customer loyalty conference 3

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Customer Loyalty conference :Best pract ice in Customer Experience Management

Customer Experience management : Orange business case

Jacob Fleming Conference 21th april 2010 Budapest

DuVarroy Consulting

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Customer experience management is critical for TelcosCustomer experience management is critical for Telcos Customer experience management needs a

comprehensive approach A different view of the business Specific methods

Customer experience management is becoming a top priority of Orange :

Products in life management : IEW Product design and development

Measure and control : NPS and maturity model Conclusion : customer experience a new philosophy of

business

Content

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Customer experience management is a business oriented concept, not a technology matter

� What could be an industry definition :

The discipline, methodology, and process used to comprehensively understand, measure, and manage a customer’s cross channel and touch points exposure interaction and transaction with a company, product, brand or service to facilitate success through a competitive

value proposition and more profitable relationship.(Frost and Sullivan September 2009)

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Customer experience management is critical for Telcos!� “Technology is irrelevant to customers.

It’s all about services” :– Level of service perceived as mediocre compared to other activities

– Telcos are consumer product companies – Over the last 5 years CEM has become a major talking point

� In a mature market it’s relationship

with the customer that is key for the business and revenues

> Weight of churners market : high expectations for service

> Innovation and Differentiation : the example of Apple

> When Products are increasingly becoming commodities,

differentiation is coming from services (mobile OS)

> Engender operational efficiencies for reducing costs

> Hyper competition and proliferation of Value added services and devices

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Source: genesys white paper march 2010

Value is coming from being close with the customers� Main drivers for customer experience management

– Churn reduction– Improvement of quality of service– Process improvement– Competitive differentiation by using large amount of data about consumer usage in product design and

sales – Ability to understand customer’s need at a micro-segment

> Customized offers :One to one approach vs global reach

> New types of service

> Relationship of excellence : Listen, understand needs, react– Relationship with customers is the most important thing to drive growth with new services

> Develop and test new services,

> Quality of in life management : adapt services following customer experience

> Narrow customer focus can reduce costs of marketing and operations

> Product development targeted on segment or geographies based on expectations

� Restraints – Silo focus– Conflicting priorities– Contradictory measures of performance and incentives

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Customer experience management is critical for Telcos Customer experience management needs a Customer experience management needs a

comprehensive approachcomprehensive approach A different view of the businessA different view of the business Specific methodsSpecific methods


Products in life management : IEW Product design and development Measure and control : NPS and maturity model

Conclusion : customer experience a new philosophy of business

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Customer experience management requires a different view on the business and its true assets

� Customer experience is the result of all interactions of the customer with the company :

– Customer experience derives from the service provided by the company, generally built on a product– Complexity of solutions (devices, software, offers) gives high value to the service : installation,

customer support, problem solving– Billing is the most visible interaction for the customer

� The customer experience is the direct outcome

of a comprehensive business approach : > Relationship

> Ergonomic and easiness to use

> Performance and quality

> Value and social status

� Taking care of the customer involves

all the organization: behavior, culture

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Customer experience management needs specific methods

� Key value drivers for the customers have to be identified :> Identify key elements of the customer experience : nature, touchpoints,

> A question of company culture : support people enhancing customer experience

> Differentiate with competitors

� Taking care of the customers needs to change the way you see the business :> Level of forethought : design the process with the customer in forefront of consideration

> See yourself in the customer service business

> Design business process with full knowledge of the customer touch-points

> Consider what creates value from the customer’s standpoint

> Include a systematic response to address negative experiences

� Effectiveness> Variability in services interactions leads to a loss of effectiveness : six sigma approach

> Variability creates uncertainty, uncertainty leads to lack of confidence

� Measure : Benchmarks and scoring> Net Promoter score

> A wider view of scoring the maturity of the company in customer experience management

� Different approaches for mass market, business and wholesale

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Customer experience management is critical for Telcos Customer experience management needs a


Customer experience management is becoming a top Customer experience management is becoming a top priority of Orange : priority of Orange :

Products in life management : IEWProducts in life management : IEW Product design and developmentProduct design and development Measure and control : NPS and maturity modelMeasure and control : NPS and maturity model

Conclusion : customer experience a new philosophy of business

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Customer experience management is a priority for Orange

� Different approaches for assessing customer experience used by Orange– Analysis of customer experience with existing products : identification of pains– Questionnaire for mass market or large customers : benchmark with other service

providers– Test of new products or services at the « think » step in product development : customer

interaction through a specific team (design unit), real commercial test (Orange Vallée)

� Customer experience is becoming a top priority of the group– A mean of differentiation with other service provider for increasing market position and

brand awareness– Fuel for cooperation and engagement of employees– Direct impact on operational costs and revenues per customer

