7 key ingredients of a ce program in telecoms

The 7 Key Ingredients of a
Successful Customer Experience
Program in Telecoms
Beyond Philosophy

Speaker Panel:
Colin Shaw, Founder & CEO
Zhecho Dobrev, Consultant

Beyond Philosophy © 2001 - 2012
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www.beyondphilosophy.com 1

Webinar Interface Review
1. Viewer Window 2. Control Panel

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Questions …

1. How is CE Governed in Telcos?

Organizational challenges to CE – how to overcome
2.
silos?

What is the Experience Telecoms are trying to
3.
deliver?

How emotions are emerging as a competitive
4.
differentiator?

5. What are the leading practices in journey mapping?

What is the most effective way of prioritising your
6.
CE initiatives?

7. How to build a business case for CE initiatives?

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Who are Beyond Philosophy?

We are pioneers in the We work in many countries Thought leadership is our
Customer Experience is all
Customer Experience across several continents differentiator. We have literally written
we do!
space. the books on Customer Experience.

We put emphasis on the We maintain links with Evidence based consulting -
emotional side of customer academia to keep us aligned we look for what really drives
experience with the latest breakthroughs business value

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Some of our clients…

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The 2011Beyond Philosophy Global CE Management
Survey: Telecoms Allocate Most Resources to CE

http://www.beyondphilo
sophy.com/thought-
leadership/webinars/cu
stomer-experience-
strategies-innovation-
and-best-practices-
around-worl

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Bloomberg confirmation…

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Yet, the experience they deliver is not one customers
are particularly happy with…

Source: LinkedIn

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How we conducted the research?
Qualitative and Quantitative feedback from Senior Customer
Experience Professionals in near 40 companies over four month
period from around the globe including:

USA Canada Saudi Arabia
UK Belgium Latin America
Romania France Ireland
Spain Poland Nigeria
Sudan Slovenia
Sweden

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Which is the most admired telecom?

Telecoms are too
internally
focused on what
is happening in
their industry

Telecoms need
to learn from
other industries
to set
themselves
higher standards

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Questions …


2.
silos?

3.
deliver?

4.
differentiator?


6.
CE initiatives?


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Who owns the Customer Experience?

CEO
(President)

Independent Cross-
Marketing Operations Customer Service Sales
Functional CE Unit

Customer Customer Customer Customer
9%
Experience Experience Experience Experience

50% 18% 18% 5%

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Observations From Our Research -
Typical CE Maturity Path

Support by CEO
Establish
Veto rights

Forming a
CE unit

Naïve Stage Low End Transactional Stage High End Enlightened

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Five Stages of
Organizational Customer Experience Journey
Natural Stage
No need for Chief Customer Officer and control over departments

Enlightened Stage
• Chief Customer Officer • Inputs into Operational Budgets
• Authority over other departments • Sets the customer measures and is
• HR responsible for achievement cross-functionally:
• Ops • Sets the cultural framework

High End Transactional Stage
• Equal authority to any of the • CE people introduced earlier on in the process
functional groups - two gate entries e.g. in the design phase and
• Decisions have to be signed by later on in the final testing phase
the CE member • Meet the board twice a month
• Veto rights • Appointments to talk to the CEO

Low End Transactional Stage
• Responsible for: • However:
• customer measures • Dispose of limited budget
• Prioritise initiatives • No authority to:
• Facilitate changes • affect change in other departments

Authority
• Consult other department • access budgets in other departments

Naïve Stage
• Study Customer Expectations • Identify Problems
• Analyse Cust. Feedback • Findings passed up the chain for others to act

Responsibility
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B2B vs B2C Telecom Experience: Lack of 360° View
B2C B2B
Focus and more
Lack of 360° view
resources on the B2C

The daughter of a CEO
had a very bad
experience on a pre-
Difficult to get to know paid tariff and he did
customers More Personal
not renew the B2B
contract, even though
the provider was
cheaper.

Less emotional More about Relationship

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Our recommendations for each stage of organizational
development… (based on the research and observations)

• Naïve stage
• Need the support of an exec
• Best if the CE is within customer focused part of the
organization
• Start with a few pilot projects to achieve quick wins and
prove the concept
• Start sending around materials from other companies who
have successfully changed

• Transactional stage
• Best to position the CE as a cross-functional unit
• Highlight cross-functional issues
• CE head need to have authority, not just responsibility

• Enlightened stage
• More focus on cultural aspects

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Questions …


2.
silos?

3.
deliver?

4.
differentiator?


6.
CE initiatives


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What are the biggest organizational hurdles to
improving the Customer Experience?

70%
Would
execs
prioritise a
CE initiative
on the
40% queue for IT
support
ahead of a
sales or
marketing
20% 20% one?

10%
8%

Silo Mentality Inability to Lack of Control Lack of Org. Resistance to Lack of Exec
Prove Financial Over OPEX Understanding Change Support
Benefits of CE
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Our recommendations … (based on the research and observations)

• Work cross-function – Form a CE Council
• Understand stakeholders’ drivers/objectives
• Agree cross-functional initiatives to go into the budget
planning process
• Gain central budget resource to implement cross-
functional programs
• When senior people not in support - start with mini
pilot projects e.g.:
• decrease of calls; - explain to new customers
where to go etc.
• link NPS to growth
• 9 out of 10 will spend more money
• some things don't cost much money - e.g.
making employees happy

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Questions …


2.
silos?

3.
deliver?

4.
differentiator?


6.
CE initiatives?


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Would your front line people be able to articulate what
is the experience you are trying to deliver?

In majority of Telcos employees do not have a clear view as to what
is the experience they should be manifesting!

30% 30%
25%

15%

Yes, for the Yes, but only No, as we No, as we
most part a handful haven’t haven’t
will rolled it out defined it yet
yet

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All heading at the same direction?

