icew 2013 graham webster - making customer experience come alive to transform your organisation:...

Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.

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0 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / 26-01-2010 ICEW March 2013

Telefónica Europe

Making Customer Experience come alive to

transform your organization: Some tips

Graham Webster,

Director Customer Experience, Telefónica Europe.

Johannesburg, March 2013

© 2013 Telefonica. Not to be used or reproduced without permission.


1

Agenda Telefonica

The commercial rationale for turning Customers into Fans

An integrated approach across functions to improve alignment

Loyalty through an Integrated approach to improving the Customer

Experience

Some Innovative Differentiated Customer Experience Activities

Engaging people to create and deliver improved customer

experiences

Learning

02

03

04

05

01

06

07


2

Telefónica

01


3

Telefónica …some numbers

Accesses by Region Revenues by Region OIBDA by Region (*)

FY 2011 (Mill. €)

Revenues

OIBDA

Operating CF (**)

T-Europe 34%

T-Latam 66%

T-Europe 52%

T-Latam 47%

T-Europe 52%

T-Latam 48%

(*) Underlying Figures: reported excluding exceptional items and spectrum acquisitions. Contribution to consolidated figures before intercompany eliminations

(**) Operating CF = OIBDA - CapEx (excluding spectrum)

62,837

20,210

11,282

01

Telefonica Europe. ICEW March 2013

4

Telefonica Purpose … “Improving people’s lives

around the world by transforming possibilities into

reality...”

Happy Employees

& Partners

Happy Customers

Happy Shareholders

Contribution to Society

01


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5

Customer Experience is physical & emotional!

A Customer Experience is an interaction between an organisation and a customer.

It is a blend of an organisation‟s physical performance, the senses stimulated and emotions evoked, each measured against customer expectations across all moments of contact

It is

• About a physical experience, such as price, product, location, opening times, channel e.g. stores, online, telephone etc , the features of the product etc

and critically

• About Emotions – how a customer feels

› Using senses of Smell, See, Hear, Touch, Taste

“People buy with emotions and then justify with logic”

(Buck Rogers, IBM)

Source: Colin Shaw, The DNA of Customer Experience

01


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The commercial rationale for turning Customers into Fans

02


Churn

%

1.5

3.1

ARPU

€

420

381

-9% x2.1

Claims

%

3.2

17.9

x5.6

Enthusiasts

Detractors

• Even in an economic downturn… 50% of consumers will pay more for a

better Customer Experience 1

• 86% of your customers will pay more for a great customer experience 2

• 89% of consumers are doing business with competitors following a poor

experience 2

• Bad experiences travel fast and far - 26% of consumers follow a bad

experience by posting a negative comment on a social networking site for

global eyes to see 2

Source: 1 Customer Experience Impact Report. RightNow Technologies / Harris Interactive 2008

Source: 2 Oracle Research 2012

In Telecoms businesses creating Fans to reduce churn is essential

02



8

02 Creating emotional relationships with our customers

is at the core of our strategy



The Goal

Random

Experience

Inconsistent

Unintentional

Predictable

Experience

Consistent

Intentional

Not differentiated

Not valuable

Branded Customer

Experience

Consistent

Intentional

Differentiated

Valuable

Emotional

Relationships

Customer loyalty

& profitable growth

Source: Managing the Customer Experience. Shaun Smith and Joe Wheeler; O2

WOW

Customers are not

buying just a product or

service from a company;

they are buying the total

experience around its

consideration, purchase,

use and service.

Companies that master this

Experience, that can understand it and

deliver it better than their competitors,

have an edge in the marketplace.

Our strategy includes delivering “Branded Customer

Experiences”

9

02

FANS



10

Understanding the loyalty drivers

03


A twin approach to Loyalty

Logical

• Delivering the “basics” as the foundation to loyalty

Emotional

• Positives built on delivering the “basics”

