accenture service transformation rethink
TRANSCRIPT
-
8/3/2019 Accenture Service Transformation Rethink
1/12
Accenture Service Transormation
Rethink, Redene, Reinvent
Transorming customer serviceor high perormance
-
8/3/2019 Accenture Service Transformation Rethink
2/122 Rethink, Redene, Reinvent
2 Rethink, Rene, Reinvent
Reinvent
-
8/3/2019 Accenture Service Transformation Rethink
3/12
Accenture Service Transormation 3
With poor service quality remaining the
number one orce pushing customers
into the arms o waiting competitors, the
message to companies is clear: the key
to growth and protability is to retaincustomers by delivering a satisying
experience. Satised customers cost
up to 25 percent less to serve and can
generate up to 30 percent more new
revenue. Moreover, a companys ability
to win customer loyalty is the dening
characteristic o high perormance in
marketing and customer management,
according to Accenture research.
But attracting and keeping customers
or the long haul has never been harder.Their expectations continue to rise,
regardless o the economic climate.
Thirty eight percent o consumers
say they have higher expectations or
customer service today compared with
one year ago: service should be aster,
more convenient and more inormed,
among other actors. Fity-seven percent
say they have higher expectations today
than they did ve years ago.
From the consumers point o view,
the verdict is in: Companies are not
keeping pace with their customers
expectations. Globally, only 40 percent
o respondents tell us that companiesmeet their expectations requently or
alwaysa decline o 13 points since
2007. As consumers expect more and
more, they eel their expectations are
being met less and less. Their high rate
o switching is a direct result o this
widening gap.
How to redefine theservice experience
Findings like these show how
imperative it is or enterprises to move
beyond a one-size-ts-all approach to
customer serviceparticularly those
serving a diverse customer base in
which customer preerences and values
vary widely by age, location, intention
and many other actors.
Companies understand that dierent
consumers desire dierent things
and value them dierently. However,
companies tend to address these
dierences only in their marketingstrategy and neglect them in the later
stages o the customer lie cycle. We
believe that dierentiated messages
and treatment are core principles to be
applied throughout the entire lie cycle,
including the post-purchase realm o
customer service, technical support and
even collections.
In a truly customer-centric model,
companies would dierentiate
service experiences using theclosely understood expectations and
requirements o specic customer
segments, and according to the current
and potential value o those segments.
This model would help avoid
overinvesting in aspects o the
experience that customers do not value
commensurately to the cost o
Why rethink customer service?
Consumers have become more diverse, more demanding and less loyal than ever. The
problem o consumers switching the companies they do business with has never been
more acute worldwide. Nearly seven out o 10 consumers (69 percent) took their business
elsewhere at least once during the past year because o poor customer service, according
to the 2009 Accenture Consumer Satisaction survey. Thats a 10-point increase over the 59
percent who switched in 2007and the highest level o switching in the surveys history.
-
8/3/2019 Accenture Service Transformation Rethink
4/12
4 Rethink, Redene, Reinvent
delivering them. Delivering value-
based service experiences also
results in more predictable customer
behavior and, ultimately, higher loyalty
among a companys most importantsegments. Moreover, as customers at
the lower value levels experience the
service elements they expect, they
also become less likely to deect, and
they join the ranks o protable, loyal
segments sustaining the enterprise.
10 universal truths
We have ound that observing 10
universal truths o the customer
service experience helps companiesachieve the optimal balance o what
is satisying to the customer and
protable or the company.
1. Customers have a single view o
their providers, but rarely do providers
have a single view o them. Most large
enterprises have a product-centric view
o customers: over time, they
have developed multiple product lines
and designed customer interactions
around individual oerings rather the
total customer experience. Customers,
however, see just one providerand oneexperienceregardless o the number
o products or services they receive
rom that provider. Service leaders know
how to deliver a single, relevant view
o customers and a common experience
across the enterprise. They understand
the moments o truth in the client
lie cycle and remove internal barriers
that can result in disjointed service
experiences.
2. Companies should move away romone-size-ts-all support models and opt
or more tailored customer experiences
based on customer value and need.
