Transcript Variance Vs Headcount - Institute of Customer Service

Welcome to Royal Mail
Delivering Excellence
in Consumer Customer Services
Paul Roberts
Head of Consumer
Modernisation
What We’ll Cover
• Royal Mail in brief
• UK Postal Market
• What this means for Consumers
• Consumers driving the way Royal Mail
Customer Services works
• Customer Services input to wider RM
service improvements
Quick Quiz to start
How many mail items delivered in UK each day?
To how many addresses?
What does this sign mean?
How long has competition been in place in the UK postal market?
What proportion of the mail handled by Royal Mail is consumer to consumer?
How many places can consumers collect undelivered mail from?
Royal Mail Group Ltd
• Been going over 360 years!
• Three main brands – Royal Mail
Letters, Parcelforce and Post Office
Ltd
• Profit & Loss businesses
• 14000 Post Offices
• 1400 Royal Mail Delivery Offices
• Deliver 68 million letters a day
average
• To over 28 million households
• Now in a competitive letters market
• In a challenging environment –
modernising fast, but need ever more
pace to …..
The UK Postal Market
• Letter Mail volume contracting by close to 10%
year on year (e-substitution is a major factor) –
major shift from letters to packets and parcels
• Royal Mail still manages consumer-consumer
mail, unless consumers choose to post items
with other carriers (non-existent in standard
mail, small scale in valued/ larger items)
• Business to consumer competition growing
rapidly
• Business customers hugely price sensitive
• Royal Mail still delivers last mile except for
certain items (mostly courier or bulk items) –
maintains the ‘universal service obligation’
• Becoming confusing for consumers……..
service a key differentiator – especially where
something has not gone as planned
• Key is to manage and exceed expectations.
Facts &
Figures
• c.1800 employees operating from 12 main sites
• Significant consolidation and efficiency over last 8 years – was 3500 employees
with 70 sites
• Most RM Group customer service provision now done by one ‘Unit’
• Handling c.50m contacts pa, mixture of telephone, letters and email (71m
including all related website hits). Inbound and outbound.
• Total contacts increased by 73% over last 4 years
• RMCS receives on average 30k+ calls, 300 letters, 1000 e-mails, 1500 claim
forms and 5-7k redirection applications/ renewal requests per day
• RM complaints reduced from 1.8m in 04/05 to 1.3m in 09/10
• Contextually, we receive 1 complaint per household every 20yrs
• Changing traffic mix and ‘wholesale vs. retail’ is altering our customer service
landscape as well - high proportion of consumer contact is from consumers who
don’t have ‘supplier & paying customer’ relationship (mail recipients).
Our core work
Service for Consumers
• Provides multi-media help, complaint and enquiry services
• Campaigns include: RMCS, Parcelforce, Post Office Network Branches, PO
External Helpline, Postcodes, Redirections, OFCOM, Inbound Sales plus many
more….
Service for Business
• Deals with our Business Customers – all levels of spend
• Includes indoor and outdoor work, plus ancillary things like revenue capture,
billing etc.
Address Management
• Responsible for development and maintenance of Postcode Address File (PAF)
Also provide other services, such as customer service communications & web
support for customers (across B2C and B2B)
Changing the RM
Customer Services
Approach
• RMCS is traditionally a phone (and letter) based service operation.
Mostly done with person-person contact, irrespective of
simplicity/complexity of customer request
• Previously based on the internal processes we operate
• Consumers increasingly demanding mixture of channels and ways to
access services, with flexible times, interaction types and responses
• Now changing the way we provide telephony and web services for
customers on an ongoing basis – transforming the business and
keeping it up-to-date. Example - on telephony, IVR a good tool if used
properly – needs to work in tandem with more sophisticated technology
• Modernisation is a core programme of work right now, with a significant
change of focus - ‘why do customers contact us’ - and aligning service
channels/ emphasis to those demands
Demand Types
• Service approach revolves around the main reasons consumers contact
RM – demand types
• 5 key themes : get information/ advice, buy/ get a service, monitor progress
on the service, help when something needs fixing, serious issues
• Identification of what we need to do for the customer, outcomes to be
achieved for each demand type and identification of best ways of delivering
outcomes, including mix of technology and live agents
• This means that we are able to offer customers a variety of access
channels that enables them, where appropriate, to use technology to
access our services, where and when they want to
• Our people are the most important element in demonstrating added
consumer value so…. live agents now focused on delivering help for
consumers where they need it most.