� Engagement of the management– A dedicated deputy CEO for quality, customer experience and social responsibility– A comprehensive approach involving all parts of the organization– Shared approach with countries and delegated responsibilities– A specific focus on customers in line with cultural mindset– One major parameter for incentives of the management

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Customer experience in the product development process

� TTM : a common product development process along the group :

� Customer experience is used at different steps of the product design :– Exploration (before T-1)– Design and development (T0-T2)– In life management (T4-T5)

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Customer experience management used for improving existing services : the IEW case

First step is to identify key customer moments alongside the customer journey across products in order to describe key learning from the customer voice and look at the customer journey

This Customer Experience approach targets lower churn and customer advocacy

Objectives with this analysis1. Identify common customer pain points and key customers moments of truth2. Share those conclusions with each country 3. Map conclusions (group and local) with actions (existing or to be defined)4. Share those conclusions with product development unit for new propositions5. Share those conclusions with quality to improve operational KPIs in relation with

customers needs� Overall context of IEW

– IEW customer base growing fast from 0,8M in 2008 to 2M in 2009 end of year (E8 countries)

– growth of more than 40% (H2 09 vs. H2 08)– Mobile Broadband tariff portfolio in constant extension over all European countries

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Internet Everywhere Customer Journey

1. Identification of the key stages of the customer journey = chapters of the customer story2. For each main chapter key learning’s from different countries + research and study learning's 3. This description can be considered as global and generic4. 5 key moments analysed and leading to action plans

TerminateEvolve & Renew

Use & Get Help

Set-up & first useJoinBe aware

Customer Life Cycle

I need help

I manage my account

I receive my invoice, I pay it

I do not want anymore this proposition

I get informed

I get a proposition

I order/subscribe

I make product mine

I get equipment delivered

I install & configure my product/ service

I use for first time

I receive my first invoice & pay it

I Pay

I manage my account

I need help

I want to terminate my offer / service

I buy

I get my service active

I have a needI use

I want to upgrade or renew DuVarroy Consulting

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Key elements of the customer experience (IEW business case)

JoinBe aware Set up & First use Use & get helpEvolve &

renewTerminate

Get proper information concerning l imitat ion in Go

Easiness to contact orange

Low speed , coverage and disconnection

Eligibil ity: quality of 3G network

Quality loop:Calls-Interventions

Quality loop:Delivery-Assistance

Synchronization of device delivery (SIM + modem) (FR)

Instal lat ion of the kitCompatibility of the device with the laptop (brand or OS version)

Invoice : fees are higher than expected

Local responsibility

Product responsibility

Technical responsibility

Get information concerning coverage

Get information concerning compat ibi l i ty

Get information concerning speed

First bill shock

Proper fidelity plan

Level of expert ise of CS Technical assistance

Usage monitoring tool

Get examples of usage in Go & minutes

Understand offer presentation and how it f i ts my needs

I can not change my offer if not consistent with my experienced usage

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5 prioritised Customer Moments identified, common in analysed countries

3- Give me options that fit 3- Give me options that fit my lifestylemy lifestyle• Give me what’s the best for me. Direct me to the right MBB solution•What are the benefits and value of business vs. consumer deals?•Embedded vs. dongle – what’s best for me?•Tell me which contract is right for me (with clear, up front discussion in internet usage language)

2- Talk to me in a 2- Talk to me in a languagelanguageI understandI understand• Say it simply !• I do not know enough about usage, what means X Gbytes or Y minutes ?•Help me with an idiot’s guide•Help and care, don’t sell•I do not know exactly what the package consists of.

5- Give me the flexibility 5- Give me the flexibility to change my dealto change my deal• Give me a solution that works and change it if it doesn’t•Give me flexibility in my package• Today I do not renew due to speed and cost.

4- Help me understand 4- Help me understand how much I’m using & how much I’m using & keep an eye out for mekeep an eye out for me• I need to know what my usage limits are in reality•A clear bill total and costs if I go over•Help me keep track of my usage

1- Make sure it works/ 1- Make sure it works/ Manage my expectationsManage my expectations

• It is not good as they promised•It is slow !

•A quick, easy and stable connection•A quick and easy self start up

•Make sure I get coverage where I need it•Make it easy for me to get help

•Tell me what to do if it doesn’t work

Service PerformanceCustomer Support Set-up and Start-up

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Reasons to contact orange Service Performance, Network coverage Equipment issues , PC Installation assistance Billing Delivery

Relationship : Easiness to contact orange Channels to contact CS: 30% by web (mail+online) and 70% by phone IVR choice is not simple for a customer and waiting time before being answered is judged too long 71% succeeded to get through CS on the first attempt over the phone during their last call and 64% rated CS as “Very/quite easy to understand”•Perception of the support Customers felt a lack of knowledge from support (CS), confirmed by a poor level in diagnosis and advice. Customers are not satisfied with CSR (France)

Support

1- Make sure it works : 1- Make sure it works : relationship issuesrelationship issues

•Tell me what to do if it doesn’t work

“The customer services should give a better enquiry and should not leave peoples waiting for hours... they should not hang up the phone on us. The training for the staff should be better, they know nothing”

“Customer service is very bad, too many transfers, and when they don't know the answer they hang up, orientation should be better, I'm going to the concurrent”

“We do not have a good relationship with the after sales service”.