All customers are not created equal
nor do they have the same service
needs. Serving every customer through
the same undierentiated model will
inevitably disappoint some expectations
and is likely to result in excessive
support costs. Instead, companies should
dierentiate treatments by thinking
o the holistic value o the customer
across products and services (page
9)including dierentiated processes,
tools and agent skill levels. The keyelement, however, is the customers
ability to congure the experience,
with the degree o conguration
possible tied to the customers value
to the company and changing needs.
For instance, a company may decide
to enable its highest-value customers
to choose which channels they use to
obtain service, which agents they want
to interact with and which service
options they expect to be oered.
Service leaders give more valuable
customers more ability to congure and
personalize their service experience,
according to individual needs and
preerences.
3. Any enterprise serves a nite number
o distinct customer intentions.
However, ew would be able to list
those intentions i asked. When it
comes to understanding why customers
Companies should move away from one-size-
fits-all support models and opt for more tailored
customer experiences based on customer value
and need.
-
8/3/2019 Accenture Service Transformation Rethink
5/12Accenture Service Transormation 5
10 Things We Know About Customer Service
Accenture Service Transormation 5
Customers have a single view of their providers, butfew providers have a single view of their customers.
Most companies still serve their customers, no
matter how diverse, using a one-size-fits-all model.
Customers request customer service for a finite
number of reasons, yet few companies know what
those reasons are.
The more customers use multiple channels toobtain customer service, the more integration and
transparency across channels they expect.
Its in the nature of most customers to serve
themselves, if these conditions exist: availability,
speed, consistency and accuracy.
Many changes that help companies reduce theircustomer service costs will also help them raise
customer satisfaction and loyalty.
Customers dont expect perfectionthey expect
precision.
Even large enterprises can give customers a
general store experience at scale with the customer
service technology now available.
Analytics capabilities add no value on their own
its the application of insight that creates value.
At most companies, its time to rethink the role
that customer service agents serve.
-
8/3/2019 Accenture Service Transformation Rethink
6/12
6 Rethink, Redene, Reinvent
seek service, virtually every company
knows the high-level reasons. Yet high-
level inormation is not enough. Our
experience shows that when customers
contact companies or service, their
intentions oten cross unctional and
service channel boundaries, and they
end up being transerred rom agent
to agentone o the most rustrating
aspects o the service experience.
Service leaders begin with a customer-
centric view o intentions, resulting
in more ecient processes, improved
customer experiences and higher
workorce perormance.
4. Customers may use multiple service
channels to satisy their intentions,
and they expect integration and
interaction visibility across all channels.
Channel integration is the biggest
service challenge acing enterprises this
decade. Collaboration tools and support
channelsrom telephones, mobile
devices, interactive voice response (IVR)
and the Web, to set-top boxes, kiosks,
social networks, micro-blogging, retail
and eld servicewill prolierate aster
than ever beore, all aiming to improve the
customer experience. However, i channels
are not well integrated, customers
become rustrated quickly. Service leaders
develop an integrated service-enablingtechnology stack that provides seamless
cross-channel customer experiences, with
the fexibility to accommodate uture
technological innovations.
5. Its human nature to sel-serve as
long as these variables are present:
availability, speed, consistency and
accuracy. Customers will naturally
sel-serve i they can access a capability
that clearly satises their intention,
completes the transaction aster and
achieves a similar level o quality or
success as agent contact. I any one o
these actors is absent, however, sel-
service generally ails. Service leaders
design their customer enablement
programs with this in mind. They view
sel-service as a customer experience
enhancement in addition to a cost-
savings tool and pay close attention to
generational and cultural preerences.
6. Contrary to popular belie, the cost-
versus-quality tradeo does not apply to
customer service. In act, the same actors
that drive reductions in customer service
costs also are strongly correlated with
higher customer satisaction and loyalty.