• Much ‘mindset’ coaching and development work to ensure this works really
well for our customers
Example demand type detail - I want some
information
What will happen: Customer receives a suite of options
via self serve channels (web or telephony). These
options are based on the top questions customers
contact us with. For additional information, customers
directed to Post Office outlets. Option of click/ press
here to find your nearest Post Office and Delivery
Office outlet.
Outcome: Customer exits channel with information they
need, or with a clear understanding of where they can
go to get it.
Example demand type detail - I want to
report fraud/theft/criminal activity
What will happen: immediate live agent response
supported by alert mechanism (report fraud button on
web/ email/ text alert) - establish the customer issue
where urgent response not required – explanation of what this
channel is for and customer quickly re-routed back through
system
where need is established - capture data - explain next steps take immediate action with relevant personnel
Outcome: Customer leaves channel knowing immediate
action being taken and what will happen next
What are the main modernisation activities?
The programme consists of 4 key
strands of work:
• Telephony – better and wider use of
IVR & full automation of key
consumer demands
• Increased Web Self-Serve
• Process Revisions – making them
lean and integrating activity
• Resource & Site Optimisation
Automating our Telephony

Report a fault - Automating the 1st reporting of service faults – customer
confirmation & data collection/ action. A big shift for RM consumers (and our
people) – from complaint to fault

My Delivery Office - Automated option for customers that works exactly like
the “your nearest post office”.

Redelivery - Collecting the redelivery information, interfacing with the our
messaging system and generating a redelivery request within the relevant
operational delivery office. Includes any customers who need to pay fees or
surcharges

Redirection Renewals - Customers using an automated telephone
transaction and payment service to renew their redirection.

Redirection Applications - Automating approx 80% of the customer call to
set up a redirection. Customers then routed to advisors with computer screen
‘pop-ups’ to enable collection of the relevant customer names. Adherence to
security requirements key.

Keepsafe - Automating the Keepsafe application process, enabling
customers to give address details, dates and make payments over the phone.
Web Self-serve
•
Knowledge base (Ask Sarah) – putting
effective ‘decision tree’ technology into the
kbase to ensure customers questions are
answered more effectively and are better
routed (where necessary) to the ‘right
answers’ on the RM Web.
•
Contact Us/ E-mail handling - Reviewing
the “contact us” pages of our website to
align to our customer demand types, and
introduce decision tree technology to help
inform customers (and subsequently
reduce e-mail traffic)
•
Redirections - Revamp of our online
redirections customer journey and
functionality.
•
eP58 - Provision of a web-based claim
process for customers, which integrates
with CRM system to speed up customer
reduce processing workload.
Using Customer Services to drive wider application of B2C service
across RM
•
Most of the feedback on RM service standards (as well as product
performance) is channelled through Customer Services
•
Customer Services gather fault data, web-based inputs and ‘voice for the
customer’ feedback to drive service improvement.
•
Everyone who works for RM is also a consumer of the company, so can really
input to improving things. We gather and use inputs from employees as well
as customers.
•
Customer Services and RM Operational regions work together to focus on
specific themes and topics.
•
Drives ‘standard operating procedures’ and also attitude-based training and
development
•
Also informing some fundamental shifts in the way services are provided to
consumers – now trialling evening deliveries to assess impact (potential
benefit to receiving consumers and posting businesses)
•
Part of our engagement with business customers is based on consumer
feedback we receive - we use this as part of our B2B service model to help
manage key business customer demands.
Many thanks for Listening!
Questions (and hopefully answers!)
