aa-isp presentation- insideout -final
TRANSCRIPT
Proprietary and Confidential
Copyright Inside Out Solutions, LLC No part or process to be used without permission.
Chad Nuss
Founder and EVP Strategy
inside|out
How to turn Customer Service
into a Profit Center
Proprietary and ConfidentialProprietary and Confidential
What the experts say…
“Organizations need to get the maximum value out of every customer relationship by reaching customers in a way the leverages knowledge of individual styles and preferences”
Recent McKinsey data indicates as much as “70 percent of a customer’s buying experience is based on how the customer feels they are treated.”
“Simply stated, advocacy is being built and traded in a matter of seconds.”
https://www.youtube.com/watch?v=1-mOKMq19zU
Proprietary and ConfidentialProprietary and Confidential
From reactive to pro-active dialogue…
We are operating in a new world
B2B Companies are now under pressure more than ever to
grow top-line, even as they
• Adapt to rapidly evolving technologies
• Deliver new pricing structures + business models
• Find, grow, and keep their customer base• Faster moving competition
• Increased buyer sophistication
• Radically reduced switching costs
Proprietary and ConfidentialProprietary and Confidential
What I hear on the inside sales floor…
How do I keep growing revenue from my installed base of customers?
How do I ensure my customers use and get value from my solutions?
How can I decrease customer churn?
How can I make sure that every one of my users gets off to a great start?
How do I get customer support calls and escalations prioritized based on sales requirements?
Proprietary and ConfidentialProprietary and Confidential
Some simple scenarios that make us sales people cringe
1. Poor Knowledge of Product: The person answering the support line knows less than the caller. So the person with the problem has to waste even more of her time educating the person with access to the resources that could actually make the problem go away.
2. Assuming Support is Always Right. The person answering the support line treats the caller as yet another person who didn't read the manual. It takes them a long time to understand that the manual was wrong about some specific detail of the API.
3. Won’t Escalate the Problem because of poorly designed KPI. The person answering the support line has incentives to not escalate the problem quickly. So they'll bump around, banging their head into walls...re-discovering what the caller already knows.
4. The Problem Didn’t Actually Get Solved. The support person will want to close the case early, even when the problem isn't fixed. So the person with the problem has to re-open the case, wasting more wall-clock time and impacting the partner's schedule.
5. You Get What you Paid For. All this goes double when the support person is from a culture that has trouble saying "I don't know" or "we made a mistake." Unfortunately, a lot of low-cost labor supplies seem to be in those cultures.
Getting Support Calls? It’s too late!
Proprietary and ConfidentialProprietary and Confidential
Customer Service vs. Sales DNACustomer Service
• Marginally profitable operations or outright cost centers
• Reduce cost of providing acceptable service
• IT and Phone infrastructure minimized to reduce call times and get customer to self support
• Optimize number of closed cases
• Invest heavily in saving a few seconds per call, setting up expensive menu trees, automation, monitoring and analytic systems
The crux of this business process design?
"There's no revenue opportunity here." While there may be some attribution of per-incident revenue, there's little thought of an upsell — the customer service rep isn't seen as an agent for sales. Further, there's typically an indirect connection between customer satisfaction and support renewal.
Inside Sales
• Revenue based mentality
• Focused on monthly and quarterly sales goals
• ROI and Revenue per Head are critical measurements
• Focused on making individual and team revenue numbers
• Invest heavily in automation systems to improve productivity of inbound and outbound customer calls
The crux of this business process design?
“There’s no room for non-revenue producing heads." Compensation models will drive behavior for hunter or farmer models to find, grow keep customers. Leads from existing customers are critical to success of farming models, and have direct connection with customer on compelling events (ie. Renewals).
I can’t handle all these calls, there are too many bugs in the product!
I made my quota for the quarter!
Proprietary and ConfidentialProprietary and Confidential
Develop a Customer Success Practice
How do I drive the best conversion?
Is usage meeting expectations?
What is time to value?
Did the customer get good value from the product or service?
Is the service underpriced compared to usage?
