April 2014 Nuance & Corporate Executive Board webinar

© 2002-2013 Nuance Communications, Inc. All rights reserved. Page 1
Make it easy and
immediate!
Exploring the value of innovative
experiences in customer self-service.

Agenda
1.  How your customers see your current
self-service solution
…who they're really comparing you to
2.  The key behaviours which ensure you
better align to your customer needs
…using that knowledge to drive change
3.  How the results of that behaviour link to
measurable returns
…in terms of satisfaction, costs, revenue
and also ensuring loyal behaviour
4.  Real-world examples of low-effort
self-service experiences
…delivering results with innovative experiences
Sebastian Reeve
Director Product
Strategy EMEA,
Nuance
Rick DeLisi
Senior Director
and Executive
Advisor,
CEB
Presented By:
1
2
3
4

The First Screen
Mobile
The Second Screen
The Third Screen The Fourth Screen
The nth Screen

n Screens & a Cloud
Who’s setting consumer expectations?

disrupt
/dɪsˈrʌpt/
verb
1. To throw into confusion or disorder
2. interrupt (an event, activity, or process) by
causing a disturbance or problem
3. drastically alter or destroy the structure of.

Since sometime in the 1970’s…

More recently…

“Flick my Bic!”
Description
BIC® Lighter, America’s #1 branded pocket lighter is now a
great application for concert and music enthusiasts around
the world! Pay tribute to your favorite band’s encore
performance or show your support of their exalted "power
ballad".
BIC has been rocking the concert scene for over 35 years.
The highest quality lighter and most stable, reliable flame lets
you keep on rocking in the new world. Rock On!
Safety Message
This is obviously not a real lighter; however, please do not let
children play with this application. This application should
only be used by adults 19 years of age or older. Keep this
"virtual" lighter and all real lighters away from children. No
lighter is child-proof. There is no substitute for proper adult
supervision.
BIC® Concert Lighter

“Consumer behaviour
is the killer app
when it comes to
business disruption”
Brett King
Author “Banking 2.0”

Key traits of disruptive UX innovation
Innovative
UX
User-
focussed
Agile
Engaging
On-device
Omni-
channel
1
2
3
4
5

User-focussed
–  Putting design at the heart of your
organisation.
–  Design talent within silos making way for
cross-functional User Experience (UX)
teams.
–  Examples:
§  Johnny Ive at the heart of Apple, driving
product and experience direction.
§  Walt Disney, arguably the worlds first
great UX designer!
1
EasyUser-focussed
Agile
Personal
On device
Omnichannel

Agile
–  Not just a delivery methodology!
–  Agility is really about building user
feedback into the process.
–  i.e. using Data, not emotion to inform.
–  Customer attitudes and behaviours are
changing continuously.
–  Organisations need a constant
process of measurement and
change.
–  E.g. Tuning of Speech/NLU using
audio data.
EasyUser-focussed
Agile
Personal
On device
Omnichannel
2

Engaging
Garanti Bank Geico Lily
Nespresso
Ines
Jetstar Jess
Kaspersky
Lena
Numericable
Emilie
Windstream
Wendy
Coke
Chip
Custom TTS Voices
Visual persona Multimodal persona Voice persona>> <<
EasyUser-focussed
Agile
Engaging
On device
Omnichannel
3

© 2002-2013 Nuance Communications, Inc. All rights reserved. Page 17© 2002-2013 Nuance Communications, Inc. All rights reserved. Page
Nina Mobile:
Navigate, Answer, Transact
On-device4

Planning travel Shopping online Managing finances
Started on a PC 58% 59% 63%
Continued on a smartphone 41% 42% 45%
Continued on a tablet 44% 33% 33%
Continued on another device 21% 11% 15%
Omni-channel
Consumers switch across devices to accomplish
the same task
Base: US Online Adults (18+) who have 3 or more devices and started the specified activity on one device then continued it on another;
†US Online Adults (18+) who have 3+ devices and started the specified activity on a PC then continued it on another
*Devices include PC (desktop or laptop), tablet, HDTV, or smartphone; Respondents can select using the same type of device they started with
Source: North American Technographics Devices and Telecom Online Benchmark Recontact Survey, 2013
5
EasyUser-focussed
Agile
Personal
On device
Omnichannel

Omni-channel
Seamless experiences require a continuity of memory
and experience across touchpoints.
EasyUser-focussed
Agile
Personal
On device
Omnichannel
Source: See Forrester’s September 19, 2013 report “Build Seamless Experiences Now”
Capture customer activities with
content and content state
Start with the customer’s identity,
profile, and preferences
Preserve session and history
to resume the experience
5

