how to leverage analytics, design, and development to transform customer journeys
TRANSCRIPT
McKinsey & Company 1
Leveraging Big Data Analytics and Design
to Transform Customer Journeys
Maxence VancauwenbergheMcKinsey
Housekeeping
©2015 QUALTRICS LLC.
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McKinsey & Company 3
▪ McKinsey, New York Office
▪ Leads Customer experience, Digital, Customer Operations and Marketing engagements in North America and Europe
▪ 25+ clients in Banking, Telco, Retail, Utility, Insurance, and B2B services
▪ In charge of building McKinsey’s practice in Omnichannel Analytics and partnership with ClickFox
Maxence Vancauwenberghe
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Big Data
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Big Data in Experience
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???Harnessing Big Data in Experience
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DesignAnalyticsIdeate TransformImproviseImagineQualifySketchInventNext practice
MeasureFix
PlanTrack
QuantifyAnalyzeForecast
Best practice
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Higher ROI and impactBankingJOURNEYS TRANSFORMED▪ Disputes▪ Card Replacement▪ Identity Verification
NPS Increase
+23%
HealthcareJOURNEYS TRANSFORMED▪ Prescription refill
Annual Spend Increase
$1bl
Store Experience CSAT
+16ptsRepeat visit
+45 %Retail JOURNEYS TRANSFORMED▪ Product trial▪ In store digital order pick-up▪ Product return▪ Consumer loan application
We partnered with a major global pharmaceutical company to help increase patient adherence.
Increased Annual Revenue
$500mIncreased Adherence
+1%
We embarked on a complete journey transformation with a top 10 world bank to reach top 3 in customer satisfaction in 3 years.
We partnered with the European specialty retailer to improve journey driving satisfaction and repeat business
Cost
$25m
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“Getting to the top 3!”
Large retail bank
Lagging behind competition in digital development (e.g., limited omni-channel functionalities)
Aspiration to go from low industry ranking in satisfaction to best-in-class
Traditional “touchpoint based” management of customer journeys resulting in clunky experience
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Engage
Use
Enjoy
Seek help
Separate
Prioritize Journeys to maximize impact
Volume PriorityRevenuesNPS Cost
Shop for a card 9
Onboard 5
XX 3
Manage my account 6
XX 2
10XX
XX 8
7XX
Replace my card 1
XX 4
XX 11
Impact on…
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Journey analytics tool box
Drivers of NPS
Post completion call
# of attempts prior to completing
Journey duration – avg. journey durationEngagement time
Engagement time – avg. engagement time
Journey duration to reactivation
# of hops
Self-serve
# of calls per journey
Time spent waiting on hold
Success Rate
Efficiency
Channel effectiv-eness
Journey completion – reactivation rate
Negative journey outcome (e.g., declined)
Relink recurring payments
Mainly interact in non-preferred channel
Time spent talking to Agent
-0.58-
0.53
-0.41
-0.4-
0.79
-0.37
-0.26
-0.17-
0.71-
0.63
-0.73
-0.08
-0.61
-0.52
0.26
Correlation to NPS
Current State Value
-0.58-
0.53
-0.41
-0.4-
0.79
-0.37
-0.26
-0.17-
0.71-
0.63
-0.73
-0.08
-0.61
-0.52
0.26
Priority themes Conjoint assessment of improvement
Journey map Journey archetypes Importance of sub-journeys
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Map the journeyOutcomes
Channel
NPS 67
Cost $13m
Spend loss $1bn p.a.
