Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth
 

Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth

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As an insurance carrier, your conversation with a policyholder makes a lasting impression—either good or bad. It is no longer merely the products you offer that matters. It is about the end-to-end ...

As an insurance carrier, your conversation with a policyholder makes a lasting impression—either good or bad. It is no longer merely the products you offer that matters. It is about the end-to-end experience and interactions that define a high-value, long-term customer relationship—or a quick defection. To grow profitable books of business you must offer more than a competitive product; you must provide an exceptional customer experience.

Watch the full recording of this web seminar at http://bit.ly/1ewhVGU

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Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth Presentation Transcript

  • Welcome to Today’s Web Seminar February 13, 2014 Sponsored by: Hosted by:
  • Elliot Kass has been a leading force in high-tech journalism and marketing for more than twenty-five years. In the 1980s, he was a founding editor of InformationWeek and served as the publication’s first chief of correspondents. In the early 1990s, as the Editor of Communications Week and later Internet Week, Elliot helped usher in the online era, winning numerous awards for the publications’ coverage of networking technologies and eBusiness. As UBM Technology’s Vice President for Content Marketing from 2004 to 2013, Elliot pioneered the field of marketing and content services. He worked with hundreds of clients across the high-tech spectrum, developing content with strong appeal for their audience of technology and business professionals. A frequent public speaker on technology-related topics, in 1998, Elliot organized the first educational seminar on the Internet for the U.S. Congress. He has also spoken at the UN on the Internet’s economic potential and appears on numerous industry panels. His articles have been published by leading industry analysts, such as the Gartner Group, and have appeared in publications as divergent as Folio, Computerworld Computing and The Washington Post.
  • Martha Rogers, co-founder, Peppers and Rogers Group - Recognized for more than 20 years as one of the leading authorities on customer-focused relationship management strategies, Dr. Martha Rogers, Ph.D. is an acclaimed author, business strategist and a founding partner of Peppers & Rogers Group, the world's premier customer-centric consultancy. Business 2.0 magazine named Martha Rogers one of the 19 "most important business gurus" of the past century. The World Technology Network cited her as "an innovator most likely to create visionary 'ripple effects.'" Martha's counsel and insight are regularly sought by Fortune 500 and Blue Chip executives. Her experience in documenting customer value, and her expertise in applying "out-of-the-box" thinking makes her equally popular among the global media, engagement planners, event organizers, as well as corporate and association leaders who are eager to learn more about customercentric concepts and methodologies. An adjunct professor at the Fuqua School of Business at Duke University, Dr. Rogers is the co-director of the Duke Center for Customer Relationship Management. She is widely published in academic and trade journals, including Harvard Business Review, Journal of Advertising Research, Journal of Public Policy and Marketing, and Journal of Applied Psychology. She has been named International Sales and Marketing Executives' Educator of the Year. Dr. Rogers earned her Ph.D. at the University of Tennessee as a Bickel fellow. At Peppers & Rogers Group, Dr. Rogers has led several large subscriptionbased research studies focusing on particular aspects of CRM.
  • Eric Deitert is Director of Insurance Industry Marketing, at Pegasystems Inc. For the greater part of Eric's career, he has worked for prominent software development companies that provide technology for process improvement. He has held a variety of roles in which he has been responsible for technology product marketing, product management, and strategic market analysis within the BPM and business rule engine (BRE) sectors. Prior to joining Pegasystems, Eric was a Research Director at Gartner, covering BPM and business rule technology.
