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Customer's Perspective within Organisations ...who is organisationally responsible for the Customer? Sheila Ross – National Customer Experience Manager, Centrelink Alvaro Del Pozo – Marketing Director, Dell Australia Belinda Davoren – former SOCAP President & partnership with Australian Merchants Agenda Overview of Chief Customer Officer (CCO) concept Framework for Implementation Case Study – Centrelink Case Study – Dell Computers Close So….how do you bring the customers’ perspective into your organisation? Do you have to lobby other organisational silos to work collaboratively so you can get the best out-come for customers? How much time do you spend lobbying? Have you implemented a CRM IT system and not seen any real improvement in staff, businesses or processes? Have you been unable to assess whether your valuable customers’ have experienced improved service when dealing with your organisation? Do you lack confidence that the changes/improvements your organisation introduces will be appreciated by your customers? Do you lack confidence that the brand promises made through your marketing department are being met or exceeded through your product and service departments? Are you unaware of what your customers are saying about your product or service, therefore NOT able to use this information to enable product and service improvements? …if you answer ‘yes’ to these questions, than you need to consider the benefits that a Chief Customer Officer (CCO) can bring to your organisation What is the Chief Customer Officer (CCO) Role What is a CCO? An executive-level customer advocate Accountable for maintaining and enhancing the customer base as an asset Embrace a broad view of the customer base, the marketplace, and future trends, using this view to drive both corporate strategy and organizational changes. Not just advising a business how to serve its customers better; CCO’s work takes customer feedback and drives innovation throughout the organisation “Customer Facing Executive” Primary CCO Goals 1 Increase Revenue Help identify opportunities to secure new customers and, importantly, a larger share of customer wallet 3 View and Manage Customer Experience as an asset: Customer Advocacy must be managed as carefully as other assets when attempting to control costs and maximise effectiveness 4 Proactively gather Customer Insights and enable Strategic and Organisational change: Constantly gathering objective knowledge on the needs of the firm’s customers, prospects and the marketplace, using it to drive organisational change and innovation, often cutting across departmental or functional boundaries Leading to Organisational Customer Awareness 2 Create a Customer Equilibrium in Executive Decision Making: Can and must counter the Board’s traditional focus on revenue growth and cost containment, two activities that are crucial in any organisation, however may result in hindering customer relationships and reducing longer term results …so how does this new role ‘look and feel’ in an organisation Illustrative CEO CFO CIO IT Mgt & Project Mgt Director of Sales & Marketing CCO Senior Analysts CCO IT Specialist Strategy Consultants Manager, Customer Relations Sales Mgt & Staff CR Staff Marketing Manager Analyst (metric & feed back capture) Director of Service Corporate Affairs Service Mgt & Call Centre staff Legal Advisors Analyst (metric & feed back capture Analyst (metric & feed back capture) • Sharing of information to team as part of the Senior/Executive Mgt Team • Discussion around the Customers’ perspective on each issue • Where is the “Dominant Core” of this organisation Research staff Key: CCO Staff Virtual Staff This structure will differ depending on the size of the organisation – potentially leverage existing resources CCO Implementation High Level Framework CCO Implementation Framework – Strategy & Culture Strategy & Culture 1 Solution Strategy • Decisions based on customer facts • New products • Create/change processes • Organisational structural review & reporting lines • Define what is valued by loyal customers • ID Churn areas • Proactively address issues through customer feedback • Where is the ‘Dominant Core’ of your organisation 2 Channel Strategy • Identify and assess each customer channel • Define what are the preferred channels for the organisation • Encourage customers to use the preferred channel • Introduce loyalty programs for customer retention and channel strategy • Determine how to differentiate the high value customer interactions - segment • ID revenue potential of each segment • Define service levels and brand promises for each segment • Discuss with Marketing current brand promise and what is planned – ongoing 3 Understanding & Measuring Customers • Review any existing organisation metrics • Identify new metrics that will allow the organisation to assess and track ‘customer experience’ • Customer segments analysis - growing • Annual customer surveys – continuous & progressive metrics • Create roadmap to