66%
25%
9%
Completion 75%Journey map
Understand my spend
Understand my spend
Understand my spend
Understand my spend
Account mgmt. hub
Shop for a card
Other
Replace my card contact
44%
39%
4%
10%
2%
1%
No “real” activity
Activatenew card
Anxiety related to card loss
Opportunity to upsell
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Quantify drivers of satisfaction
Contribution to NPS
Examples from competitors
▪ “Freeze”
▪ 5 years expiration
▪ Available in all channels
▪ Instant account number
▪ Next day delivery
▪ Live tracker
▪ Online activation
▪ Provide list of recurring vendors
Trigger(start)
Notify Wait Receive and activate
Re-onboard(finish)
Satisfaction vs. average
Ave
rage
Ave
rage
Ave
rage
Ave
rage
What the company thought was important
Ave
rage
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▪ Pain points eradication▪ Radical innovations
150+ ideas
Ideate
Co-creationJourney diagnostic
Trendscraping
Targeted personas
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Prioritize ideas based on quantified RoI
Cost saveProgram NPS LiftValue Index Complexity
9MMCard Freeze +7 7421
2MMxx x 5534-Concierge x 6445
-xx x xx57-xx x xx48
In Control x11
xx x13Disposable Numbers x14
Welcome Back x16
xx x19Send it Anywhere x20
Rank
Future Card x21
Spend drop
-xx +6 5713 0.8bn
xx x xx29 xx
xx x12 xx
Spring Cleaning x15 xx
xx x17 xxxx x18 xx
xx +7 6632 3bn
xx x10 xx
23MMxx x xx56 xx
Quantifying business impact of each individual idea
xx3xx3
From 150 ideas to 5 programs▪ +23pts NPS▪ $4bn spend savings ▪ $10m cost save
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Crystallize Multiple Ideas in Hi-Fi WireframesCombine several priority ideas into a concept to deliver a high customer and business value
Innovate Idea: Ability to replace card and resolve fraud in mobile app.
Pain Point Idea: Single swipe dispute or approve from a list without leaving flow
Value Leakage Idea: Chat support with live agent in mobile application to reduce support calls
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Launch kit for development and roadmap
System map
MVP and release plan
Overview
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Ongoing journey performance tracking
Success Rate
Effici-ency
Channel Effectiveness
Post completion call rate# of attempts prior to completing
% report lost card in first weekEngagement timeFirst time resolution rate
Journey duration to reactivation
# of hops
Self-serve rate# of calls per journey Time spent waiting on hold (avg.)
Journey completion reactivation rate
% Incur fraud lossesRelink recurring payments rate
Mainly interact in non-preferred channel
Time spent talking to Agent (avg.)
35%
1.3
40%
17 m.
55%
-0.37
-0.26
11%
1.3
36 s.
30%
13%
65%
1.2 m.
73%
CURRENTSTATE
0%
1
100%
4 m.
100%
-0.37
0
80%
.4
10 s.
15%
100%
0%
1 m.
100%
FUTURESTATE
Targets Tracking Rootcause and iterate
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Impact captured
19 to 30% improvement of NPS at Journey
level
$25mcost captured
$1bnspend increase
per year
+2 spots in JD Power …on track to get
to no. 3
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Data
▪ Customer profile▪ Quantitative survey
– General CSAT– Specific to journeys
▪ Qualitative / research▪ Complaints logs▪ Frontline feedback
▪ Interaction logs (connected)– Call– PoS– Field– Digital– Marketing
▪ Transactions– Financial– Non financial
▪ Cost to serve (call, field visits, POS)▪ Key drivers of customer lifetime value
(including up-sell / cross-sell sales)
▪ Product reliability, revenue rates, other cost drivers
Voice of the customer Interaction data Operational/value metrics
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Tools – example: ClickFoxRaw data
Unstructured IVR Logs
Structured Agent Logs
Retail Desktop Data
Web Logs
EventsInstant Transform
Retail Steps
IVR Prompts
Web Pages
Agent Steps
PathsAll Events Connected
Cross-Channel Outgoing Paths from IVR promise
to pay event
Cross-Channel Outgoing Paths from web online
payment event
Tasks Completions & Departures
Failed Web Pay Enrollment
Web Pay Confirmed
IVR Call
Transfer to Agent
Web Auto Pay Success
IVR Pay By Phone
Agent New Account Info
JourneysPaths to Outcomes
Enrollment Journeys
Churn Journeys
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Talent
Analytics Design Business
Customers
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Cycle
Monitor metrics
QEDcycle
Implement tech
changes rapidly
Design journey
and solution
s
Map current
and future state
Define customer journeys
Prioritize journeys based on value at stake
4 weeks – Fact base
4 weeks – Prioritization
8 weeks – Design
8 weeks – First change
<6 months
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Getting started
No data is perfect
Start right away with most important journey
Carve out implementation capacity
Set up cross-channel group
Q&A
Thank You!