1. making every customer contact count
Customer Contact Management
Prepared by : Paul Yang
Aug 2004

2. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

3. PCCW provides services
and solutions that help
clients maximize
opportunities from every
customer contact

4. Mission/Value Proposition
The PCCW Helping our Clients Maximize
Advantage Every Opportunity in Every
Aspect of the Customer Life
Cycle
A Total Best Enrich Acquisition
Solution Practices
Enhance Business
Telco
Our People Technolog Provide Superior Care
Our y Synergy
Resources
Experienced
Improve Retention
and Recognized

5. "At Cathay Pacific, we strive to deliver the highest level of service to our customers and it is critical
commitment
to find a service partner who shares the same commitment. With PCCW, we are confident we
have found such partner."
--- Charles Stewart Cox, General Manager, Marketing for Cathy Pacific Airways

6. The PCCW Advantage: Commitment to Quality and Efficiency
PCCWcommitmento quality and efficiency have driven us to use "best practices",
t
achieving results beyond that of world standards.
•Award Winning Process in Recruitment and Training
•Prince 2 Project Management Methodology
•Continuous Review & Improvement via Six (Ʃ) Sigma Process
•ISO 9001/2000 Standards
•COPC Certified Consultants
Performance Metrics PCCW World Standard
Efficiency (Agent Utilization) 85% 81%
Staff Turnover 36%/annum 50%/annum
Time-to-Answer 84% < 20 sec. 72% < 10 sec.
Abandon Rate 5% 6.50%
Customer Satisfaction 85% 80-85%

7. infrastructure
“We are extremely satisfied with the infrastructure systems and the professional
services that are provided by PCCW.” systems
--- Kevin Chen, Manager, IT Department, Panasonic China

8. The PCCW Advantage: Telco Technology Synergy
As a leading telecommunications company, our capabilities and experience in the
technical infrastructure systems contact centers are second to none, allowing
that runs
PCCW to effectively use available technology to help clients maximize opportunities
with their customers.
Carrier grade infrastructure - no single point of failure
 99.9% Availability
 0% Downtime out of 4 Million Hours Uptime for 2002
 Automatic voice recognition with 90% + accuracy on large vocabularies for directory enquiry
service
 Multi-media contact center integrating voice, video, fax, email, VOIP, text chat

9. “PCCW took care of my customers as if they were PCCW’s own. The program was managed
by a team of seasoned, diligent and very capable project managers who were able to
promptly pull in the right people and system resources to meet the project launch schedule.
people resources
“
--- Roland Leung, Senior Manager, Strategic Alliance & Business
Development, AXA

10. The PCCW Advantage: Our People – Our
Resources
As one of the largest players in the arena, our scale allows clients to enjoy our vast
people
and system resources
in achieving unparalleled speed to market, scalability, and flexibility.
Our Our People
Resources
 30+ call center managers & project managers
 Manages one of Asia’s largest 24/7 contact across Asia
centers
 130+ certified tele-insurance agents, 30+
licensed MPF agents
 3,000+ seats in 5 cities
 A strong pool of specialists - quality
assurance specialists, resources planners,
 Networked contact centers process specialists, trainers
 6 certified COPC consultants
 Handles over 10 million calls per month in
 30 managers/agents with HKPC contact
16+ languages
center diploma and certificates

11. customized solutions
“PCCW acts as our business partner and give us customized solutions for our
company’s various call center needs. With their expertise in running call center
services, we work together to provide quality enhanced services to our customers”
--- Olivia Fong, Senior Manager, Customer Satisfaction, Standard Chartered Bank

12. The PCCW Advantage: Total Solution
PCCW’s offers a wide range of services that consummates a total solution approach
allowing for customized our clients various business needs providing real
to fit solutions
results.
 Top 5 customer care programs: 18%-36% unit cost reduction per annum
 Telemarketing programs: on average exceed target by 20%-40%
Total Solution Approach
Facilities CRM Customer
Design, Build Marketing
Management Program Core
& Maintenance Services
& Hosting Development Management
Operational Consultancy

13. “By drawing on PCCW Teleservices’ experience in designing, building, and maintaining
experience
call centers, we can be sure of having a world-class infrastructure that will deliver efficiency
and quality to our customers.“
--- Anthony Pang, Director of CITS American Express Travel services Limited

14. The PCCW Advantage: Experienced and Recognized
PCCW Contact Center Business has attracted an impressive list of prestigious clients from a
vast array of industry backgrounds, giving PCCW second to none.
experience