Maintaining focus… but on what?
EasyUser-
focussed
Agile
Engaging
On-device
Omni-
channel
1
2
3
4
5

The Effortless Experience
Rick DeLisi
Co-Author & Senior Director, CEB

© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN
@CEB_effortless

@CEB_effortless
WHAT IS LOYALTY?
■  Repurchase
Q: What % of your customers are loyal TODAY?
■  Increased Spend / Share of Wallet
■  PWoM / NWoM

@CEB_effortless
LOYALTY IS “A Child With Many Fathers”
■  Price
■  Value
■  Quality
■  Brand Identification
The TRUEST TEST of loyalty is when something goes WRONG.

@CEB_effortless
THREE QUESTIONS THAT GUIDED
OUR RESEARCH
What impact do
customer service
interactions have
on a customer’s
future loyalty?
1
What are the things
customer service
can do to
drive loyalty?
2
How can service
improve loyalty
while still
reducing
operating costs?
3
Q: What do most companies believe they need to do in order to
“make customers more loyal” when something goes wrong?

@CEB_effortless
FINDING 1: DELIGHT DOESN’T PAY
Less
Loyal
More
Loyal
Below
Customer
Expectations
Meets
Customer
Expectations
Exceeds
Customer
Expectations
The Perception
The Reality
•  “Delight” only happens 16% of the time
•  “Delight” increases operating costs 10-20%

@CEB_effortless
1.00x
3. 97x
More Loyal
More Disloyal
Drivers of Disloyalty
■  Repeat contacts
■  Channel switching
■  Transfers
■  Repeating information
■  Robotic service
■  Policies and processes
customers have to endure
■  “Hassle factor”
Customer Effort
FINDING 3: MITIGATE DISLOYALTY
BY REDUCING EFFORTCustomer Service Impact on Loyalty
Source: CEB analysis.

@CEB_effortless
THE BUSINESS CASE FOR
THE EFFORTLESS EXPERIENCE
Low Effort High Effort
1%
81%
88%
4%
Repurchase
94%
4%
Low-Effort
Experience
High-Effort
Experience
Overall Disloyalty
9%
96%
Increased Spend/
Share of Wallet
Negative WOM

@CEB_effortless
THE FOUR PILLARS OF
LOW-EFFORT SERVICE
Frontline ControlExperience Engineering
Next Issue AvoidanceChannel Stickiness

@CEB_effortless
WHICH WOULD YOU RATHER USE?

@CEB_effortless
IT’S ABOUT GETTING THEM TO STAY
First Contact Channel Concurrent Channel Usage
Phone
Web
Just Phone
Web
and Phone
35.5% of phone callers were on
the company’s Website while
talking to a representative
57.7% of phone callers
first went to the
company’s Website

@CEB_effortless
CUSTOMER CHOICE IS NOT THE ANSWER
Conventional Wisdom:
∞ × ∞We’ve got to come up with a way to allow:
every customer to solve
every issue in
every channel.

@CEB_effortless
CUSTOMER CHOICE IS NOT THE ANSWER
84%
Value EASE Over Choice
■  Want fast resolution without
bouncing around channels
■  Prioritize low effort over
channel choice
16%
Value CHOICE Over Ease
■  Want issue resolved in
their preferred channel
■  Prioritize channel choice
above all else
The vast majority of customers don’t CARE
what channel they have to use, they just want
the problem to go away. Now.
GUIDE them to the channel that is fastest and easiest.

@CEB_effortless
GUIDANCE IN ACTION: The Virtual Concierge
Source: Amazon.com.

@CEB_effortless
THE FOUR PILLARS OF LOW-EFFORT
SERVICE
Frontline ControlExperience Engineering
Next Issue AvoidanceChannel Stickiness

@CEB_effortless
4%
67%
THE CUSTOMER EFFORT SCORE 2.0
…and a way for service functions to
positively impact Net Promoter Score®
A great way for service functions to
detect potential disloyalty…
Strongly
Disagree
Disagree Somewhat
Disagree
Neither
Agree Nor
Disagree
Somewhat
Agree
Agree Strongly
Agree
Overall Disloyalty Percent of Detractors
High EffortLow EffortHigh EffortLow Effort
9%
96%
The company made
it easy for me
to handle my issue

