Creating A Customer Focused Culture

4,008 views

Published on

ICMI Contact Center Management Conference & Expo Presentation - June 2009

Published in: Business, Education
  • very good presentation, tks a lot~
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Creating A Customer Focused Culture

  1. 1. Alvarez & Marsal Business Consulting, LLC LEADERSHIP P R O B L E M SO L V I N G VALUE CREATION Creating Top-Notch Quality through a Customer-Focused Culture ICMI Contact Center Management Conference & Expo Austin, Texas June 2, 2009 Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. Copyright 2009. Alvarez & Marsal. All Rights Reserved.
  2. 2. How is “Trust” Defined? CONSUMER TRUST is the driver for CUSTOMER AUTHENTICITY Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  3. 3. The Trust Gap Between Companies & Consumers Widening Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  4. 4. So Let Me Ask a Question….. “Thinking about our experiences with call centers, what drives us to ‘love’ or ‘hate’ a particular experience?” Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  5. 5. The Financial Impact of Quality Customer Care • Shareholder Value – Anecdotal evidence suggest there is linkage between bad customer service/call center experience and declining stock price • Customer Value – Customers are “literally” sick of poor service experiences • Brand Equity – Significantly diluted; unmet customer expectations • Call Center Profitability – It costs more to run the center e.g. hiring of more call center agents Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 5
  6. 6. The Financial Impact of Quality Customer Care # Calls to % Overall Calls # Problems # Calls Offered Resolve 1 60% 60,000 60,000 2 20% 20,000 40,000 3 15% 15,000 45,000 4 5% 5,000 20,000 40% 100,000 105,000 Company Assets 200,000 customers x $200M $1,000 annual revenue per customer Cost per Call 5,000 extra calls x $5.00 $25,000 extra cost per cost per call quarter Failure to resolve 15% of calls Results in a CSAT drop $80M protected assets or from 50% to 40% a loss of $20M per quarter Quality & Customer Care ….and the survey says $20,525,000/quarter or Profitability Impact (per $82.1M/annum quarter/per annum) Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 6
  7. 7. Defining the Customer Experience Sales Fulfillment Service Process “Keep Meeting “Interest Me” “Meet My Initial Need” My Needs” 1. Account issue raise by phone 1. Marketing web site 1. Apply by phone or email 1 Determine critical customer touch points 2. Advertisements 2. Apply by website 2. Complain by web mail 3. Get notification of decision 3. Receive solution to complaint (aka, “Moments of Truth”) 4. Close financial transaction 4. Hear about other products from customer’s viewpoint 5. Take part in surveys 1a. Average hold time < 2 min 2 Document Expected Customer 1a. Website available > 99.99% 1a. Average hold time < 2 min 1b. Application time < 10 min 1b. 1st time resolution > 95% experience (incorporate VOC and benchmarking) 1b. Website satisfaction 2a. Website available > 99.99% > 4.5 2b. Application time < 15 min 2. Recognition factor > x 3 Determine actual 1a. Website available = x% customer experience 1b. Website satisfaction = y 2. Recognition factor = z 4 Develop tactics to close the expected-vs.-actual gap 1a. Review SLAs with hosting vendor 1b. Minimize size of graphics to speed page loads (incorporate VOC and benchmarking) 5 Develop reward & recognition for achieving or exceeding Develop appropriate set of rewards and recognition expected customer experience Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  8. 8. Strategy Articulation Map Drivers Contact Center Mission Statement Vision Core Values Market Differentiators Customer Brand Ease of Doing Quality Attract/Retain Service Business Best Employees Strategic Financial Customer Process Organization Objectives • Generate revenue • Cross-selling/ • Responsive • Effective training • Manage budget Solution selling • Eliminate bureaucracy • Foster a win-win • Lower cost per call • Partnering • Reduce errors environment • Grow targeted customer • Attract and retain best segments associates Key Financial Customer Process Organization Performance • Contact Center ROI • CSAT Index (Top 2 Box • Response Time • Agent Peak Performance Indicators • Cost per Call • Customer Churn Rate • Forecasting Accuracy Index (KPIs) • New Products Sold/100 • # of Net New Customers • Service Level • Employee Satisfaction calls • Abandon Call Rate Index • Average Handle Time • New Hire Speed to • Sales per Hour Competency Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  9. 9. Creating Top-Notch Quality through a Customer-Focused Culture ICMI Contact Center Management Conference & Expo Austin, Texas June 2, 2009 LEADERSHIP P R O B L E M SO L V I N G VALUE CREATION How to Create an Effective Quality Monitoring Form © Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  10. 10. Quality Monitoring Form Discussion 1. Describe the process for designing your quality monitoring form 2. What metrics comprise the quality monitoring form? What percent of your metrics are compliance related versus customer satisfaction? 3. How do your agents feel about your current quality monitoring form & process? 4. How well does external or internal customer satisfaction results marry with your current quality monitoring form? 5. If you can make any changes or enhancement to your existing quality monitoring form, what would those changes be? Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  11. 11. Introduction • Quality Monitoring is an essential part of call center management • While the intent of the quality monitoring process is designed to evaluate an agents’ effectiveness in providing good customer service, in some cases the quality monitoring metrics are having negative affects on agent behavior and some erosion in customer satisfaction • How do we design a quality monitoring form that balances the right agent behaviors that foster customer satisfaction & retention while ensuring internal conformance to policies & procedures? • Capturing & understanding your customer satisfaction drivers and aligning them with quality metrics is one way of marrying agent behaviors with customer- focused outcomes Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 11
  12. 12. Three Customer Value Levers • Know Me – A company or agent has knowledge about my problem without me having to state again – A company has visibility to my behaviors, patterns, trends and sensitivities • Hear Me – When I have a problem, an agent can hear “the problem behind the problem” and demonstrates a willingness to fix it • Help Me – The agent has the will, skill & knowledge to interpret my problem and owns my issue to resolution – Since the company is capturing my trends, usage and patterns, the company/agent proactively offers products/services that will help me Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 12
  13. 13. Quality Monitoring Form Design Case Study • Voice & Email quality monitoring form placed heavy emphasis on compliance metrics i.e. security questions as well as metrics “we thought” were customer- focused i.e. saying a customer’s name twice • The organization was undergoing a transition from transaction based service to relationship management • Help deploy an organization-wide customer program for both internal & external customers as well as guidelines that underpin the behaviors for customer- centricity • While deploying the program, we realized the current voice & email quality monitoring form needed to be aligned with the organization customer initiative to ensure consistency and integrity with the firm-wide initiative Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 13
  14. 14. H.E.R.O Program • Hear and Respond Appropriately • Ensure accuracy and consistency • Respect & treat each other with empathy • Own customer issues to resolution • Redesigned the quality monitoring guidelines, evaluation forms & scoring methodology to align with the firm-wide customer initiative Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 14
  15. 15. New Call Quality Monitoring Guidelines Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 15
  16. 16. New Email Quality Monitoring Guidelines Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 16
  17. 17. Tips for Creating an Effective Quality Monitoring Form • Make the form easily updateable – Customer needs change; product & services change; YOUR business changes – I would reevaluate the quality monitoring form every quarter • Make the form specific down to the skill & knowledge level of the agents – Take an a subject area like “Listening” and break it down into smaller components – Consider trending specific areas of your QA form to be used for future coaching and training opportunities • Develop the quality monitoring form based on the competency of the job • Consider “graded” and “non-graded” measures – There may be specific areas you want to grade to drive behavior change, but there may be other areas that you want to note but the score is not relevant to driving the right agent behavior – Example: Will the customer choose to take their business elsewhere because the agent didn’t use the proper greeting? Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 17
  18. 18. Tips for Creating an Effective Quality Monitoring Form • There is no right or wrong way to score a call or email – You do need to think through what behaviors you are trying to cultivate and measure the agents against those – You want to balance efficiency & effectiveness metrics – Consider applying a weighting system to your quality component • Think about what you call your quality monitoring form and QA process – Anecdotal evidence suggests that agents perceive the QA program in different ways based on the way the program is delivered; what the QA form is called – Example: “Call Assessment QA Form versus “Customer Experience Form” Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 18
  19. 19. Creating Top-Notch Quality through a Customer-Focused Culture ICMI Contact Center Management Conference & Expo Austin, Texas June 2, 2009 LEADERSHIP P R O B L E M SO L V I N G VALUE CREATION When Your Customer Speaks, You Better Listen! © Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  20. 20. Voice of the Customer Discussion 1. How many of you have a formal process for disseminating voice of the customer insights to key decision makers & stakeholders? Please Explain 2. How many of you have dedicated operations resources devoted to voice of the customer analysis and reporting? 3. How many of you marry quality assurance scores with voice of the customer results at the call center agent level? Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  21. 21. …You Are Not Crazy If You Are Listening to Your Customers “The voice of the customer IS NOT in your head; it’s the ACTUAL voice of the customer!” Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  22. 22. Voice of the Customer Benchmarking Facts • Despite the economy, 55% of organizations have made zero cuts for customer feedback initiatives while 19% have actually increased spend in this area • High performing organizations are 18x more likely than low performing organizations to increase customer satisfaction, and 45x more likely to increase customer retention • High performing organizations are 7x more likely than low performing organizations to improve customer advocacy • 3x more high performing organizations than low performing organizations enjoy above-average performance in their ability to rate individual employee performance based on customer satisfaction Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  23. 23. Drivers & Strategic Actions for Implementing VOC Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  24. 24. Business Context: Regional Online Bank Case Study • Acquisition, share of wallet and retention are top priorities • Execution of world class relationship management and seamless customer service across multiple channels • Organizational focus on customer churn – Growing competition from other retail banks – Customer service inconsistency – Defend high value and most growable consumer base • Were there quality improvement projects in our control to make a difference in the attrition? Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  25. 25. Methodology: Regional Online Bank Case Study • Sent out a random email customer satisfaction survey to 21,673 customers • Random sampling excluded any customer that received a survey in the previous quarter – Included 5,000 high value customers • Survey questions were targeted to 5 specific areas – Product/Service – Account features – Customer Service – Repurchase Intent – Customer Advocacy Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  26. 26. Initial Results: Regional Online Bank Case Study • Satisfaction with Customer Service – Secure e-mail support – 33.2% rated 5 followed by 29.3% rated 4 – Timeliness of response – 29.8% rated 5 followed by 27.9% rated 4 • Frequency of Use of Service Channels – Secure e-mail 47.3% use occasionally followed by 31.2% who seldom use Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  27. 27. Initial Results Led to an Internalization Effort • Strategic decision to internalize secure e-mail support – Better, faster, cheaper – Opportunity to “own” the customer experience by delivering on brand promises and reduce response time volatility • Completed the internalization within 90 days – Developed the business case and ROI model – Hired 24 Customer Fulfillment Associates (CFA’s) and 1 Team Lead – Developed an augmentation strategy Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  28. 28. Improved Email Response Time & Quality of Service by 82% • Drastically reduced the secure e-mail response time – March – 52.60 hours – April – 26.60 hours – May – 9.79 hours • Initiative led to other strategic and expense management initiatives to improve customer service –Internalized Tech Support –Internalized Security Channel –Implemented an After Call Based Survey program Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  29. 29. Post Call Customer Feedback Program • Receive alerts in real time when the customer expresses a pain point – Bank Contact Center and Outsourcer are copied on all alerts – Team Lead from NetBank contacts the customer to resolve issue no later than 48 hours from the time the alert is received – Once issue is resolved, Team Lead shares the information to customer care management team and outsourcer – Quality improvement initiatives are created to close gaps – Agent coaching is administered when necessary Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  30. 30. Three New Quality Metrics • Two new value creation measurements have been created – Contact Center ROI – Agent Peak Performance Index • Contact Center ROI – Measures the value creation/destruction of customer interactions – Triangulate measurement view; overall outsource relationship and center by center • Contact Center ROI Calculation – {[% Delighted calls x Customers served) x Avg. Revenue per customer] minus [% Dissatisfied calls x Customers served) x Avg. Revenue per customer]} / Fully loaded costs for the period x 100 Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  31. 31. Three New Quality Metrics • Contact Center ROI Calculation Example – {[.60 x 100,000) x 50] minus {.05 x 100,000) x 50]} / $2,083,33 x 100 = 132% • Agent Peak Performance Index – Each agent that a survey is conducted is scored by the actual voice of the customer – If the index is falling, it raises a red flag to supervisors/trainers for additional coaching/training – If the index is rising, it demonstrates which associates are providing customer- centric support • Agent Peak Performance Calculation – Agent ROI x Accuracy (QA Score) / % Delight Treating Customers as Valued Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  32. 32. The ROI of Voice of the Customer Provided by marketing Captured by monthly VOC Formula for calculating Contact Center ROI 227% ROI within 12 months of implementation (Aug 05 - Aug 06) Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 32
