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Omnichannel management, by Willem Pieterson - SIGMA Webinars on service design and delivery in the WB.pdf

Omnichannel management, presentation given by Willem Pieterson. SIGMA Webinar series on service design and delivery in the Western Balkan region in 2023. Topic 3: Omni and Multi-channel service design and delivery.

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Introduction & Casus NL
Omnichannel Management 2023
Intro
2
Customer Government
Channels
The medium between citizens and governments
3
4
What is Channel Management?
Channel management is the design, deployment, coordination, monitoring
and improvement of the channels through which public organizations and
their customers interact.
Based on: Klievink, Janssen, Pieterson & Felt (2008); Pieterson & Van Dijk (2006)
What is channel management?
5
Different approaches
 Pieterson (2017)
With omni-channeling, the organization no longer focuses on the
management of channels independently, but shifts focus towards
the holistic interplay of all channels. By bringing channels together,
designing them smartly and integrating them tightly, we realize a
better, more seamless and inclusive customer journey (Pieterson & Boucetta,
2020)
Omnichannel Management
A definition
6
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Omnichannel management, by Willem Pieterson - SIGMA Webinars on service design and delivery in the WB.pdf

  • 1. Introduction & Casus NL Omnichannel Management 2023
  • 3. Customer Government Channels The medium between citizens and governments 3
  • 4. 4 What is Channel Management? Channel management is the design, deployment, coordination, monitoring and improvement of the channels through which public organizations and their customers interact. Based on: Klievink, Janssen, Pieterson & Felt (2008); Pieterson & Van Dijk (2006)
  • 5. What is channel management? 5 Different approaches  Pieterson (2017)
  • 6. With omni-channeling, the organization no longer focuses on the management of channels independently, but shifts focus towards the holistic interplay of all channels. By bringing channels together, designing them smartly and integrating them tightly, we realize a better, more seamless and inclusive customer journey (Pieterson & Boucetta, 2020) Omnichannel Management A definition 6
  • 7. Omnichannel Management The Dutch case Programme Omnichannel 2019 - 2024 Community Components Generic Proactive Services 7 • Early internet adopter + high levels of digital skills • Demand from citizens for new public sector channels • Long history of channel management research and development • e.g. channels in balance (see kanaleninbalans.nl) • Fragmented nature of government • Necessitates investments in channel management (efficiency, effectiveness) Concept
  • 8. Zakia Boucetta 8 Project Manager Omnichannel / Generic Proactive Services Zakia Boucetta zakia.boucetta@vng.nl
  • 9. Association of Dutch Municipalities 5 december 2023 Presentation Proactive Services Omnichannel
  • 10. Why proactive and transparent services
  • 11. MyCases, Track&Trace proactive and transparant government services “MyCases is a user-friendly service that informs residents, entrepreneurs and civil servants in a clear and simple manner about the status of their product or service requests.” Residents desire proactive services, immediate answers and transparency about their status information. MyCases
  • 12. ‘This is how I’d like to be updated by the municipality' “Exactly what I expect from the municipality” “Nice, I can check at any time of the day what the process is. It gives me peace of mind” User research case MijnZaken Den Haag, juni 2022 https://github.com/nl-design- system/utrecht/blob/main/documentation/website/gebruikersonderzoek/research_0022.md
  • 13. In progress Completed Application date Registered Accepted Main statuses Interface shows phases based on Case Management Application Programming Interfaces (API) types, for example: ✓ Registered ✓ Accepted ✓ In progress ✓ Completed Design criteria interface MyCases | 2022 Documents delivered by citizen and/or municipality
  • 14. Programme Omnichannel | Generic Services 3 projects: MyCases, Collaborative portals and WMEBV Program MyCases
  • 16. MyCases, Track & Trace services for proactive services The power of organizing together! Do you want to stay updated? Zakia Boucetta zakia.boucetta@vng.nl For more information go to: www.vng.nl/mijnzaken www.mijnoverheid.nl Thank you. Questions?
