Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
0
0
Telefónica Serv...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
1
Agenda
Telefonica...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
2
Telefónica
01
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
3
Telefónica …some ...
Telefonica Europe.
ICEW March 2013
4
Telefonica Purpose … “Improving people’s lives
around the world by transforming possi...
Telefonica Europe.
ICEW March 2013
5
Customer Experience is physical & emotional!
A Customer Experience is an interaction...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
6
The commercial ra...
Telefonica Europe.
ICEW March 2013
Churn
%
1.5
3.1
ARPU
€
420
381
-9%x2.1
Claims
%
3.2
17.9
x5.6
Enthusiasts
Detractors
• ...
Telefonica Europe.
ICEW March 2013
8
02 Creating emotional relationships with our customers
is at the core of our strategy...
Telefonica Europe.
ICEW March 2013
The Goal
Random
Experience
 Inconsistent
 Unintentional
Predictable
Experience
 Cons...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
10
Understanding th...
Telefonica Europe.
ICEW March 2013
A twin approach to Loyalty
Logical
• Delivering the “basics” as the foundation to loya...
Telefonica Europe.
ICEW March 2013
First – Understand the drivers of Loyalty
Customer Satisfaction
has a high impact on
bo...
Telefonica Europe.
ICEW March 2013
60
43
37
27
0
10
20
30
40
50
60
70
1 to 7 8 9 10
% of customers
who defected to
another...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
14
Emotional Engage...
Telefonica Europe.
ICEW March 2013
Satisfaction & Loyalty : Telefonica Slovakia
Creating Loyalty needs good Customer Exper...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
16
Loyalty through ...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
UnderpinTop-down
Ou...
Telefonica Europe.
ICEW March 2013
Designing the Customer Experience throughout the
Customer Lifecycle
Meaningful customer...
Telefonica Europe.
ICEW March 2013
Designing the Experience & Moments of Truth
19
Web
Customer
Service
Retail
Device
Other...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
20
Some Innovative ...
Telefonica Europe.
ICEW March 2013
Using Web chat to reduce calls to Customer Service
21
05
© 2013 Telefonica. Not to be u...
Telefonica Europe.
ICEW March 2013
O2 Gurus – In store, On Line, In Call Centres
22
Inspire customer with „showcase
demons...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
UK Example – “Fair ...
Telefonica Europe.
ICEW March 2013
The O2 in the UK is a unique partnership between Telefonica
UK and AEG to deliver Europ...
Telefonica Europe.
ICEW March 2013
Reward Programme linked to Customer Location
25
05
© 2013 Telefonica. Not to be used or...
Telefonica Europe.
ICEW March 2013
To Affinity and Beyond
We’re fortunate to have Ireland’s most relevant
sponsorship and ...
Telefonica Europe.
ICEW March 2013
Rewards & Sponsorship used to create differentiated emotional
experiences05
© 2013 Tele...
Telefonica Europe.
ICEW March 2013
Activities have a direct impact on our churn
10%
19%*15%
18% 20%
26%
28%
Churn differen...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
29
Engaging people ...
Telefonica Europe.
ICEW March 2013
Strong Leadership demonstrating their commitment by actions
Cross functional working ...
Telefonica Europe.
ICEW March 2013
Slide 31
Engaging people internally is key06
© 2013 Telefonica. Not to be used or repro...
Telefonica Europe.
ICEW March 2013
Telefonica Germany – “Get into the customers shoes”
Start: Telco is not the centre of o...
Telefonica Europe.
ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
33
Learning
07
© 20...
Telefonica Europe.
ICEW March 2013
Learnings
34
Devote time and attention of top-level team and do not rush – take your
ti...
Telefonica Europe.
ICEW March 2013
Some more learnings
1. Put the customer at the heart of everything you do
2. Start with...
Graham.Webster@telefonica.com
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe.
ICEW March 2013
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ICEW 2013 Graham Webster - Making Customer Experience come alive to transform your organisation: some tips

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Telefonica is one of the largest telecoms companies in the world, operating in 25 countries with over 300 million customers. Find out how they convert customers into fans through differentiated customer experience activities.