• Driving an emotional connection with our brand

11

03



First – Understand the drivers of Loyalty

Customer Satisfaction

has a high impact on

both intended Loyalty

and intentions to

Recommend

Connecting Calls

70

Sound Quality 70

Network 70

Price 74

Complaint

Handling

75

Handset 77

Added Value

Services

48

Customer Service 68

Billing 74

Advertising 50

Communications 69

Loyalty 70

Recommend 61

Customer

Satisfaction

Index

73

Components

Account Manager

60

Salesperson

Text Messaging 77

Internet Use 72

56

Illustrative

CO

MP

ON

EN

T R

AT

ING

IMPACT ON SATISFACTION

KEY ACTION

AREA

MAINTAIN &

IMPROVE EVALUATE

MONITOR

Prioritisation

12

03



60

43

37

27

0

10

20

30

40

50

60

70

1 to 7 8 9 10

% of customers

who defected to

another brand

within 1 year of

these results

Level of overall satisfaction

27% of satisfied

consumers still

defected to another

brand

40% of dissatisfied

consumers did NOT

defect

DIS

SA

TIS

FIE

D

V S

AT

ISF

IED

13

But we know from other industries that satisfaction is not enough

03


Source: TNS


14

Emotional Engagement is required to create Fans

Forgiveness

Trust

Surprise & Delight

Advocacy – Promoters Recommend friend or family

Loyalty

Very Satisfied High

Satisfaction

Functional

Loyalty

Emotional

Engagement

FANS

03


Satisfaction & Loyalty : Telefonica Slovakia

Creating Loyalty needs good Customer Experiences

as the foundation

Months with O2

57%

43%

57%

46%

54%

46%

54%

49%

51%

40 50 10 20 30

43%

>90 CSI <90 CSI

The ratio of delighted customer grows over time with O2. We believe it is driven by our

Fair behavior and trust we build in our relationship with the customer

03



16

Loyalty through an integrated approach to improving the Customer Experience

04


Un

derp

in

To

p-d

ow

n

Our plans to

ensure delivery

What makes

us different

People & Culture

Proving it to

customers &

galvanising

employees

Brand

Vision

Customer Experience Customer Promise,

Programmes & Touchpoint Blueprints

Business Strategy &

Functional Plans

Systems &

processes Organization

Set up

Building Customer Loyalty

An Integrated approach - it only works when it all works ...

17

04


Designing the Customer Experience throughout the

Customer Lifecycle

Meaningful customer experiences are THE success factor, but most organisations still think inside out, mainly in terms of initiatives, products, markets

Need to be thinking about customer insight,

needs, journeys and touchpoints BEFORE

solutions

Want Help & Support

Return

Deepen

Relationship Aware Buy Use

Invoicing,

Top Up

& Payment

Interest

&

Decide

Technical

Service

Repair

in situ

Commercial

Service &

Claims

Set Up /

Provisión Recommit Leave

04



Designing the Experience & Moments of Truth

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Web

CustomerService

Retail

Device

Other

Aware &Learn

Interest &Decide

Buy Setup Use Billing Help &Support

DeepenRelationship

Re-commit or Leave

Hear / find out about, attract attention, need

Enquire, compare and decide

Commit Ready to use, delivery, install, want to get started

Receive service, explore service, access account

Receive my bill,Top up or Pay

Get help, complain,feedback

Receive information, benefits, surprises

Amend, extend contract, stay

John goes online to the O2 site, and reads about the handset deals O2 offer

John sees new O2 print advert announcing they’re offering the latest HTChandset

Legend !Poor moment Differentiation opportunityKey risk Moment of truth

John arrives in store, and ask a staff member if he can have a look at the handset

Adviser gives him a charged phone, and lets him play with it while explaining its features

John decides that he want to see who else is offering the phone. He looks online, but decide to buy from O2

Once he receives the handset, he struggles to get started, and goes to the O2 store for a free Guru appointment

John gets used to using the handset’s features, and uses the phone regularly

To find out how to download video from their phone, he goes online and uses a Guru

John sets up a direct debit to pay his bill every month

About to go on holiday, he phones customer services to make sure his phone will work in the USA

He then receives a text, telling him how to check his voicemail abroad, and how much calls/texts cost

Arriving home from the trip, he checks his account, and find he has risen up the O2 loyalty scheme to Silver

Approaching the end of his contract, he contacts customer services to find out what deals he can get

Example 1 (macro, made up) Cross channel: Handset buying experience

Fair moment Good moment

!

!

