Using Rapid Process Improvement to Transform the Customer Experience

Using Rapid Process
Improvement to
Transform the Digital
Customer Experience
Andrea Peyracchia
Digital Partner
McKinsey & Company

McKinsey Digital Labs | EDGE | Customer Experience
Bringing it to life: Journey redesign
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Housekeeping

Andrea Peyracchia
Digital Partner, McKinsey & Company
Andrea Peyracchia has a long standing experience in
digital experience design and marketing from Procter
& Gamble and Hewlett-Packard. He is now a partner
of McKinsey & Company and leads McKinsey Digital
Labs in EMEA driving large scale digital
transformations across multiple industries.

4McKinsey Digital Labs | EDGE | Customer Experience
Why digital experience
Different ways to get started
Our agenda

1. CUSTOMERS 2. TECHNOLOGY 3. JOURNEYS
Customer
behaviors are
changing
Technology
and analytics
proliferation
Enterprises taking
action to improve
“journeys”

1. Customer behaviors and expectations are changing
75% of online customers
expect help within 5 minutes
‘Now’
70% of app users prefer
added functionality over “look
& feel” of app
‘Can I’
61% of customers are more
likely to buy from companies
delivering custom content
‘For me’
75% of consumers have
used comparison apps for
consumer goods
‘Simple’
79% of consumers trust
online reviews as much as
personal recommendations
‘Social’
60% of US consumers are
concerned about privacy
when transacting online
‘Private’

3. Best-in-class companies optimize journeys vs touchpoints
Sales and
onboarding
Change to
account
Moving Resolving
a problem
Agent
Call
center Web Support
End-to-end
journey
satisfaction
Touchpoint
satisfaction
90% 85% 85% 90% 60%
Customers experience companies by end-to-end experiences, not touchpoints
Individual touchpoints may perform well when the overall experience is poor
“I want to improve . . .” journey

Digital experience drives significant value
20%-2x
Churn, upsell, acquisition
10-15%
20-60%
20%-4x
Improve customer loyalty Fuel revenue growth
Simplify how you do business Customer-centric culture
Employee engagement, satisfactionCost to serve
Customer satisfaction

Our agenda

Who we are
Phase
The idea
Arrival in-
store
Salesperson
contact
ID & payment
capture
Phone and SIM
handover
Activa-
tion
Post-
sale
Phone and plan
selection
▪Mobile incumbent
▪15M+ subscribers, mostly
post-paid
▪6000 retail stores
▪Digitize the in-store sales
journey
▪Leverage a “consultative sales”
approach via tablet
▪Capture cross-selling and
upselling opportunities
The context

Zero-based e2e redesign of the
customer journeys
Process transformation
"Minimal viable product" – build IT
solution front-to-back starting from the
customer experience
Digitization principles (and IT impact)
Weekly agile sprints incl. customer
testing; working solution available in ~ 16
weeks
Time to impact
The Rapid Process Digitization (RPD) is
a holistic approach to align people,
processes and systems ...
People and governance
End-2-end work cell with cross-functional
involvement – sustain change by
adapting management infrastructure
… and to completely digitize a customer journey in 3 - 4 months
2 weeks
4 weeks
8 - 10 weeks
Team
setup
Diagnostic
and zero-
based design
Manual work-cell
and tech build
Agile sprints on tech-
powered work-cell
Scale
work-cell
Disband
legacy
operation
How to digitally transform a journey in 16 weeks

2 weeks
4 weeks 8 - 10 weeks
Team setup Diagnostic and
zero-based design
Scale
work-cell
Disband legacy
operation
Week 1
Establish an end-to-end team from business (work cell), change, and technology that works in a "start-up" like environment
Rapid digitization SWAT teamBusiness team
Designs
and runs
new
process
Change team
Supports
implement
-tation and
rolls out
across
business
Technology team
Builds the
technolog
y
Week 1: Form start-up team environment
Agile sprints on
tech-powered work-
cell
Manual work-cell
and tech build

2 weeks
zero-based design
Scale
work-cell
Disband legacy
operation
Weeks 2 - 3
Map current
processes, systems,
and understand the
performance and
improvement potential Cashier
Other (web channel)
Call center
Technician
Sales representative
General services
Customer
Marketing platform
Dispatcher
Automatic
Dispatching Sales Validation and order entry Provisioning First days experience Billing Provisioning
"When I am
about to
complete
my registration
they tell me
they don’t have
the phone"
???? ? ? ? ? ? ? ? ? ? ? ?
Waiting
time
Email not
always
updated
at PoS
Bill not clear
? Customer perception – Examples
Issues – Examples
"I have to wait
long times and
at 3 queues
sometimes"
?
Weeks 1-2: Map the existing journey
Agile sprints on
tech-powered work-
cell
Manual work-cell
and tech build