Many air travelers, or example, preer to
check in and print their boarding passes
rom home computers or airport kiosks. This
is a customer-controlled experience that
meets customers expectations or speed,
convenience and personalization. Likewise,
improved resolution or call transer rates
not only reduce service costs but improve
customer satisaction. Service leaders are
vigilant in optimizing costs while serving
the customers desire or control, pulling
every lever o the customer-care value
equation (see sidebar on page 11t).
7. Customers dont expect perection,
they expect precision. Loyalty is much
more tightly linked to how well an
enterprise responds to a customers
support needs than to eliminating the
customer touch altogether. Too oten we
hear, The best contact is the one that
didnt happen at all. But relationships
are based on interactions. Companies
requently all victim to thinking that i
they havent heard rom their customers,
then their customers must be happy.
Service leaders maximize the valueo every touch. They leave a lasting
impression with customers that says, We
know you, value your time, appreciate
your business, apologize or any
inconvenience we may have created and
will act with precision to make it right.
8. Customer service technology is reaching
the point where even large enterprises
can deliver the general store experience
at scale. Remember the good old days,
when you could walk into your avorite
local store and be served by someone
who knew your name, preerences and
purchase history? He could provide
tailored advice, recommendations and
experience that perectly matched your
needs. Each visit deepened your loyalty
and kept you coming back. Unortunately,
large enterprises historically have been
unable to create that same connection,
more oten delivering a series o disjointed
and aceless interactions connected
only by a brand name. Service leaders
apply technology to deliver one-to-one
customer experiences at scale. They also
enable the delivery o these experiences
by having the right people in place at key
touch-points.
9. Analytics alone add no value. It is
the application o insight that matters.Prepare or one o the most overused
buzzwords o the twenty rst century.
All enterprises will talk about analytics,
but ew will apply them to deliver
improved customer experiences. But
analytics can be applied to power the
general store experience. A central
decisioning engine can pre-process
all that is known about the customer
against a companys nite set o
customer intentions and business
events. Predictive analytics can have
the next best action predened and
available to all support personnel and
channels. Service leaders know how to
apply analytics to tailor their service
models to meet the needs o target
customers at an appropriate cost.
10. Most enterprises need to rethink
the role o service agents. Most service
transactions still involve live agent
supportparticularly the most complex
interactions. Yet ew companies use these
touch points to learn how to improve
either individual transactions or the
overall experience. Our research indicates
that the top-perorming 10 percent o
customer service agents produce six
positive interactions or every negative
one, while the bottom 10 percent produce
only three positive interactions or every
our negative encounters. Given that
labor cost typically accounts or nearly
two-thirds o service delivery costs,
measuring, analyzing and improving live-
agent interactions can yield large returns.
Reocus the role o service agents on
supporting corporate strategy, deepening
customer relationships and increasing
revenue. Service leaders recognize that
understanding what drives service
agent perormance is a key element in
maximizing the value o each customer
interaction.
-
8/3/2019 Accenture Service Transformation Rethink
7/12
Accenture Service Transormation 7
-
8/3/2019 Accenture Service Transformation Rethink
8/12
8 Rethink, Redene, Reinvent
How to reinvent theservice experience
We can help transorm your service
organization to deliver dierentiated
customer experiences that reduce
churn and improve protability. With
our help you can:
Improve the service experience at
both transactional and relationship
levels.
Develop cost-efcient service
delivery that balances value to the
customer with enterprise value.
Get the right answer to the right
customer through the right channel at
the right time.
Enable a differentiated serviceproposition across the entire value
chain and customer lie cycle.
Access the right person every time to
answer every inquiry the rst time.
We have the depth and breadth o
experience to analyze and transorm
every aspect o your customer
experience, rom the time a service
request is received until the time
it's completed, across every channel
and every employee that helps shape
this experience. We can help you
continuously monitor and ne-tune
customer contact so that you sustain
initial cost benets and continue to
deliver a satisying service experience
even as customer expectations change.
Our comprehensive portolio o
solutions and servicesstrategic,
analytical and operationalis anchored
in proprietary methods, sophisticated
tools, well-tested and pre-integratedarchitectures and processes, and
a worldwide network o resources
or solution delivery and operations
management.