  • 17. The long and complicated history 17
  • 18. Customer Government Channels The context of channels and interaction How people use channels [channel behaviors] How governments manage channels [channel management] The changes in the channel landscape 18
  • 20. More and more channels Pieterson, Ebbers & Madsen (2017) The channel landscape 20
  • 21. The channel landscape 21 And more and more permutations chat
  • 22. The channel landscape And changing channels 22
  • 23. 23 Channel Initiatives in LAC PES The channel landscape 0% 25% 50% 75% 100% Already in place Planning to introduce this in production Planning an experiment or pilot No plans
  • 25. 25 Channel Behaviors Shifts in channel choices & preferences 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2008 2017 Preferred channels (NL) Channel behaviors in general are shifting towards the online channels in those countries with: a) mature internet infrastructures b) mature online offerings c) Some nudging & help Pieterson & Ebbers (2020) 
  • 26. Channel behaviors 26 0% 10% 20% 30% 40% 50% 60% In Person Telephone Website E-mail Other 2008 2017 0% 10% 20% 30% 40% 50% 60% In Person Telephone Website E-mail Other 2008 2017 simple tasks complex tasks To a large extent differences in channel choices for different tasks and situations persist. Pieterson & Ebbers (2020)
  • 27. Channel behaviors • So, channel preferences and uses are shifting towards online channels • But: • The shift is incomplete. A range of channels is (still) needed in most countries to service all citizens in all situations. • Furthermore, different people have different perceptions, preferences and behaviors. • Channel behaviors in general are complicated and often multiplex across channels, services, layers and organizations. • Thus: fragmentation is key. Conclusions 27
  • 29. Channel management 29 The good old days Traditional Simple lives before the 1990s Pieterson, Ebbers & Madsen (2017) Single Channel Channel Strategies The Channel Landscape
  • 30. Channel management 30 More and more channels Electronic Traditional New channels arrive. The dot.com boom happens and there’s loads of excitement about new technologies. Pieterson, Ebbers & Madsen (2017)
  • 31. The hype Electronic services are efficient for the organizations (fewer citizens coming to counters), effective (citizens’ effort requirements decrease, since they do not have to travel and it is possible to customize services) and citizen friendly (no more constraints in time and place)[translated] (Programmabureau Overheidsloket 2000, 2000). “Within the next five years the internet will transform not only the way in which most public services are delivered, but also the fundamental relationship between government and citizen. After e-commerce and e-business, the next internet revolution will be e- government”(Symonds, 2000, p. s3). Replacement strategy 31
  • 32. After the hype Ontwikkelingen kanaalgebruik Belastingdienst 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 2002 2003 2004 2005 2006 2007 Balie Telefoon Website Totaal Developments channel use Dutch Tax & Customs Administration Total Website Telephone Front Desk 32
  • 33. After the hype (Perceived) channel choices for products / services (2009) Written Website Telephone Front Desk E-mail 33
  • 34. Channel management A supplemental strategy implies that different channels are positioned to be used for different purposes. But there are challenges.. 34 Evolving approaches  Pieterson (2017) Multi Channel
  • 35. 60% 59% 52% 41% 40% 40% 23% 25% 23% 21% 31% 27% 20% 61% 45% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% What percentage of citizens has encountered the following problems? No clear answer Can’t find info Info unclear Info hard to under- stand Can’t find forms Can’t find contact info Require- ments unclear Missed message GBT in BB No response Missed message my portal Can’t complete report Can’t do appli- cation Can’t make appoint- ment Not knowing where to be Got lost Can’t login Communication services Information services Transaction services Navigation / UI (n=736) Channel management Problems with channels Ebbers & Pieterson (2018) 35
  • 36. Channel management High channel volumes about status questions 36
  • 37. Channel management Multiplexity citizens choose and use a combination of channels sequentially or in parallel in what could be considered one service delivery contact (Madsen, Hofmann & Pieterson,2019). Multiplexity 37