Empowering People to Deliver
Service Excellence
B2B
Pam Andrew, Customer Service Manager
RWE npower 7/6/2015
PAGE 18
Agenda
> Company background
> Challenges facing our industry & our customers – B2B
> The story so far
– Lessons learnt
– Staff reaction
– Results
> Next steps
> Questions
RWE npower 7/6/2015
PAGE 19
Our History
1990
National
Power
Created
1990
1998
Npower
brand
launched
Market
Competition
For SME &
Consumer
2000-2003
De-merger
Innogy
Created
2002
Supply
Companies
Acquired
2008
Acquired
By RWE
RWE npower 7/6/2015
Consolidatio
of RWE
Group UK
PAGE 20
Who are npower . . .
> Part of the RWE Group - our group operates power plants from construction,
commissioning, operations and maintenance
> RWE npower – we supply more than 10% of the UK’s energy making us one of the
UK’s largest gas and electricity suppliers’ (supplying over 6m residential and 350k
business customers).
> Our People – It takes over 11,500 people across 60 UK sites to carry out all our
activities.
> Community Work - we have been awarded with the prestigious CommunityMark
award from Business in the Community.
> Education - we have won awards for our education programmes, including free
educational guided tours of our power stations.
> Charities - we support many charities and match our staff’s fundraising £4£. Our
corporate charity partner is Macmillan Cancer Support.
> Sponsorship - we sponsor various sporting activities such as The npower Football
League, Worcester Wolves Basketball, Worcester RFC and the npower Test and Ashes
Series.
RWE npower 7/6/2015
PAGE 21
RWE npower 7/6/2015
PAGE 22
Our Service Challenge – The Media & Competitors
RWE npower 7/6/2015
PAGE 23
Changing Wholesale Cost
Wholesale gas prices
RWE npower 7/6/2015
PAGE 24
Our Service Challenge – “Credit Crunch”
•Increase in Insolvencies
•Increasing Fuel prices
•Internal debt pressures
•Customer behaviour
changes
RWE npower 7/6/2015
PAGE 25
Our Service Challenge – Government
&Regulation
•SMART Meters
•Carbon Policies/Levys
•Industry process
changes
•CCL/VAT rate changes
RWE npower 7/6/2015
PAGE 26
Our Service challenge – Third Parties
•Increasing number of
energy brokers
•Many 3rd Parties
involved in Meter
Reading and other site
visits
•Industry
partners/responsibilities
are not always clear
RWE npower 7/6/2015
PAGE 27
A Service Transformation Journey
RWE npower 7/6/2015
PAGE 28
Our Starting Position
> High baseline service levels
> Inadequate “First Contact Resolution”
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
•
•
•
•
Fully blended workforce
90% of calls answered in
20 seconds
< 1% abandonment rate
93% of queries resolved
within “Commit Time”
> High degree of rework across departments
> Customer Perception Poor
RWE npower 7/6/2015
PAGE 29
Our Starting Position
> High baseline service levels
> Inadequate “First Contact Resolution”
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
•
Only 20% of
Correspondence dealt
with at FCR
> High degree of rework across departments
•
CSAT shows only 56%
FCR for calls (internal
measures show 80%+)
> Customer Perception Poor
RWE npower 7/6/2015
PAGE 30
Our Starting Position
> High baseline service levels
> Inadequate “First Contact Resolution”
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
> High degree of rework across departments
•
Significant number of
hand-off points
•
12% of calls
transferred to other
departments
•
33% of customers on
hold whilst referrals
made to other
departments
> Customer Perception Poor
RWE npower 7/6/2015
PAGE 31
Our Starting Position
> High baseline service levels
•
Front line not believing
“Commit Times”
> Inadequate “First Contact Resolution”
•
Multi-skilled fuels - 33%
•
Call Handling Guidelines
“tick box” exercise
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
> High degree of rework across departments
> Customer Perception Poor
RWE npower 7/6/2015
PAGE 32
Our Starting Position
> High baseline service levels
> Inadequate “First Contact Resolution”
•
Many processes split
over 2+ teams
•
Policies & processes out
of date
•
Back office view of
control in house rather
than empower
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
> High degree of rework across departments
> Customer Perception Poor
RWE npower 7/6/2015
PAGE 33
Our Starting Position
> High baseline service levels
> Inadequate “First Contact Resolution”
> High “Referrals” & “Hand-offs”
> Low Confidence in “Setting Expectations”
> High degree of rework across departments
> Customer Perception Poor
•
Bottom of many CSat
tables
•
Relied upon external
irregular surveys for
feedback
RWE npower 7/6/2015
PAGE 34
Operational Effectiveness - Building Blocks
Empower as close to the
front line as possible
Operational Effectiveness
Sales Through
Service
Energy Services
Customer
Experience
Added Value
Lead
Generation
Segmented
Service
End-End Process Reengineering
Balanced Scorecards
Manage Inputs &
Outputs
Quality
SLAs with Suppliers
Training
Work Blending
Business Tensions
(Healthy!)
