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Forrester's Best Practice Framework for
Customer Service

Kate Leggett, Senior Analyst


October, 2011




1   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Ninety percent of customer service
                             decision-makers tell Forrester that a
                             good service experience is critical to
                             their company’s success. Sixty-three
                             percent think the importance of the
                             customer service experience has
                             risen.




2   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Three questions comprise Forrester’s Customer
    Experience Index




      Source: January 11, 2011, “The Customer Experience Index, 2011” Forrester report
3    © 2010 Forrester Research, Inc. Reproduction Prohibited
Few companies deliver an outstanding customer
    experience




4    © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
There is a wide variability between high and low
performers




5   © 2010 Forrester Research, Inc. Reproduction Prohibited
The difference between high and low performance
can be worth billions of dollars




    Source: November 19, 2010, “The Business Impact Of Customer Experience, 2010” Forrester report
6   © 2011 Forrester Research, Inc. Reproduction Prohibited
The customer service leader must balance the needs
    of his customers with the needs of his business




                                                                         Cost
                                                                          Cost




                                                               Revenue

                                            Customer                             Compliance
                                                                                   Regulatory
                                           satisfaction                           compliance
     Customer                                                                                   Business



7    © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
Negative opinions can spread rapidly through social
    media




8    © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
The customer service leader must balance the needs
    of his customers with the needs of his business




                                                                         Cost
                                                                          Cost




                                                               Revenue

                                            Customer                             Compliance
                                                                                  Compliance
                                           satisfaction
     Customer                                                                                  Business



9    © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
But what is it that customers want?




     Source: August 2, 2011, “Turbocharge Customer Service Processes With Social Technologies” Forrester report
10   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
What are companies doing to deliver
                                   better service?




11   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
One solution is to move customer service to less
 expensive communication channels




     Source: December 18, 2009, “It’s Time To Give Virtual Agents Another Look” Forrester report
12   © 2010 Forrester Research, Inc. Reproduction Prohibited
       2009
Another solution is to focus on communication
 channels that customers want to use




     Source: May 10, 2010, “How To Create A Social Customer Service Strategy” Forrester report
13   © 2010 Forrester Research, Inc. Reproduction Prohibited
Issue 1: Knowledge is everywhere



                    Email




14   © 2011 Forrester Research, Inc. Reproduction Prohibited
Issue 2: Companies are offering more customer
 touchpoints than ever before




15   © 2011 Forrester Research, Inc. Reproduction Prohibited
Issue 3: Multichannel integration remains low on the
     priority list for most companies




      Source: May 14, 2010, “Contact Center Purchase Plans 2010” Forrester report
16     © 2011 Forrester Research, Inc. Reproduction Prohibited
Issue 4: The volume of social inquiries and comments
 is overwhelming




17   © 2011 Forrester Research, Inc. Reproduction Prohibited
What is the No. 1 pitfall that you have experienced while
   customer service?
 Lack of executive sponsorship
 Functionality gaps in the customer
  service solution
 Lack of technical knowledge about the
  solution
 Poor governance and project
  management capabilities
 Poorly defined business processes
 Inability to integrate smoothly with
  other solutions
 Lack of metrics
 Difficulty in achieving necessary
  changes in organizational culture




 18   © 2011 Forrester Research, Inc. Reproduction Prohibited
Start with your strategy




      Ask yourself: “What is your strategy to deliver
      consistent customer service across all the
      communication channels you use to interact
      with your customers? How does your strategy
      incorporate the voice of the customer?”




19    © 2011 Forrester Research, Inc. Reproduction Prohibited
How mature are your business processes?


      Customer service business process management
      focuses on agent and customer functions, including
      case management, multichannel communications, and
      field service.


      How well do you do in supporting the right business
      processes to keep your customer service customer-
      centric?



20    © 2011 Forrester Research, Inc. Reproduction Prohibited
Ask yourself the following questions



  What is your channel strategy?

  Do you deliver a consistent experience across the different communication
   channels that you support
  How well do you process cases?




21   © 2011 Forrester Research, Inc. Reproduction Prohibited
Do you have a consistent knowledge strategy across
 all touchpoints?




22   © 2011 Forrester Research, Inc. Reproduction Prohibited
How mature are your phone, chat, email, and social
     channels?




23    © 2011 Forrester Research, Inc. Reproduction Prohibited
Leverage technology wisely




      Source: May 26, 2011, “Forrester’s Best Practices Framework For Customer Service” Forrester report
24    © 2011 Forrester Research, Inc. Reproduction Prohibited
How well do you manage your people?


The most overlooked category of business is
managing your people.

Are you paying attention to . . .
     Your culture?
     Your leadership practices?
     Your collaboration methods?
     Your training programs?
     Your performance measures and approaches?