  • 38. Of all citizens will look for help (mostly telephone) when they get stuck 25% €8-10 Average cost telephone customer contact Problems with channels Also see: • Why do they keep calling? (Madsen, 2016) • Channel multiplexity (Madsen, Hofmann, Pieterson, 2019) Channel management 38
  • 40. More and more channels Pieterson, Ebbers & Madsen (2017) Channel management 40
  • 41. 41 Key issues Channel management • More channels equals more costs (Wirtz & Langer, 2017). • More channels equal more channel management challenges (e.g. referrals) • More channels lead to more organizational challenges:
  • 42. 42 Obstacles Organization -2 -1 0 1 2 Lack of integrated processes Lack of (fin) resources Legacy systems Siloing Insufficient digital skills Lack of customer insights Lack of knowledge current tech lack of knowledge future tech Resistance towards digitalization Lack of data Lack of future proof channel strategy Lack of vision/strategy Insufficient leadership Customer resistance Unimportant obstacle Important obstacle Unimportant Neutral Important EU LAC
  • 44. Omnichannel Management Definitions of omnichanneling from the marketing literature: • “an integrated sales experience that melds the advantages of physical stores with the information- rich experience of online shopping” (Rigby, 2011, p. 65) . • “a unified approach that manages channels as intermingled touch points to allow consumers to have a seamless experience within an ecosystem” (Shen et al., 2018) • “synergetic management of the numerous available channels and customer touch points in such a way that the customer experience across channels and the performance over channels is optimized” (Verhoef et al., 2015, p. 176). • “a truly integrated approach across the whole retail operation that delivers a seamless response to the consumer experience through all available shopping channels, whether it be on mobile internet devices, computers, in stores, on television and in catalogues” (Saghiri et al. 2017) • “a capability that enables organizations to deliver consistent and personalized customer messages across multiple channels.” (Minkara, 2017, p.3) What is omnichannel management? 44
  • 45. “Omni-channel management is the holistic management of all available service channels in which all channels are fully integrated and allow the seamless delivery of all services to all segments of the population” (Pieterson, Madsen & Ebbers, 2022) Omnichannel Management A definition 45
  • 46. Omnichannel Management Pieterson & Madsen (2023, under review) What is omnichannel management? Channel 1 Channel 2 Channel 3 Channel 4 2. Seamless customer journey 1. Synchronised content & data 3. Converged channel characteristics 4. Integration of channel and service delivery management 5. Continuous feedback and learning 46
  • 48. Many of these contacts go well, for example due to the ease of use of digital channels. However, not all is well: • Customers being sent from pillar to post (Ombudsman, 2020) • People who are falling behind in digitalisation because of lack of bureaucratic and/or digital skills (o.m. WRR, 2017) • Customers who get stuck in their customer journey and have multiple, unnecessary contacts (o.m. MinBZK 2019) • Customer dissatisfaction about lack of freedom in channel options and degrees to which service delivery is personal and simple (Ombudsman, 2016; Pieterson, 2019) Annual contacts between citizens & governments (in the Netherlands) 29 * we use the term “customer” as an umbrella for citizens, business, etc. in all their roles and relations with governments 48
  • 49. Omnichannel Management The Dutch case Centra- lised De- centra- lised Denmark Netherlands Approach to service delivery UK • Need to invest in connections between channels/services/organisations • Rather than bundling them (e.g. Gov.uk / Borger.dk) • Driver to invest in channel management approaches • Many issues in service delivery… 49
  • 50. Omnichannel Management 50 The Dutch case Organization A Joint Ch. Organization B National portals Support Search engine / Ext. entry
  • 51. 51 Approximately 18.000 government websites (and many many more domains). Omnichannel Management The Dutch case
  • 52. Omnichannel Management The Dutch case Programme Omnichannel 2019 - 2024 Concept Community Components Generic Proactive Services • Government expert group • External experts • Toolkit • Webinars • Community • Management & support • Inspiration & know- ledge sessions • Larger events • Group of agencies • Team body municipalities (VNG) + experts (e.g. Logius) • Tech. (e.g. repos, architecture) • Lessons / experiences 52
