Transcript No Slide Title

Strengthen IVR Self-Service
MTA Conference
May 10, 2005
Find The Better Way
Premise
Strengthen IVR Self-Service
– What does it mean?
After attending this seminar you will have
an understanding of how to reduce
cost to serve and enhance customer
experience on your IVR platform.
1
Customer Contact Has Changed

The Internet and Cell Phones have created
a more savvy customer wanting instant
information.

Customers require “any time access”.

Customers demand contact options.

The Customer Experience is a strategic
differentiator regardless of channel.
2
True or False?
“92% of all customer transactions happen
over the phone.”
TRUE!
Gartner, CRM Today 2004
3
Self-Service
Order online
Banking at ATMs/ Kiosks
Self check out lanes
Turbo Tax!
Travel Reservations
Photo Development
Self-Service is a customer’s expectation.
4
Options
Does providing self-service take
away from a customer’s desire
to interact with a human being?
Can organizations predict when a
customer will chose self-service
over live help?
?
What effect does it have on your
customer relationship to provide
a communication choice?
Providing service options empowers your customer.
5
Key Points –

The phone is the most chosen communication
channel for contacting organizations today.


Self-Service needs to be an option for customers.
Providing options empowers customers and
enhances their service experience.
6
How is this relevant?
IVR plays a very critical role in providing service to
your customers.
Customers’ experience on the IVR influences their
perception of an organization.
The IVR is a customer communications channel - a
touch-point for your organization.
7
The IVR has Proven Value to Businesses
Provides consistency unless
programmed otherwise
Consistent Service Delivery
Branding opportunity through hold
music, voice talent, etc.
Media Channel
Contact Center Support
Provides operational efficiencies for
the Contact Center
Customer Relationship
Information
Utilizes customer data
(pulls, gathers, & validates)
Not all organizations recognize the value of the IVR.
8
Why is this happening?
Executive Direction
Little visibility to ROI
$$$ invested elsewhere
9
Critical IVR Measurements
Utilization
Usability
Cost to Serve
Customer Experience
10
Cost to Serve
Annual Call Volume
Agent Cost per Call
IVR Cost per Call
Agent Handling Ratio
IVR Utilization
Annual Agent Cost
Annual IVR Cost
$
$
1,000,000
13.00
1.10
0%
100%
1,100,000
Total Cost to Serve
$
1,100,000 $
2,290,000 $
3,480,000 $
4,670,000 $
5,860,000 $
7,050,000 $
8,240,000 $
9,430,000 $
Agent Handling Ratio
Cost to Serve
$
0%
1,100,000 $
10%
2,290,000 $
20%
3,480,000 $
30%
4,670,000 $
40%
5,860,000 $
50%
7,050,000 $
60%
8,240,000 $
70%
9,430,000 $
$
$
Value of 10% Improvement
Value of 1% Improvement
Annual Call Volume
Agent Cost per Call
IVR Cost per Call
Agent Handling Ratio
IVR Utilization
Annual Agent Cost
Annual IVR Cost
$
$
$
$
$
$
1,000,000
13.00
1.10
10%
90%
1,300,000
990,000
$
$
$
$
1,000,000
13.00
1.10
20%
80%
2,600,000
880,000
$
$
$
$
1,000,000
13.00
1.10
30%
70%
3,900,000
770,000
$
$
$
$
1,000,000
13.00
1.10
40%
60%
5,200,000
660,000
$
$
$
$
1,000,000
13.00
1.10
50%
50%
6,500,000
550,000
$
$
$
$
1,000,000
13.00
1.10
60%
40%
7,800,000
440,000
$
$
$
$
1,000,000
13.00
1.10
70%
30%
9,100,000
330,000
$
$
$
$
1,190,000
119,000
$
$
Total Cost to Serve
$
2,000,000 $
2,417,000 $
2,834,000 $
3,251,000 $
3,668,000 $
4,085,000 $
4,502,000 $
4,919,000 $
Agent Handling Ratio
Cost to Serve
$
0%
2,000,000 $
10%
2,417,000 $
20%
2,834,000 $
30%
3,251,000 $
40%
3,668,000 $
50%
4,085,000 $
60%
4,502,000 $
70%
4,919,000 $
Value of 10% Improvement
Value of 1% Improvement
$
$
$
$
$
$
1,000,000
6.17
2.00
10%
90%
617,000
1,800,000
$
$
1,000,000
13.00
1.10
100%
0%
13,000,000
-
10,620,000 $
11,810,000 $
13,000,000
80%
10,620,000 $
90%
11,810,000 $
100%
13,000,000
$
$
$
$
1,000,000
13.00
1.10
90%
10%
11,700,000
110,000
$
$
Datamonitor
1,000,000
6.17
2.00
0%
100%
2,000,000
$
$
1,000,000
13.00
1.10
80%
20%
10,400,000
220,000
$
$
$
$
1,000,000
6.17
2.00
20%
80%
1,234,000
1,600,000
$
$
$
$
1,000,000
6.17
2.00
30%
70%
1,851,000
1,400,000
$
$
$
$
1,000,000
6.17
2.00
40%
60%
2,468,000
1,200,000
417,000
41,700
$
$
$
$
1,000,000
6.17
2.00
50%
50%
3,085,000
1,000,000
$
$
$
$
1,000,000
6.17
2.00
60%
40%
3,702,000
800,000
$
$
$
$
1,000,000
6.17
2.00
70%
30%
4,319,000
600,000
$
$
$
$
1,000,000
6.17
2.00
80%
20%
4,936,000
400,000
$
$
1,000,000
6.17
2.00
100%
0%
6,170,000
-
5,336,000 $
5,753,000 $
6,170,000
80%
5,336,000 $
90%
5,753,000 $
100%
6,170,000
Forrester Research SearchCRM
11
$
$
$
$
1,000,000
6.17
2.00
90%
10%
5,553,000
200,000
$
$
IVR Deployment – Lessons Learned
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
More Customer
Input &
Feedback
Ascent Group
Keep Design
Simple
Better Promo
of IVR
12
Keep Current
with
Technology
How do some organizations gather feedback?