“The technicians are not able to inform us very well”.

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Customer experience management is a tool for product development

� Design is focused on superior customer experience :– Orange built a design factory for all group products– A new way of considering design– A common approach

� Customer experience is taken into account at the different steps :> Opportunity

> Design itself

> Usability tests

> Process and interactions : customer journey, ordering, support, billing

� Look and feel Orange

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Functional – what it does?

Technical – how it

does it ?

Emotional-how it makes

you feel?

“Superior experience” vision of design“Classic” marketing vision of design

FunctionTechnological

innovation

More premium and market success through external design and marketing “bells & wistles”Weakness: Functions & Technology don’t support the design; customers have an unfulfilling experience

More premium and market success through a design & marketing story grounded in superior experience

The design is focused on superior customer experience

Design as an afterthought only for packaging

Design embedded in the whole process

+ +Design & marketing

"I want it!" "that's what I

needed!“

"works perfectly!”

"I love it!"

« In the first instance, a well designed product fulfils the purpose it was designed for; equally important though, a product that gives a level of enjoyment in its use, be that tactile, aesthetic, technological or better still all three”

Usability skills invested early in the TTM process : the co creation concept

Exploratory research

2

31 5 6

Early co-creation

In-life productCo-creation

Product discovery co-creation

Quick prototyping and co-creation (before T1)

Post T-1 new product and service definition and

development

Final test and country “handover”

In life product management and evolution

Innovation vision and

priorities (GFI /Innovation Plan)

T-1

Pre-T1 concept development

Explore customer needs and high level

opportunities

“Storytelling” (Collection)

2

2

1

56

* When high financial stakes for development needed, qualitative testing techniques can be complemented with quantitative market research

4 Experience co-creation(before T2)

Anticipation Development

(T-1 - T2)Launch preparation

(T3)Post launch (T4)

–Idea generation at “grass-root” level (unguided)

–Explore early concept design –Detailed experience &

interaction

–Feedback and co-development of advanced concepts to feed specifications

–Usability testing–Fine-tune offers &

experience–Argument new

products

–Identify key product evolution needs/ opportunities (incremental or disruptive)

–Feed TTM2

3 4

The “Process” approach is based on customer experience

Corporate level Prospecting analysis on interfaces

− Contribution to relevant projects− Identification of best practices− Insight on usability/user behaviour to drive

product concepts.

Monitor competition Facilitate interactions between projects and

countries through quick prototyping Follow roadmap of new services and

interface releases Design and recommend user journey

experience, designs and user interface for in-life and new products

Validate internally products as being “Orange Interface compliant”

Provide guidelines for countries and 3rd parties

Local level In-country “transactional/execution

activities” requiring local proximity, including…

Local content Portal channels Customer service, marketing campaign

and retail integration In-life operations

Localisation of global products

Guidelines for fixed, mobile and TV design to be executed at country level

Mutualisation of best practice developed in-country

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Products in life management : IEW Product design and development

Measure and control : NPS and maturity modelMeasure and control : NPS and maturity model Conclusion : customer experience a new philosophy of

business

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Measuring for improving : Benchmark and maturity model� Net promoter score (NPS)

– Independent polls performed in 8 european geographies :> All operators of each country

> Fixed, mobile and broadband services

> Different activities assessed : order fulfillment, installation, customer service

– One single figure used for comparison : % difference between customers who would recommend their existing provider and those who would not> Very sensitive indicator

> Easy link between actions and results

� Maturity model– How customer perceive their relationship determines brand loyalty and potential profitability : – Create unique and personalized experience is critical for growth

> Shape the customer’s view of the relations

– Need for the organization to understand its performance regarding CEM :> Define the model linked with business strategy, based on Customer experience capabilities

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Ex. France Source Millward Brown 2009

Maturity model is a tool for managing CEM� A tool for assessing company performance in CEM :

– Help the company gain understanding of its level of performance– Create a framework, a way to define the improvement needed and the company

priorities focused on company objectives, – Place the company in situation for success by creating a common language and a

shared vision– Have a tool to monitor the progress made in customer experience and compare

with peers– Ultimate goal is to become a company of reference for the industry

� How to proceed?– A methodology for assessing maturity and for benchmarking– Based on objective measures and auto-assessment by a list of questions :

> results (KPI) : churn, customer satisfaction, number of complaints,

> Quality of services, satisfaction of customer expectations, attractiveness of new customers

