40,100 215300Planning 7,000 4,200 3,000 6,000 1,200 21,400 160040Social Services -Childrens 25,444 300 4,500 30,244 153920Blue Badge 4,000 1,400 7,500 1,200 14,100 135600Social Services-Emergency 25,000 2,000 27,000 135000Env Health 22,000 600 0 1,500 0 24,100 125900Highways 22,000 150 250 7,500 29,900 116600Social Services -Other 19,000 150 19,150 97100Free School Meals 4,000 4,000 300 800 0 9,100 83600Social Services-Adults 10,000 500 10,500 52500Street Lighting 6,000 0 0 2,000 200 8,200 40040Social Services - Adoption 4,000 500 4,500 22500

All services Grand total 656,444 78,900 67,750 47,000 21,700 871,794

5,439,160

Then - Know Your Volumes and Costs A High Level Contact Profile for a Local Authority

Cost per contact based on SOCITM figures and PWC report

Attributing the £5.4m Contact Cost Pie to Services

Contact Cost Totals Benefits

Switchboard

Revenues

Refuse

School Admissions

Registrars

Planning

Social Services -Childrens

Blue Badge

Social Services-Emergency

Env Health

Highways

Social Services -Other

Free School Meals

Social Services-Adults

Street Lighting

Social Services - Adoption

• Do Nothing – It’s not cost effective or not a priority right now. This may be the case for small, complicated, low volume services.

• Manage Demand Better – The existing delivery model works, but can be more efficient if supported by new channels. This may be the case for complex services and processes such as Social Services and Education other than in Schools.

• Implement true Self-Service – The existing delivery model needs to be replaced by a new one based on customer self service. This may be the case for large volume services based on simple rules.

Then – Assess Your Options

iv. The Customer Service Proposition – Why You Should

Have One

“A promise of value to be delivered and a belief from the customer that value will be experienced.”

R Kaplan and D Norton

Was This One of Your Service Users?

The Service PropositionThe standard business view: increased PROFIT and MARKET SHARE based on:

• Delivery performance to customer

• Quality performance for customer

• Customer satisfaction rate

• Customer percentage of market

• Customer retention rate

The Public Sector Service Proposition

Which are still valid?

• Delivery performance to customer

• Quality performance for customer

• Customer satisfaction rate

• Customer percentage of market

• Customer retention rate

User Advocacy,Cost-efficiency

and Public Value??

v. Establishing a Benefits Based Business Case

1. Focusing on realisable benefits strengthens the case for change.

2. Make sure any benefits you claim for your change programme are clearly defined and understood by your stakeholders.

3. Apply a practical framework for measuring and tracking them over time.

4. Link any claimed benefits to your overall case for change and make sure they have identified owners responsible for their delivery.

Remind Me – What Was Your Case for Change?

CoreProposition

FinancialCase

TechnicalCase

QualityCase

How will the quality of outcomes as perceived by customers/politicians change?Will it work for

those delivering the services and is it technically sound?

Is it affordable and will it lead to cashable benefits?

Hard Benefits

(Cashable Savings)

• Headcount Reduction

• Estates Rationalisation

• Lower costs for contracted services and consumables

Re-Cap – Types of Benefits

Soft Benefits

(Qualitative Improvements)

• Easier to Access/Use

• Faster Delivery

• Offers ‘Value Add’ beyond existing service

Benefits in a Business CaseAny good business case should be able to:

• articulate and quantify its anticipated benefits• weigh up benefits/dis-benefits against expected costs• set out a plan for how benefits will be realised• offer a means of tracking and reporting benefits realised against forecast• match the benefits to the stakeholders

Because, how else are you going to know if your project/programme has succeeded?

What Your Business Case Has To Be

1. A clear statement saying precisely what will change on your balance sheet or in customer satisfaction terms

2. A solid commitment to change in quantitative terms (e.g. how much, where and when…..)

3. With specific, measurable targets (with owners) instead of the general and elusive aspirations of 'better' and 'cheaper‘….

vi. Effective Implementation Successful implementation of a channel strategy or

customer contact programme requires a process of considerable behaviour change for:

• service users • service providers • delivery partners • support teams (such as Comms, IT)• frontline staff • senior officers• elected members

Focus, sustained effort and teamwork are all needed to make change happen

But in practical terms – what does

this actually mean……??

