Keys To Customer Satisfaction

Keys to Customer Satisfaction Demonstrating the effectiveness of the help desk in supporting the organization’s goals Presentation MAKE IT HAPPEN BAKER HDI Grand Rapids Chapter – Grand Rapids, MI STRATEGY GROUP November 09, 2005

Keys to Customer Satisfaction Presentation Demonstrating the effectiveness of the help desk in supporting the organization’s goals Chapter Page Section Page I. A Look at the Concept of Total Customer Value 2 II. A Review Three Examples 4 – A single online support call – A residential service company – A home services company III. Three Companies that Provide Customer Satisfaction Measurement 16 How TDS Metrocom can increase its customer base BAKER STRATEGY GROUP Page 1 November 9, 2005

Keys to Customer Satisfaction Presentation 1. A Look at the Concept of Total Customer Value Demonstrating the effectiveness of the help desk in supporting the organization’s goals The BakerStrategy Framework Using a simple framework to think through a business strategy, a company can ensure that all facets of the business have a voice in shaping that strategy BAKER STRATEGY GROUP Page 2 November 9, 2005

Keys to Customer Satisfaction Presentation 1. A Look at the Concept of Total Customer Value Demonstrating the effectiveness of the help desk in supporting the organization’s goals Customer Value Total Customer Value involves the complete impact the customer has on the business across the company and over time BAKER STRATEGY GROUP Page 3 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #1 – An Online Support Call Situation: My email suddenly stopped working; chatted with help desk to get it fixed. They have no idea that I plan to leave, and this interaction provides few clues Goblat interaction on Monday, October 24, 2005 Thank you for contacting Globat Support. A support agent will assist you + Short Wait Time shortly. You are number 1 in the queue. Your wait time will be approximately 0 minute(s) and 36 seconds Thank you for contacting Globat Chat Support. You are now chatting with Technical Specialist 'Javielle' Javielle: Welcome to GLOBAT Live Chat Support! How may I assist you today? David: Please fix my email Javielle: can you try accessing webmail.globat.com instead? - Disjointed Dialogue Javielle: this is Atmail David: ? I tried the Atmail but messages are not there. People who send me emails get an error message. ... Javielle: your email account has reached 1000 - No Sympathy Javielle: you have reached the quota David: Nobody told me! BAKER STRATEGY GROUP Page 4 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #1 – Online Support Call Looking at the transcript you can see how awkward the call was for the customer David: Please delete all emails for me. I have them on my system. - Painful Solution Javielle: just check on the boxes beside each email then click delete David: one by one? Javielle: okay, let me do that for you + Willing to Help Javielle: can you give me the last-4 digit of your credit card? Javielle: the one you are using with us David: I don't know which one I'm using. David: 3978? David: 4451? Javielle: you are using mastercard - Inflexible Systems David: 8457? Javielle: nope David: I've gotten rid of that one 2 months ago. David: can you use some other form of verification? Javielle: okay Javielle: how about your email address and phone number? David: dabaker@umich.edu David: 734-996-2337 David: 734-355-8232 Javielle: it should be @comcast.net David: d903857@comcast.net? BAKER STRATEGY GROUP Page 5 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #1 – Online Support Call Reading the text, you can see that the customer is considering leaving Javielle: I will just delete those in TRASH now and have your settings so that the deleted items on inbox will no longer go to TRASH David: Great! Thank you for fixing things! I appreciate the quick help. Please tell someone, though, that I don't appreciate maxing out on my email without some form of notice. It looks terrible for clients who try to email me things, not to mention that it makes doing business impossible. - Misses the Point Javielle: I am sorry about this. However, the information regarding email quota is on our FAQS. David: Why don't you have a way of notifying cusotmers that we've reached the quota?! - Inflexible Systems Javielle: I believe there would be no way for this because if you have reached 1000 already, then the notification email will not get through at all David: So, rather than letting me know I have a problem, you just let me find out the hard way. David: If I want more proactive service, do you recommend that I have my site hosted someplace else? + Great Soft Skills Javielle: I am really sorry for the inconvenience that this has brought you. And I appreciate your patience with us. David: You've been helpful - thank you so much for your help! You fixed my problem right away. Take care. BAKER Javielle: You are very welcome and have a great day! STRATEGY GROUP Page 6 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #1 – Online Support Call Metric Performance Acceptable Wait Time Yes Take Ownership of Situation Yes Internally Acceptable Call Length Yes Focused First Call Resolution Yes Provide Reason for Problem Yes Ensure Situation Won’t be Repeated Yes Agent Friendliness 7 Ease of communicating with agent 7 Agent knowledge 8 Satisfaction with outcome 9 Externally Focused Satisfaction overall with Globat 5 Perception of Globat after this call 6 Likelihood to remain as a customer 1 Likelihood to recommend to others 3 BAKER STRATEGY GROUP Page 7 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #1 – Online Support Call When the customer leaves, the total revenue lost be at least $3,000 over the next 5 years Annual Revenue Total # of Sites Revenue 2006 2007 2008 2009 2010 Total 8 $600 $600 $600 $600 $600 $3,000 Signed Recommends 4 $225 $225 $225 $225 $225 $1,125 Additional Sites 3 $300 $300 $300 $300 $300 $1,500 BakerStrategy 1 $75 $75 $75 $75 $75 $375 Note: To be more precise we would normally factor in probabilities of staying with Globat decreasing each year. We would also discount the future dollars into present terms. On the other hand, we might also factor in growth of usage with Globat as the customer becomes a more advanced user of the Globat services. For our simple example, we ignore these aspects of calculating Customer Value BAKER STRATEGY GROUP Page 8 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company For a subsidiary of a Fortune 500 company that measured customer satisfaction and loyalty, a key initiative to improve bottom-branch performance was stepping up customer service calls Customer Satisfaction Index by Top and Bottom Branches 80 77 (-2) 78 75 76 74 Top Branches 72 (+2) Bottom Branches 68 70 68 66 New Branches 65 65 66 64 62 60 3 2 03 00 00 20 ll 2 r2 g Fa te ri n in Sp W High Top A Medium B Bottom Low C BAKER STRATEGY GROUP Page 9 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company One year later, the actual renewal rates were compared to Intended Loyalty and showed that Intended Loyalty is a good proxy for actual renewal behavior Year 1 Year 2 Intended Actual CSI Loyalty Renewal Top 77 80 82% Branches Bottom 66 74 76% Branches Company 71 77 78% Overall BAKER STRATEGY GROUP - 10 - HDI 11-09-05 Page 10 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company Further analysis revealed the relationship curve between self-reported Intended Loyalty and the probability of actual contract renewal for different customer types 100% Estimated Renewal Probability 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 10 20 30 40 50 60 70 80 90 100 Self-Reported Intended Loyalty BAKER STRATEGY GROUP Page 11 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company Based on the calculated relationship between customer satisfaction (CSI) and Intended Loyalty, revenue and profit estimates were tied to increases and decreases in customer satisfaction Retention Estimated 5-Yr. NPV Rate Customer (in millions) 2003 Base CSI Current Profit (20%) w/ CSI Δ Revenue 71.6 Company Overall 72 81.2% 82.4% 2,600,000 $71 $14.2 75 68.7% 71.1% 1,200,000 $47 $9.4 Segment A 65 90.4% 90.9% 1,400,000 $24 $4.8 Segment B Segment B1 64 87.3% 88.1% 645,000 $13 $2.6 69 90.8% 91.3% 755,000 $11 $2.2 Segment B2 BAKER STRATEGY GROUP Page 12 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company By comparing willingness to recommend one year and actual recommendations through the year, we were able to assign a probability of recommending based on the response 60% Estimated Recommend Probability 50% 40% 30% 20% 10% 0% 0 10 20 30 40 50 60 70 80 90 100 Self-Reported Willingness to Recommend BAKER STRATEGY GROUP Page 13 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #2 – Service Company Through applying a few simple assumptions, additional revenue expected through customer recommendations can be conservatively estimated. Profit in Millions New Cust. Rev. in Millions Likelihood % that (20% of Rev.) (2.6 mil. ($300/cust.) To Will CSI cust. base) Recom. Recom. 5-Yr. NPV Annual 5-Yr. NPV Annual $16 72 72.4 37.4% 97,240 $27 $80 Today $5.4 5-Point $18 77 77.6 41.6% 108,160 $30 $89 $6.0 CSI Increase Incremental $2 5 5.3 4.2% 10,920 $3 $9 $0.6 Increase Assumptions: - Assumes $300 annual revenue for each service type. We recognize that revenue varies considerable by segment as well as by customer. However, this assumption makes this analysis simple, as well as adjusts slightly for one-time revenue gains not considered in the annual revenue amount. - 5-Yr. NPV discount rate of 7% - 5-Yr. NPV only to new customers from contract renewal in the first year. Other customers added in years 1-4 would be BAKER additional revenue and profit. STRATEGY GROUP Page 14 November 9, 2005