15. “After an extensive review, we selected PCCW Teleservices because of its ability to partner
with large, complex organizations to deliver world-class world-class
customer relationship
management solutions.”
--- Patrick Kong, Managing Director, Lotus Tours Limited

16. The PCCW Advantage: Experienced and
Recognized
Our world-class solutions has drawn industry recognition and awards at all levels, from
local to global.
Best Call Center Award in Greater China
2002 Call Center of the Year 2002
Best Call Center Award 2001 & 2002 ISO 9000 (2000 version) Accreditation
Service Excellence Award Call Center Award 2001
2002

17. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

18. Trends & Issues of the Insurance Industry
 Most companies have established its operation in Asia, especially in the life insurance business
 Now, adopt a growth strategy by
 Seeking partners to get access to potential customers
 Who has the a good database?
 Seeking alternative channels to generate sales (either direct sales or appointment booking); shift of customer ownership
 Which channel is reliable and effective?
 Providing a range of wealth management services, using “Financial Advisor” Approach
 Do I have a large enough operation to generate so many leads?
 Developing different CRM programs e.g. loyalty programs
 Access to expertise & experience?
 A lot of campaigns, time to market issue

19. Trends & Issues of the Insurance Industry
 Also, require advanced market planning in :
 Customer segmentation
 Database management/ warehousing tools
 Which tools to use and how to manage it?
 Inconsistent client data
 Loss of revenue opportunity (up-sell/ cross-sell)

20. Trends & Issues of the Insurance Industry
 Maximize operation efficiency in the most cost effective manner especially on:
 Loss of historical data
 Cost of operation & investment
 How to start?
 In-house operation vs. outsourcing?
 Process automation
 What software & hardware infrastructure to use?
 Operation, workflow and service delivery
 How to manage so many programs?
 How to capture all the opportunities arising from each customer contact?

21. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

22. How We Help? - Growth Strategy
 Access to abundant & relevant database
 PCCW: China Big, etc.
 Many successful joint programmes have been launched e.g.
 Dao Heng with IMS
 AXA with Fixed Line
 External: partner with other companies
 A large pool of qualified & well-trained insurance telesales agents to generate a
large number of sales leads

23. How We Help? - Growth Strategy
 An alternative effective customer acquisition channel
 Experience & expertise in designing & executing numerous successful outbound & inbound
programs
Company Description W hen Company Description W hen
AXA Leads generation 2001 AMEX Outbound 2001
HSBC Insurance Insourcing 2001 Allianz Telesales 2001
AXA Orphans Program 2001 AXA Telesales 2000
Dao Heng/ Fixed line Telesales 2001 Wintertur Life Appointment 2000
HSBC Life Telesales 2001 Cigna Leads generation 2000
HASE MPF Insourcing 2001 AXA Client information update 1999
Dao Heng Telesales 2001 Wintertur Life Leads generation 1999
Eagle Star/ IMS Telesales 2001 Eagle Star Telesales 1999
HASE Telesales 2001 Prudential Telesales 1999
Manulife Hotline 2001 Manulife Inbound program 1998
HASE/ HSBC MPF Hotline 2001

24. How We Help? - Market Planning
 Need a flexible data warehousing system to enable effective data mining and analysis for
customer retention and cross-selling programs
 Example of projects:
Type Description When
Loyalty program Loyalty program for fixed line service 2001
Data w arehouse system Sales performance tracking system 2001
Data w arehouse system Revenue management system 2000
Data cleaning solutions For Fixed line, mobile and IMS 2000-1
Data mining For Fixed line and mobile 1999-2000
Automoation in segmentation,
Campaign management contact planning and analysis tool 1999
Data w arehouse Coporate data w arehouse 1993 - 98

25. How We Help? - Operation & Cost Efficiency
 For in-house operation, we help clients:
 Develop and execute CRM/ Contact Center Strategy
 Overall CRM approach
 Infrastructure/ IT
 Contingency plan e.g. Disaster recovery site, centralized/ decentralized approach
 Consultancy on operation & workflow
 Operation: process, workflow, setting KPI etc.
 Recruitment & staffing
 Site selection
 Design, building and on-going maintenance (DBM) of the call center infrastructure
 Data/ voice call center infrastructure
 Software & hardware applications e.g. Siebel solutions
 System Integration

