1. Improving the Speech Experience through Behavioral Analytics February 22, 2007 Judith Kohn, Project Manager, Auto National Ops Blue Cross Blue Shield of Michigan jkohn@bcbsm.com

2. Introduction to MARS 5 Member IVRs we call MARS (Member Automated Response System) MARS functionality: – Claim status/payment data – High-level benefits – Eligibility verification – Deductible/maximum accumulations – COB transaction – ID Card transaction – EOB transaction – Claim forms/Benefit books/brochures

3. Business Problem No internal IVR expertise ANO IVR containment averaged 41.3% in 2005; and 42.1% in 2006 – how to increase? Directed speech applications with DTMF default Forethought to log IVR data But, are the members being serviced? ACCESS reports slow and difficult to interpret How do I know what’s happening if I can’t see it?

4. Why does containment fluctuate? 2006 Metrics

5. 2005 – Discovered ClickFox Conducted IVR “Proof of Concept” engagement with Clickfox on the Ford IVR – 4Q2005 1.Mathematical analysis of major traffic patterns and dominant paths/navigation patterns 2.Identification of high leverage opportunities for improvement based on user behavior indicators (e.g. drop-off rates, confusion, etc.) 3.Identification of ongoing monitoring needs and areas requiring further analysis with recommendations for improving tracking capability

6. The First Business Results Enhancements from the start Implementation of measurable and actionable metrics into ClickFox reporting and dashboard ClickFox enables us to pull system performance reports in minutes as opposed to the hours it previously took for monthly reporting One enhancement identified through the analysis was developed in the FEP IVR for the 12/2005 implementation FEP IVR containment average for YE 2006 was 45.7%

7. Result - increase in authentication and overall funnel starts after altering the caller experience Welcome Provider or Member Enter Contract Number Confirm Contract Number Main Menu Provider Referral 800 Numbers Previous Flow (1/1-3/31) Welcome Provider or Member Main Menu Provider Referral 800 Numbers Enter Contract Number Confirm Contract Number New Flow (4/1-present) New call flow moved Main Menu before authentication 1/1 – 3/314/1 – 4/294/30 – 8/13 Authentication 69.5%49.8%76.8% Main Menu Starts34.6%36.4%38.1%

8. ClickFox Advantage Reporting enhancements Dashboard is functional with Key Metrics Routine IVR reports are available for deep analysis on a daily, weekly, monthly basis Release management feature allows us to see the impacts of the changes we make in the IVR to provide better self-service Provides us with a behavioral-based tool to analyze the IVR calls, identifying more opportunities for containment

9. Executive Dashboard Flexible, Customizable Dashboard is configured to clients’ or to specific users’ needs http://bcbsm.clickfox.com

10. Release Management tracks changes made to the application, displaying trends

11. The Process Analytics Conducted Deep-dive evaluations of our customers’ interactions within the six IVR applications Focused upon identification of inefficient experiences, barriers to completion of self-service funnels, dominant experiences of the majority of our callers and visitors, visits to invalid / timeout / help areas and evaluation of their usefulness Delivered optimization recommendations

12. Recommendations Summary Incorporate Agent Desktop records to identify key caller needs and the ultimate resolution treatment applied to handle need Expedite the customer experience to the point where callers make an actionable choice (Main Menu) Remove ability to transfer directly to an agent at any point prior to the Main Menu Split the Main Menu into two separate menus and present options by popularity Deliver Claim Information Main Options in the order they are likely to be selected Clarify options presented in claims area, and enable customers to search for claims by Dollar Amount and Claim Number Release Management - Measure effectiveness of changes between releases and re-prioritize enhancement plan

13. Experience takes significant amount of time - On average callers take 1:42 to arrive at Main Menu

14. Results Recommendations for System Optimization – Consolidate multiple IVR applications onto one operating platform – Incorporate enhancements – Prepare for migration from proprietary code to more flexible xml messages – Enhance the IVR functionality – Prepare for Local groups migration – Develop an enterprise-wide MARS solution

15. Next Steps Analysis Validation – Evaluate current analysis output – Identify any modifications or additions to existing analysis and / or conclusions – Execute changes / additions and integrate into existing framework – Re-evaluate analysis output Evaluate recommendations and prioritize for deployment – Prioritize the change opportunities by impact Containment Customer Satisfaction – Scope Level of Effort (LOE) for highest impact opportunities – Develop Business Cases for highest impact opportunities based on LOE and potential return Build, Test and Deploy changes to environment Measure impact of changes

16. Business Plan Business Case for IVR Enhancements Reviewed numerous recommendations from ClickFox and incorporated into Member IVR – Global Enhancements CORE (11780) The CORE includes 65 enhancements ranging from implementing an IVR for MSO and IBU contracts, consolidating all IVRs onto one platform and miscellaneous functionality enhancements The business case will be presented for funding approval in February

17. Multiple Servicing Channels Total Customer Experience Analysis provides the following insights: Where customers are beginning and ending their experience (across multiple channels) Channels that are driving volume to other channels Segments of customers that prefer one channel over another Channels that are more successful at self-serve functionality than others Customer behavior both intra-channel and cross- channel

18. Pilot Recommendations Desktop Analysis Pilot 4Q2006 1.Improvement in Accessing Benefits Information Develop further Benefits self-serve options Better Navigation in the IVR 2.Investigate expediting callers with rejected claims to an agent or develop a recorded message that explains to callers why their claim was rejected 3.Narrow specificity of Agent Desktop Records with special attention to Benefits, Drugs and Dental issues (Ford)

19. ClickFox collects and analyzes, in aggregate, data coming into the Customer Experience Hub from previously unlinked customer touch points and passes actionable information back to channel management Channel to Hub Analyzed actionable info back to channel Channel to Hub Analyzed actionable info back to channel Customer Experience Hub Web Retail eMail/Chat IVR Handheld Agent Desktop Kiosk/ATM

20. Quick Hits Identification of opportunities for improvement of existing customer experience: Completion rates of Funnels such as authentication, bill pay, etc. – Identify barriers to completion, recommendations Time & Number of steps to complete “ideal” transaction Customer preference – Speech vs. DTMF in dual systems Improvement of existing routing and first call resolution Segment Analysis Incorporation of additional customer information (demographics, segmentation, etc.) with behavioral information Evaluate behavior differences, completion rates, etc. based on customer types, attributes, connection speeds, etc. Cross Channel Analysis Evaluate behavior from IVR to Agent, and web to IVR, etc. to evaluate entire customer experience Uncover and prioritize new opportunities for offering self-service based on segmenting customer needs with live agents ClickFox Offers A Complete Solution

21. Containment

22. Business Segmentation

23. Speech/DTMF Usage

24. Repeat Callers

25. Customer Behavior Intelligence Cycle ClickFox Data Collection Algorithms CTI CRM Web ACD IVR / Speech Kiosk/ATM Branch / Store Build Model of System Analysis of User Behavior and Experience Map Findings to Business Needs (gap analysis) Build ROI Model Prioritize Improvements Virtual Physical LOGS New call flows/scripting Menu structure changes Build/extend automation Expanded/improved speech Improved logging Campaign changes Customer messaging changes Resource optimization BCBSM C LICK F OX