Accentures service transormation
group oers three sets o services.
Differentiated service strategy and
channel integration
We help you evaluate current service
operations, segment and analyze the
customer base, and devise a customer
experience blueprint that balances
the cost o service with the current
and potential value o your customer
relationships. The blueprint leveragesyour brand positioning and adds
behavioral insights and attitudinal
inputs rom customers to develop the
appropriate service experience across
key channels.
Our dierentiated service-experience
oering helps you develop and
implement a customer experience
blueprint across the enterprise and
reengineer processes to deliver the
desired moments o truth across keytouch points to reinorce your brand
value proposition. We incorporate
customer behavioral insights to
continually rene the experience,
ensuring that treatments are
appropriately targeted and result in
desired customer behavior. We also
identiy and implement the required
employee skills, competencies and
perormance measurements to support
delivery o the desired customer
experience.
Our work helps you obtain a better
return on investment or capital
spending on new service initiatives and
leverage new revenue opportunities
across your customer base.
Our customer enablement and channel
integration oering helps you identiy
high-impact opportunities by tracking
customer intentions and behaviors
rom channel to channel to understandpreerences, ailure points and how
each channel aects one another.
In this way automated channels not
only reduce cost, they also increase
customer satisaction and revenue.
We use educational strategies to
increase customer usage and maximize
the benets o particular channels.
By receiving consistent inormation
and capabilities across all channels,
and leveraging the strength o each
channel, customers get the right
answer no matter how they choose to
interact.
Our proven design, development,
testing and reporting solutions also
reduce time to implementation and
speed the realization o benets.
Service delivery management and
optimization
We work with you to enable and
optimize technology that better
supports your customers in real time
and improves your operating margins.
Our service-enabling technology and
architecture oering streamlines your
operations and provides visibility acrossall touch points within one ramework
so that the experience can be quantied
rom the customers perspective.
Customer contacts can be routed to
the best sourcing option using business
rules you dene, such as contact history,
service tier, quality, cost or ulllment
time. We also leverage desktop analytics
to optimize tool usage, drive adoption
and quantiy bottlenecks.
Our service operations and analyticsoering helps companies dene a
common ramework and business
capability to manage customer-centric
metrics. We identiy areas that can
drive down the cost o service and
ramp up revenue while providing a
consistent customer service experience.
We use global benchmarks and
nancial modeling to reveal operational
opportunities, and advise on contact-
center consolidations that can improve
nancial results and enhance tacticalservice delivery. We also apply metrics
to drive strategic and tactical workorce
management. In addition, we reengineer
vendor management to better achieve
service targets at the lowest cost.
-
8/3/2019 Accenture Service Transformation Rethink
9/12
Six components are necessary to deliver
a dierentiated customer experience.
1. Dene customer segments based on
their value so that you can dierentiate
the service experience. This example shows
ve tiers ranging rom basic to premier
customers between segments that can
be migrated to a sixth dynamic segment.
Further dierentiation is typically provided
within some support tiers, based on
customer tenure, demographics, etc., but
or simplicity we show a very basic value-
based segmentation here.
2. Establish a central decisioning engine to
determine the next best action. This com-
mon repository contains an inventory o
all the reasons customers need to interact
with you as an enterprisesuch things as
customer preerences and intentions, prod-
uct usage, purchase and service history,
and levels o satisaction and engagement.
Wrap all this inormation into call-routing
rules so that the next best service action is
predened and customers preerred chan-
nels are congured beore your customers
contact the service provider.
3. Integrate support channels more tightly
to provide dierentiated experiences.
Customers have more channels
available today and they want to hop
seamlessly among them dependingon their intentions. Channels must be
congured according to which ones your
customers preer and how valuable those
customers are to you. Customers who
have customized their service experience
according to their needs will take that
actor into account when deciding
whether to switch providers. Lower tiers
represent less valuable customers, who
may have only a ew pre-determined
service options available. Top tiers
represent the most valuable customers,who may have more dynamic service
optionsor example, the opportunity to
congure their own service team.
