2010 IIR Holdings, Ltd. All Rights Reserved.

Sydney Breakfast Briefing:

Developing a World Class

Customer Experience

Presented by: Vafa Akhavan

Chief Executive Officer

Forum Corporation

5th May, 2011

www.forum.com

AGENDA

What are the business issues

Why is Customer Experience important

How do we know we’re there

How do we achieve it

2

www.forum.com

Some business challenges

Ability to determine if our most valuable customers are about to end their relationship with our

company MONTHS before they actually terminate their relationship, perhaps go to a competitor

Integrating touch-point information with back-office, transactional data to provide a comprehensive,

enterprise-wide customer view for our sales and service staff

Identifying “bad” revenue and transitioning it to “good” revenue

Volumes of data but have limited insight into customer preferences, or we think we have those

insights

Alignment of reporting, data gathering and analysis to drive effective business decisions

Customer segmentation and valuation for our organisation

An undercurrent of “net gain” in customers or revenue as a justification for loosing

customers/revenues

Ability to accurately match our services/products to interested customers

Processes enabling differentiated service levels for our most valuable customers

Predicting customer behaviour in order to stay ahead of customer value curve

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Why is customer experience important

4

WE NEED TO KNOW WHAT CUSTOMERS THINK

www.forum.com

Why is customer experience important

5

“The Upside” Adrian J. Slywotzky,

“Service Profit Chain” Heskett, Sadder, Schlesinger, “Profitable Growth” Ram Charan

Higher Customer Loyalty = Higher P/E Ratio

Higher satisfaction = Lower switch possibility for price

THERE IS A QUANTIFIABLE IMPACT ON BUSINESS

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Why is customer experience important

6

ROI

Lower Incremental Cost

Lower Customer Acquisition

Costs

+

Lower Problem Resolution

Costs

Higher Incremental Revenue

Higher Total Sales

+

Higher Price

Premiums +

Incremental Investment in

Customer Orientation

+

Higher Incremental

Spend

=

THERE IS A RETURN ON INVESTMENT

Source: J.D. Power and Associates

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Why is customer experience important

7

THERE IS CORRELATED IMPACT ON KPIs

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Why is customer experience important

8

IT CAN GENERATE MORE CUSTOMERS & MORE REVENUES

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Why is customer experience important

9

IT HELPS CLOSE MORE UP-SELLS & CROSS-SELLS

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Interesting Usable Actionable Valuable

Inputting

data for

outputting

data tables

Processing

the data to

generate

information,

usually in

the form of

charts and

graphs with

supporting

comments

Applying

analytics,

e.g.

diagnostics,

indexing,

regressions,

to the

information

to create

knowledge

that is

actionable

Integrative

Integrating

actionable

knowledge

into various

dimensions

of business

(product,

people,

process,

strategy, etc.)

Correlation

between

integration

and business

results

through

effective

business &

customer

management

How do we know we’re there

WHEN WE’VE ACHIEVED LEVEL 5 IN INTELLIGENCE

1 2 3 4 5

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How do we know we’re there

11

Discovering

Emerging

Operational

Excelling/Innovating

Mastering

Very little evidence of the practice present

More ad-hoc than systematic

Some evidence of the practice present

Not consistently applied or followed

VOC practices understood with actions in-play to

fully integrate, measure & internalise

VOC practices well integrated and

pervasive throughout the enterprise

Innovations in new VOC practices

VOC strategic core competence

Strength

Opportunity

Source: J.D. Power and Associates

WHEN WE’VE ACHIEVED LEVEL 5 IN VOC PROFICIENCY

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How do we know we’re there

It is the first item on executive agenda

There is quantifiable impact on and tight

correlation with business results

Market recognition by clients, customers,

independent monitors

Measurable increase in LTV

Focus on driving experience vs. eliminating

dissatisfaction

Clients, customers are calling you to buy more

Clients, customers are not calling to complain

12

VISIBLE OUTCOMES IN REAL TERMS

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Source: Corporate Executive Board, Climbing the Service Curve

Extremely

Satisfied Dissatisfied

Customer Satisfaction

Advocacy

Relationship

Expansion

Neutral

Diminishment

Defection

1. Point of Satisfying:

Consistently meet expectations

for standard service, giving

customers no reason to defect

2. Point of Delighting: Exceed

expectations through differentiated

service, prompting customers to buy

more and recommend the firm to

others

“Maintenance”:

In the middle of the

curve, changes in

customer satisfaction

don’t make much

difference to

customer loyalty

How do we know we’re there WE HAVE ACHIEVED DIFFERENTIATION

www.forum.com

Source: Corporate Executive Board, Climbing the Service Curve

Extremely

Satisfied Dissatisfied

Customer Satisfaction

Advocacy

Relationship

Expansion

Neutral

Diminishment

Defection

Stage 1: Achieve

predictability. Make the

customer experience

consistent and intentional.