25    © 2011 Forrester Research, Inc. Reproduction Prohibited
Offering excellent customer service is good for business




26   © 2011 Forrester Research, Inc. Reproduction Prohibited
Case Study




27   © 2011 Forrester Research, Inc. Reproduction Prohibited
Thank you


                  Kate Leggett
                  +1 650.269.8658
                  kleggett@forrester.com
                  Twitter: @kateleggett

                  www.forrester.com




 © 2009 Forrester Research, Inc. Reproduction Prohibited
Self-Assessment

  Take the online assessment to see how your organization compares against
   Forrester’s best practices: www.moxiesoft.com/assessment


  Contact Moxie:
     – info@moxiesoft.com
     – North America: 1.800.474.1149
     – Europe: +44 (0)870 904 1122




29   © 2011 Forrester Research, Inc. Reproduction Prohibited

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Forrester's Best Practice Framework for Delivering Excellent Customer Service

  • 1. Forrester's Best Practice Framework for Customer Service Kate Leggett, Senior Analyst October, 2011 1 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 2. Ninety percent of customer service decision-makers tell Forrester that a good service experience is critical to their company’s success. Sixty-three percent think the importance of the customer service experience has risen. 2 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 3. Three questions comprise Forrester’s Customer Experience Index Source: January 11, 2011, “The Customer Experience Index, 2011” Forrester report 3 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 4. Few companies deliver an outstanding customer experience 4 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 5. There is a wide variability between high and low performers 5 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 6. The difference between high and low performance can be worth billions of dollars Source: November 19, 2010, “The Business Impact Of Customer Experience, 2010” Forrester report 6 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 7. The customer service leader must balance the needs of his customers with the needs of his business Cost Cost Revenue Customer Compliance Regulatory satisfaction compliance Customer Business 7 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 8. Negative opinions can spread rapidly through social media 8 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 9. The customer service leader must balance the needs of his customers with the needs of his business Cost Cost Revenue Customer Compliance Compliance satisfaction Customer Business 9 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 10. But what is it that customers want? Source: August 2, 2011, “Turbocharge Customer Service Processes With Social Technologies” Forrester report 10 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 11. What are companies doing to deliver better service? 11 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 12. One solution is to move customer service to less expensive communication channels Source: December 18, 2009, “It’s Time To Give Virtual Agents Another Look” Forrester report 12 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 13. Another solution is to focus on communication channels that customers want to use Source: May 10, 2010, “How To Create A Social Customer Service Strategy” Forrester report 13 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 14. Issue 1: Knowledge is everywhere Email 14 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 15. Issue 2: Companies are offering more customer touchpoints than ever before 15 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 16. Issue 3: Multichannel integration remains low on the priority list for most companies Source: May 14, 2010, “Contact Center Purchase Plans 2010” Forrester report 16 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 17. Issue 4: The volume of social inquiries and comments is overwhelming 17 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 18. What is the No. 1 pitfall that you have experienced while customer service?  Lack of executive sponsorship  Functionality gaps in the customer service solution  Lack of technical knowledge about the solution  Poor governance and project management capabilities  Poorly defined business processes  Inability to integrate smoothly with other solutions  Lack of metrics  Difficulty in achieving necessary changes in organizational culture 18 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 19. Start with your strategy Ask yourself: “What is your strategy to deliver consistent customer service across all the communication channels you use to interact with your customers? How does your strategy incorporate the voice of the customer?” 19 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 20. How mature are your business processes? Customer service business process management focuses on agent and customer functions, including case management, multichannel communications, and field service. How well do you do in supporting the right business processes to keep your customer service customer- centric? 20 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 21. Ask yourself the following questions  What is your channel strategy?  Do you deliver a consistent experience across the different communication channels that you support  How well do you process cases? 21 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 22. Do you have a consistent knowledge strategy across all touchpoints? 22 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 23. How mature are your phone, chat, email, and social channels? 23 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 24. Leverage technology wisely Source: May 26, 2011, “Forrester’s Best Practices Framework For Customer Service” Forrester report 24 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 25. How well do you manage your people? The most overlooked category of business is managing your people. Are you paying attention to . . . Your culture? Your leadership practices? Your collaboration methods? Your training programs? Your performance measures and approaches? 25 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 26. Offering excellent customer service is good for business 26 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 27. Case Study 27 © 2011 Forrester Research, Inc. Reproduction Prohibited
  • 28. Thank you Kate Leggett +1 650.269.8658 kleggett@forrester.com Twitter: @kateleggett www.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited
  • 29. Self-Assessment  Take the online assessment to see how your organization compares against Forrester’s best practices: www.moxiesoft.com/assessment  Contact Moxie: – info@moxiesoft.com – North America: 1.800.474.1149 – Europe: +44 (0)870 904 1122 29 © 2011 Forrester Research, Inc. Reproduction Prohibited

Hinweis der Redaktion

  1. Be aware that there is a real quantifiable cost in providing a poor experience – This can me measured by looking at revenues between the best and worst performers measured across 3 dimensions – additional purchases, churn reduction and recommendations.
  2. You all know that we live in an increasingly complex world. The volume of data and information is exploding. Data doubles every 18 months; unstructured information multiplies 6x faster. This data is located everywhere in a company, and is not available to decision makers and company employees in formats that they can act on it.
  3. Companies have to support customers on an increasing number of touchpoints – web, mobile, downloadable mobile apps, voice, elect channels, social touchpoints – all which have to be aligned to brand.Customers are using these channels to search, research, compare
.
  4. First, get the foundations of your knowledge strategy right. You should be delivering the same basic knowledge to customers across all the channels that you support – If you email your customer service agent, or call them, or chat with them, or look for the answer via a web self service portal, you should get the same answer to your question. This involves deciding what sources of knowledge to draw from as well as setting up a program in place with the right biz proceses and org structure to support the ongoing creation and maintenance of content.