define progress wanted in customer experience, loyalty & profitability • Annual goals for movement of customers from one priority level to another • Capture & learn from customers who have left your organisation • When improvements made – let the customer know 4 Cultural Environment • Define what is the current culture within organisation • Define the ‘to be’ culture • Introduce rewards for good cultural approach • Change agent network to be introduced • Communication plan to be introduced to start ‘spreading the word’ of the Customer Experience CCO Implementation High Level Framework - contd CCO Implementation Framework - Enablers Enablers 5 Customer Relationship Mgt 6 Call Center Interactions • Gap Analysis on ‘current state’ and ‘end state’ • Define what is the organisation’s CRM strategy • Define what has gone wrong with the strategy • Define what changes need to be made • Customer feedback will dictate the initiative priorities • Introduce integrated call center for high value customers • Create a career path between the call centres • Define what is the important information required for each call center/FOH area • Define & document how to deploy the ‘right information at the right time’ • Increase the empowerment of targeted call centre staff, why not provide them with the ability to sell, as well as service – never forgetting their primary service role 7 Information Empowerment • Improve internal communications • Sales summits • Create one database for Customer information • All staff empowered with information on the holistic customer experience 8 Compliance • Summarise requirements of each legislation (i.e. Complaint legislation, Sarbanes-Oxley & Privacy Act) • Communicate to departments • Initial review of organisations’ compliance levels • 6 monthly review of compliance levels 9 Holistic Communities • Hold Customer Forums for feedback • Create ‘Customer Communities’ • Create corporate partnerships to increase organisations’ value proposition for the customer Centrelink – Case Study Customer experience in Centrelink Sheila Ross Centrelink – Case Study About Centrelink Responsible for delivery of services on behalf of 25 “client agencies” x “Increasing revenue” and “securing new customers” - our success is measured by how well we deliver policy outcomes The “Chief Customer Officer” role in Centrelink focused on policy outcomes sought by government The CCO Implementation Framework highlights many of the opportunities and challenges we have encountered Centrelink – Case Study Customer Experience in Centrelink Centrelink Senior Executive Structure 7th August 2006 Chief Executive Officer Jeff Whalan DCEO Customer Service Delivery DCEO Information Technology DCEO Stakeholder Relationships Carolyn Hogg John Wadeson Aurora Andruska GM Customer Service Design & Implementation GM GM GM GM GM GM CFO Customer Service Delivery Customer Service Strategy Access Card IT Planning & Refresh Louise Tucker Core Business IT Systems Corporate IT Systems Financial Management & Business Support Division Mandy Ritchie Karel Havlat A/g Natalie Howson Brendan Sargeant National Managers National Managers National Manager National Managers National Managers Service Delivery Coordination Channel Integration & Support Tony Gargan Access Card Business Technology Strategies TBA Trevor Smallwood Business Systems Operations Lian Tee Infrastructure Operations Sarbjit Sidhu Infrastructure Architecture (S) Peter Gunning Better Service Projects Luke Woolmer Infrastructure Projects Glenn Archer Grant Tidswell Tuan Dao Eija Seittenranta Norman Walker A/g National Managers Area Managers Business Process Design Area Brisbane Paul McNae Graham Maloney Service Delivery Support Brian Silkstone Area Central & North Queensland Peter Searston Area Managers Area South East Victoria Mark Withnell Area South Metro NSW Vicki Buchanan Louise Hamilton A/g Colin Parker Call Centres TBA Self Service Strategy Robin Salvage Access Card IT TBA National Managers David Oram A/g National Managers Contracts & Procurement Chris Welburn A/g Budgeting & Mgt Accounting Karel Havlat Frank Startari A/g GM GM GM GM GM GM GM Audit & Risk Communication People & Planning Business Integrity Employment Disability & Education Families, Seniors, Rural & Community Gary Dunn Welfare to Work Taskforce Hank Jongen Bob McDonald National Manager Evaluation & Audit Simon Moore Sheryl Lewin National Manager Communication & Marketing TBA National Managers Workplace Relations & Employment Policy Peter Cotterill Margaret Browne Paul Conn National Managers National Managers Business Integrity Strategy Employment Services Moya Drayton Jenny Britton A/g Phil Richardson National Managers Family & Child Care Services Dennis Mahony Seniors, Carers & Means Test Paul Cowan Workforce Capability Michele Kane Compliance & Review Catherine Rule Disability Services Pam Saunders Organisational Learning & Development Lyn Agnew Fraud & Debt Management Sheldon White Education & Training International Services Michelle Cornish Robert Williams National Business Line