2 weeks
zero-based design
Scale
work-cell
Disband legacy
operation
Week 4: Diagnose pain and signature experiences
Weeks 2 - 3
Diagnostic should
highlight the customer
experience improvement
opportunities in different
customer journeys
Zero-based design with
customer experience
focus should lead to
significant improvements
in journey
At home At the store After sales
Plan and
phone selectionDiscovery
Form filling
confirmation Activation
First days
of usage Engagement
Bill reception
and payment
Long waiting time
Many queues
Confusing product
offers
No full e-billing
service
Many hurdles
along the
registration
process
Doubts about
package and
services remain
Aggressive sales
approach via
calls, SMS
Apparently
unsolvable
problems
Obscure
expenses without
explanation
Phone availability
is known upfront
Plans are simple
and easy
E-billing can be
selected upfront
Preferred
language is being
captured
Phone activation
in < 5 minutes
Single point of
contact in the
shop
No annoying
sales approach
during the first
days
Simulated bills
on advance
eliminate
surprisesThe problems experiencedThe pain-point fixes
Agile sprints on
tech-powered work-
cell
Manual work-cell
and tech build

2 weeks
zero-based design
Scale
work-cell
Disband legacy
operation
Weeks 4 - 9
The team will develop a full zero-based and "minimal
viable product" leveraging industry best-practices and
templates – client example of minimal viable process
design and iPad customer journey
Weeks 5-9: Identify radical transformation levers
Agile sprints on
tech-powered work-
cell
Manual work-cell
and tech build

2 weeks
zero-based design
Scale
work-cell
Disband legacy
operation
Weeks 4 - 9
"Minimum viable
product" requires
prioritizing the
digitization levers
focusing in the ones
that can deliver more
value with the lower
effort
Impact
Feasibility
Main levers
3
4
26
6
19
523
2
10
27
15 18
14
17
25
78
20
11
12
1
1628
24
21
22 13
9
6
19
26
4
3
5
3
4
26
6
195
9
9
Intuitive tablet based catalogue to simplify product selection
Automatically populate information from MyKad
1-click payment with payment details saved at store
Digitize signature and have fully digital contract
Send default MOA user name/password in the welcome email
Allow selection of eBilling during sales process
Provide with real time inventory status at the start of the process
Weeks 4-9: MVP to focus on priority levers first
Agile sprints on
tech-powered work-
cell
Manual work-cell
and tech build

2 weeks
zero-based design Manual work-cell and tech build Agile sprints on tech-powered work-cell
Scale work-cell
Disband legacy operation
Weeks 4 - 9
The team
develops a
prototype of
the front-end
and customer
experience in
an iterative
way with
customer input
Interface designs should be defined for key journey
elements

2 weeks
Scale work-cell
Weeks 4 - 9
Customers
preferences
are scouted
leveraging
A/B testing
Journey implementation proceeds incrementally…

Weeks 10 - 16
… minimizing
integration
effort with
careful city
planning
BSS
Application logic layer
Database layer
New
system
Interface
Presentation layer New tablet solution eCommerce
Inventory
management
CRM
Postpaid billing
Prepaid billingBusiness logic server
Enterprise
service
Bus
Credit check
MS SQL server
Knowledge portal
2
1
Rating agency
4
5
6
2
3
1
SIM activation
Offers and products
Offer catalogue
Product catalogue
Upsell and cross-sell campaigns
Cart
…in parallel with back-end integration
2 weeks
Scale work-cell
3
4 5 6

After the first success story, the
journeys' transformation can be
scaled via a
Digitization factory
Cover 20 - 30 journeys in 1 - 2 years
Reduce 50% of costs per process
Improve customer experience significantly
Increase in revenues and market share
Create leading operational processes
Build the UI capability to de-risk process
End to end teams and accountable
executive aligned by process
Teams comprised of
Rapid digitization full time resources
(digital/UI, IT, change management)
Operations and business teams
seconded resources
Team
(“Digital
factory”)
Total
number
of journeys
transformed
1 3 6 10
15
20
25
30
Wave Pilot 2 3 4 5 6 7 8
Year 1 Year 2
New journey goes live… it’s time to scale up
2 weeks
Scale work-cell

Real digital output… and impact
From To Impact
Cost
reduction
Indexed
Customer
satisfaction
Indexed
Time to
on-board
in store
Minutes
▪50+ pricing plans
▪4 agents to interface with
▪2 forms to manually fill-up
and 35% of the process
steps automated
▪Photo static copy of the ID
▪ 9 plans+ 12 add-ons
▪ Single agent handles entire process
▪ 80% of the process steps automated
▪ Personal data loaded from electronic ID
and digital signature
100
-30%70
100
120
+20%
15 -63%
40

Our agenda

6 hallmarks of CX leaders: where to start from?
Clear view of what matters
to which customers to
inform journey redesign
Digitally design end-to-
end journeys, customer
back to operations
Use journeys to empower
front-line culture with a
common purpose
Define journey metrics and
the governance system to
continuously improve
Clear CX aspiration and
customer promise to guide the
organization
Leverage communications and
behavioral psychology to manage
or reset expectations
Customer
Journeys
Product Marketing Online Retail Care
Onboarding journey
Problem resolution journey
Renewal and repurchase journey
1
Get bad experience
over early
Finish
strong
2
Segment pleasure,
combine pain
3
Give customers
a choice
4
Stick
to habits
5
Sequence Control and choice
Duration/
segments
CE
metric
Journeys
experience
assessment
Operational KPI
Indicators
Organizational and
cultural foundation
CE measurement pyramid
1
2
3
4
5
6

Using Rapid Process Improvement to Transform the Customer Experience

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