  • Every Customer Conversation is a Moment of Truth Leveraging Customer Centricity to Drive Profitable Growth Martha Rogers, Ph.D., co-founder of Peppers & Rogers Group Eric Deitert, Dir. of Insurance Industry Marketing, Pegasystems © 2014 Pegasystems Inc. - Confidential 2/28/2014
  • What is Customer Centricity and why does it matter? Customer Centricity places our customer at the center of all our company’s efforts, delivering a consistent, superior experience 6 © 2013 Pegasystems Inc. - Confidential
  • Yesterday businesses were built on a foundation of personalized service and loyalty 7 © 2014 Pegasystems Inc. - Confidential
  • Today’s New Paradigm 8 © 2014 Pegasystems Inc. - Confidential
  • 9 © 2014 Pegasystems Inc. - Confidential
  • Moore’s Law Every 20 years, computers get a thousand times faster and cheaper 10 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 10
  • Zuckerberg’s Law Every 20 years, we share a thousand times as much information as others 11 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 11
  • Suppose you were a food source for bees Bright colors and a sweet fragrance can get any exploring bee to take a look But a bee will only do his dance to tell the other bees about you if he was satisfied with the nectar Moral: In the absence of communication among your customers, advertising rules 12 Once your customers communicate with each other, it’s the customer © 2014 Pegasystems Inc. - Confidential experience that counts
  • “I Want It ALL and I Want It NOW!” 1 Day .5 Day Retail Store/Branch Fax E-Mail Call Center — Voice 1 Hour Call Center — IVR Website 10 Minutes SMS/Mobile Data Interactive TV Comparison Engines Web Chat Consumer Web Services Social Mobile 1 Minute 1 Second 1975 13 1985 1995 2000 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 2005 2010 2015 13
  •  Nearly half of Americans have no life insurance at all and 80% fail to meet the 7X multiplier  Only 1/3 have shopped for life insurance in the past year  22-68% of customers I different age groups use social media when shopping for life insurance  55-86% of customers in different age groups visited insurance carrier websites to search for information  The majority of potential customers prefer email as a way for the company to share information, but there are significant numbers who prefer other channels -- Acxiom survey, reported in 1to1 Media 14 © 2014 Pegasystems Inc. - Confidential
  • “You can't take something bad off the Internet. That's like trying to take pee out of a swimming pool.” Screw up, and the “news” will be immediate, ubiquitous, and permanent - Grant Robertson, blog post, May 1, 2007 You can’t un-Google yourself Linda Kaplan Thaler, CEO, Kaplan Thaler Group 15 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 15
  • Democratization of the Customer Experience 16 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 16
  • Customers assert their new social power easily  August last year – HSBC forced to reverse course  Over the summer it had dropped its policy of free overdrafts for university students  By using Facebook, students connected with others to organize a protest of this new policy  Soon HSBC reinstated the free overdraft policy 17 1 © 2014 Pegasystems Inc. - Confidential
  • Research Study 18 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 18
  • Customers Would Rather Switch than Fight More than 50% Would be likely to switch to another company if they offered more options to connect with them Those under 45 were 20% more likely to do so 19 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 19
  • Toyama no Kusuri-uri House-to-house medical supplies Consumers only charged for usage Detailed records kept in a database, called the “Daifuku cho” Circa 1750 20 © 2014 Pegasystems Inc. - Confidential
  • Challenges to a Customer Centric Approach… 1 2 Single view of the customer 3 21 Consistent multi-channel experience Personalized customer interactions © 2014 Pegasystems Inc. - Confidential
  • Placeholder for poll In your opinion what are the most pressing challenges your enterprise faces when it comes to customer centricity? (Select all that apply) Consistent Multi-channel experience Single view of the customer Personalized customer interactions Other 22 © 2014 Pegasystems Inc. - Confidential
  • Challenge: Global Insurer Enable a Multi-Channel Experience MILLIONS SAVED PER YEAR WHILE REVOLUTIONIZING THE CLIENT SERVICE EXPERIENCE BUSINESS GOALS RESULTS  Reduce unit costs 28% IMPROVEMENT OF FIRST CONTACT RESOLUTION  Improve retention by enhancing customer & distributor services  Instill process consistency & quality  Automate non-value add processes 18% COST REDUCTION due to back office automation  Replace existing workflow systems (AWD) with a true BPMS 6% COST AVOIDANCE due to front office CRM 40% REDUCTION in manual steps DESIGN & 35% REDUCTION IN EFFORT TO PLATFORMBUILD NEW CUSTOMER SERVICE “Our market is changing. We need to ensure that our business is ready to compete in the new environment. Improving our customer service, creating compelling products and building an agile and responsive business will be our priorities.” CEO 23 Pega Confidential, Internal Use Only