> Sustainable value generated for all stakeholders : customers, staff, shareholders

– 5 levels : reactive, managed, efficient, predictive, leader (Based on methodology defined by CPP in France, other models exist, mainly CXm model of Chordiant)

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The five levels of maturity in customer experience management

� Reactive : > the company performance is based on good will

of its employees and managers

� Managed > Some elements exist which allow local improvements

� Efficient> Global approach which gives assurance on results, results are obtained at a competitive cost for

customer satisfaction and quality of service, continuous improvements proceeding is managed

� Predictive > Operational management of customer experience in place, control of main levers allow to manage

and anticipate customer satisfaction level

� Leader > The company is a reference for the industry, benchmarks show it is leading, customer recognize

the quality, it is able to transform following customers expectations, breaking innovation and improvements are managed

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Products in life management : IEW Product design and development Measure and control : NPS and maturity model

Conclusion : customer experience a new philosophy of Conclusion : customer experience a new philosophy of businessbusiness

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Looking ahead of customer experience management

� Challenges for Telcos :– Strategy : dealing as a service company, changing into a service driven culture– Organization : lack of business owner, lack of transversal cooperation (silo),

alignment between corporate and divisions, building a sustainable operating model

– Process : capability to solve problems, conflicting objectives– People : building consensus between many different stakeholders, buy in from

senior management, change mentality and behavior

� Stakes and opportunities– CEM is a major lever for growth and transformation, in an european saturated

market or in fast growing markets– Leadership buy in at the start– Understanding operational stakeholders

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Many telcos are considering CEM as critical for business success

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According to a study made in September 2009 by Frost and Sullivan on 12 European Telcos

CEM concept is about winning the interest of senior management :

Commonly transversal to all the organization : focus on CEM can help to build a more coherent managementCEM require a strategic investment mentality (belief in long term profitability)

Main conclusions

� Most of Telcos have to move from a technology driven mindset to a people driven mindset

� Customer Experience Management is a lever for 2 fundamental issues :– Best alignment on the evolving expectations of the market– Adaptation of internal organization to support a customer focus on quality and

service

� A philosophy for doing business : Take care of your customer it is your main asset.

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Back up

� TTM process� Detailed analysis of IEW in life management (example)� Auto-assessment questionnaire� Trends affecting CEM

� Main references used for this presentation :– Frost and Sullivan : customer experience management a business imperative (09/2009)– Chordiant : Customer experience management (2008)– The IEW case (Orange 2009)– TTM presentations (Orange 2009)– Processus, la voie de la performance, un modèle de maturité, club des pilotes de processus, Hermès Lavoisier (2008)– The cost of poor customer service (Genesys Asean White Paper 2010)

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FUT

Focus offres avec développement : offre intra OPF

Revue de pré-opportunité

Revue d’opportunité

Revue de conception

Revue de développement

Revue de bilan

T1T1 T2T2 T4T4T3T3

Revue de lancement

commercial

Instance marketing:CODOF

Innovation structurante

Inscription à une période co

Confirmation de l’inscription à la période co

T0T0

T-1projetT-1

projet

Nouvelle offre simpleavec développement

T3T3T-1T-1 T0T0 T1T1 T2T2 T4T4SDB (DTF / DPF):

T-1 offreT-1

offre

Parti pris issu du chantier usine (OPF) : rôle entre intégration SI et plateforme

Engagement sur la date de T3

J-90 J-60 J-30 JJ-130

T0 projet

T0 projet

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Service recovery experience

5- Give me the flexibility 5- Give me the flexibility to change my dealto change my deal• Give me a solution that works and change it if it doesn’t• Give me flexibility in my package• Today I do not renew due to speed and cost.

Most of the Orange respondents are fairly new users of the IEW

28% of existing Orange MB customers are the least likely to renew MB contracts/usage Only 36% of Orange customers are very unlikely to renew or keep using mobile broadband 24% of Orange customers are unlikely to renew their IEW access

Reasons of no renewal Does not fit customers’ needs

Primary Reasons Secondary Reasons Tertiary ReasonsSlow connection speed (48%) Staying connected (31%) Getting connected (21%)

Expense (45%) Churning network (30%) Network problems (19%)

Too small usage allowances (18%)

Deceptive Experience Reasons

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Basic components of auto-assessment questionnaire

� Identify main points of impact for CEM– Operational domains : Customer response management, sales activation and

order handling, provisioning, billing, contact centers, product design and marketing,

– Transversal domains : service assurance, service quality management, operational performance management, risks and variability monitoring, innovation and continuous improvements, brand management, corporate governance and strategic alignment

� For each domain the level of maturity is evaluated : – 4 types of questions : relationship, ergonomics, performance, value for the

customer– Each question evaluated on 5 levels

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Trends impacting CEM

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customer loyalty conference 3

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