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ICEW 2013 Graham Webster - Making Customer Experience come alive to transform your organisation: some tips

  1. 1. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 0 0 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / 26-01-2010 ICEW March 2013 Telefónica Europe Making Customer Experience come alive to transform your organization: Some tips Graham Webster, Director Customer Experience, Telefónica Europe. Johannesburg, March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
  2. 2. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 1 Agenda Telefonica The commercial rationale for turning Customers into Fans An integrated approach across functions to improve alignment Loyalty through an Integrated approach to improving the Customer Experience Some Innovative Differentiated Customer Experience Activities Engaging people to create and deliver improved customer experiences Learning 02 03 04 05 01 06 07
  3. 3. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 2 Telefónica 01
  4. 4. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 3 Telefónica …some numbers Accesses by Region Revenues by Region OIBDA by Region (*) FY 2011 (Mill. €) Revenues OIBDA Operating CF (**) T-Europe 34% T-Latam 66% T-Europe 52% T-Latam 47% T-Europe 52% T-Latam 48% (*) Underlying Figures: reported excluding exceptional items and spectrum acquisitions. Contribution to consolidated figures before intercompany eliminations (**) Operating CF = OIBDA - CapEx (excluding spectrum) 62,837 20,210 11,282 01
  5. 5. Telefonica Europe. ICEW March 2013 4 Telefonica Purpose … “Improving people’s lives around the world by transforming possibilities into reality...” Happy Employees & Partners Happy Customers Happy Shareholders Contribution to Society 01 © 2013 Telefonica. Not to be used or reproduced without permission.
  6. 6. Telefonica Europe. ICEW March 2013 5 Customer Experience is physical & emotional! A Customer Experience is an interaction between an organisation and a customer. It is a blend of an organisation‟s physical performance, the senses stimulated and emotions evoked, each measured against customer expectations across all moments of contact It is • About a physical experience, such as price, product, location, opening times, channel e.g. stores, online, telephone etc , the features of the product etc and critically • About Emotions – how a customer feels › Using senses of Smell, See, Hear, Touch, Taste  “People buy with emotions and then justify with logic” (Buck Rogers, IBM) Source: Colin Shaw, The DNA of Customer Experience 01 © 2013 Telefonica. Not to be used or reproduced without permission.
  7. 7. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 6 The commercial rationale for turning Customers into Fans 02
  8. 8. Telefonica Europe. ICEW March 2013 Churn % 1.5 3.1 ARPU € 420 381 -9%x2.1 Claims % 3.2 17.9 x5.6 Enthusiasts Detractors • Even in an economic downturn… 50% of consumers will pay more for a better Customer Experience 1 • 86% of your customers will pay more for a great customer experience 2 • 89% of consumers are doing business with competitors following a poor experience 2 • Bad experiences travel fast and far - 26% of consumers follow a bad experience by posting a negative comment on a social networking site for global eyes to see 2 Source: 1 Customer Experience Impact Report. RightNow Technologies / Harris Interactive 2008 Source: 2 Oracle Research 2012 In Telecoms businesses creating Fans to reduce churn is essential 02 © 2013 Telefonica. Not to be used or reproduced without permission.
  9. 9. Telefonica Europe. ICEW March 2013 8 02 Creating emotional relationships with our customers is at the core of our strategy © 2013 Telefonica. Not to be used or reproduced without permission.
  10. 10. Telefonica Europe. ICEW March 2013 The Goal Random Experience  Inconsistent  Unintentional Predictable Experience  Consistent  Intentional  Not differentiated  Not valuable Branded Customer Experience  Consistent  Intentional  Differentiated  Valuable  Emotional Relationships Customer loyalty & profitable growth Source: Managing the Customer Experience. Shaun Smith and Joe Wheeler; O2 WOW Customers are not buying just a product or service from a company; they are buying the total experience around its consideration, purchase, use and service. Companies that master this Experience, that can understand it and deliver it better than their competitors, have an edge in the marketplace. Our strategy includes delivering “Branded Customer Experiences” 9 02 FANS © 2013 Telefonica. Not to be used or reproduced without permission.
  11. 11. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 10 Understanding the loyalty drivers 03
  12. 12. Telefonica Europe. ICEW March 2013 A twin approach to Loyalty Logical • Delivering the “basics” as the foundation to loyalty Emotional • Positives built on delivering the “basics” • Driving an emotional connection with our brand 11 03 © 2013 Telefonica. Not to be used or reproduced without permission.
  13. 13. Telefonica Europe. ICEW March 2013 First – Understand the drivers of Loyalty Customer Satisfaction has a high impact on both intended Loyalty and intentions to Recommend Connecting Calls 70 Sound Quality 70 Network 70 Price 74 Complaint Handling 75 Handset 77 Added Value Services 48 Customer Service 68 Billing 74 Advertising 50 Communications 69 Loyalty 70 Recommend 61 Customer Satisfaction Index 73 Components Account Manager 60 Salesperson Text Messaging 77 Internet Use 72 56 Illustrative COMPONENTRATING IMPACT ON SATISFACTION KEY ACTION AREA MAINTAIN & IMPROVE EVALUATE MONITOR Prioritisation 12 03 © 2013 Telefonica. Not to be used or reproduced without permission.