What is the next best offer based on value derived?
What are the right plan types or pricing for customer?
Proprietary and ConfidentialProprietary and Confidential
Proprietary and ConfidentialProprietary and Confidential
Proprietary and ConfidentialProprietary and Confidential
Proprietary and ConfidentialProprietary and Confidential
Build KPIs into the Marketing and Sales Process
• Increased decision maker count
• Campaign sophistication improvements
• Reduction in useless emails to wrong person
• Opportunity increase through conversations
• Increased sales through improved coverage
Measure Advocacy across your Customer Base
• Health Check grades and usage scores
• Loyalty spectrum analysis based on stage
• Measuring advocacy based on behaviors
• Understand the immediate steps to move them
• Have a long term plan of engagement
Proprietary and ConfidentialProprietary and Confidential
Sales Metrics
• Compressed sales cycles
• Pipeline generation
• Y/Y or M/M Revenue uplift
• Renewal Rate
• Addt’l Decision Maker ID
Customer Success Metrics
• Customer satisfaction
• Product usage
• Customer adoption
• Customer health score
• Churn reduction
Customer Service Metrics
• Service call reduction
• AHT time reduction
• Cross sell lead generation
• Up sell lead generation
• Net promotor score
Marketing Metrics
• Lead referrals
• Conversion to pipeline %
• Social Media reviews
• Content downloads
• X Sell/Up Sell click-through
Internally Facing Metrics
• Membership rate
• Engagement rate
• Engagement frequency
• Advocacy rate
• Advocacy frequency
Proprietary and ConfidentialProprietary and Confidential
OR
Proprietary and ConfidentialProprietary and Confidential
Do the Math!
• Prioritization comes with
alignment on three key
factors: #/$/%
• No time to be re-active,
you must create a pro-
active customer experience
strategy
Proprietary and ConfidentialProprietary and Confidential
Proprietary and ConfidentialProprietary and Confidential
Things that Customer Support can do
to support Customer Success More Sales through Customer Evangelists. Delight a customer and they will tell their friends. The average number
of people a social customer will tell about a good customer experience: 42, according to the American Express®
Global Customer Service Barometer.
Sales Retention through Customer Service Knowledge. The best salespeople should be able to quickly connect
their customers to support, know their customers’ current issues, and be able to view and update them on the
progress.
Increased Sales through Responsiveness and Personalization. When the customer feels like the whole company
knows and cares about them beyond the sale and through to customer service, retention and future sales are sure
to follow. P.S. If you use a channel for sales (such as email in my personal story above), also use it for customer
service (and be just as responsive).
New Customers from Engagement. When a prospective customer sees a brand actively engaging their current
customers on social media, not just in conversation but in customer service, it’s most impressive. When companies
engage and respond to customer service requests over social media, those customers end up spending 20% to
40% more with the company, notes a Bain & Company study.
Customer Retention through Action on Feedback. When a customer requests or makes a suggestion for a product
or service, and it is made so – cha-ching! You’ve earned their business for years to come.
Helping and Selling Customers on Chat. Live chat is a staple of customer service, but it’s also a helpful sales tool.
May I help you find something? Are you having trouble with checkout? Might I suggest this for you instead?
Proactive customer service and engagement via live chat can be sales’ best friend.
Courting Customers with Content. Content is king, every facet of it, including customer service. According to
Fleishmann-Hillard, 80% of consumers go directly to business websites or turn to Google, Bing or another search
engine to find information on products, services or businesses before any human to human interaction takes place
(if it ever does). Make sure your customer service knowledgebase/FAQ section is up-to-date.
Proprietary and ConfidentialProprietary and Confidential
Tools that help Support drive Sales
Dynamic Call Flow Guides
Customer Support to Sales Playbook
Dynamic Pricing
Real-Time Appointment Setting
Product Propensity Recommendations
Hot Call Transfer Queue
Gamification
Pitch and Transfer Compensation Program
Online Chat Queue
Proprietary and ConfidentialProprietary and Confidential
.