4. Optimize cost to serve. Leverage labor
arbitrage, agent perormance management
and skills-based routing so that you can
better match customer value with cost
eectiveness. For example, you might oer
premier customers specic installation or
repair times while oering lower-value
customers repair windows. Strategic
sourcing allows you to serve lower-value
customers or intentions rom lower-cost
locations or through lower-cost channels.
5. Monitor and continuously deepen your
customer relationships. Customer loyalty
is developed depending how well you
respond to what your customers are telling
youand on how well you can predict
what they need. Engaged customers also
make targeted up-selling easier.
6. Prepare nancial models that track
what it costs to serve each customer
segment. Rather than calculate the cost
o serving generic customers ater the
act, proactively create nancial models in
advance or what you can aord to spend
to satisy the intentions o each customer
segment and make it protable. This
ensures that you are producing a higher
level o protability when implementing a
dierentiated service experience.
How to deliver dierentiated service experience
Accenture Service Transormation 9
Tier 1Premier
Tier 2Preerred
Tier 3Potential
Tier 4Core
Tier 5
Basic
DynamicTier
Customer ServiceExperience EngineUses Business Rules and
Data Feeds to Determine
"Next Best Action"
Call routing rules
Policies/procedures
Upsell/cross-sell
Agent/technician selection
Billing/credits
Channel(s) leveraged
Communication plan
CustomerPreerencesand Intentions
Top Tiers: Customer-controlled, based onpreerences and intention.
Purchase History,Service History
Lower Tiers: Limited choice based on inten-tion and predeined rules.
Monitored and Deepened RelationshipsEngages customers and aids in targeted up-selling
Optimized Cost to Servethrough strategic sourcing, empowered agents and an operations architecture focused on delivering experi-
ences as cost effectively as possible
Product UsageInormation
Middle Tiers: Pre-conigured bundles basedon preerences and intention.
CustomerEngagement
Score
Proactive Financial Model: Sets cost-to-serve based on segmentsValue-based Customer
SegmentsCentral Decisioning
High
Value
Integrated Channels/Differentiated Experiences
Interaction/Channel Selection
Chat-email-IVR-Retail-Web-Field-Phone-Emerging"DIY"Channels
-
8/3/2019 Accenture Service Transformation Rethink
10/12
10 Rethink, Redene, Reinvent
Service execution
We ocus on your workorce and
transaction processes to enhance
service, add revenue, and increasecross- and up-selling opportunities.
Our service workorce and processes
oering helps you measure, manage
and maximize workorce perormance
throughout the employee lie cycle,
including onboarding, service delivery
and career management. By aligning
workorce and culture, we can help
you reduce costs and add revenue.
Cost savings result rom increased
employee engagement, less attrition,better attendance, improved selection
and intake processes, lower average
call handling time and increased rst
contact resolution. Additional revenue
results rom better account retention,
higher cross-sell and up-sell ratios,
solution selling and improved coaching
rom ront-line managers.
Our service transactions and processing
oering addresses convergent billing,
revenue assurance and real-time
prepaid and postpaid billing. Unique
assets leverage our years o experiencein telecommunications billing to
increase customer value, reduce costs,
add revenue, improve speed to market
and simpliy service.
Achieving high performance
Companies that want to grow their
business with protable customer
relationships must adopt new service
models that have the potential to
appeal to a more varied consumerbase while also delivering the right
experiences to the right customers.
How well a company is able to
target the right sets o customers
and use technology to create service
experiences that appeal to those
customers will be crucial, especially
in emerging markets, where customer
loyalty appears to be particularly
elusive.
Organizations that recognize they neednot be all things to all people and,
consequently, deliver a dierentiated
service experience when and where it
matters most will be best positioned
to outperorm their competitors and
accelerate their organizations journey
to high perormance.
We can help
transform
your service
organization
to deliver a
differentiated
customer
experience that
reduces churn
and improves
profitability.
-
8/3/2019 Accenture Service Transformation Rethink
11/12
Contrary to common belie, lower costs
and higher customer satisaction are
not mutually exclusive. Consider these
recommendations or optimizing the
customer care value equation.