Keys to Customer Satisfaction Presentation 2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example #3 – Home Services Company This home services company was able to measure the impact their Service Center had on overall customer satisfaction and, ultimately, company financials 89 Service Center III 76 Service Offering 80 Recommend I 79 78 89 CSI Service Delivery Renew V 74 Use 89 Contractor Interaction IV 69 Problem Resolution* II BAKER STRATEGY GROUP Page 15 November 9, 2005

Keys to Customer Satisfaction Presentation Demonstrating the effectiveness of the help desk in supporting the organization’s goals What about measuring customer satisfaction just with the help desk? BAKER STRATEGY GROUP Page 16 November 9, 2005

Keys to Customer Satisfaction Presentation 3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals Example Support Call The following ratings are based on my impressions of four solutions being offered today. BAKER STRATEGY GROUP Page 17 November 9, 2005

Keys to Customer Satisfaction Presentation 3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals Companies: CFI Group CFI Group specializes in applying advanced statistical analysis to customer survey data. BAKER STRATEGY GROUP Page 18 November 9, 2005

Keys to Customer Satisfaction Presentation 3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals Companies: CFI Group This is how CFI Group’s default model is structured for its CallSat program. Satisfaction Drivers Satisfaction Outcomes Automated System • Time to wait for agent What is your perception of this agency now as a result Customer Satisfaction Index of this call experience? Agent Interaction • Overall satisfaction • Friendliness • Satisfaction v. expectations • Understanding your problem • Satisfaction v. ideal • Ease of communicating with agent • Knowledge How does this call center Call Outcome compare to others? • Satisfaction with outcome • Issue resolved? screeners • 1st Call? BAKER STRATEGY GROUP Page 19 November 9, 2005

Keys to Customer Satisfaction Presentation 3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals Companies: Customer Relationship Metrics Customer Relationships Metrics’ CATs program emphasizes accurate survey data. Scientifically Mandated Quality Control Workflow Data cleansing, comment Transcribe and Download coding, CSR assignment Analyze data errors detected, Customer Comments all errors CORRECTED You review reports Produce Customer Driver with the highest Report Cards for Analysis confidence all levels BAKER STRATEGY GROUP Page 20 November 9, 2005

Keys To Customer Satisfaction

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