  33. 33. Voice of the Customer Steps to Success • Define performance metrics for measuring voice of the customer effectiveness • Proactively inform customers of changes made as a result of customer feedback • Tie voice of the customer results to employee performance where applicable • Make voice of the customer results part of your leads/supervisors/managers incentive compensation • Analyze customer feedback results to create actionable insights • Create a process to enhance quality metrics over time • Where applicable, involve, incentivize and hold your outsource vendors accountable results Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  34. 34. Creating Top-Notch Quality through a Customer-Focused Culture ICMI Contact Center Management Conference & Expo Austin, Texas June 2, 2009 LEADERSHIP P R O B L E M SO L V I N G VALUE CREATION Agent Empowerment & the Effects on Quality © Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  35. 35. I Want You to Walk Away With One Simple Truth….. •“…..Be Afraid of Customers Not Competitors” •Jeff Bezos, CEO, Amazon.com Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  36. 36. Types of Agent Empowerment •Agent Empowerment in Hiring 1 in 4 centers that empower agents to assist with hiring have a formal hiring task force. Of those centers, 77% report a “positive” or “very positive” impact on agent engagement and retention •Agent Empowerment in Quality Assurance and Coaching 41% of centers surveyed reported their more experienced agents serve as quality monitoring assistants “Agent Empowerment” 2008 ICMI Research 89% of centers that utilize peer monitoring helped improve the Report” overall engagement and retained skilled tenured agents •Agent Empowerment to Manage “Moment of Truth” Interactions 58% of centers that empower agents to make non-routine decisions at the point of interaction positively affected customer satisfaction Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 36
  37. 37. The Conflicted Contact Center In a recent benchmarking study, contact centers focused on providing customers an “experience” versus treating customers as a “transactions” measured “Customer Satisfaction,” “Total Cost of Customer Support” and “Average Call Wait Time” as the main key performance indicators (KPI) 90% Best In Class Average 80% Laggard 70% 60% 50% 40% 30% 20% 10% 0% Total Cost of Average Call Customer Satisfaction Customer Support Wait Time “The Conflicted Call Center: Customer Experience versus Transactions” Aberdeen Group, March 2007 Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 37
  38. 38. “Moments of Truth” Defined •Moments of Truth high Pivotal moments of Surprises, trials and customer dialogue that tribulations Predictable customer have the ability to create Customer Engagement (Contact Center Agents making lifecycle events or destroy customer non-routine decisions) value Typically critical and unpredictable Customer is emotionally vested in the outcome Threats to cost efficiency Business as usual low low high Process Standardization Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 38
  39. 39. Contact Center Experiences Influences the Brand Promise • Customer Experience Attributes Agents are knowledgeable about all customer interactions regardless of channel Decisions regarding problems are made at the point of interaction “The Call Center’s Impact on Company Brand and Image” by Dr. Jon Anton and Anita Rockwell Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.
  40. 40. Establish an Empowerment Service Level Agreement •Objective SLA Approval from Legal / Compliance Grant additional authority to conduct certain types of transactions Make sure system changes match SLA Routinely review reports to ensure compliance (make changes as needed) Focus heavily on quality assurance and monitoring •Subjective SLA Mistakes may be made on the way Communicate the value of the customer Focus heavily on quality assurance and monitoring Reward the right behavior (even though it produced the wrong result!) Integrity + Intent + Capabilities + Results = TRUST Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 40
  41. 41. Alignment of Performance Management Systems • Quality Assurance should evolve its measuring criteria from compliance to internal conformance to behaviors that drive customer satisfaction – “You said my name like 4x’s on the call. Whoop-Dee-Friggin-Doo! I still don’t have my issue resolved! Get me your supervisor!” - Crazy “But Good Point” Customer • Rewards and Recognition programs should motivate, recognize and incentivize agents that demonstrate “going above and beyond for the customer” – It’s important to define what this means to your center or organization • The inbound / outbound call center process is one of emotion. Partner with Training to develop targeted soft skills training – Do you know there are actual reports of customers getting physically sick from poor service?! Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 41
  42. 42. Summary We are no longer in the service economy but have entered into the dimension of the experience economy Customers are the most valuable (yet scarce) asset to any organization A shift is required for contact centers to function as strategic assets. Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 42
  43. 43. Let’s Keep in Touch Art Hall – Alvarez & Marsal Business Consulting 3399 Peachtree Road, Suite 1900 Atlanta, Georgia 30326 – ahall@alvarezandmarsal.com – Direct: 404-260-4152 Mobile: 404-759-9158 Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

×