Reduce minutes persubscriber
Decrease contact rate
Eliminate issues that detract from the
experience and remove the root causes
or service inquiriesincluding, or
example, simpliying pricing and billing,
improving point-o-sale practices,
monitoring service outages and product
deects, and identiying channel or
policy inconsistencies.
Enable customer self-service where
possible based on customer intention,
channel and preerence. Actively
identiy and x sel-service break
points resulting in unsuccessul service
transactions.
Reduce transfers and misdirected
calls through customer-centric processdesign, agent-level perormance
monitoring, misroute analysis, etc.
Improve resolution rates by
implementing new metrics that drive
resolution accountability to the service
agent level, identiying perormance
outliers and integrating knowledge
management capabilities.
Increase handling efficiency
Streamline business processes to make
each interaction more ecient.
Give service personnel the tools they
need to minimize interaction time.
Optimize call handling to ensure
seamless inormation transer and
routing to the most capable agents.
Value the customers time: shift
interactions to ofine channels when
possible.
Standardize the processes to establish
the benchmark or call handling: mostcompanies vary widely in call handling
eciency.
Give supervisory agents the tools and
insight they need to coach and manage
their teams to higher perormance
levels.
Decrease cost per unit
Improve agent yield
Agent yieldtotal talk minutes divided
by total payroll minutesgenerally
exceeds 60 percent at high-perormance
businesses (approximately 6,000
minutes per agent per month). Agent
yield is a better assessment o overall
perormance than occupancy or other
traditional call center metrics.
Improve agent yield by decreasing
o-phone activitiesor example, make
training more ecient and timely, oruse low-volume times to support back-
oce transactions.
Continuously monitor forecasts
and adhere to schedules to maintain
orecast accuracy, optimal stang and
service delivery quality.
Reduce the number of small call
queues and virtualize call volume across
centers.
Add as much variable stafng aspossible to your sourcing mix: use part-
time agents, vendors and home workers
to sta peak-call intervals without
aecting overall agent yield.
Manage attrition and absenteeism.
Optimize vendor contracts tominimize cost per unit
Motivate call center vendors to
compete or your volume at the
interval-level. Generally, we recommendsourcing at least 40 to 50 percent o
total volume through third parties,
spread across three to our vendors.
Establish cost-per-productive-
minute contracts to shit the risk
o underutilization to the vendor.
Ultimately, a vendors perormance
determines the volume it receives
relative to other suppliers.
Labor arbitrage
Use offshore labor strategically to
minimize cost.
However, take care to align sourcing
strategy with customer intentions and
customer segments.
Reduce operationsoverhead
Minimize overhead allocations, such
as IT, human resources, etc.
Generally manage the central
operations team to ve to seven percent
o total care operational expense.
Centralize scheduling and workforce
planning.
Automate manual quality monitoring:
rather than monitoring three to ve
calls per agent per month, ocus on
monitoring perormance outliers inthe workorce. Leverage technology and
analytics to assess every interaction
instead o the statistically insignicant
number typical o most companies.
Turning belies into action
Accenture Service Transormation 11
-
8/3/2019 Accenture Service Transformation Rethink
12/12
Copyright 2010 Accenture
All rights reserved.
Accenture, its logo, and
High Perormance Deliveredare trademarks o Accenture.
About AccentureCRM SolutionsAccentures Customer Relationship
Management service line helps
organizations achieve high
perormance by transorming their
marketing, sales and customer serviceunctions to support accelerated
growth, increased protability and
greater operating eciency. Our
research, insight and innovation,
global reach and delivery experience
have made us a worldwide leader,
serving thousands o clients every
year, including most FORTUNE
100 companies, across virtually all
industries.
About AccentureAccenture is a global management
consulting, technology services and
outsourcing company, with more than
181,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business unctions, and extensive
research on the worlds most successul
companies, Accenture collaborates
with clients to help them become
high-perormance businesses and
governments. The company generated
net revenues o US$21.58 billion or
the scal year ended Aug. 31, 2009. Its
home page is www.accenture.com.