Systems

Every bit of the organization
impacts customers and business
value. What happens back in Legal
and HR, Logistics or Admin has
impact on the end customer
experience one way or the other. It
is crucial that every bit of the
organization shares the same
understanding of what is the
experience to deliver.

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Best Practice:
40 percentage points increase in Net Promoter Score

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• Define the Customer Experience you want to deliver
• Think of the implications to make it happen
• Roll it out across the organization
• define do’s and don’ts
• use interactive ways to embed in people’s minds
• Use it in:
• decision making
• training
• recruitment
• assessment

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Questions …


2.
silos?

3.
deliver?

4.
differentiator?


6.
CE initiatives?


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What are the common elements of the customer
experience most Telcos are striving for?

Fixing the Basics
67%

33%
27%

8% 8% 8%

Simplicity Friendliness Delight/Wow Total Quality Positive Efficiency
Emotions

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How do we know which emotions drive business
value?

2 years of baseline research with London
Business School ( 2005 – 2006) identified
20 emotions clustered into 4 hidden
factors and that drive/ destroy value for
business.

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Fixing the Basics - Emotional Implications

Telco Index Overall Business Index
(n=1,187) (n=30,254)
10
9
8
7
6
Fixing the Basics
5 Complaints VOC
4
3
2
1
0
28

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• Organizational education required to sell the concept of
customer emotions as a business differentiator
• Case studies of other organizations
• Evidence and exposure to senior executives of emotional
experiences (based on research)
• Focus on evoking deliberate positive emotions e.g.:
• Senior people felt embarrassed by young reps treating them as stupid
– operator made reps to say “well I don’t know that myself, let’s find out
together”
• B2B customers on the other side needed reassurance; just someone to
check at the end on the call that they got what they need

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Questions …


2.
silos?

3.
deliver?

4.
differentiator?


6.
CE initiatives?

7. How to build a business case of CE initiatives?

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Yet, are businesses operationalizing emotions?
Do you use customer journey Have you defined what emotions
maps within your company? to evoke at certain customer
touchpoints?
85%

70%

30%

15%

Yes No Yes No
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Example: Process Journey Maps (Charge Card Company)
Getting the card Evaluation of offer No
Recommended by a •Web search Still Exit
Application Wait for confirmation interested?
Awareness friend/ direct mail •Conversation with the
agent
Getting the card Yes
Cross sold by an agent

Yes Yes

Yes Fill in enrollment forms Do you need
Are you Are you No
or call Company your DD and Did you Receipt of call /
just about aware of the Receipt of
•PP supp cards miss it? e-mail
to ? waiting time? No Welcome pack
•Benefit 2 Partners transferred? confirmation
•Direct Debit
No
Yes No

Is it all clear Call to authorise
Chase: Receive to you i.e. Yes Call to book /
Receive someone to act
• Benefit 1 Wait Benefit 1 & DD set up tickets
Statement on my behalf
• Benefit 2 Benefit 2 Cards etc?

No

Call XXX to check Call Benefit 1 to ask Receive DD Download 3rd
Call to chase the 2nd call to chase PA to call to
status of Benefit 1 about membership cancellation party
DD the DD book on CM’s
card number letter authorisation
behalf
form online

Wait 10 days for Fill in & Acct 2nd call to
2nd Call to XXX to Send signed Apply for a
Call Benefit 1 to Receipt of a response from Disclosure & authorise
check status of PP form via post or supplementary
check status of card Supp card XXX via the Authorisation someone to act
card fax card online
post form on my behalf

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Cognitive
Dissonance

Experience Psychology Points
agent
Getting the card Yes Cognitive
Cross sold by an agent Dissonance
Yes Yes

Are you Are you No
Peak End •Direct Debit Prospect
No
Rule Theory
Yes No


No

behalf
form online


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• Operationalize the use of Journey Maps
• Don’t just map the process from internal point of view
• Embed:
• Psychological moments of contact
• Positive emotion points
• Understanding of the negative emotion points

• Redesign the experience

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What plays the biggest role in deciding where to focus
your efforts on improving the CE?

We look at the
customer 35%
complaints data

We ask
customers what
is most 40%
important for
them

We do data
modelling
25%

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• Surveys and focus groups bring out only what's easy
to verbalize
• And what's easy to verbalize is not necessarily what's
important
• Prioritise your initiatives on what would actually drive
business value, not just what customers say they
want
• Insert emotions into your predictive modelling

• Prioritise work to gain further engagement from
different parts of the organization

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How to build a business case of CE initiatives?
• All CE initiatives cost money
• Justify using cost savings
• Improvements in efficiency
• Operational expenses
• Cost per complaints
• Impact on Growth:
• Churn
• Increase revenue - NPS
50% 50% • Intangible – CSAT, Total Lifetime Value
• Not to reduce sales and better to
40% improve it

30%

10%

Cost Savings Decreasing Effect on NPS Increase in No Mechanism
churn CSAT

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Thanks for Attending!
Events you might be also interested in…
How Maersk Line improved their Customers are Irrational stop
Net Promoter Score by 40 points, fighting – Embrace irrationality!
through improving their Customer
Experience?

Thursday, June 21, 2012 Tuesday, May 15, 2012
11:00 – 12:00 PM EDT 11:00 – 12:00 AM EDT
4:00 – 5:00 PM GMT 4:00 – 5:00 PM GMT

http://www.beyondphilosophy.com/thought-leadership/webinars
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Thank you!
Colin Shaw
Founder & CEO
@ColinShaw_CX
Zhecho Dobrev
Consultant
@ZhechoDobrev

www.beyondphilosophy.com

7 key ingredients of a ce program in telecoms

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7 key ingredients of a ce program in telecoms