  • Survey: Customers Find Multi-Channel Coordination Lacking • Customer interact with insurance providers using 3.6 channels For ex: 97% of all mobile users also use website • 32% of mobile users are satisfied with that experience • Those dissatisfied with one channel tend to be dissatisfied with other channels too, and with the whole company For ex: 71% of email users dislike mobile experience --Forrester 24 Pega Confidential, Internal Use Only
  • Anticipating customers  Go to an ATM for ING Bank ̶ Ask to withdraw cash ̶ Suppose the ATM notifies you that you don’t have enough money in your account for this...  If you are a creditworthy customer, then –depending on your preferred channel -- ING will email, call, text, mail you a credit line offer Response rate greater than 50%! Source: SPSS Netherlands 25 2 Pega Confidential, Internal Use Only
  • Cigna Makes Healthcare Personal Overview Proposed changes in the U.S. Healthcare market made it more urgent for Cigna to build relationships with end-user customers rather than the employers that provide the coverage. Activities • Created the “Words We Use” document • The Contact Center also overhauled its language and agents were given “customer treatment” training • Created the “Experience Room” at headquarters where 6,000 employees walked through 10 stations representing the customer experience 26 Pega Confidential, Internal Use Only
  • Cigna Makes Healthcare Personal Overview Proposed changes in the U.S. Healthcare market made it more urgent for Cigna to build relationships with end-user customers rather than the employers that provide the coverage. Activities • Created the “Words We Use” document • The Contact Center also overhauled its language and agents were given “customer treatment” training • Created the “Experience Room” at headquarters where 6,000 employees walked through 10 stations representing the customer experience • 5% increase in first call resolution • 6% increase in customer satisfaction • 156% increase in level of understanding by customers of Cigna’s terms and business 27 © 2014 Pegasystems Inc. - Confidential
  • Challenge: Life Insurer Enable a Single View of the Customer Optimized Customer Experience, while handling 16% rise in Service Volumes BUSINESS GOALS  Service any call for any product with CSR RESULTS 16%INCREASE IN SERVICE VOLUME without increasing staff CONSOLIDATED 5 CALL CENTER INTO 1  Reduce service costs  Optimize customer experience  Stop transferring calls 14% REDUCTION OF FTEs 20% INCREASE CRS utilization  Create one-and-done processing AWARD-WINNING CUSTOMER SERVICE PLATFORM “We’re very happy that Celent recognized our business and technology achievements attained with our customer experience initiative by leveraging Pegasystems in a best of breed, business-focused approach. Celent’s recognition provides an external validation of our key project objective: making a significant, positive impact on our many valued customers.” Vice President of Architecture 28 © 2014 Pegasystems Inc. - Confidential
  • Acting in the customer’s interest How Amazon helps you avoid making mistakes 29 © 2014 Pegasystems Inc. - Confidential
  • Customer centricity changes our focus Company X sells auto, property, health and life insurance Agents recruit customers, then are protected from poaching by other Company X agents But this agent specializes only in auto insurance How much value is lost every time this agent recruits a new auto insurance customer? 30 © 2014 Pegasystems Inc. - Confidential
  • Challenge: UK Insurer Enables Personalized Interactions 700 Activities Simplified to 23 Core Processes: £1 billion COST REDUCTION BUSINESS GOALS  “Become the best bank & insurer for customers”  Achieve a step-change improvement in customer outcomes, complaint reduction and Net Promoter Scores  Simplify end-to-end processes RESULTS 30% REDUCTION 50% REDUCTION in customer touch points & handoffs In cases suspended 80% REDUCTION 10% IMPROVEMENT in re-indexing of cases in productivity for phase 1 “Pega has been that critical partner & friend to complete that simplification transformation across our business.” Group Change Programme Director Leading European Banking & Insurer 31 © 2014 Pegasystems Inc. - Confidential