Customer Success: Inbound Care and Retention
Challenges
Tier 1 ‘Pitch and Catch’ Transfers for both B2B and B2C
customers needing tech support that required a service
contract plan
Customers were requiring technical assistance that wasn’t
covered under the standard Comcast service plan were very
frustrated and lowered Comcast brand perception
Solution
25 Tier 1 Agents selling support services from initial
inbound care or retention call
Up sell ‘Geek Squad” style premium support to SMBs
that required technical support on office equipment
including laptops, servers, wireless routers
Designed 3 Tiers of Subscription support to engage
different levels of customers with varying business
requirements
Provided Tier 1 – Tier 3 Customer Support and Help Desk
Key Results
15% conversion rate to subscription sold from inbound
‘actionable’ calls
25% Upsell to Bundling Services from initial inbound retention
call
20,000 Subscriptions sold within 12 months
42% increase in Net Promoter customer survey score
Best Practice Learning
Bundling offers delivered the highest conversion rate across all
offers
Developing product pricing and competitive offering requires
customer feedback and competitive intelligence
Flexibility and agility in monthly program adjustments were key
to the success of developing happy customers
Proprietary and ConfidentialProprietary and Confidential
.
Customer Success: Outbound Churn Reduction Program
Challenges
>20% SMB churn rate on existing customer on month to
month agreements from B2B Voice/IP competitors
Challenge in convincing customers to convert from
month-to-month agreements to annual or multi-year
subscription agreements
Customers with AOV <$25,000 annually were un-
managed by existing Verizon telesales teams
Solution
Engage select, high propensity customers via outbound
campaign leveraging email, telephone and responsive
microsite to deliver subscription value proposition
Small Business Advisors deployed to (10 USA Dedicated
Agents) offer solution orientated recommendations and
assistance to all Verizon core products
Key Results
10% decline in churn rate
35% conversion to annual subscription from month-to-month
3x increase in customer connections through multi touch
program (email/web/phone)
Best Practice Learning
Engage with ‘advisory’ approach via phone
Develop online communication methods to increase penetration
rate of customer list
Generate compelling financial offer to switch from month to
month to subscription since the Lifetime Value average is well
above 3+ years
Proprietary and ConfidentialProprietary and Confidential
.
Customer Success: Office 365 Customer Success Program
Challenges
94% abandonment at online ecommerce store
24% of trials were resellers on behalf of customers,
creating loss of end-user visibility
No ongoing nurture cadence post purchase
Global telesales coverage model was at 120% max
capacity and unable to manage in flow of trials
Solution
Lead scoring and propensity to buy modeling to prioritize
trials and small customers for outbound nurture campaigns
Predictive cadence management for 30 day trial deployed
to ensure most appropriate touch point at most
meaningful time
120 global Tele agents covering inbound responses, trials
and MQLs across 71 countries and 42 languages covering
24x7 model
Key Results
700,000 inbound trials and responders managed per month
54% conversion from trial to opportunity
118M seats uncovered within 12 months
15% upsell cross sell to other cloud products
38% cross sell for professional implementation services
Best Practice Learning
Prioritization and scoring of inbounds yields rewards on
investment regardless of the Average Order Size (AOV)
Communication cadence timing is paramount to the success of
the sales pursuit process, engaging with prospects or customers
within <10 minutes of trial signup yielded an 85% call to connect
rate vs. the industry average of <12%
Proprietary and Confidential
Copyright Inside Out Solutions, LLC No part or process to be used without permission.
Proprietary and Confidential
Copyright Inside Out Solutions, LLC No part or process to be used without permission.
Some final thoughts on how to get started!
1. Develop your customer experience baseline
3. Test and measure you baseline customer experience and build upon it
2. Deploy a customer success practice that crosses each functional group
4. Get Customer Support on Board!
5. Refine processes and begin to consolidate and dedicate resources for the role
Proprietary and Confidential
Copyright Inside Out Solutions, LLC No part or process to be used without permission.
Chad Nuss
EVP Strategy
Thank You!