Understanding and Maximizing the Customer Experience

1. Data and Analytics Drive
Improvements to The
Customer Experience
James Glueck, Vice President, Cisco Services
4th Executive Customer Feedback Summit
February 27, 2008
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Wednesday, September 9, 2009 1

2. Agenda
! Focus on Customer Success
! Voice of the Customer Methodology Drives
Company-Wide Improvements
! Voice of the Employee Enables Improved Customer
Intimacy
! Customer Experience Improvements Increase
Customer Loyalty
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Wednesday, September 9, 2009 2

3. Focus on Customer Success
We take Customer Satisfaction very seriously:
Annual Analyze Take Integrate Into
Survey Action Corporate Culture
! 92,000 customers and ! Integrated view of ! Follow on surveys or ! Real-time results
partners responded to customer and partner focus groups for viewable by
2007 survey satisfaction drivers by specific issues employees
! Customer view via segment and theater ! Initiatives address key ! Customer satisfaction
multiple touch points issues tied to employee
bonus plan
We have 15 years of history tracking customer satisfaction:
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
4.9
4.5
4.1
3.7
* Improved our sampling
methodology to
The results are validation: achieve better
accuracy
Customer satisfaction continues to increase*
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Wednesday, September 9, 2009 3

4. Cisco Service Evolution
Customer Cisco Service Business
Expectations Breadth Relationship Model Experience
Internet Bandwidth & Device-level Channel Web-based Self-Service
Build-out led Availability Maintenance Interface Subscription
to: Support
1.0
IT Downturn Advanced Network-level Selectively Remotely Consultative
led to: Technology Investment Direct Delivered
Time to Value Optimization Professional
2.0 Services
Web 2.0 led Network as Business & Collaborative Solutions- Smart
to: the Platform Technology Partnerships Oriented, Services
Architecture Performance-
3.0 Based
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Wednesday, September 9, 2009 4

5. Voice of the Customer Methodology
Converting Data Into Action
Customer Quantitative Slice by Identify Determine
Touch & Qualitative Geography Actionable Improvements Projects
& Segment Data Needed
Points Analysis
! Capturing and analyzing the Voice of the Customer
determines improvement actions
! Acting on these findings drives continuous
improvements to the customer experience
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Wednesday, September 9, 2009 5

6. Services Drives Company-wide Improvements
Customer Quantitative Slice by Identify Determine
Touch & Qualitative Geography Actionable Improvements
Needed
Projects
Analysis & Segment Data
Points
De
! Distribute analysis findings to those who
les
sig
own impacting actions
Sa
n
! Share MBOs and project plans to ensure
implementation Services
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Wednesday, September 9, 2009 6

7. De
les
Transactional Survey Design Approach
sig
Sa
n
Services
! Resolve in Timeframe
Pareto
Analysis Finalized List of
! Soft Skills 13 Questions
Customer •
•
---------------------
---------------------
Regression Feedback • ---------------------
and Factor
Consolidate •
•
---------------------
---------------------
Analysis Analysis •
•
•
---------------------
---------------------
---------------------
Importance • ---------------------
Analysis ! Communications
VOC
Analysis ! Effectiveness of Solution
Multiple survey design approaches were used to derive
final list of survey questions to measure Customer
Satisfaction
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Wednesday, September 9, 2009 7

8. 0%
5%
10%
15%
20%
Q9, Resolve in
Timeframe
Needed
Q8, Get Quickly
to Right CE
Wednesday, September 9, 2009
Q4, Familiar
with Case
Details
Q5, Trouble-
© 2007 Cisco Systems, Inc. All rights reserved.
shooting Skills
Q2, Technical
Competence
Cisco Public
Q7, Understand
Impact
impact on Customer Satisfaction
Q1,
Communications
Q12, CE
Worked
Cisco Confidential
Aggressively
Q11, Aware of
Status and
Progress
of 1, 2, and 3 Responses by Question
Q3, Listening &
Comprehension
Pareto Analysis: Worldwide Percentage
Q10, Clear
Ownership
Focused on the top few dissatisfiers to have the greatest
Demonstrated
Q6, Attitude &
Service Culture Sa
les
Services
De
% 2s
% 1s
% 3s
sig
8
n
8

9. Focus on Predictive Measures to
De
les
Improve Services Delivery
sig
Sa
n
Services
Cisco Case Study: Link between customer
satisfaction and timely problem resolution
Identify Dissatisfier Take Action
! Timely problem resolution ! Slashed meantime-to-final
resolution
Measure Results: Transactional Survey
Significant increase in
worldwide customer sat
Goal
Decrease in worldwide
meantime-to-final
4-06 5-06 6-06 7-06 8-06 9-0610-0611-06 12-06 1-07 2-07 3-07 4-07 resolution
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Wednesday, September 9, 2009 9