04



20

Some Innovative Differentiated Actions

05


Using Web chat to reduce calls to Customer Service

21

05



O2 Gurus – In store, On Line, In Call Centres

22

Inspire customer with „showcase

demonstrations‟, creating a desire to buy

and a great overall experience

Explain complex products and

services in an easy to understand

language.

Give expert advice on all O2 propositions

Share his/her passion and enthusiasm for

new technology



UK Example – “Fair Deal”

Fair Deal introduced in 2007 is

not a tariff or a deal - its an

ethos.

One of the fundamental wrongs

of the UK mobile industry was

that new Customers were treated

better than existing Customers.

We’ve changed our retention

offers, policies and tariffs to

ensure that existing Customers

get just as good a deal with O2

as new Customers - plus, their

loyalty is rewarded.

It demonstrates trust and

transparency to our Customers.

05


The O2 in the UK is a unique partnership between Telefonica

UK and AEG to deliver Europe's premier music venue.

This is so much more than a partnership deal- it’s a unique

“money cant buy” Customer Experience for our Customers.

They get exclusive tickets before anyone else, access to a VIP

area, competitions and a whole lot more. A place to see, feel

and experience O2.

The O2

Selling the benefit, not the product


Reward Programme linked to Customer Location

25

05



To Affinity and Beyond

We’re fortunate to have Ireland’s most relevant

sponsorship and some of its most iconic figures

Our Rugby Sponsorship strategy in Ireland was focused on

driving loyalty through real insight to create differentiated

emotional experiences

05


Insight: “People need to believe that their support makes a difference”


Rewards & Sponsorship used to create differentiated emotional

experiences 05



Activities have a direct impact on our churn

10%

19%*

15%

18% 20%

26%

28%

Churn differential for prepay customer

participating vs prepay base Those participating with multiple

properties have churn 28% less than the

prepay base

400,000 Customers

144,000 Customers 307,000 Customers

05



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Engaging people to create and deliver improved customer experiences

06



Strong Leadership demonstrating their commitment by actions

Cross functional working the norm in delivering the Customer Experience

Turning Employees into Fans

• If Employees are fans they will….

› be advocates for the business, its products and services and as an

employer

› “go the extra mile” for customers

› stay longer

• Employees will be fans if….

› they are engaged in the business

› they have a great employee experience

› all people based activity is focused on engaging employees and

delivering a great employee experience

A Corporate Strategy that encompasses our people

30

06



Slide 31

Engaging people internally is key 06



Telefonica Germany – “Get into the customers shoes”

Start: Telco is not the centre of our customers life Introduction of customer roles TP “Attract”: Experience of the information overload TP “Information”: Address different information channels TP “Buy”: Address importance of customer need based consultations TP “Bill”: Experience bill as important tool to reassure buying decision TP “Use”: Address how important user-friendly services are TP “Help”: Experience the customers frustration over unsolved problems TP “Lifetime:” Address the importance of using customers language and a customer dialogue TP “Cancellation”: Experience the cancellation process

CEX Trail Live 06



33

Learning

07



Learnings

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Devote time and attention of top-level team and do not rush – take your

time to realize where your starting point is and to align

Do not underestimate the need of culture change and coherence between brand values

and customer propositions to enable attitude transformation towards customers

Pay attention to communication: cascade the message down through the whole organization and demonstrate “walk the talk” early in the process

Treat Customer Experience as a continuous process with a number of key steps/milestones/indicators, not as one-step/turnaround change

When implementing make sure the budgeting process enables proper allocation of funds and realization of priorities and considers a long term vision

Prioritizing is key to success in Customer Experience

07

Telefonica S.A. Forrester November 2011 © 2013 Telefonica. Not to be used or reproduced without permission.


Some more learnings

1. Put the customer at the heart of everything you do

2. Start with customer insight – emotional not just rational

3. Challenge yourself to invest in what customers really value

4. Dramatise the difference through clear and compelling

Marketing and propositions

5. Bold top-down leadership

6. Believe that numbers are the output of doing the right things

7. Keep on innovating

8. You must engage people internally to succeed


[email protected]


icew 2013 graham webster - making customer experience come alive to transform your organisation:...

Business

telefonica europe

telefonica purpose

agenda telefonica

better customer experience

director customer experience

dna of customer experience

great customer experience

telefnica europe