Understand Re-work
Understanding
Peaks & Troughs
Working within
Service Standards
Targets &
Incentives
In-sourcing
Volumes – Control
Accurate
Forecasting
Zero
Backlogs
RWE npower 7/6/2015
PAGE 35
Objectives to achieve
Features of Future State
> Meet business plan OpEx/efficiency
targets
> Optimal FCR resolution:
– 80%
> Elimination of re-work
> Elimination of process steps
> Minimal handoff points:
– 5% transfer
– 15% referral
> Increase CSAT & SSAT
> Evolving feedback and training culture
> Reduce staff churn
> Clear career paths
> Raise general standards of
performance
> High levels of job enrichment
> Understand Optimal FCR
> Optimal process/activity at front end:
– Economies of scale
– Increased CSAT
– Increased staff morale /reduced churn
RWE npower 7/6/2015
PAGE 36
The DRIVE Approach
PHASE 2
Define
Review
1 Day Event
PHASE 3
2 Day Event
• Define And Sign
Off Detailed Scope “Problem
Statement”
•Review Supporting
Data
•
•Conduct SIPOC
• Agree Improvement Objectives
• Identify Critical Customer
Requirements
• Conduct As Is MAP and
highlight Opportunities
• Train, Implement & Support
Changes
• Tweak If Required
Sign off & Communicate
• Identify Future State Requirements
•Develop Future State Process Map
• Create Improvement Plans
• Document Standards/ Local Working
Practices
Sign off & Communicate
• Gather Voc
Embed
3-4 Weeks Trial
• Prioritise Opportunities
Sign off & Communicate
Sign off & Communicate
Verify
Improve
• Track Against New Standard,
Verify And Act Accordingly.
• Agree Potential Post Phase
Improvement
Handover to BAU
PHASE 1
• Evaluate Delivery & Benefits
against Scope/Forecast
• Document And Share Lessons
Learned
•
Usually 6-8 weeks
RWE npower 7/6/2015
PAGE 37
Model Office: Change Implementation Process
Small Changes
Continuous Improvement
Identify changes
to be implemented
into the
business area
CI “Event”
Process Change
Behaviour Change
Model Office
6-10 individuals
to pilot and
test the changes
Identified
Process
Review
Training &
Development
Process
Go-Live
Weekly review
to discuss progress
and identify issues
to be investigated
Full documented
training plan to
be rolled
out in the area
Process change
fully implemented
within the
business area
4 Weeks
Timescales agreed on each change with Training &
Operational Managers
Culture Change
Amend Process
2010+
Q2 2009
Overall programme timescale (each phase to use the above process)
RWE npower 7/6/2015
PAGE 38
Measurements
Correspondence:
Call Centre:
> Quality
> Quality
> FCR & Resolved within C/Centre
> Handling time
> Contacts resulting in EoDs
> FCR & Resolved within C/Centre
> Top 10 Query areas (inc movement)
> Top 10 Query areas (inc movement)
> Overall query duration
> Call referrals
> Outstanding correspondence (> 10
w/days)
> Call transfers
> CSAT
> Handling time
General:
 Tracked by volumes, percentages & FTE (OpEx) impact
 Review trends and link to Root Cause projects
 Track impact on Cash at Point of Contact , DD conversion & Sales Leads/Conversions
RWE npower 7/6/2015
PAGE 39
Road Map: Activity So Far
Q2 2009
Q4 2010
Adhoc
Tactical changes
Model Office
No1 set up
Model Office
No2 set up
Module 3
CI Event
Internal Training
Options reviewed
Roll out training
Visit to Resi
colleagues
Module 1
CI Event
Module 2
CI Event
Training option2
Reviewed
Model office for
Module 3
Quality score
revised
Manual CSAT
Reviewed
Call Handling
Training option1
Reviewed
Review Problem
& Opps o/s
Quality Buzz
Sessions
Feedback
Received
Revised
new starter pack
CSAT analysis
Engagement
Training Created
Engagement
Training pilot
Internal data
analysis
External call
data analysis
Linked with
CI teams
Roll out training
Engagement
Training roll out
Adviser Scorecard
revised
Lesson Learnt!
