CS Solutions Simplicity for the customer Are you easy to do business with? Systematically Creating Fast+Simple Customer Experiences Peter Massey Budd UK

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

What are you passionate about ? Passion

How do we stop doing dumb things to customers? My passion

Are your customers revolting?

Working for the customer to change business Customer profitability, segmentation & contact strategy Customer profitability, segmentation & contact strategy B2C solutions & collaborative working B2C solutions & collaborative working Contact centre operations & performance Contact centre operations & performance Contact elimination & self service Contact elimination & self service Human factors - Leadership & performance Human factors - Leadership & performance Voice of the Customer Voice of the Customer CC outsourcing, BPO On & offshore CC outsourcing, BPO On & offshore Strategic Change For The Customer

LimeBridge is an alliance of like minded entrepreneurial businesses with practical expertise Peter Massey UK Philippe Baldin France Stephan Pucker Germany Toby Detter Sweden Bill Price US Osamu Taniguchi Japan Lynne Kenworthy SE Asia Tony Bruno China Paul Lewis Australia MD" Ramaswami India e.Partners

CS Solutions Fast+Simple

CS Solutions Fast …but not so Simple!!

Stamina over years

Delivering operational excellence is a constantly changing system – as soon as you fix one thing… Count the black dots

Strategy without tactics is the slowest path to victory. Tactics without strategy is the noise before defeat. Sun Tzu, 400BC Act systematically

Alignment and how it works Organisational design Measures People Process Technology Location Competitive space Brand Sales proposition Service proposition Channels Segments Economics Alignment

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

CS Solutions Its about people

My tastes are simple. I am easily satisfied with the best. Winston Churchill

Most excellent car in the world?

Most excellent now ?

Relevance to you

CS Solutions One size does not fit all

Its raining projects !!

Work & life balance – of course we believe in it

Passionate about your business ?

Consistency versus passion –Process –Compliance –6 sigma Effect on culture and style of managers who succeed

Your Brand can be seen, heard and felt at work – it is your people

Is brand in the advert ? Or the people you talk to ?

Brand can be seen and heard

Which manager represents your brand to your people?

Brand promises are like burning money unless they are matched by the contact experience So balance the budgets!

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

Being on the phone to their bank or insurance company is not a passion many people share

We have better things to do than deal with frustrating dumb things……

We dont normally go to work to do dumb things……its very frustrating for staff as well as customers !

Nevertheless in many cases this is how staff feel they are treating customers

The more frustrations a customer experiences, the harder they are to reach when you want to

And so profitability suffers

Or you can use customers frustrations Why order Pizza when it never comes and its cold when it does –Domino, 30 min guarantee Why go to the video store, they never have what you want –Blockbuster, in stock or free next time

Customers will pay to do so

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

CS Solutions Fast+Simple Research Headlines March 2004

The UK survey found that Fast+Simple companies have a number of things in common Businesses admit they are not Fast+Simple Being systematic is critical if you are to avoid wasting lots of energy There is a correlation between executive ownership and success

UK plc is not delivering Fast+Simple experiences for customers 77% of businesses admit they are not Fast+Simple – 59 % of these believe this is due to a lack of consistency across the business Being systematic is critical if you are to avoid wasting lots of energy. – 52 % believe they are wasting effort in capturing customer feedback although in 93 % of companies voice of customer is a board level issue – 74 % blame lack of resources and collaboration for not addressing process issues end to end across the business There is a correlation between executive ownership and success –Companies who look at Voice of Customer (VoC) on an end to end basis are twice as likely (71% vs 34%) to have board members with personal targets for customer satisfaction improvements Source: Budd industry survey, April 2004

Who do people think are Fast+Simple to do business with Designed from the outset to be faster and simpler Eg, First Direct, Direct Line, Easyjet, Dell Excellent e-business model Eg, ebay, Easyjet, Tesco online, Icelandexpress; Great Little Trading Co; Apple, IBM; Thomas Cook Direct. Have special customer appeal or experience Eg, Sunday Times Wine, Majestic Wine, Occado.com; Virgin.com Big brands with consistent standards and service levels Eg, Marks & Spencer, John Lewis, Asda, Boots, Fedex; Mark Warner Holidays

Why do people think they are Fast+Simple to do business with simple, quick, direct, polite, efficient, informative, always there, always helpful, professional, caring, friendly staff, human touch, straightforward to deal with, personal, determined to rise to your challenge, quick answer, right culture, superlative customer service

We believe that Fast+Simple companies have a number of things in common Work systematically to remove their customers frustrations Have strong leadership and are, more often than not, founder or entrepreneur led by someone who has an eye for the real detail of what customers experience Have thoroughly thought through (say that carefully !) what they do, so they can see a beginning, a middle and an end to what they do and why they do it for their customers –they have joined up thinking Focus on delivering some Brilliant Basics consistently Focus on their people Are systematic, wasting as little energy as possible Work in closed loops by planning, monitoring and analysing what they do so they can improve it Use all the data they have and dont go looking for data they cant or dont use

Programmes Ops The closed loop of customers telling you what frustrates them and the change programmes you try to put into operations Customer 1 time cycle

Programmes Customer Ops The Fast+Simple cycle Closing the loop - Connecting with the customer across the enterprise

Programmes Customer Ops Businesses are currently failing at each stage of the cycle Key findings of the Budd survey at each important stage 71% of companies do not look at VoC end to end. 51% never look at customer for feedback 71% of companies do not tie project benefits to end to end operational/process metrics 56% of Executives with VoC responsibilities do not have targets written into their personal objectives 74% of companies do not identify root causes across the business. 77% blame lack of resources and collaboration. 59% of companies who are not easy to do business with cite inconsistency of service delivery as a key factor 73% of companies do not have regular cross departmental meetings. 45% of collaboration activity is ad hoc 81% of companies do not have teams working on continuous process improvement