  • Mass-customizes customer reports Prior to client meeting, company’s CRM system produces a customized recommendation Customers 4X as likely to buy 32 3 © 2014 Pegasystems Inc. - Confidential
  • End-to-End Customer Centricity Delivered Maximize Customer Value Service Acquire Retain Expand Omni-Channel Customer Centricity Engagement Insurance Industry Specialization Marketing Sales Service Next-Best-Action Marketing Application Sales Force Automation Application Customer Process Manager Application Pega BPM Rules • Process • Decisions • Case • Predictive Analytics Pega Cloud® 33 © 2014 Pegasystems Inc. - Confidential
  • The Power to Engage™ Personalized and Adaptive Customer Interactions Everytime 1 Customer Profile Gold Contact Channel Persona Satisfaction Level/NPS Call Center Tom Detractor MyWorld Current Product Sale & Service objectives Auto Home • Retain • Promos • Srvc Work 1 2 Silver Web Joe Bargain 2 Promoter Life Remediate At point of interaction the system automatically analyzes the customer situation and retrieves the most appropriate data to process the work … …and then dynamically assembles the best communication, process, and decision components to deliver the best-fit products, services and sales approach Interaction  Guides users to intuitively follow processes  Automatically tailors the user experience  Automates service requests increase quality, satisfaction and experience 34 © 2014 Pegasystems Inc. - Confidential
  • Customer Interaction Optimized with Pega Users guided by marketing best practices Recommends Next-Best-Action Leverage in your current service desktop 35 © 2014 Pegasystems Inc. - Confidential Predictive and adaptive analytics highlight relevance for each customer
  • Personalized Service Interactions with Production Line Efficiency Thanks for being our customer Personalized Interactions through Context 36 One Company to the Customer © 2014 Pegasystems Inc. - Confidential Seamless Multichannel Experience
  • Customer Centricity’s Objective Product Customer Centricity Maximizing the value created by each customer Customer Needs Satisfied Share of customer Maximizing the value created by each product Centricity Market share Customers Reached 37 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 37
  • Maximizing the value created by each customer Maximizing the value created by each customer Customers create all value for your company It’s long-term as well as short-term value Customers and prospects are finite in number 38 © 2014 Pegasystems Inc. - Confidential
  • The company that does not use the information it has about customers has no advantage over the company that does not have information about customers What business are you in? 39 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 39
  • In 1996, Barnes & Noble offered to buy amazon.com Today, Barnes & Noble has a market cap of $719 million amazon.com has a market cap of $102 billion 40 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 40
  • Things aren’t always what they seem A 41 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All Right Reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. B 41
  • How good is your customer experience? 80% of corporate executives say their company delivers a superior customer experience Just 8% of consumers report they received one Source: Bain and Company 42 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All Right Reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 42
  • If customers trust you… … they believe You will understand their point of view  What’s it like to be your customer?  What should it be like? 43 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 43
  • It’s basic: Customers create the most value for you when you create the most value for them 44 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 44
  • Customer Centricity is building the value of the company by building the value of the customer base 45 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 45
  • What is our purpose? If our goal is to sell more stuff to our customers, we will compete on price If our goal is to add value to our customers’ lives, then… We’ll end up selling more stuff! 46 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 46
  • Customers can be tough… … the two things they respond to: Figure out what’s best for each of them, and do it -well 47 © 2014 Pegasystems Inc. - Confidential 2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 47
  • Placeholder for poll and Q&A Would you like Pega to send you their new whitepaper titled, “Every Customer Conversation is a Moment of Truth, Are You Ready?” Yes, I am a Life Carrier Yes, I am a P&C Carrier Yes, I am a Life and P&C Carrier No thanks 48 © 2014 Pegasystems Inc. - Confidential
  • Build for Change® 49 Thank you © 2014 Pegasystems Inc. - Confidential