Stakeholder engagement / Communications
RWE npower 7/6/2015
PAGE 40
Learns learnt so far
Measures/Planning:
> Have key measures in place for ‘As Is’ activity before trialling new process
> Agree measures of each module and have reporting in place prior start
> Trackers across each dept have different timings (understand why)
> Have high level project plan in place before start and as detail asap
Support:
> Clearly understand the role of each support activity before project start
> Have Training Team and Reporting Team reps from the beginning
Changes:
> Implementation plan needs to be very detailed for step by step approach
> Document all changes including procedures as early as possible
> Ensure Policy Document changes and timelines are in line
> Agree a sign off process between departments before changes implemented
> Train Team Managers well before roll out to advisers
RWE npower 7/6/2015
PAGE 41
Results …. so far
RWE npower 7/6/2015
PAGE 42
It (the job) is so
much more
exciting now
Bring on the next
change!
It was great to be
asked to try things
rather than told ‘just
do it’
I enjoy my job
so much more
now
I didn’t realise
how complicated it
was (about other
teams activities)
It feels like
we’re giving
proper service
now, it’s so
much better
I was very
sceptical at first
that we’d be
listened to, but
it’s been great
I thought I was
ready for a change
(in role) but this
has made me
realise there’s so
much more we can
do
people
RWE npower 7/6/2015
PAGE 43
Contact Centre Model Office
Referral Rate
30.0%
25.0%
20.0%
15.0%
100.00%
Front Line Resolution
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
10.0%
Jan
☺Enabled customers to control
start of the call
35.0%
Feb
☺Provide customers with query
references
Percentage of Calls
☺Change to call opening (flow)
Month
% Resolved within C/Centre
90.00%
Model Office
80.00%
BAU
70.00%
60.00%
☺Timeline of refunds getting to
customers improved by 48 hours
50.00%
40.00%
30.00%
☺Credit transfer queries Credit
transfers 25% to 83% on frontline
20.00%
10.00%
0.00%
1
Q2 2009
2
Q4 2009
Quarter
3
4
Q2 2010
Q4 2010
☺Copy bills 0% to 90% whilst
customer on the phone
RWE npower 7/6/2015
PAGE 44
Correspondence Module
Increased first contact resolution includes:
J
Raise refund query 0% to 61%
J
Re-bill account following customer’s reading 27% to 82%
J
Set up payment arrangement 2% to 67%
J
Credit transfer query 0% to 95%
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Dec
Nov
Oct
Sept
Aug
July
June
May
Apr
Mar
Feb
Jan
All queries
In Scope
RWE npower 7/6/2015
PAGE 45
Status against Objectives
Measure of Success
RAG
Status
Comments
J
So far so good!! 96% S/L & 0.6% A/R & ASA 5 Seconds
Reduced call volumes
K
Already seen a 16% reduction in calls but opportunity still for less
+ other factors apparent
Reduced EODs & Complaints
K
Already seen a reduction but opportunity still for less
Increased job enrichment
J
More training & empowerment workshops in development
More input from advisers in what we do
J
eg CI “Events”, Breakfast meetings & group sessions
K
New internal measure in place, but nothing to benchmark
externally
Eliminate Rework
K
Reduction in transfers from 15% to 10% and reduction in referrals
from 33% to 24% - but measure on repeat contacts not robust
Improved Csat/Customer Perception
K
Q1 2010 Datamonitor Survey npower 2nd of top 6
Increased Csat volume & robust measure
L
New automated system due 2011
Drive the right behaviours to TCiF
J
Revised advisers Scorecards to remove AHT and focus on FCR
and Quality
More activity carried out a the front end
J
Saving £250k per annum in operating costs
Service will remain consistency high
Robust First Contact Resolution measure in
place
RWE npower 7/6/2015
PAGE 46
After having sorted out
several queries on both of Mr
Bob Home's accounts he said
Garry was a gentleman and a
scholar and wished all people
he dealt with on the phone
where as nice as him.
