HPMC12: KLM Customer Care presentation
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Presented during the High Performance Marketing Conference 2012, organized by Accenture on February 9th 2012. This presentation was given by Roy Scheerder of KLM, and looks at how KLM implemented it's multi-channel customer care program.
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HPMC12: KLM Customer Care presentation
- 2. High Performance Marketing Conference 2012 Agenda • Customer Care legacy • The momentum to change • Service transformation • Co-sourcing • Results
- 3. 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
- 4. High Performance Marketing Conference 2012 The Challenge KLM Customer Care Customer Customer Power / Unforeseen Non-scalable supply Expectations EU Regulations Events Informal control (e.g. Snow)
- 5. High Performance Marketing Conference 2012 The Event That Changed Everything
- 6. 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 ...
- 7. High Performance Marketing Conference 2012 Visit to Ageas Millenium BCP
- 8. High Performance Marketing Conference 2012 The Former State of Business
- 9. High Performance Marketing Conference 2012 The Ambition Innovative Predict customer behavior: • Identify potential service issues & inform clients pro-actively Customer + Insight • Provide a differentiated service for the customer Excellence • Align compensation provided to customer expectations Advanced Incidents proactively managed: Customer • Core processes proactively managed Centric • Service KPI driven, continuous improvement + Operational Excellence • Moderate Customer Insight Basic Customer recovery & loyalty focus: Customer • Claims management operational excellence Care • Solution robustness facilitates scalability Excellence • Moderate continuous improvement Today Service informal, non-customer centric: • Lack of insight into drivers, metrics, use of customer insight Informal - • Reactive, defensive, strict service, strong focus on policy
- 10. 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.”
- 11. High Performance Marketing Conference 2012 Horizon IV Consistent Customer insight excellence Horizon III Customer centric operational excellence Organization The Service excellence Horizon II Build a solid foundation vision Process optimization Enabling IT Performance management (‘rhythm of Horizon I success’) Stabilize & short term impact Random CCNL 2010 Basic, informal Customer care maturity Q1-2011 ~ 2011 ~ 2012 - 2013 ~ 2014
- 12. High Performance Marketing Conference 2012 Key Performance Indicators Effective customer Efficient Recovery & with engaged people Finance Maximize Reduce ROI cost/claim Customer Ensure happy Maximize customers accessibility Ensure Ensure Process Meet service Maximize Maintain effective efficient standards responsiveness Hygiene resolution resourcing Humans Ensure engaged staff
- 13. High Performance Marketing Conference 2012 The Key Building Blocks Process Organisation Rhythm Enabling IT of Success
- 14. High Performance Marketing Conference 2012 Impact of the Change 1 16 9 Optimize web form Core IT upgrade Forecasting/ planning 2 17 11 Increase accessibility Fraud detection Quality Assurance 4 12 18 Quick reference cards Employee Operational intake performance mgt performance mgt 7 14 19 Segmentation grid Behavior/ engagement Sourcing 8 15 New organization/ Core process re design roles
- 15. High Performance Marketing Conference 2012 Segmentation Grid WHO WHAT FB TIER SOORT CASE CASE TYPE CASE GEVOELIGHEID CASE COMPLEXITEIT White wing Vraag Bagage N/A Offline Compliment Airport Directie Ivory Claim After-journey Escalatie Multiple Silver Klacht Delay Mediagevoelig Gold In-flight Schrijnend Platinum Pre-journey Medisch / Injury < 20 = General ≥ 20 = High-value 15
- 16. High Performance Marketing Conference 2012 Process Design INTAKE PROCESSING FULFILLMENT CORE A HIGH-VALUE HANDLING OUTBOUND CONTACT Payment Preparations NON-CORE Enrichment GENERAL B Scanning Segmentation Allocation HANDLING OUTBOUND CONTACT NON CASH ITEMS
- 17. High Performance Marketing Conference 2012 Co-sourcing with Accenture • Flexible, inhouse sourcing • Energetic & professional • Cost per claim contracting • Improvement incentive • Forecasting is essential
- 18. 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
- 19. 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