26. How We Help? - Operation & Cost Efficiency
 Example of DBM projects
CTI & IVR solutions CRM Solutions
Principal Insurance Hong Kong Post with 40
License Users
ACE Insurance Co.
Cigna Insurance Co Ltd. HK SAR Government -
Efficiency Unit with 50
Eagle Stars Life Assurance Co. Ltd. License Users
Bluecross Dao Heng Bank 300 License
Users
Bank Of Communication
PCCW ICC with 500 License
Bank of China
Users
Bank of East Asia
Dao Heng Bank
Hong Kong Securities Clearing

27. How We Help? - Operation & Cost Efficiency
Flexible Call Center ownership arrangement e.g.
 Joint venture
 Build-operate-transfer

Hosted solutions
 Facilities managed by PCCW
 People and infrastructure owned by clients
 Client can get full control over the call center whilst minimizing CAPEX & operation cost

In-sourcing arrangement
 Our service agents work at client’s premise


28. How PCCW Help? - Operation & Cost Efficiency
 Outsourcing option and the benefits are:
Business
Financial Competitiveness Operational
• Easier to manage &
• Time to market, develop customer center
• Reduce & control cost
• flexibility service culture
Avoid capital investment
• Focus on core • Access to Asian expertise
• Manage risk
• competence • Even in Asia, have access
Balance between fixed &
variable cost to “world-class” services,
facilities, technology and
experience
Grow markets, reduce costs, quality improvement
enables you to focus on your goals, not implementation details

29. Multi-Channel Customer Contact
summary
Multi-channels Medium Call Center Infrastructure • Account
ACD/ Outbound dialer Logger (Screen/
• Customer profile
Voice/Call Info)
PSTN
Phone
CTI Host
FAX
Computer
Client
Internet Phone/
VoIP gateway
Multi-media
Internet
Servers for:
• Voice/ Fax messages
email
• IVRS/ Voice portal
• Web Portal/ Auto-agent
Customer • Email Management Multi-skilled
Web SMS system/ auto messaging Service Agent
gateway • SMS messages • Multi-languages
• Handle inbound &
outbound calls
SMS
• Upsell & cross-sell
• Handle customer
Mail/ Shops..
CRM/ Data mining applications inquiries from all
• Contact history channels
Others • Customer profile/ account summary
• FAQ/ knowledge base
• Management information system
Insurance agents

30. An Example of Inbound Call Flow
An existing MPF customer responds to a promotion
campaign after receiving direct mail
Campaign
Campaign Proceed
Account Proceed
Account Campaign
Campaign Offers &
Offers & to place
Summary to place
Summary Literatures
Literatures order?
order?
• Campaign offers Yes
• Profile of the • Customer
• “Inbound Call” expresses interest • Product details,
caller/
activity logged activities in campaign features & prices No
• Product comparison
Smart scripts
Smart scripts
help identify
help identify Close Call
Place Order
Place Order Close Call
appropriate
appropriate
features
features
• Capture chosen • Order sent to
features with Smart billing department
Script
• Record customer
profile

31. An Example of An Outbound Call Flow
Outbound campaign to make appointment for Financial Advisors
Greeting & Needs Benefits selling
introduction identification
Use of outbound • Agent follows • Questions to • Agent follows
dialer to connect SmartScript to greet understand Smartscript to
potential the customer customer needs introduce benefits
customers
No
Agree to
Agree to Confirm
Confirm
meet
meet appointment &
Knowledge appointment &
Knowledge with the
with the automatically
automatically Close Call
Close Call
Base
Base Financial
Financial inform the
inform the
Advisor?
Advisor? Yes Advisor
Advisor
• Use SmartScript and respond • MIS System automatically feed
to questions • Schedule appointment detail & customer
• Search for answers from KB checking through information to Financial advisor’s
MIS system computer/ work station

32. Our Focus on 4 Key Elements
Project Mgt & Industry Expertise Process Control
Quality control
Experienced project team
Service & process control
Clearly defined KPIs
Business continuity
Well thoughtout project
arrangement
mgt
Data security
Customer info confidentiality
Well-planned documentation
Key Success Elements
Recruitment, training & System Integration
coaching Scope, capability & scalability
Performance evaluation Technology know-how
& quality improvement Advance CRM/ contact center
system solutions
Operation Management Technology

33. 4R Methodology
Objectives
 To achieve higher program hit rate & promote the services to all existing telemarketing
program
 To reinforce service differentiation of our telemarketing services to justify our pricing
premium
4R
 Right Message
 Right Customer
 Right Time
 Right Agent

34. 4R Methodology
Goal: Increase Program Hit Rate &
Your Customer Satisfaction
4R Methodology
Right Right Right Right
Message Customer Time Agent
4R
Methodology Multi-channel Telemarketing
(voice, fax, SMS, email, web...)
People Process Technology
Performance Management
 Make sure the performance of People, Process and Technology are
Our Role well-managed towards the 4R.