Julie
A customer called and wanted to
say thanks to Christine Doughty
for rebilling his account
immediately, he has had
numerous problems with his bills
and just wanted to show his
appreciation & say thanks to
Chris.
A customer called and wanted to praise
us, she changes supplier every year as
she has found that is the best way to get
the best possible prices but Npower has
been by far the best for customer service
and if she had to choose a supplier on
customer service alone Npower would be
the clear winner. How nice to hear.
Paula Gwynne
I have just received
positive feedback from a
customer who said that
Kristina Hall's customer
service was outstanding,
she was very polite and
friendly and thinks that she
is doing a great job and to
keep it up.
Carlie
A Mr Robinson called to
speak to Danny Butler.
He asked me to pass a
Thank you over to
Danny for sending him a
letter out while they
were speaking on the
phone. He was very
grateful.
Amanda Cable.
RWE npower 7/6/2015
PAGE 47
Next steps
> Customer Engagement Training Roll out to ‘back office’
> Module 4 in progress relating to Sales & Retention activity
> Repeat feedback loops with advisers
> Review results of our FCR measure
> Receive feedback on new advisers’ Scorecards
> Benchmark measurements & best practice with other contact centres
> Continually feed future CapEx requirements
RWE npower 7/6/2015
PAGE 48
Thank you for
listening
Any questions?
RWE npower 7/6/2015
PAGE 49
news from the institute
National Customer Service Week 2010 - 1600 registrations
Customer Champion Competition - over 300 nominations from a whole range
of different organisations. North East regional winner Paula Rickwood from
Sheffield Teaching Hospitals NHS Foundation Trust
Research – ROI, social media
UK Customer Satisfaction Awards – 11 categories, plus 4 people’s choice
winners - judged by a panel of industry experts. Winners announced on March
22nd 2011 at the London Marriot Grosvenor Square Hotel.
members
•
•
•
•
•
•
•
•
Objective HR
Call Zebra
Arvato Government Services
RCUK Shared Services
Hotbed
Lain O’Rourke Construction
Westfield Health
BMW
• Arco
•
•
•
•
•
•
•
Royal College of Nursing
Vodafone Group plc
Chartered Institute of Public Finance
& Accountancy
Construction Skills Shared Services
Everest
Durham County Council
Waitrose
• Morrison Utility Services
• Simply Thank You
• The Leadership Factor
• The Thorpe Park Hotel and Spa
share, learn, engage
• 04 Nov – Streamlining the customer journey,
The Lowry, Salford
• 17 Nov – Utilities Sector Forum,
Thames Water, Reading
• 25 Nov – Regional Dinner,
Thorpe Park Hotel, Leeds sold out
2011 – over to you. What are your hot topics? Would you like to
host?
thank you for joining us
today
About Dearne Valley….
• Purpose built Customer Service Centre
• Opened in December 1999
• 240 members of staff
• Located here – NBSC, Travel, CCU, Parcelforce, Logistics,
Web team, GFP, Service Management, Service Provision
and FSC
• Post Office Limited’s Network Support team are also based
at Dearne
• Gym on site
Let’s have a look around