Managers Working Age Participation Peter Doutre Families & Child Care Area East Coast NSW David Walsh Area Hunter John Dorian David Batchelor Seniors, Carers & Rural Norman Walker Annette Drury A/g Business Integrity Paul Goodwin Area Tasmania Robert Williams Call Centres Peter Bickerton Emergency Management Projects Mark Wellington Area North Australia Barbara Causon Area North Central Victoria Darryl Alexander Chris Nunan A/g Psychology Services Ruth Freeman Area South West NSW Peter Gillies Area Pacific Central Brian Small Area South Australia Mary Kosiak Area West NSW Gillian Long A/g Area West Victoria Annette Drury Kate Hay A/g Area WA TBA Ben Agius A/g Customer Experience Marcia Williams Social Work Services Desley Hargreaves Peter Humphries A/g Applications Architecture (S) Steve Crisp IT Demand & Capability Jan Fenton Testing & Release Management Julie Fursman Craig Douglass A/g Corporate and Data Services Helen Austin Corporate & Web Based Projects Helen Skrzeczek Database Operations, Application & Telephony Platforms Kevin Parsons Security & Information Protection Pat Fegan Financial Management & Services Brad Clark Property & Environmental Management Barbara Clements Planning & Change Management Malcolm Wright Performance & Information Gabrielle Davidson Matt Hosie A/g Working Age Requirements & Case Management Vicki Beath A/g Project Coordination Elaine Ninham Legal Services Brendan Jacomb Ministerial, Parliamentary & Executive Support Vicki Beath Jenny Teece A/g Taskforce on Welfare & Payments & Obligations Rilka Macainsh Rural & Cross Payments Services Jo Gaha Multicultural Services Peter Rock Indigenous Services Katrina Fanning Community Sector Relationships & Business Liaison Sheila Ross Greg Divall Centrelink – Case Study Strategy & Culture: Solution Strategy 1. 2. 3. Customer Experience Management model - relates customer experience to other business drivers Customer Experience Design –ensures alignment between desired business outcomes and the customer experience of services Service Delivery Framework - an analytical tool to guide business owners in design of customer service offers Centrelink – Case Study Strategy & Culture: Customer Experience Management Model C Co usto nte me ntm r en t + C Ce os nt ts t re o lin k Customer Experience Management + + Change in Circumstances Centrelink – Case Study Strategy & Culture: Customer Experience Design Stage 1 Define business outcomes and customer behaviour consistent with these outcomes Stage 2 Determine the experience which encourages these behaviours Stage 3 Map existing Service Offer and establish why current arrangements exist Stage 4 Determine the experience and behaviour actually encouraged by the Service Offer Stage 5 Identification of gaps Stage 6 Recommend strategy to minimise gap Centrelink – Case Study Strategy & Culture: Service Delivery Framework Govt Service Delivery Principle s& Objectiv es Government Policy Centrelink Service Delivery Principles & Objectives Service Delivery Outcom es Centrelink Service Delivery Framework TO WHOM? WITH WHOM? WHERE? Products and Services Distribution Channels Responding To Government & DHS Channel Configuration Segments Cross DHS Services Service Offer Design and Implementation Planning & Monitoring Cost & Productivity Management Governance & Accountability External Reporting Channel Integration Preferences/ Expectations/ Behaviour Stakeholder Consultation Information Technology Project & Change Management Pricing & Revenue Workforce Capability Policy Feedback Channel Strategies Profiling Partnerships Communication Strategies Business Assurance Budgeting & Investment Management Workforce Conditions Demand & Workload Management Internal Audit Customer Segments Relationships HOW? HOW WELL? AT BY WHOM? WHAT COST? WHAT? Performance Processes and Financial Governance & Specification & Systems Management People Mgt Evaluation Centrelink – Case Study Strategy & Culture: Service Delivery Framework Govt Service Delivery Principle s& Objectiv es Government Policy Centrelink Service Delivery Principles & Objectives Service Delivery Outcom es Centrelink Service Delivery Framework TO WHOM? WITH WHOM? WHERE? Products and Services Distribution Channels Responding To Government & DHS Channel Configuration Segments Cross DHS Services Service Offer Design and Implementation Planning & Monitoring Cost & Productivity Management Governance & Accountability External Reporting Channel Integration Preferences/ Expectations/ Behaviour Stakeholder Consultation Information Technology Project & Change Management Pricing & Revenue Workforce Capability Policy Feedback Channel Strategies Profiling Partnerships Communication Strategies Business Assurance Budgeting & Investment Management Workforce Conditions Demand & Workload Management Internal Audit Customer Segments Relationships HOW? HOW WELL? AT BY WHOM? WHAT COST? WHAT? Performance Processes and Financial Governance & Specification & Systems Management People Mgt Evaluation Centrelink – Case Study Strategy & Culture: Channel Strategy Current