4th customer feedback summit glueck final

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 1

Data and Analytics Drive Improvements to The Customer Experience

James Glueck, Vice President, Cisco Services

4th Executive Customer Feedback Summit

February 27, 2008

1Wednesday, September 9, 2009

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Public Cisco Confidential 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



Focus on Customer Success

We have 15 years of history tracking customer satisfaction:

The results are validation:

Customer satisfaction continues to increase*

3.7

4.1

4.5

4.9

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

* Improved our sampling methodology to achieve better accuracy

We take Customer Satisfaction very seriously:We take Customer Satisfaction very seriously:We take Customer Satisfaction very seriously:We take Customer Satisfaction very seriously:

Annual Survey

Analyze TakeAction

Integrate Into Corporate Culture

!92,000 customers and partners responded to 2007 survey

!Customer view via multiple touch points

! Integrated view of customer and partner satisfaction drivers by segment and theater

!Follow on surveys or focus groups for specific issues

! Initiatives address key issues

!Real-time results viewable by employees

!Customer satisfaction tied to employee bonus plan



Cisco Service Evolution

Customer Expectations

Cisco Service Breadth Relationship

Business Model Experience

Internet Build-out led to:

Bandwidth & Availability

Device-level Maintenance Support

Channel Interface

Web-based Subscription

Self-Service

1.0

Bandwidth & Availability

Device-level Maintenance Support

Channel Interface

Web-based Subscription

Self-Service

IT Downturn led to:

Advanced Technology Time to Value

Network-level Investment Optimization

Selectively Direct

Remotely Delivered Professional Services

Consultative

2.0

Advanced Technology Time to Value

Network-level Investment Optimization

Selectively Direct

Remotely Delivered Professional Services

Consultative

Web 2.0 led to:

Network as the Platform

Business & Technology Architecture

Collaborative Partnerships

Solutions-Oriented, Performance-Based

Smart Services

3.0

Network as the Platform

Business & Technology Architecture

Collaborative Partnerships

Solutions-Oriented, Performance-Based

Smart Services



Voice of the Customer MethodologyConverting Data Into Action

! Capturing and analyzing the Voice of the Customer determines improvement actions

! Acting on these findings drives continuous improvements to the customer experience

Projects

CustomerTouch Points

Quantitative & Qualitative Analysis

Identify Actionable Data

Slice by Geography & Segment

Determine Improvements Needed



Services

Sale

s

Desig

n

Services Drives Company-wide Improvements

! Distribute analysis findings to those who own impacting actions

! Share MBOs and project plans to ensure implementation

Projects





Determine Improvements Needed



Finalized List of 13 Questions

• ---------------------• ---------------------• ---------------------• ---------------------• ---------------------• ---------------------• ---------------------• ---------------------• ---------------------

Consolidate Analysis

! Effectiveness of Solution

! Communications

! Resolve in Timeframe

! Soft Skills

Multiple survey design approaches were used to derive final list of survey questions to measure Customer Satisfaction

Transactional Survey Design Approach

Pareto Analysis

Importance Analysis

Regression and Factor Analysis

VOC Analysis

CustomerFeedback

Services

Sale

s

Desig

n



Pareto Analysis: Worldwide Percentage of 1, 2, and 3 Responses by Question

Focused on the top few dissatisfiers to have the greatest impact on Customer Satisfaction

% 1s

% 2s

% 3s

0%

5%

10%

15%

20%

Q9, R

esolv

e in

T

ime

fram

e

Needed

Q8, G

et Q

uic

kly

to

Rig

ht C

E

Q4, F

am

iliar

with C

ase

Deta

ils

Q5, T

rouble

-shootin

g S

kill

s

Q2, Technic

al

Com

pete

nce

Q7, U

nders

tand

Im

pact

Q1,

Com

munic

ations

Q12, C

E

Work

ed

Agg

ressiv

ely

Q11, A

wa

re o

f S

tatu

s a

nd

Pro

gre

ss

Q3, Lis

tenin

g &

C

om

pre

hensio

n

Q10, C

lear

Ow

ners

hip

D

em

onstr

ate

d

Q6, A

ttitude &

S

erv

ice C

ulture

Services

Sale

s

Desig

n



Identify Dissatisfier Take Action! Timely problem resolution ! Slashed meantime-to-final

resolution

Cisco Case Study: Link between customer satisfaction and timely problem resolution