10. Mine Customer Data to Drive
De
les
Product Improvements
sig
Sa
n
Services
Cisco Case Study:
Improving product usability and supportability
+ +
SP / LE
Mid
Enterprise
Commercial
Analytical Customer Vertical Segment
Hardware Software Features Engine
! Collect device configurations and
evaluate effect on customer
network stability
! Determine the “most suitable” ! Recommend to Customers
combinations of HW, SW, and
! Inform Product
features
Development
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Wednesday, September 9, 2009 10

11. Listen to Customer Requirements to
De
les
Influence Go-to-market Strategy
sig
Sa
n
Services
Cisco Case Study:
Personalized Service for Commercial Customers
Network Aware Proactive and Exclusively Through
Anywhere in the Automated Partners
World !Notifications !Value-based
!Network-level !Low-cost delivery !Personalized
coverage
!Connected service
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Wednesday, September 9, 2009 11

12. Maintaining an Iterative Process
Customer Quantitative & Slice by Identify Determine Customer Quantitative & Slice
Touch Qualitative Geography Actionable Improvements Projects Touch Qualitative Geog
Analysis & Segment Data Needed Analysis & Se
Points Points
Customer listening, analysis, action
! Close the loop with the customer
! Validate our actions through Customer Satisfaction
Analysis
! Learn more from customer and changing requirements
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Wednesday, September 9, 2009 12

13. Maintaining an Iterative Process
Determine Customer Quantitative & Slice by Identify Determine Customer Q
Improvements Projects Touch Qualitative Geography Actionable Improvements Projects Touch Q
Needed Analysis & Segment Data Needed A
Points Points
Customer listening, analysis, action
! Close the loop with the customer
! Validate our actions through Customer Satisfaction
Analysis
! Learn more from customer and changing requirements
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Wednesday, September 9, 2009 12

14. What Trends Are We Seeing?
Customers Want Personalized Service
Customer Priorities: Now and in the Year 2020
Quality of Product/Service
Price Competitiveness
Quality of Customer Service
Personalization of Product/Service
Brand Values
Personal Relationships with Employees
Now Year 2020
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Wednesday, September 9, 2009 13

15. What Trends Are We Seeing?
Customers Want Personalized Service
Customer Priorities: Now and in the Year 2020
Quality of Product/Service
Price Competitiveness
Quality of Customer Service
34%
Personalization of Product/Service
Personalization of Product/Service 52%
Brand Values
Personal Relationships with Employees
Now Year 2020
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Wednesday, September 9, 2009 13

16. Customer Intimacy Via Business Intelligence
Voice Analysis Electronic Determine Take
of the of common survey to Investigate needed
information action
Employee threads validate
Information TAC requests per customer
# of cases open
# of cases lasting 30 days or more
TAC
Are they a critical account Employee
Are their satisfaction scores low Feedback
Is this a multiple re-queue case
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17. Customer Intimacy Changes the Way We
Support Customers
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18. Customer Intimacy Changes the Way We
Support Customers
Employee Benefits Customer Benefits Company Benefit
! Increased employee ! More personalized ! Increased customer
job satisfaction service sat and loyalty
! More effective ! Better service ! Greater
prioritization interaction productivity
! Improved employee
attraction and
retention
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Wednesday, September 9, 2009 15

19. Customer Intimacy Becomes Part of A Service
Organization’s DNA
Customer
Fee-
Benefits
based
! MorePersonalization
satisfied
Service Offering
! Better service
Focused
Technical
Support
Customer Intimacy via
Business Intelligence
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Wednesday, September 9, 2009 16

20. Customer Intimacy Becomes Part of A Service
Organization’s DNA
Customer
Fee-
Benefits
based
! MorePersonalization
satisfied
Service Offering
! Better service
Focused
Technical
Support
Customer Intimacy via
Business Intelligence
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Wednesday, September 9, 2009 16

21. Continued Experience Improvements Create
Loyal Customers
Voice of the Customer
Voice of the Employee
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22. Continued Experience Improvements Create
Loyal Customers
Loyalty
Customer Experience Satisfaction
! Customer experience is at the core of customer
satisfaction
! With loyalty comes a new level of relevance
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Wednesday, September 9, 2009 17

23. Customers with a Service Relationship with
Cisco Are More Loyal
Average Loyalty Rate Across All Segments
* Source: 2007 Walker Loyalty Report for the IT Industry (Networking Sector) in the US
** Represents FY07
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Wednesday, September 9, 2009 18

24. Customers with a Service Relationship with
Cisco Are More Loyal
Average Loyalty Rate Across All Segments
31 points greater
25 points
80%
greater 74%
49%
Service
Industry Cisco Relationship
Average* Corporate** with Cisco**
* Source: 2007 Walker Loyalty Report for the IT Industry (Networking Sector) in the US
** Represents FY07
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Wednesday, September 9, 2009 18

25. Summary
! Voice of the Customer Drives Services Innovation
and Increased customer Loyalty
! Voice of the Employee Improves Customer Intimacy
! Customer Intelligence Enables Services to Drive
Company-wide Improvements
! Customer Experience Improvements Increases
Customer Loyalty
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