Programmes Customer Ops What do Fast+Simple companies do? Use all the data they have and dont go looking for data they cant or dont use Tie programme success to meaningful operational metrics Have strong leadership with executive accountability. Are led by someone with an eye for the real detail of what customers experience Work rigorously to remove the root causes of their customers frustrations Listen to what the customer says is important. Measure what the customer says is important. Focus on delivering some Brilliant Basics consistently Work systematically in closed loops by planning, monitoring and analysing what they do so they can improve it Focus on their people first

It is not essential to do everything really well, but you must close the loop Where are the weakest linksin your knowledge loops? Programmes Customer Ops x 2 x 3 x 4 x 5 x 6 = 7 ! but 1 x 0 x 3 x 4 x 5 x 6 = 0

Collaborative best practices are needed to close the loop Programmes Customer Ops 4 UNSTRUCTURED DATA DISCOVERY PLANNING IMPACT MANAGEMENT PERFORMANCE SKYLINE PROFIT MAPPING SELF SERVICE C4 VoC on CONTACT WOPAS & BTTF CHALLENGE BUSINESS SOURCING AGENT

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

CS Solutions Fast+Simple – Amazon Case Study Systematically Creating Fast+Simple Customer Experiences

Amazon has had to be systematic to be fast+simple Tom Peters on ecustomerserviceworld in London May 2003 I have been ordering books from Amazon for 6 years. I have never talked to a living human being from Amazon. I never want to meet a living human being from Amazon. Why Amazon scores 12 out of 10 for service

And objectively to win the customers praise (ACSI Survey)

Amazon HQ at Pacmed in Seattle The Skyline meetings held here

View from the Skyline meeting

Systematically bringing the customer inside Rigorous root-cause analysis, reporting, ownership (30 easy to remember codes instead of 300; no drop downs; Manhattan Skyline; weekly Ops Meetings; CPO known all over) Improved/expanded self-service (C4 Project co-led by CS and Web Dev; applied Six Sigma teams) One contact resolution (no snowballs; have you educated a customer today; <9% escalation) Feedback to improve ops, search, promotions, etc. (bccg outside of CS; WOCAS reports; dedicated project manager inside CS; Elves; make it happen) Focus on quality responses/solutions (homegrown linked QA/training process; Over the Top Award top 10% from balanced productivity/quality)

Programmes Ops Customer 1 time cycle The systematic approach to becoming fast+simple

Site nav/search-on site Returns & Refunds Password/ change WMS-on time Bounced/abandoned Feedback-positive Payment-gc Cancel item/order WMS-late shipper Site nav/search-NOT on site DC-missing,damaged,switch Payment-cc other Transfer customer WMS-late sc, avail. CPO britto / bobm davidri / kayleen britto / lesliev britto / geaston bprice / gbowen britto / iblasio davidri / iblasio britto / lesliev wilke / jsavage davidri / bobm wilke / geaston britto / tdawson bprice / gbowen davidri / jsavage 25-Mar-011-Apr-018-Apr-0115-Apr-0122-Apr-0129-Apr-01Upper Tolerance13 week AverageLower Tolerance30-Apr-00Goal Period Surveyed: 30 Apr May 2001 Logins indicate the VP owners and CS Code experts for the respective Contact Code. Dollar values indicate the average CS cost for this code for the previous six weeks. Amazon example

We present the voice of the customer to be live and actionable, hence the Skyline Top contact reasons, arranged in decreasing volumes for most recent week with short term trend data Each code showing one year ago, and stretch target over next year Average handle time for each code drives costs per week per code giving instant ROI cases for action Each code assigned to an executive owner Budget reversed to those executive owners Each code has a root cause programme manager Just as important to know why codes improved week over week, as why they might have gotten worse

Top insured contact reasons I want to make a claim The supplier hasnt been in touch, whats happening What happens next - unclear /mixed expectations Confirm your address/fax/ or wrong number Wheres my cheque I have some additional details for you Other - returning your call - transfer to tech/others Have you got my estimate What happens next - action needed I have an immediate problem now Can I take cash rather than the goods £10, 267 £5.468£2,608 £556 £1,092 £1313 £562 £904 £1,482£867 Daily cost Fred / Bernie Pont / Forshaw Ronald / XXXX Frederic / Bernie Frederic / Cole Pont / Forshaw Frederic / Stewart Frederic / SLA mngr Frederic / Bernie Frederic / Barnold Skyline process reporting to Ops manager Board member responsible Project mngr responsible Contact ratio Insurance Claims example Necessary and Unnecessary Work

The Skyline process is defined by actions taken over time cycles Step 1Step 5Step 4Step 3Step 2 Step 1Step 5Step 4Step 3Step 2 Step 1Step 5Step 4Step 3Step 2 Cycle 1 Cycle 2 Cycle n CpC 10 CpC 9.4 CpC target Skyline available Per root cause driver reports available Leadership meeting discusses CpC Resource allocations Root cause programme actions Contact per customer N cycles defined by length of cycle and time to end 2006 Contact per customer rate (CpC) target set by contribution to business goal

It is an ongoing process not a project

Agenda 1.Introduction 2.Its about people 3.What do customers want? 4.Whats UK plc doing about it? 5.The Amazon story

New ideas ….to end on Measure what is measurable and make measurable what is not so Galileo Galilei, , astronomer

The farmer does not fatten the pig by weighing it every day John Gummer

Dont put lipstick on a pig Ross Perot

Thank you