Measure Results: Transactional Survey

4-06 5-06 6-06 7-068-06 9-0610-0611-0612-061-072-07 3-07

Goal

4-07

Significant increase in worldwide customer sat

Decrease in worldwide meantime-to-final resolution

Focus on Predictive Measures toImprove Services Delivery

Services

Sale

s

Desig

n



+Hardware Software Features

Commercial

SP / LE

Mid Enterprise

Segment

+CustomerAnalytical

EngineVertical

! Collect device configurations and evaluate effect on customer network stability

! Determine the “most suitable” combinations of HW, SW, and features

! Recommend to Customers

! Inform Product Development

Mine Customer Data to Drive Product Improvements

Cisco Case Study: Improving product usability and supportability

Services

Sale

s

Desig

n



Network Aware Anywhere in the World

!Network-level coverage

!Connected service

Proactive and Automated

!Notifications

!Low-cost delivery

Exclusively Through Partners

!Value-based

!Personalized

Listen to Customer Requirements toInfluence Go-to-market Strategy

Cisco Case Study: Personalized Service for Commercial Customers

Services

Sale

s

Desig

n



Maintaining an Iterative Process




ProjectsDetermine Improvements Needed





Customer listening, analysis, action

! Close the loop with the customer

! Validate our actions through Customer Satisfaction Analysis

! Learn more from customer and changing requirements



Maintaining an Iterative Process










Customer listening, analysis, action

! Close the loop with the customer

! Validate our actions through Customer Satisfaction Analysis

! Learn more from customer and changing requirements



What Trends Are We Seeing?Customers Want Personalized Service

Customer Priorities: Now and in the Year 2020

Personal Relationships with Employees

Brand Values

Personalization of Product/Service

Quality of Customer Service

Price Competitiveness

Quality of Product/Service

Now Year 2020



What Trends Are We Seeing?Customers Want Personalized Service

Customer Priorities: Now and in the Year 2020

Personal Relationships with Employees

Brand Values

Personalization of Product/Service

Quality of Customer Service

Price Competitiveness

Quality of Product/Service

Personalization of Product/Service 52%34%

Now Year 2020



Determine needed information

InvestigateTake action

# of cases open

# of cases lasting 30 days or more

Are they a critical account

Are their satisfaction scores low

Is this a multiple re-queue case

Customer Intimacy Via Business Intelligence

Electronic survey to validate

Voice of the Employee

Analysis of common threads

TACEmployee Feedback

Information TAC requests per customer



Customer Intimacy Changes the Way We Support Customers



Customer Intimacy Changes the Way We Support Customers

Company Benefit

! Increased customer sat and loyalty

! Greater productivity

! Improved employee attraction and retention

Customer Benefits

! More personalized service

! Better service interaction

Employee Benefits

! Increased employee job satisfaction

! More effective prioritization



Customer Intimacy Becomes Part of A Service Organization’s DNA

! More satisfied

! Better service

Customer

Benefits

Customer Intimacy via Business Intelligence

Focused Technical Support

Fee-based

Personalization Service Offering



Continued Experience Improvements Create Loyal Customers

Voice of the Customer

Voice of the Employee



Continued Experience Improvements Create Loyal Customers

! Customer experience is at the core of customer satisfaction

! With loyalty comes a new level of relevance

Loyalty

SatisfactionCustomer Experience



* Source: 2007 Walker Loyalty Report for the IT Industry (Networking Sector) in the US** Represents FY07

Average Loyalty Rate Across All Segments

Customers with a Service Relationship with Cisco Are More Loyal



* Source: 2007 Walker Loyalty Report for the IT Industry (Networking Sector) in the US** Represents FY07

Industry Average*

Cisco Corporate**

Service Relationship with Cisco**

49%

74%80%

Average Loyalty Rate Across All Segments

Customers with a Service Relationship with Cisco Are More Loyal

25 pointsgreater

31 points greater



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