Real-world Examples
Seb Reeve
Director Product Strategy & Marketing, Nuance

Capabilities driving change.
Areas of focus for easy and consistent omni-channel service
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
Using Biometrics
to improve
convenience and
security of
authentication
Authenticate
Conversational
dialog helps
users complete
transactions
by guiding them
naturally
Transact
High-accuracy
knowledge mining
that delivers
Answers, not just
search results
Answer
Natural
Conversational
Precise
Secure
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
Contextual

Low effort: On-device
Providing assistance in digital channels
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
High-accuracy
knowledge mining
that delivers
Answers, not just
search results
Answer
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
1
FAQSearch Community Chat

Nina: Virtual assistants delivering business value
6.8% increase in e-store
conversions
25% increase in basket size
44% YOY reduction in web
chat volume
41% YOY reduction in calls to
contact centre
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
High-accuracy
knowledge mining
that delivers
Answers, not just
search results
Answer
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
1

Nina: Delivering low-effort experiences
90.8System Usability Scale
for Nina Web (Average website
score is 67)
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
High-accuracy
knowledge mining
that delivers
Answers, not just
search results
Answer
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
"It’s like oh good, someone’s there to help
me, you’re not alone. Makes it more
personal, I like the face."
"Because it makes you feel like you’re not
alone in troubleshooting this. Maybe that’s
just me, but I like that, to know there’s
somebody there. Even though I know it’s a
computer. I know it’s crazy."
"You have a human connection. you feel
like your concerns are important.”
1

Low effort: Telephony
Natural language Call Steering reduces effort
•  Touchtone IVR was difficult to navigate
•  Phone keys were being pressed haphazardly to
reach CSRs
•  Customers were being transferred to the wrong skill
groups, increasing transfer rates between CSRs
•  Service operations costs were high
Challenge Solution
5 point improvement in customer effort score and
return on investment delivered through efficiency gains.
ID# SCS059
Results
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
Conversational
dialog helps
users complete
transactions
by guiding them
naturally
Transact
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
2

•  Natural language Call Steering solution for 31
million subscribers
•  First in Turkish language
•  Over 150 destinations
•  Promotional campaign including:
•  Television commercial
•  Comprehensive PR campaign
•  Active promotion by the CSRs
Challenge Solution Results
ID# SCS059
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
Conversational
dialog helps
users complete
transactions
by guiding them
naturally
Transact
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
2

•  Loyalty:
•  IVR CSAT Scores are 2 points higher
•  IVR Customer Effort Score is 5 points higher
•  Efficiency:
•  IVR automation rate increased 5%
•  CSR transfer rate decreased 5%
Challenge Solution Results
ID# SCS059
“One of the largest wins that
the Call Steering system
provides Turkcell Global Bilgi
is an increase in efficiency.
Enabling a transaction in just
20 seconds is undoubtedly
an added value.”
Fahri Arkan, Assistant
General Manager of
Information Technologies,
Turkcell Global Bilgi
Simplified
yet granular
navigation gets
users where they
want to go in as
few steps
possible.
Navigate
Conversational
dialog helps
users complete
transactions
by guiding them
naturally
Transact
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
2

Low effort: Authentication
Using Biometrics
to improve
convenience and
security of
authentication
Authenticate
Using context to
seamlessly escalate
to an
appropriate
resource
Escalate
3
“Our people love it, our
clients love it, and it is
delivering improved cost
to serve.”
Matt Smallman, Client Experience
Strategy and Change
Barclays Wealth and Investment
Management
Barclays improves service
and reduces call duration by 15%

Takeaways
–  Expectations for great UX are changing quickly.
–  Understanding user behaviour is key to disruption.
–  Innovators develop services that are more:
user-focussed, agile, engaging, on-device and omni-channel.
–  Customers reward low-effort experiences with loyalty.
–  It’s not getting them to use self-service, it’s getting them to stay.
–  Customers favour guidance and assistance over choice.
–  Innovative self-service options exist and deliver results.
–  Focus on usability: navigate, authenticate, transact, answer & escalate.
–  Conversational assistants offer a consistent experience across channels.
What did we just hear?
3
2
1

Thank you!
Sebastian Reeve – Director Product Strategy EMEA, Nuance
Email: sebastian.reeve@nuance.com
Twitter: @rrreevo
Rick DeLisi – Senior Director and Executive Advisor, CEB
Email: rdelisi@executiveboard.com
Twitter: @rickdelisi

April 2014 Nuance & Corporate Executive Board webinar

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April 2014 Nuance & Corporate Executive Board webinar