Stage 2: Achieve differentiation.

Make the customer experience

distinctive, valuable, and unique

to your organisation.

How do we know we’re there WE HAVE ACHIEVED DIFFERENTIATION

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How do we achieve it

15

Identify the impact zones, then design and deploy improvements

that generate better business results

Source: J.D. Power and Associates

BUILD CUSTOMER CENTRICITY

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How do we achieve it

16

Market/Industry

Proficiency

Customer

Proficiency

Service &

Sales

Proficiency

Employee

Proficiency

Acquisition

Retention

Productivity

REVENUE &

COSTS

Acquisition

Retention

Spending

SHARE &

REVENUES

+/-

PROFITABLE

GROWTH

Levels of Proficiency The Outcome The Value

Align Proficiency

Close Gap Continuous

Improvement

Sustained Growth

Enhanced Brand

People, Process, Strategy,

Technology

ALIGN THE ORGANISATION

Source: J.D. Power and Associates

www.forum.com

How do we achieve it

17

Customer

Management

Customer

Intelligence

Customer

Operations Performance

Improvement

Quality

Research

Analytics Data

Source

Field

Support

Customer

Care

People

Process

Technology

Order

Admin

Product/Price

Value

Modeling

Sales/Marketing

Sustaining

excellence in

customer

experience

requires an

organisational

structure that

enables that

excellence

through agility.

ENABLE ORGANISATIONAL AGILITY

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How do we achieve it

18

• Customer proficiency

• Industry proficiency

• Systems proficiency

• Research proficiency

• Analytics proficiency

• Integration proficiency

• Talent proficiency

Cultural Proficiency

Sustained excellence in customer experience requires a

high degree of cultural proficiency.

BUILD THE 7 PROFICIENCIES

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How do we achieve it

19

PRESALE SALE FULFILL

BILL

SERVICE

SUPPORT

RETAIN

SHOP BUY PAY Onboard /

USE / RENEW

Too often organisations manage customers with an inside-out view.

Best practice requires the enterprise to design, engineer, and execute

based on an outside-in view, i.e. the inside is driven by the outside

Avoid Reject Leave

= minimum checkpoints

Transactional

&

Relationship

ACTIONABLE INTELLIGENCE: LOOK OUTSIDE IN

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How do we achieve it

20

ACTIONABLE INTELLIGENCE: LOOK AT CHANGE OVER TIME

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How do we achieve it

21

ACTIONABLE INTELLIGENCE: PRIORITISE TARGETS

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How do we achieve it

22

Customer experience is included in all internal and external

communications

Spend time in the field

Customer focus groups

Easy access by customers

Employee focus groups

Agenda priorities

Metric accountability

Compensation drivers

FOCUS ON PEOPLE: EXECUTIVE CONNECTION

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How do we achieve it

23

Employee satisfaction

Systems alignment

Servant leadership

Walking the talk

Training and development

FOCUS ON PEOPLE: FRONT LINE CENTRICITY

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How do we achieve it

24

Reduce variance in levels of experience across channel

- Contact centers, retail, partners, etc.

Every time, all the time

Consistency = uniformity

Integrating best-in-class

Preparing for world class

CONSISTENCY IN EXCELLENCE

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How do we achieve it

25

Prioritised

Action [ People Environment ]

Execution

Results X

= +

Data

Analysis

Actionable

Intelligence

EFFECTIVE PERFORMANCE MANAGEMENT

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Where Do We Start

How proficient are you in

- Measuring and understanding customer information

- Generating actionable insights

- Predicting the outcome of taking action

- Integrating that insight into customer and provider

value streams, and business dimensions

- Linking the work to quantifiable business results

DETERMINE WHERE YOU ARE

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The imperative

THE JOURNEY IN THE PURSUIT OF EXCELLENCE IS

HARD AND NEVER ENDS. EVERY STONE MUST BE

MOVED. EVERY CORNER MUST BE TURNED. EVERY

HILL MUST BE CLIMBED. ONLY THOSE WITH GREAT

COURAGE, PERSISTENCE AND SELF SACRIFICE

ACHIEVE TRULY GREAT THINGS.

SERVING OTHERS IS A FUNDAMENTAL TRUTH