transforming customer experience: strategies for success

Beyond the Arc, Inc. | Management Consulting & Strategic Communications © 2012 Beyond the Arc, Inc. December 2013

Transform your organization’s

customer experience

Strategies and Tactics

Steven J Ramirez, CEO

Beyond the Arc, Inc. | Management Consulting & Strategic Communications

Imagine If you could…

…identify your

organization’s

strengths and

weaknesses to better

serve customers?

…detect and address

regulatory risks before

they result in costly

fines?

…easily identify key

customer pain points

to improve the

customer experience

and boost loyalty?

Building a customer-centric culture can deliver on

these business objectives, and more

2


Why focus on customer experience?

• The shareholder value connection to customer experience is within reach, given that the value of a company is ultimately based on the amount of money customers are willing to spend with it.

--Peppers & Rogers Group 2012

• Customer experience leaders have more than a 16% advantage over laggards in consumers' willingness to buy more, their reluctance to switch business away, and their likelihood to recommend

-Tempkin Group

Beyond the Arc, Inc. | Management Consulting & Strategic Communications4

A little about us

Highlights and credentials

• Presenter, Western Energy Institute’s Analytics Symposium, September 2013

• Presenter, Verge Smarter Cities: Analytics in energy, buildings & transportation 2013

• Recognized by Forrester Research among 15 top firms in Customer Experience Consulting

• Presenter, Predictive Analytics World 2013

• Presenter, Chartwell Customer Experience for Utilities Webinar 2013

• Panelist, BAI Retail Delivery Annual Conference 2012, 2013

• Presenter, Payments Symposium, US Federal Reserve

Recent press

• Top 20 Most Promising Data Analytics Consulting Firms, CIO Review, Oct. 2013

• Business Week, April 2013

• New York Post, March 2013

• Bloomberg news service, March 2013

• Loyalty Magazine, Summer 2012

• Destination CRM, May 2012

• ABA Banking Journal, September 2013

• American Banker/Bank Technology News, Jan 2012

• Social Business Today, Customer Experience Management, and more

AnalyticsStrategy Insights Action

4


Today’s discussion

• Operating in the age of the digitally-connected consumer

• 5 steps to customer experience transformation

• Importance of hearing the Voice of the Customer

• Best practices and tips from leading companies in customer experience

5

Beyond the Arc, Inc. | Management Consulting & Strategic Communications 6

Nothing you don’t already know…the utility industry faces a challenging future

• Regulators are reshaping how you interact with the customer

• Consumer’s lifestyles, behaviors, and needs have changed and utilities haven’t kept up

• Disruptive innovators both established players and start-ups, covet your relationship with your customers

The industry is at a crossroads, and winners will need to be agile and increasingly customer-centered


How are you adapting to meet the needs of

the digitally-connected customer?

Internet research informs every purchase, at every stage

Unprecedented consumer choice

Social media advice among the most trusted

Always-on mobile connectivity

A single customer’s experience can have far-reaching consequences

7


Of the top 10 trafficked sites in 2005 only 1 was

“social”

1 yahoo.com

2 msn.com

3 google.com

4 ebay.com

5 amazon.com

6 microsoft.com

7 myspace.com

8 google.co.uk

9 aol.com

10 go.com

1 Facebook.com

2 Google.com

3 Twitter.com

4 Youtube.com

5 Adobe.com

6 Wordpress.org

7 Blogspot.com

8 Wikipedia.org

9 Godaddy.com

10 Yahoo.com

Source: SEOmoz.org

Top Sites in 2005 Top Sites in 2012


#1


#2


#3


#4


#5


Sometimes we just don’t feel our customers’ pain

15


Success stems from understanding your customers

• “Your most unhappy customers are your greatest source of learning.”

◦ Bill Gates

• “We aren’t in the coffee business serving people. We are in the people business serving coffee.”

◦ Howard Schultz, Starbucks

• “To understand the man, you must first walk a mile in his moccasin.”

◦ North American Indian proverb

• “This may seem simple, but you need to give customers what they want, not what you think they want.”

◦ John Ilhan (Australian entrepreneur)

16


Moving beyond the Net Promoter Score

17


Understanding customer issues requires a palette of

data sources and analytical approaches

InternalData from across the enterprise

o Customer feedback

o Frontline notes

o Transactional data

o Behavioral data

o Contact center (first contact resolution)

SocialSocial media about you and your competitors

o Twitter

o Facebook

o Blogs

RegulatoryCustomer complaints

o Federal

o State

o Industry


Voice of the Customer analysis is the key to

preventing feedback from escalating

• Voice of the Customer (VOC) analysis allows you to:

◦ Find and fix customer problems

◦ Identify customer pain points to improve the customer experience and drive retention

◦ Detect regulatory risks andaddress them before punitive action

◦ Tie VOC feedback to transactions,complaints, contact center metrics, and other data sources, with Big Data and analytics