  • 53. The goals Value-driven work agenda of the Dutch Ministry of the Interior and Kingdom Relations Value-driven work agenda: ✓ Proactive and organized from the perspective of citizens and entrepreneurs ✓ User-friendly, understandable, transparent and accessible to everyone ✓ Digital where possible, with always an alternative for those who cannot or do not want to go digital ✓ Customized where necessary, if people are (temporarily) unable to come along ✓ In cohesion as one government, supported by broadly applicable GDI building blocks Association of Dutch Municipalities: As municipalities, we want to work people-oriented, inclusive, transparent, flexible, fast and safely. We are always dealing with new social issues. In order to act faster and more innovatively, the information science vision Common Ground has been drawn up, which provides direction for a common basis for information provision. Generic Digital Infrastructure (GDI): The social task is central: improving services to citizens and entrepreneurs. Citizens and entrepreneurs must experience that different governments and organizations with a public task are increasingly working together as one government. 53
  • 54. Concept From framework to building blocks (expert group) Omnichannel Deployment Design Management Steering Feedback & learning Channel strategy Channel 1 Channel 2 Channel 3 Channel 4 2. Seamless customer journey 1. Synchronised content & data 3. Converged channel characteristics 4. Integration of channel and service delivery management 5. Continuous feedback and learning 54
  • 55. Components / Generic proactive services Collaborating as one government for proactive and transparent service delivery - product, channel, and organization-independent. All government organizations can participate!" One government appearance interface services - based on shareable components and interaction patterns and compliant with legal requirements (digital accessibility, Privacy & security, etc.) Front-end Government NL API’s One government standard language for data exchange based on Common Ground; data at the source – one truth and the sharing of Application Programming Interfaces (APIs): Case Management API Customer interaction API (In development) Back-end MyCases Working on synchronised content & data / Channel design & Channel management 55
  • 56. Community • Share experiences, ideas and build connections to collaborate (as one government) • Monthly meetings: • ‘Peek at the Neighbours’ (getting ideas, being up-to-date) • Knowledge sharing sessions (sharing experiences and building (common) knowledge) • >300 members from all layers of government (and growing) • Online platform to ask questions, share ideas, etc. • Synergies with other elements: • Concept → funnel into expert group and testing of ideas • Components → Collaboration and sharing of experiences Sharing, inspiring, collaborating 56
  • 57. The Dutch case • Development in all three areas • Go/no-go in mid 2024 • Continue • Scale • Stop • Experiences positive, but.. • Very much work in progress • Hard data and valid summative evaluations lacking Plans & the future 57
  • 59. Omnichannel management Work towards a holistic omnichannel strategy • Serving all customers using an appropriate set of channels for all services • Set clear goals and KPIs based on a clear mission/vision/strategy The wrap-up | strategy Don’t tread channel management as a stand-alone topic • Links with service delivery, organization and whole of government • Embed channel management into overall mission/vision/strategy Learning as foundational element • The only way to achieve goals is to learn in a quickly evolving environment • Create robust data infrastructure and research programmes Build critical stakeholder support • Channel management is a peoples’ business • Involve leadership, staff and customers 59
  • 60. Omnichannel management Common content • Start collaborating across channels to create common content & agendas • Work towards unified content systems & tailor content to channels from a common core The wrap-up | practical Analyse common customer journeys • Collect customer data across channels • ASK customers and listen to their complaints Consider your core set of channels • More channels ≠ better • Work with experts to analyze coverage and decide upon relevant set Break through silos • Collaborate across channels to unify beyond content (e.g. satisfaction metrics) • Collaborate across processes, functional units and organizational boundaries 60
  • 61. Introduction & CasusNL Omnichannel Management 2023 Dr. Willem Pieterson | willem@pieterson.com Zakia Boucetta | zakia.Boucetta@vng.nl