  14. 14. Telefonica Europe. ICEW March 2013 60 43 37 27 0 10 20 30 40 50 60 70 1 to 7 8 9 10 % of customers who defected to another brand within 1 year of these results Level of overall satisfaction 27% of satisfied consumers still defected to another brand 40% of dissatisfied consumers did NOT defect DISSATISFIED VSATISFIED 13 But we know from other industries that satisfaction is not enough03 © 2013 Telefonica. Not to be used or reproduced without permission. Source: TNS
  15. 15. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 14 Emotional Engagement is required to create Fans Forgiveness Trust Surprise & Delight Advocacy – Promoters Recommend friend or family Loyalty Very Satisfied High Satisfaction Functional Loyalty Emotional Engagement FANS 03
  16. 16. Telefonica Europe. ICEW March 2013 Satisfaction & Loyalty : Telefonica Slovakia Creating Loyalty needs good Customer Experiences as the foundation Months with O2 57% 43% 57% 46% 54% 46% 54% 49% 51% 40 5010 20 30 43% >90 CSI <90 CSI The ratio of delighted customer grows over time with O2. We believe it is driven by our Fair behavior and trust we build in our relationship with the customer 03 © 2013 Telefonica. Not to be used or reproduced without permission.
  17. 17. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 16 Loyalty through an integrated approach to improving the Customer Experience 04
  18. 18. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. UnderpinTop-down Our plans to ensure delivery What makes us different People & Culture Proving it to customers & galvanising employees Brand Vision Customer Experience Customer Promise, Programmes & Touchpoint Blueprints Business Strategy & Functional Plans Systems & processes Organization Set up Building Customer Loyalty An Integrated approach - it only works when it all works ... 17 04
  19. 19. Telefonica Europe. ICEW March 2013 Designing the Customer Experience throughout the Customer Lifecycle Meaningful customer experiences are THE success factor, but most organisations still think inside out, mainly in terms of initiatives, products, markets Need to be thinking about customer insight, needs, journeys and touchpoints BEFORE solutions Want Help & Support Return Deepen Relationship Aware Buy Use Invoicing, Top Up & Payment Interest & Decide Technical Service Repair in situ Commercial Service & Claims Set Up / Provisión Recommit Leave 04 © 2013 Telefonica. Not to be used or reproduced without permission.
  20. 20. Telefonica Europe. ICEW March 2013 Designing the Experience & Moments of Truth 19 Web Customer Service Retail Device Other Aware & Learn Interest & Decide Buy Setup Use Billing Help & Support Deepen Relationship Re-commit or Leave Hear / find out about, attract attention, need Enquire, compare and decide Commit Ready to use, delivery, install, want to get started Receive service, explore service, access account Receive my bill, Top up or Pay Get help, complain, feedback Receive information, benefits, surprises Amend, extend contract, stay John goes online to the O2 site, and reads about the handset deals O2 offer John sees new O2 print advert announcing they’re offering the latest HTC handset Legend !Poor moment Differentiation opportunityKey risk Moment of truth John arrives in store, and ask a staff member if he can have a look at the handset Adviser gives him a charged phone, and lets him play with it while explaining its features John decides that he want to see who else is offering the phone. He looks online, but decide to buy from O2 Once he receives the handset, he struggles to get started, and goes to the O2 store for a free Guru appointment John gets used to using the handset’s features, and uses the phone regularly To find out how to download video from their phone, he goes online and uses a Guru John sets up a direct debit to pay his bill every month About to go on holiday, he phones customer services to make sure his phone will work in the USA He then receives a text, telling him how to check his voicemail abroad, and how much calls/texts cost Arriving home from the trip, he checks his account, and find he has risen up the O2 loyalty scheme to Silver Approaching the end of his contract, he contacts customer services to find out what deals he can get Example 1 (macro, made up) Cross channel: Handset buying experience Fair moment Good moment ! ! 04 © 2013 Telefonica. Not to be used or reproduced without permission.
  21. 21. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 20 Some Innovative Differentiated Actions 05
  22. 22. Telefonica Europe. ICEW March 2013 Using Web chat to reduce calls to Customer Service 21 05 © 2013 Telefonica. Not to be used or reproduced without permission.
  23. 23. Telefonica Europe. ICEW March 2013 O2 Gurus – In store, On Line, In Call Centres 22 Inspire customer with „showcase demonstrations‟, creating a desire to buy and a great overall experience Explain complex products and services in an easy to understand language. Give expert advice on all O2 propositions Share his/her passion and enthusiasm for new technology © 2013 Telefonica. Not to be used or reproduced without permission.