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Most VOC programs struggle to incorporate

unstructured text, particularly in high volumes

Inbound calls to customer service

Customer service email

Blog posts

Letters to Federal/State regulators

Client verbatims

Survey responses

Employee surveys

Codified customer service data

Free form comments

Customer comments from advisors

UnsolicitedComments

SolicitedComments

Structured data Unstructured data

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Fewer still are leveraging open data…


Text analytics unlocks the true value of VOC

A Voice of the Customer program uses text analytics to turn your unstructured data into structured data…

so you can quantify what your customers are talking about for analysis and take action

21


Listen

Define

Report

Analyze

Key steps to strengthening Voice of the Customer

Act

1. Define your VOC strategy

2. Listen to the VOC

3. Analyze and track customer feedback

4. Report on the findings

5. Act to improve the customer experience

6. Measure resultsMeasure


• Develop an enterprise-wide program for overseeing the customer complaint process

• Compile, analyze, and summarize customer complaints across the enterprise

• Use data to improve customer experience

• Robust governance

Regulators are getting into the act and expect a

process for complaint management


• Determine key metrics◦ # of complaints

◦ # of untimely responses

◦ Volume of related customer feedback

◦ Call volume to customer service

• Translate metrics into ROI◦ i.e.

Savings = (Reduction in call volume) * (average call time) * (employee hourly wage)

• Develop predictive models for customer behavior, that incorporate VOC and other data elements

Measuring your results is the key to a successful VOC

program


Listen

Define

Report

Analyze

Key steps to strengthening Voice of the Customer

Act

1. Define your VOC strategy

2. Listen to the VOC

3. Analyze and track customer feedback

4. Report on the findings

5. Act to improve the customer experience

6. Measure resultsMeasure

Beyond the Arc, Inc. | Management Consulting & Strategic Communications © 2012 Beyond the Arc, Inc. December 2013

“Highly effective habits of customer

experience leaders”


People use social media to share product

experiences

of bloggers talk about brands on their blog

post brand or product reviews

70%

38%Source: eConsultancy

Add social media to the mix


Beyond the Arc collects social media data for

analysis and reporting

• Our Social Customer Insights service:

◦ Contains over 336 million social media posts from– Twitter

– Facebook

– Industry blogs and forums

◦ Over the past 24 months

◦ About 1,000,000 posts a day

29


• Lack of Standards (definitions, categories, etc.)

• Lack of, or different processes to receive, track, report

• Lack of responsibility and accountability at business unit level

• Program separate from the Bank’s customer service standards/culture

• Program’s scope too narrow or too broad

Address the common barriers to a successful

customer experience program


Some tools to manage customer experience across channels:

• Collecting the data (APIs, frontline data entry)

• Integrating the data sources (data warehouse)

• Reporting (Business Intelligence tools)

• Deeper analysis to generate actionable insights (text analytics, predictive analytics, social analytics)

• Routing feedback to the appropriate departments (enterprise feedback, CRM)

• Archiving (data warehouse, cloud storage)

Leverage the right technologies


Involve senior leadership and the Board

• Governance

◦ Understand customer experience risks and rewards

◦ Review policies, controls, risk mitigation

• Strategy

◦ What are your business objectives?

◦ How will you measure progress?

• Ambassadors

◦ Enables the leadership to be directly accessible to the community and stakeholders


Drive marketing efficiencyLeverage qualitative and quantitative data to identify behavioral patterns and understand what marketing messages drive customer behavior.

1

Customer personalizationSend the right customer, the right message at the right time to optimize the impact of marketing dollars.

2

Understand unstructured customer dataWe help you uncover trends and insights from unstructured data (emails, call center notes, blogs, social media, surveys, and complaint letters) to make decisions and improve your operations.

3

35

Use data science to improve the customer

experience


• What’s needed?◦ Focus on the customer

– “Find and fix” (issue resolution)

– Prevent

– Redesign core processes to revolve around the customer

• Why?◦ Move from customer satisfaction to customer loyalty, and advocacy

◦ Build engagement that leads to retention, incremental purchase, cross-sell, and referrals

◦ Mitigate regulatory risk

• How?◦ Customer journey mapping across the lifecycle

◦ Text analytics for Voice of the Customer and social media

◦ Big Data and predictive analytics

The bottom line: continuously improve… or lose


• Beyond the Arc bloghttp://beyondthearc.com/blog

• Presentations on SlideShare

http://www.slideshare.net/Beyondthearc

• Real-time updates on Twitter

https://twitter.com/beyondthearc

Additional resources

http://beyondthearc.com/blog

http://www.slideshare.net/Beyondthearc

https://twitter.com/beyondthearc


Steven J. Ramirez

Beyond the Arc, Inc.

Thank you

Office 310.913.3802

Email [email protected]

Digital beyondthearc.com

@beyondthearc

Facebook.com/beyondthearc

Slideshare.net/beyondthearc


Disclaimer and copyright

This document was prepared by Beyond the Arc, Inc.

This document provides our commentary and analysis. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.

Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. No warranty expressed or implied.

The information provided in this presentation is not intended nor should be used as a substitute for legal advice or other expert opinions and services in specific situations.

This material may not be distributed.

Other company, product, and service names may be trademarks or service marks of others.

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