High Performance Marketing

Conference 2012

High Performance Marketing

Conference 2012

Agenda

• Customer Care legacy

• The momentum to change

• Service transformation

• Co-sourcing

• Results

High Performance Marketing

Conference 2012

Customer Care

• Passenger & baggage complaints

• Compensation and claims

• Last resort of help

• Various incoming channels

• Marketing Function

• Value driver: Repurchase intention

Customer Expectations

Customer Power / EU Regulations

Unforeseen Events

(e.g. Snow)

KLM Customer Care

Non-scalable supply Informal control

The Challenge

High Performance Marketing

Conference 2012

High Performance Marketing

Conference 2012

The Event That Changed Everything

High Performance Marketing

Conference 2012

The Pain

• 13.000 files in backlog, over 3 months waiting time

• Continuous escalations to board of directors

• Accenture Business Solutions stepped in ...

High Performance Marketing

Conference 2012

Visit to Ageas Millenium BCP

High Performance Marketing

Conference 2012

The Former State of Business

Incidents proactively managed:

• Core processes proactively managed

• Service KPI driven, continuous improvement

• Moderate Customer Insight

Informal

+

-

Today

Basic

Advanced

Innovative

Customer Care

Excellence

Customer

Centric

+ Operational

Excellence

Customer

Insight

Excellence

Customer recovery & loyalty focus:

• Claims management operational excellence

• Solution robustness facilitates scalability

• Moderate continuous improvement

Predict customer behavior:

• Identify potential service issues & inform clients pro-actively

• Provide a differentiated service for the customer

• Align compensation provided to customer expectations

Service informal, non-customer centric:

• Lack of insight into drivers, metrics, use of customer insight

• Reactive, defensive, strict service, strong focus on policy

The Ambition

High Performance Marketing

Conference 2012

High Performance Marketing

Conference 2012

The Vision

“KLM Customer Care consistently delivers an excellent service experience to ensure customer recovery.

We are accessible, recognize and trust our customers, are attentive to their needs and are empowered and motivated to offer them the most relevant solution – at all times and at their convenience.

We appreciate their feedback as it enables us to improve our service.”

Horizon II Build a solid foundation

Horizon IV Customer insight excellence

Serv

ice

exce

llen

ce

Customer care maturity

Process optimization

Organization

Enabling IT Performance

management (‘rhythm of

success’)

CCNL 2010

Co

nsi

sten

t

Basic, informal

Ran

do

m

Horizon III Customer centric operational

excellence

Horizon I Stabilize & short term

impact

~ 2011 ~ 2012 - 2013 ~ 2014

The vision

Q1-2011

High Performance Marketing

Conference 2012

Ensure engaged staff

Key Performance Indicators

Effective customer Recovery

Efficient & with engaged people

Ensure effective

resolution

Maximize responsiveness

Maintain Hygiene

Ensure efficient

resourcing

Fin

ance

C

ust

om

er

Pro

cess

H

um

ans

Maximize ROI

Ensure happy customers

Maximize accessibility

Meet service standards

Reduce cost/claim

High Performance Marketing

Conference 2012

Process

Enabling IT

Rhythm

of

Success

Organisation

The Key Building Blocks

High Performance Marketing

Conference 2012

Optimize web form

1

Increase accessibility

2

Quick reference cards intake

4

Segmentation grid

7

Core process re design

8

Core IT upgrade

Fraud detection

9

11

Impact of the Change

Employee performance mgt

12

Behavior/ engagement

New organization/ roles

14

15

Forecasting/ planning

16

Quality Assurance

17

Operational performance mgt

18

High Performance Marketing

Conference 2012

Sourcing

19

15

Segmentation Grid

FB TIER SOORT CASE CASE TYPE CASE COMPLEXITEIT CASE GEVOELIGHEID

WHO WHAT

White wing Vraag Bagage N/A

Multiple

Offline Compliment Airport Directie

Ivory Claim After-journey Escalatie

Silver Klacht Delay Mediagevoelig

Gold In-flight Schrijnend

Platinum Pre-journey Medisch / Injury

< 20 = General ≥ 20 = High-value

High Performance Marketing

Conference 2012

CO

RE

Process Design

INTAKE PROCESSING FULFILLMENT

NO

N-C

OR

E

Scanning Enrichment

Segmentation Allocation

GENERAL HANDLING

HIGH-VALUE HANDLING

Payment Preparations

NON CASH ITEMS B

OUTBOUND CONTACT

OUTBOUND CONTACT

High Performance Marketing

Conference 2012

A

High Performance Marketing

Conference 2012

Co-sourcing with Accenture

• Flexible, inhouse sourcing

• Energetic & professional

• Cost per claim contracting

• Improvement incentive

• Forecasting is essential

High Performance Marketing

Conference 2012

The Results

• 80% of all claims handled within 24 hours

• 8% increase in repurchase intention

• 50% productivity improvement

• Major increase staff happiness and pride!

• Continuous improvement in place

High Performance Marketing

Conference 2012

Lessons Learned

• Change requires pain and momentum

• Big hairy audacious goals set the right scene

• Outsourcing is not about black or white

• Customer value can be found nearby

High Performance Marketing

Conference 2012