  24. 24. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. UK Example – “Fair Deal” Fair Deal introduced in 2007 is not a tariff or a deal - its an ethos. One of the fundamental wrongs of the UK mobile industry was that new Customers were treated better than existing Customers. We’ve changed our retention offers, policies and tariffs to ensure that existing Customers get just as good a deal with O2 as new Customers - plus, their loyalty is rewarded. It demonstrates trust and transparency to our Customers. 05
  25. 25. Telefonica Europe. ICEW March 2013 The O2 in the UK is a unique partnership between Telefonica UK and AEG to deliver Europe's premier music venue. This is so much more than a partnership deal- it’s a unique “money cant buy” Customer Experience for our Customers. They get exclusive tickets before anyone else, access to a VIP area, competitions and a whole lot more. A place to see, feel and experience O2. The O2 Selling the benefit, not the product
  26. 26. Telefonica Europe. ICEW March 2013 Reward Programme linked to Customer Location 25 05 © 2013 Telefonica. Not to be used or reproduced without permission.
  27. 27. Telefonica Europe. ICEW March 2013 To Affinity and Beyond We’re fortunate to have Ireland’s most relevant sponsorship and some of its most iconic figures Our Rugby Sponsorship strategy in Ireland was focused on driving loyalty through real insight to create differentiated emotional experiences 05 © 2013 Telefonica. Not to be used or reproduced without permission. Insight: “People need to believe that their support makes a difference”
  28. 28. Telefonica Europe. ICEW March 2013 Rewards & Sponsorship used to create differentiated emotional experiences05 © 2013 Telefonica. Not to be used or reproduced without permission.
  29. 29. Telefonica Europe. ICEW March 2013 Activities have a direct impact on our churn 10% 19%*15% 18% 20% 26% 28% Churn differential for prepay customer participating vs prepay base Those participating with multiple properties have churn 28% less than the prepay base 400,000 Customers 144,000 Customers307,000 Customers 05 © 2013 Telefonica. Not to be used or reproduced without permission.
  30. 30. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 29 Engaging people to create and deliver improved customer experiences 06 © 2010 Telefonica. Not to be used or reproduced without permission.
  31. 31. Telefonica Europe. ICEW March 2013 Strong Leadership demonstrating their commitment by actions Cross functional working the norm in delivering the Customer Experience Turning Employees into Fans • If Employees are fans they will…. › be advocates for the business, its products and services and as an employer › “go the extra mile” for customers › stay longer • Employees will be fans if…. › they are engaged in the business › they have a great employee experience › all people based activity is focused on engaging employees and delivering a great employee experience A Corporate Strategy that encompasses our people 30 06 © 2013 Telefonica. Not to be used or reproduced without permission.
  32. 32. Telefonica Europe. ICEW March 2013 Slide 31 Engaging people internally is key06 © 2013 Telefonica. Not to be used or reproduced without permission.
  33. 33. Telefonica Europe. ICEW March 2013 Telefonica Germany – “Get into the customers shoes” Start: Telco is not the centre of our customers life Introduction of customer roles TP “Attract”: Experience of the information overload TP “Information”: Address different information channels TP “Buy”: Address importance of customer need based consultations TP “Bill”: Experience bill as important tool to reassure buying decision TP “Use”: Address how important user-friendly services are TP “Help”: Experience the customers frustration over unsolved problems TP “Lifetime:” Address the importance of using customers language and a customer dialogue TP “Cancellation”: Experience the cancellation process CEX Trail Live 06 © 2013 Telefonica. Not to be used or reproduced without permission.
  34. 34. Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission. 33 Learning 07 © 2010 Telefonica. Not to be used or reproduced without permission.
  35. 35. Telefonica Europe. ICEW March 2013 Learnings 34 Devote time and attention of top-level team and do not rush – take your time to realize where your starting point is and to align Do not underestimate the need of culture change and coherence between brand values and customer propositions to enable attitude transformation towards customers Pay attention to communication: cascade the message down through the whole organization and demonstrate “walk the talk” early in the process Treat Customer Experience as a continuous process with a number of key steps/milestones/indicators, not as one-step/turnaround change When implementing make sure the budgeting process enables proper allocation of funds and realization of priorities and considers a long term vision Prioritizing is key to success in Customer Experience 07 Telefonica S.A. Forrester November 2011 © 2013 Telefonica. Not to be used or reproduced without permission.
  36. 36. Telefonica Europe. ICEW March 2013 Some more learnings 1. Put the customer at the heart of everything you do 2. Start with customer insight – emotional not just rational 3. Challenge yourself to invest in what customers really value 4. Dramatise the difference through clear and compelling Marketing and propositions 5. Bold top-down leadership 6. Believe that numbers are the output of doing the right things 7. Keep on innovating 8. You must engage people internally to succeed © 2013 Telefonica. Not to be used or reproduced without permission.
  37. 37. Graham.Webster@telefonica.com © 2013 Telefonica. Not to be used or reproduced without permission.
  38. 38. Telefonica Europe. ICEW March 2013

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