Installed surveys on the IVR

Focus Groups

Usability Labs

Wizard of Oz

Others?
13
A Singular Approach

Utilizes 500+ participants providing
statistically significant data.

Provides recorded surveyed calls made on
the IVR that can be accessed via the web.

Establishes key performance indicators
(KPIs) by providing a baseline and ongoing
measurements.

Meets Marketing Department research
demands of specific demographic /
geographic participants.

Provides detailed and summarized results
that can be grouped as desired.

Identifies statistically reliable and relevant
IVR process improvement opportunities to
enhance usability.

Measures all communication channels
14
The Method
Setup
Measure
Develop Go
Forward Plans
Implement
Validate
Select a process to
study
Determine study
participants
Develop scripts
and instructions
(within data
parameters)
Create study
questionnaire
Conduct study
Capture and
catalog call
recordings
Capture and
catalog study
results
Consolidate results
Produce baseline
metrics report
Analyze study
results
Identify gaps and
opportunities
Prepare
recommendations
Review and
prioritize
recommendations
Develop business
case
Develop high level
project plans
Develop
Requirements
Design
Construct
Implement
Repeat Measure
Compare to
Baseline
Determine ROI
15
3-6 Weeks
Evaluate Results,
Develop
Recommendations
Determine channel
and identify
processes within it
Real Results
Organizations working with this process and
methodology realized the following results:
(upon implementation of recommendations)

10% increase in one call resolution

22% increase in the usability of an IVR call
flow

13% increase in overall IVR utilization
16
In Summary
Provides clear path and action plan to
implement improvements to:

– Enhance customer facing processes and procedures
– Reduce cost to serve through increasing utilization &
usability
– Increase customer satisfaction

Defines benchmarking strategy and methods
Establishes operational performance baseline
for continuous improvement

17
Recognized Business Drivers
Strategic




Cost to Serve Customers is high
Customer/Client Retention
New Service / Product Launch
Relationship of Performance Standards to Marketplace
– Competition
– Six Sigma / Other quality review
Operational




Increase in Call Volume
Change in Technology / Infrastructure support
Change to Contact Center staffing
Customer Service provided across multiple channels
- Branding
- Process Enhancements
18
Case Study #1
Industry: Insurance
Application: Speech-Based Policy Information
The client was building a new speech-based application for providing automated policy
information to consumers. The client desired to measure the performance of the application
and provide benchmarking as the final step before full deployment. The application was
evaluated using 500 panelists selected from the client’s customer demographic profile.
Measure
The initial evaluation found that the performance of the application was poor:
–
–
–
–
–
25% of callers reported the application was hard to use
17% reported unable to find the needed information to complete the assigned process
56% cited poor recognition of entered application commands
41% claimed a high degree of dissatisfaction with the application, and 29% reported it was the
worst speech application they'd ever used.
31% of the callers could not complete the assigned process in the first attempt causing them to
call back to complete the process or give up.
Engineer & Implement
Using the data and call recordings collected during the study, a number of specific issues
were identified and fixed including prompting, error handling, and menu options.
Validate
Once the determined changes were implemented the Measure phase was repeated. 6% of
callers reported the application was hard to use versus 25%. Only 7% of callers were unable
to find the information they needed to complete the assigned process. Overall customer
satisfaction increased significantly as 81% of callers were able to complete the assigned
process in a single call reducing the cost to serve.
19
Case Study #1 Continued
Cost Savings
The revised application resulted in much lower operational expenses than the
original design, due to the significant improvement in callers’ ability to get the
information they needed without talking to an agent or calling back.
Initial
Revised
Application
Application
Assumed Calls/Month
Single Call Completion in
Assumed Cost/Call (automated)
Assumed Cost/Call (live agent)
Cost/Month to Automated IVR
Cost/Month to Live Agents
Total Cost/Month
Monthly Savings
$
$
$
$
$
83,334
69%
2.00
6.17
115,001.00
159,393.00
274,394.00
$
$
$
$
$
$
83,334
81%
2.00
6.17
135,001.00
97,692.00
232,693.00
41,701.00
Forrester Research
SearchCRM.com
Over half a million $’s annually in cost reduction
20
Thank You
Find The Better Way
for your organization to succeed, contact
Sue Fairchild
612.743.7810
[email protected]
21
What is the Marketplace Saying?
“…most industries in the past couple of years have switched to self
service…The bottom line is reduced costs, increased efficiency and
productivity. But the other driving force – the one that will cause companies to
fine tune their deployments – is customer demand for self-service.”
“The Self-Service Movement” Peppers & Rogers Group, July 2004
“Given the history of the technology (IVR) and its potential, companies hoping
to reap the benefits of IVR must understand that the customer experience is
everything…
“The Customer Experience is It!” The Ascent Group, Inc. 2003
“Best in Class firms invest more heavily in customer-facing capabilities
(Alerting, Self-Service, Case Management, IVR, Chat), while Industry Norm
and Laggard companies invest more heavily in agent-facing capabilities (elearning, recording / monitoring).”
“Proactive Service The Next-Generation Contact Center” Aberdeen Group December, 2004
“Metrics will change focus from operational efficiency to customer effectiveness
as customer service becomes a strategic function at the business level and
starts to be counted as a revenue center, rather then a cost center.”
Gartner, 2004
22