35. 4R Methodology --Key Success Factors
 Well-designed intelligent script
Right Message
Right Message  Consultative selling approach
 Identify & well-defined target customers segment
Right Customer  Maximize customer selling opportunities
Right Customer
 Well-designed telemarketing time schedule &
Right Time
Right Time call window
 Well thought-out project management
Recruitment, training & coaching
 Performance evaluation & rewards
Right Agent

Right Agent

36. Telemarketing Process & New Initiatives
1. Design & Develop 2. Deliver & Manage 3. Track & Analysis
Call List Modeling Contact Center Online Campaign
• identify opportunities Front-end System Reporting & Analysis
• enable targeted selling • supporting dynamic scripting • online
• segmentation & profiling • capturing customer info & • real time
response • multi-dimensional
Feedback

37. Target
 Accurate Segmentation and targeting are imperative to the success
of direct marketing. This ensures high conversion rate and no waste
of marketing effort. We offer campaign segmentation service using
sophisticated analytical tools and predictive modeling techniques to
help effective targeting for each campaign.
 We manage your target database hygiene and opt-out customer list
to ensure your targeting list are in good quality.
 We offer list rental / co-op campaign service on various customer
segments with 100% reach ability guarantee.

38. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

39. Benefits for you
 One-stop marketing solution
 Increase your sales territory by identifying multiple up-selling and
cross-selling opportunities over customer life cycle.
 Enables multi-channel/wave campaigns and allocates marketing
resources effectively to perform relationship marketing - enhance
customer satisfaction and program performance.
 Avoid the hassle of running ad-hoc marketing campaigns in-house
(e.g. recruitment, training and operation)

40. Benefits for you
 Quick ramp up and improve time to market
 Ready-to-use and robust 24X7 infrastructure for large-scale
programs with high service level guarantee.
 Supported by sales automation tools to optimize sales effort (e.g.
outbound dialer)
 With our Web-based solution, you can better understand your
customers and monitor the campaigns anytime, anywhere.

41. Benefits for you
 Quick ramp up and improve time to market
 Ready-to-use and robust 24X7 infrastructure for large-scale
programs with high service level guarantee.
 Supported by sales automation tools to optimize sales effort (e.g.
outbound dialer)
 With our Web-based solution, you can better understand your
customers and monitor the campaigns anytime, anywhere.

42. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

43. DHL Leads Generation Project
 Started from May 15, 2003
 Three months project at first
 Two more months extended after the
first stage
 Implement in BJ and cover the whole
country

44. DHL Leads Generation Project
 Questions cover
 Key contact person
 Average expense in express
 Average volume
 Shares among express companies
 And etc.
 57374 records processed from May.30 to Aug. 15
 10334 leads generated
 Over 18% successful rate

45. AF Leads Generation Project
 Started from Dec, 2003
 One months project
 Implement in BJ and cover the whole
country
 27,600 total call List
 5,515 successful records
 Near 20% successful rate

46. Hong Kong Bank
Product Personal Accident Home Content
Insurance Insurance
Sales Rate vs Contactable 12% 6%
Contactable Rate vs call list 50% 40%
Target Customer HK Bank's customer HK Bank's customer

47. Case Study on Insurance
Citi-Fubon
Product Personal Hospital Cash RDD Refundable
Accident DreadfDisease
Insurance
Sales Rate vs 7% 5% 3-4%
Contactable
Contactable Rate vs 42-45% 38% 40%
call list
Target Customer citibank gold
card holder

48. Case Study on Insurance
Hang Seng
Product Personal Accident Accident Income
Insurance Protection Plan
Sales Rate vs Contactable 15% 10%
Contactable Rate vs call 50% 50%
list
Target Customer Hang Seng's Hang Seng's existing
existing customer customer

49. Agenda
 Who We Are&What We Do?
 Industry Trends & Issues
 Our Solutions for Insurance Companies
 Benefits for you
 Case Study
 Next Steps

50. Next Steps
 Step 1: Understand the client’s needs
 Where is the focus along the 4 stages of the CRM
cycle?
 Where on the CRM roadmap?
 Simple data/ voice call center solutions
 Advanced CRM solutions
 Full outsourcing
 Step 2: Proposal and recommendations
 normally carried out by phases
 Step 3: Implementation & review

51. Thank
You!