A Practical Approachto Optimise Success

A. The Portfolio Approach

You will probably arrive at a mixed portfolio of projects that aims to:

• Gain customer and staff engagement• Change customer behaviour• Realise cashable savings• Remain affordable• Remain deliverable

But what’s precisely in this mix will vary with each organisation and its strategic goals

The Portfolio Approach – Examples

Few Users Many Users

Small Savings

Big Savings

Savi

ngs

Users

Schools

Revenues &Benefits

SocialServices

Refuse

Libraries

Recreation

Planning

Registrars

The Portfolio Approach – Example 1

Few Users Many Users

Small Savings

Big SavingsSa

ving

s

Users

Schools

Revenues &Benefits

SocialServices

Refuse

Libraries

Recreation

Planning

Registrars

Great opportunity to influence but limited savings potential

The Portfolio Approach – Example 2

Few Users Many Users

Small Savings

Big SavingsSa

ving

s

Users

Schools

Revenues &Benefits

SocialServices

Refuse

Libraries

Recreation

Planning

Registrars

Great opportunity to influence and make savings

The Portfolio Approach – Example 3

Few Users Many Users

Small Savings

Big SavingsSa

ving

s

Users

Schools

Revenues &Benefits

SocialServices

Refuse

Libraries

Recreation

Planning

Registrars

Good opportunity for savings, but complex and potentially risky

Politicians

Service Managers

Service Users

A good ‘Portfolio’ keeps all these people engaged and and confident that what’s important to them has been considered

B. The Project Planning Approach

Good project management is a crucial part of any change programme – but often the one given scant respect and consideration…..

Politicians

Service Managers

Service Users

Coherent project management also keeps all these people engaged and clear on their own roles in the change process

C. And Lastly - Pace

Driving and maintaining the pace of change is a key element in any transformation programme:

• Change doesn’t happen by itself • The rate at which you implement change will also

have a significant effect on the financial bottom line • The cost of infrastructure and IT can be large – and

whilst it’s easy to spend money rapidly on IT, it’s harder to get rapid returns on the investment

All components of the change programme need to coordinate well to ensure investments, especially those in technology, are exploited as fully and quickly as possible.

Politicians

Service Managers

Service Users

Maintaining the pace also keeps all these people confident of a successful outcome and investment in change, and bought-in to ongoing transformation

Chapter 3What Makes All the Difference –

Four Challenges

Cashable savings are probably your prime objective and there are only three significant sources:

• Headcount Reduction

• Estate Rationalisation

• Better commissioning of services/less waste

If your channel shift programme does not produce these then it will not give you cashable benefits no matter how ‘digital’ you look

A. Focus on Those Benefits!

B. Avoid Magical Thinking!

ERDMSSystem

Apps

CRMSystem

Website

Agile WorkingSocialMedia

Using the technology does not imply you realise benefits

Source Face to Face

Telephone Post IVR Online

PWC Report [3] £10.53p £3.39p £12.10p NA £0.08p

SOCITM [9] £14.00p £5.00p NA £0.20p £0.17p

Credible? Yes Yes Yes Yes Yes

Cost per transaction and assumed potential channel shift savings

C. Think Really Logically……

Sounds all very plausible, BUT……………..

Source Face to Face

Telephone Post IVR Online

PWC Report [3] £10.53p £3.39p £12.10p NA £0.08p

SOCITM [9] £14.00p £5.00p NA £0.20p £0.17p

What’s the Problem?

These values have important simplifications embedded:

• They are mean values for multiple sectors and processes

• The are not necessarily ‘like for like’• Calculations assume straightforward and complete shift

from one channel to another

So Remember - Digital is not always cheaper

For every Amazon, Google and Facebook there are countless forgotten online failures

Group E Middle income families in moderate suburban semis

10,886 21%

Group C Wealthy people living in the most sought-after neighbourhoods

7,858 14%

Group F Couples with young children in comfortable modern housing

7,546 12%

Group D Successful professionals in suburban/semi-rural homes

7,396 13%

Group H Couples & young singles in small modern starter homes

5,874 9%

D. Know Your Customer

MOSAIC Figures from a District Council in South of England

Chapter 4Some Happy and Sad Endings…..

Student Loans

Online School Admissions and Online Free School Meals

The Moral of the Tale?Think About the Money

and the People First –

And Then Harness the Technology

• Thank You

Trapeze is Sarah Fogden & Gerald Power

There are more resources available at our websitewww.trapeze-transformation.com