channels include in person at a Service Centre in person via a Call Centre self-service via IVR or Internet in writing by letter Challenges to moving services online: Still a preference for face-to-face and telephone interaction Lack of access to internet Need to improve understanding of electronic medium Provision of appropriate support Centrelink – Case Study Strategy & Culture: Understanding & Measuring Customer Experience Centrelink collects customer data for two main reasons: To assure our client agencies about the quality of the services we deliver (mostly measured in terms of “customer satisfaction”) To inform the design of our service offers Centrelink – Case Study Strategy & Culture: Cultural environment Recognise that culture needs to be aligned with organisational purpose: “Serving Australia by assisting people to become selfsufficient and supporting those in need” Desired culture is one which is “customer-focused” - encourages staff to understand customers’ individual needs and to work with them on overcoming barriers to achieving self-sufficiency Customer Culture projects: Hinds Cultural Change survey TMI’s Complaints Culture benchmarking study Customer Emotions study with Debt Services Partnership with University of Melbourne and Novell Centrelink – Case Study Enablers: Compliance Very important area for Centrelink: Must comply with Business Partnership Agreements with client agencies Must comply with Ministerial direction Must comply with Privacy Act Must comply with community standards – ethics, equity, transparency Operations are scrutinised intensively, eg. by: Australian National Audit Office (ANAO) Social Security and Administrative Appeals Tribunals (SSAT & AAT) Welfare Rights Network (WRN) Commonwealth Ombudsman Senate Estimates Committees Individual Members of Parliament The Media Centrelink – Case Study Enablers: Holistic Communities Centrelink is an active participant in a range of customer-related forums: Chief Customer Officer Forum Members of SOCAP Welfare Rights Network meetings Business and academic conferences Also have a number of formal and partnerships with external organisations which help increase our customer capability: Novell University of Melbourne Monash University Michael Edwardson Centrelink – Case Study Measuring our progress Customer Contentment Change in Circumstances Cost to Centrelink Dell Inc. Australia & New Zealand – Case Study Alvaro del Pozo Relationship Marketing Director Dell Agenda Dell Facts Dell Business Model FY07 (CY06-07) Initiatives C.E Framework CCO / C.E Director Appointment Dell Facts Customer Base (Revenues) ~85% Corporate & Institutional Revenue by Product ~15% Consumer • Desktop PCs ========= 36% • Mobility ============= 26% • Servers ============= 9% • Storage ============= 3% • Enhanced Services =====10% • Software and peripherals 16% Global Manufacturing 1. Austin, Texas, USA 2. Limerick, Ireland 3. Penang, Malaysia 4. Nashville, Tennessee, USA 5. Xiamen, China 6. Eldorado do Sul, Brazil 7. Winston-Salem, North Carolina, USA Revenue by Region 63% Americas 24% EMEA 13% APAC ~69,700 employees worldwide Revenue $56.7B (last 4-qtrs) The Value of the Dell Direct Model “When you're dealing direct, there's no place to hide. Nor should you want to”, Michael Dell The direct relationship continues throughout the customer experience. Built-to-Order Direct • First-to-market technologies • Custom Factory Integration • On-time delivery • Lower cost • Pre-loaded Operating Systems • Predictable • Just-in-time inventory • Preconfigured HPC clusters • Direct to customer Supply Chain Excellence WW PC/SIAS Share Share of WW PC/SIAS Units 20% 15 + 1.05% - 0.36% + 1.83% + 1.57% - 0.66% 10 5 0 2001 Q4 2002 Q2 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 Dell ANZ : #3 Home & Small Business, #1 Corporate & Public Sector Dell Is the Global Leader in Product Satisfaction Customer Satisfaction Leader . . . • Desktop – 34 consecutive quarters • Notebook – 31 consecutive quarters • Servers – 29 of the past 33 quarters TBR Committed to being THE Leader… To be the best, Dell must strive for 90+% Satisfaction American Consumer Satisfaction Index 2005 Surveys Industry 2005 Company 2005 Express Delivery 81 Toyota Motor Corporation 87 Electronics (TV/ VCR/DVD) 81 Amazon.com, Inc. 87 E-COMMERCE 80 FedEx Corporation 84 Automobiles 80 General Electric Company 81 Personal Computers 74 Dell Inc. 74 In general, the computer industry scores lower in customer satisfaction than other industries Overall, the best companies score greater than 85% Satisfaction… we intend to be the best Dell FY07 Initiatives “At Dell, the customer is at the center of everything we do, and we must strive to create loyal customers by providing a superior experience at a great value……Building this capability and privileged position into a long- term strategic advantage for Dell is critical to our success. Our target is to achieve 90% customer satisfaction by year-end, which will be measured by internal surveys and external customer satisfaction studies .” Michael & Kevin CE Leadership Team Structure Customer Experience responsibility is global and local Actionable Local Customized Americas EMEA APJ Services Product Group & WWP HR & Corp Comms Dell IT Regional CE Leads & Teams Global CE Team Strategic Global Common WW Alignment via Executive CE Leadership Team The Executive CE Leadership Team is composed of Executives representing each region/function. Their role is to drive our aggressive performance goals within each of their respective areas. Voice of the Customer - Listening Posts ► The Listening Post process is a systematic way of gathering qualitative data from several forums of customer feedback Relationship Surveys Event Surveys External Media & Research Customer Events Online Feedback Customer Escalations Broader Customer Survey Interaction Specific Surveys Industry & Press Strategic Forums & Customer Advisory Councils Feedback from the Online Store Centralised Escalations Team “Brown Bags - with Agents” Voice of the "Frontline" Internal Staff Surveys Relationship Survey ► Comprehensive survey to determine customer experiences & attitudes & likelihood of future behavior Product Range and Quality Price and TCO Sales Process Order Delivery Service & Support • Bi-annual Survey • Results include prioritisation of Customer Experience drivers • Overall Customer Satisfaction • Likelihood to Repurchase • Likelihood to Recommend Event Survey (E Surveys) Interaction Specific Surveys designed to assess process capability and opportunity for improvement Service & Support Purchase Experience Customer Care Technical Support Onsite Service Online Support Marketing / Advertising Online ordering Order Delivery & Fulfillment Online Shopping What Customers Are Saying Voice of the Customer Customers consistently tell us that we need to focus on five basic things: Easy to Contact Be available to customers – reasonable hold times and limited transfers when they call us; make online shopping and support easy. Get My Order Right Understand customer and recommend theproduct right product Understand customer needsneeds and recommend the right by phone); makethe sure theproduct right product and service (online(online and byand phone); make sure right and service is ordered and shipped is ordered and shipped Deliver on Time Set and meet timely delivery expectations of all orders and services. Provide a Quality Product Design and build awesome products and services that are reliable and easy to use. Fix My Issue If there is a problem, the utmost goal is to quickly and respectfully resolve the issue. Note: “Voice of the Customer” or VOC Feedback comes from Dell customer surveys, focus groups, 3rd party research/surveys, press, etc Operationalise C.E Priorities 90% Customer Satisfaction “Outcome” Voice of the Customer “WHY” Key Customer Defect Measure “WHAT” Accountability “WHO” Sales / Marketing/ Manufacturing / Finance Get My Order Right 5% of orders causing contacts (POCC) Deliver On Time 99.5% Deliver To Commit (DTC) Manufacturing / Procurement Provide a Quality Product 7% Annual Dispatch Rate ( .6 MDR) Product Group / Tech Support / Marketing Fix My Issue 95% Resolve in Two Tech Support & Customer Care Make it Easy to Contact Dell 80% Calls Answered in x minutes and Tech Support, Customer Care, Transactional Sales < 10% Transfer Rate These metrics relate directly to ~84%* of the Dell employee base CE : 30% Weighting in Performance Plans Source: IDC Dell ANZ Executive Team ANZ Managing Director Corporate Sales General Manager Public Sector Sales General Manager Relationship Marketing Director Operations Director Finance Director Technical Support Director 18% of our customers deliver 82% of our Margin Customer Quintiles: = $22.5M 4 Quarter Margin Nbr Accounts 140,000,000 120,000,000 2000 100,000,000 1000 Likelihood to Repurchase 500 70% 1500 18 80,000,000 60,000,000 62 135 Quintile 2 Quintile 3 40,000,000 297 20,000,000 0 4 QTR Revenue US$ 2377 2500 Quintile 1 Quintile 4 Quintile 5 # of Customers 4 Quarter Revenue Tech Support Fix My Issue Email support Fixed Queue Capacity Bypass Basic Troubleshoot 89% CSAT Abandon rate from 20 % to 5% Order Management Delivery Times halved Online Order Status Rel Care Alignment 13.6 days to 6.6 Account Management Sales Capacity Resolved 15% Account Transitions Max Executive Led QBR and talkback sessions 98% capacity 80 QBR in Q3’07 In Closing So, when your organisation’s customer satisfaction scores come in and they are not good. You get your technical wizards, the customer service people, the marketers, and all of the others – until the room is bursting – however nothing really changes and everyone goes back to their silos within the business. Here are the reasons why: The customer experience is still considered to be something on top of their existing work II. No one individual is accountable and responsible for pulling all information and good intentions together III. The silos within an organisation continue to compete with each other I. Thank You Belinda Davoren PH: 0409 300 741 Email: [email protected]