The contact center can be a strategic center of the organization. in 2005 David Baker of Baker Strategy Group presented to the Motown chapter of the Help Desk Institue in Detroit to explore customer lifetime value and metrics applicabe to contact centers.

1. Keys to Customer Satisfaction
Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Presentation
MAKE IT HAPPEN
BAKER
HDI Grand Rapids Chapter – Grand Rapids, MI STRATEGY GROUP
November 09, 2005

2. Keys to Customer Satisfaction
Presentation
Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Chapter Page
Section Page
I. A Look at the Concept of Total Customer Value 2
II. A Review Three Examples 4
– A single online support call
– A residential service company
– A home services company
III. Three Companies that Provide Customer Satisfaction Measurement 16
How TDS Metrocom can increase its customer base
BAKER
STRATEGY GROUP
Page 1
November 9, 2005

3. Keys to Customer Satisfaction
Presentation
1. A Look at the Concept of Total Customer Value Demonstrating the effectiveness of the help desk in supporting the organization’s goals
The BakerStrategy Framework
Using a simple framework to think through a business strategy, a company can ensure that
all facets of the business have a voice in shaping that strategy
BAKER
STRATEGY GROUP
Page 2
November 9, 2005

4. Keys to Customer Satisfaction
Presentation
1. A Look at the Concept of Total Customer Value Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Customer Value
Total Customer Value involves the complete impact the customer has on the business
across the company and over time
BAKER
STRATEGY GROUP
Page 3
November 9, 2005

5. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #1 – An Online Support Call
Situation: My email suddenly stopped working; chatted with help desk to get it fixed.
They have no idea that I plan to leave, and this interaction provides few clues
Goblat interaction on Monday, October 24, 2005
Thank you for contacting Globat Support. A support agent will assist you
+ Short Wait Time shortly. You are number 1 in the queue. Your wait time will be
approximately 0 minute(s) and 36 seconds
Thank you for contacting Globat Chat Support. You are now chatting with
Technical Specialist 'Javielle'
Javielle: Welcome to GLOBAT Live Chat Support! How may I assist you
today?
David: Please fix my email
Javielle: can you try accessing webmail.globat.com instead?
- Disjointed Dialogue Javielle: this is Atmail
David: ? I tried the Atmail but messages are not there. People who send
me emails get an error message.
...
Javielle: your email account has reached 1000
- No Sympathy Javielle: you have reached the quota
David: Nobody told me!
BAKER
STRATEGY GROUP
Page 4
November 9, 2005

6. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #1 – Online Support Call
Looking at the transcript you can see how awkward the call was for the customer
David: Please delete all emails for me. I have them on my system.
- Painful Solution Javielle: just check on the boxes beside each email then click delete
David: one by one?
Javielle: okay, let me do that for you
+ Willing to Help Javielle: can you give me the last-4 digit of your credit card?
Javielle: the one you are using with us
David: I don't know which one I'm using.
David: 3978?
David: 4451?
Javielle: you are using mastercard
- Inflexible Systems David: 8457?
Javielle: nope
David: I've gotten rid of that one 2 months ago.
David: can you use some other form of verification?
Javielle: okay
Javielle: how about your email address and phone number?
David: dabaker@umich.edu
David: 734-996-2337
David: 734-355-8232
Javielle: it should be @comcast.net
David: d903857@comcast.net?
BAKER
STRATEGY GROUP
Page 5
November 9, 2005

7. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #1 – Online Support Call
Reading the text, you can see that the customer is considering leaving
Javielle: I will just delete those in TRASH now and have your settings so that
the deleted items on inbox will no longer go to TRASH
David: Great! Thank you for fixing things! I appreciate the quick help. Please tell
someone, though, that I don't appreciate maxing out on my email without some
form of notice. It looks terrible for clients who try to email me things, not to
mention that it makes doing business impossible.
- Misses the Point Javielle: I am sorry about this. However, the information regarding email quota
is on our FAQS.
David: Why don't you have a way of notifying cusotmers that we've reached the
quota?!
- Inflexible Systems Javielle: I believe there would be no way for this because if you have reached
1000 already, then the notification email will not get through at all
David: So, rather than letting me know I have a problem, you just let me find out
the hard way.
David: If I want more proactive service, do you recommend that I have my site
hosted someplace else?
+ Great Soft Skills Javielle: I am really sorry for the inconvenience that this has brought you. And I
appreciate your patience with us.
David: You've been helpful - thank you so much for your help! You fixed my
problem right away. Take care.
BAKER
Javielle: You are very welcome and have a great day! STRATEGY GROUP
Page 6
November 9, 2005

8. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #1 – Online Support Call
Metric Performance
Acceptable Wait Time Yes
Take Ownership of Situation Yes
Internally Acceptable Call Length Yes
Focused
First Call Resolution Yes
Provide Reason for Problem Yes
Ensure Situation Won’t be Repeated Yes
Agent Friendliness 7
Ease of communicating with agent 7
Agent knowledge 8
Satisfaction with outcome 9
Externally
Focused Satisfaction overall with Globat 5
Perception of Globat after this call 6
Likelihood to remain as a customer 1
Likelihood to recommend to others 3
BAKER
STRATEGY GROUP
Page 7
November 9, 2005

9. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #1 – Online Support Call
When the customer leaves, the total revenue lost be at least $3,000 over the next 5 years
Annual Revenue
Total
# of
Sites Revenue
2006 2007 2008 2009 2010
Total 8 $600 $600 $600 $600 $600 $3,000
Signed Recommends 4 $225 $225 $225 $225 $225 $1,125
Additional Sites 3 $300 $300 $300 $300 $300 $1,500
BakerStrategy 1 $75 $75 $75 $75 $75 $375
Note: To be more precise we would normally factor in probabilities of staying with Globat decreasing each year. We would also discount the future
dollars into present terms. On the other hand, we might also factor in growth of usage with Globat as the customer becomes a more advanced user
of the Globat services. For our simple example, we ignore these aspects of calculating Customer Value
BAKER
STRATEGY GROUP
Page 8
November 9, 2005

10. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
For a subsidiary of a Fortune 500 company that measured customer satisfaction and loyalty, a
key initiative to improve bottom-branch performance was stepping up customer service calls
Customer Satisfaction Index by Top and Bottom Branches
80
77 (-2)
78
75
76
74
Top Branches
72
(+2)
Bottom Branches
68
70
68 66 New Branches
65 65
66
64
62
60
3
2
03
00
00
20
ll 2
r2
g
Fa
te
ri n
in
Sp
W
High
Top
A
Medium
B
Bottom Low
C
BAKER
STRATEGY GROUP
Page 9
November 9, 2005

11. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
One year later, the actual renewal rates were compared to Intended Loyalty and showed
that Intended Loyalty is a good proxy for actual renewal behavior
Year 1 Year 2
Intended Actual
CSI
Loyalty Renewal
Top
77 80 82%
Branches
Bottom
66 74 76%
Branches
Company
71 77 78%
Overall
BAKER
STRATEGY GROUP
- 10 -
HDI 11-09-05 Page 10
November 9, 2005

12. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
Further analysis revealed the relationship curve between self-reported Intended Loyalty
and the probability of actual contract renewal for different customer types
100%
Estimated Renewal Probability
90%
80%
70%
60%
50%
40%
30%
20%
10%
0 10 20 30 40 50 60 70 80 90 100
Self-Reported Intended Loyalty
BAKER
STRATEGY GROUP
Page 11
November 9, 2005

13. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
Based on the calculated relationship between customer satisfaction (CSI) and Intended Loyalty,
revenue and profit estimates were tied to increases and decreases in customer satisfaction
Retention Estimated 5-Yr. NPV
Rate Customer (in millions)
2003
Base
CSI Current Profit (20%)
w/ CSI Δ Revenue
71.6
Company Overall 72 81.2% 82.4% 2,600,000 $71 $14.2
75 68.7% 71.1% 1,200,000 $47 $9.4
Segment A
65 90.4% 90.9% 1,400,000 $24 $4.8
Segment B
Segment B1 64 87.3% 88.1% 645,000 $13 $2.6
69 90.8% 91.3% 755,000 $11 $2.2
Segment B2
BAKER
STRATEGY GROUP
Page 12
November 9, 2005

14. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
By comparing willingness to recommend one year and actual recommendations through
the year, we were able to assign a probability of recommending based on the response
60%
Estimated Recommend Probability
50%
40%
30%
20%
10%
0%
0 10 20 30 40 50 60 70 80 90 100
Self-Reported Willingness to Recommend
BAKER
STRATEGY GROUP
Page 13
November 9, 2005

15. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #2 – Service Company
Through applying a few simple assumptions, additional revenue expected through
customer recommendations can be conservatively estimated.
Profit in Millions
New Cust. Rev. in Millions
Likelihood % that
(20% of Rev.)
(2.6 mil. ($300/cust.)
To Will
CSI cust. base)
Recom. Recom. 5-Yr. NPV
Annual
5-Yr. NPV
Annual
$16
72 72.4 37.4% 97,240 $27 $80
Today $5.4
5-Point
$18
77 77.6 41.6% 108,160 $30 $89 $6.0
CSI Increase
Incremental
$2
5 5.3 4.2% 10,920 $3 $9 $0.6
Increase
Assumptions:
- Assumes $300 annual revenue for each service type. We recognize that revenue varies considerable by segment as well as
by customer. However, this assumption makes this analysis simple, as well as adjusts slightly for one-time revenue gains not
considered in the annual revenue amount.
- 5-Yr. NPV discount rate of 7%
- 5-Yr. NPV only to new customers from contract renewal in the first year. Other customers added in years 1-4 would be
BAKER
additional revenue and profit. STRATEGY GROUP
Page 14
November 9, 2005

16. Keys to Customer Satisfaction
Presentation
2. A Review Three Examples Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example #3 – Home Services Company
This home services company was able to measure the impact their Service Center had on
overall customer satisfaction and, ultimately, company financials
89
Service
Center III
76
Service Offering 80
Recommend
I
79 78
89
CSI
Service Delivery Renew
V
74
Use
89
Contractor
Interaction IV
69
Problem
Resolution* II
BAKER
STRATEGY GROUP
Page 15
November 9, 2005

17. Keys to Customer Satisfaction
Presentation
Demonstrating the effectiveness of the help desk in supporting the organization’s goals
What about measuring customer satisfaction
just with the help desk?
BAKER
STRATEGY GROUP
Page 16
November 9, 2005

18. Keys to Customer Satisfaction
Presentation
3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Example Support Call
The following ratings are based on my impressions of four solutions being offered today.
BAKER
STRATEGY GROUP
Page 17
November 9, 2005

19. Keys to Customer Satisfaction
Presentation
3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Companies: CFI Group
CFI Group specializes in applying advanced statistical analysis to customer survey data.
BAKER
STRATEGY GROUP
Page 18
November 9, 2005

20. Keys to Customer Satisfaction
Presentation
3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Companies: CFI Group
This is how CFI Group’s default model is structured for its CallSat program.
Satisfaction Drivers Satisfaction Outcomes
Automated System
• Time to wait for agent
What is your perception of
this agency now as a result
Customer Satisfaction Index of this call experience?
Agent Interaction
• Overall satisfaction
• Friendliness
• Satisfaction v. expectations
• Understanding your problem
• Satisfaction v. ideal
• Ease of communicating with agent
• Knowledge
How does this call center
Call Outcome compare to others?
• Satisfaction with outcome
• Issue resolved?
screeners • 1st Call?
BAKER
STRATEGY GROUP
Page 19
November 9, 2005

21. Keys to Customer Satisfaction
Presentation
3. Three Companies that Provide Customer Satisfaction Measurement Demonstrating the effectiveness of the help desk in supporting the organization’s goals
Companies: Customer Relationship Metrics
Customer Relationships Metrics’ CATs program emphasizes accurate survey data.
Scientifically Mandated Quality Control Workflow
Data cleansing, comment
Transcribe and
Download coding, CSR assignment
Analyze
data errors detected,
Customer Comments all errors CORRECTED
You review reports Produce Customer Driver
with the highest Report Cards for Analysis
confidence all levels
BAKER
STRATEGY GROUP
Page 20
November 9, 2005

22. Helping Organizations Excel through Effective Customer Strategy
MAKE IT HAPPEN
Baker Strategy Group | 2232 S. Main St. #173 | Ann Arbor MI 48103 | +1 888 BAKER-13 | info@bakerstrategy.com| www.bakerstrategy.com