association of educational service agencies · transformation – mobile service – contact center...
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Association of Educational Service Agencies “ESA Leadership: Tackling Today's Hard Questions.” Yesterday’s Customer Service is Tomorrow’s Customer Experience 2013 Summer CEO Conference China L. Widener, Principal Deloitte Consulting, LLP
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China L. Widener, Principal
Education and Training
• Certified PMP • Harvard, State and Local Government
Executives • JD, University of Maryland • BS, Eastern Michigan University
• Market – Public Sector Strategy and Operations, Operational Excellence ̶ Business Process Reengineering, Service Delivery Redesign, Service
Optimization, Technology Adoption and Change Management ̶ Clients include MN, PA, IN, TX, MA, KY, CA, NYC, San Bernardino County
• State of Ohio Government Executive (12B budget) ̶ Chief of Staff ̶ Chief of Operations (IT, Fiscal, Legal, Contracts and HR) ̶ Chief of Human Services (Child Support, Child Welfare, Medicaid, TANF and
SNAP programs)
• Public Sector Attorney
C A R E E R
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Drivers for Change in Government
Changes in Government
Technology Solutions
Changing Roles
Customer Capabilities
Performance Focus Fiscal Constraints
Customer Expectations
Customer Needs
Workforce Changes
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Current Market Conditions
Customers have transformed…
Customers expect more
from you than ever before
The strongest influencers
of your brand perception
are likely outside of your
organization
Thrift has become
fashionable resulting in
customers that are more
price sensitive
Customers have more
access to information,
and comparison shopping
is easier than ever
Reliance on traditional
strategies (e.g., low
price, product innovation)
Siloed organizational
structures by function
(e.g., by product, by
channel)
Risk-adverse leadership
Budget scrutiny with
higher expectations to
prove return on
investment
Lack of core analytical
capabilities
yet most organizations have not adapted…
Commercial Challenges Business Imperative
Customer Transformation
making Customer Transformation a necessity
Growth
Differentiation
Profitability S
usta
inab
ility
Current market conditions, commercial challenges and transformation
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Meaningful impact for customers means improved entity value (e.g., increased profits, positive word of mouth, and loyal customers)
1 - Sources: "Extreme Management," Mark Stevens; Deloitte Research, 2006; International Customer Service Association 2010; Forrester 2009
Impetus for Change1
Profitability
Word of Mouth
Loyalty / Retention
It costs between 6 and 7 times more to attract a new customer than to keep an existing one
Companies can boost profits anywhere from 25% to 125% by retaining merely 5% more of existing customers
Companies that make customer service a high priority see 12 times the return on sales than those companies with a low emphasis on service
Happy customers tell 4 to 5 others about their positive experience
Dissatisfied customers tell 9 to 12 others about their bad experience
Social media allows word of mouth to spread faster than ever
68% of customers stop doing business with a company because of poor service
95% of dissatisfied customers would continue doing business with a company if their problem was solved quickly and satisfactorily
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ESC landscape a national view
Ohio – 56 ESCs Texas – 19 RESCs ESCs
Indiana – 9 ESCs NY – 36 BOCES*
* Boards of Cooperative Educational Services
Governance/Structure
Stakeholders
Core Services
Funding Continuum
Professional Development
Special Education
Transportation
Education Technology
Cooperative Purchasing
Energy Management
Extended Services
Career Services
Educational Products
Data Collection
Technical Assistance
Magnate School Operations
Administer Grants
Fee for Services Government Support Teachers Students
Boards of Education Superintendents School Districts
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Innovation
Polling Question 1: As ESA leaders what areas do you think are ripe for innovation?
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Innovation Opportunities
Mobility Performance Management
Customer Expectations Predictive Analytics
Service/Product Creation
Partnerships
Social Media
Pricing
Selling
Marketing
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Key areas of consideration for managing business transformation
To compete, public and Not-for-Profit private entities must think like top performing customer experience organizations.
Customer Transformation Framework
Core Services
Branding and
Vision
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Core Services
Defining those services which are central and paramount to your organization’s business operations (i.e. your bread and butter) and focusing on growing and maturing those services
Polling Question 2: Do you believe that your ESA defines and communicates your core services?
Definition
• Clearly articulates internally and externally what the organizations core services are
• Provides organizational focus and reinforcement
• Helps determine priorities
Benefits Challenges • Defining the right type and mix of
services to provide • Diversified services for diverse
customers • Identifying the next “big thing” • Identifying the services to retire
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Branding and Vision
Clearly defining your organizations identity internally and externally through a shared and communicated vision and brand
Polling Question: Within what CY did your organization last update/affirm its vision? • 2012 or 2010 • 2010 or 2009 • 2008 or earlier • Never
Definition
• Clearly defines what the organization is and is not
• Provides direction for the organization next hire, next dollar invested
• Aligns priorities and performance with the vision and brand
Benefits Challenges • Creating a vision that is broad
enough to accommodate shifting trends but clear to customers and staff
• Determining what of the organization become in 3-5 years
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Texas Region 4 ESC Defines and Refines their Service Offer
In Texas, Region 4 ESC has clearly defined their core services and has become a global leader in providing Braille Solutions
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Client X Customer Journey
Best Practices from Other Industries
Pre-Journey Journey Post-Journey ESAs
Research Choose Order Use Service Evolve Typically
Cus
tom
er C
onta
ct C
hann
els Inte
rmed
iate
s D
igita
l M
ultic
hann
el
Pape
r
Friends / Family
Professional Support
Website
Mobile
Information Boards / Points
Call Centre Call Centre
Web Chat Web Chat
Brochures / Maps / Tour Guides / Leaflets / Press Ads
Information Posters
Stranger on a Street
Staff/Instructors/Facilitators
Professional Support
Social Media (e.g. Twitter, Facebook, Jive)
A few examples of cutting edge solutions that improve customer journey
2 3 1 4 5 6 7
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Customer Experience
Delivering a consistent brand promise across touch points that enables more value to be gained from customer relationships
Polling Question: How would you define your ESA’s current Customer Experience Strategy techniques in regards to maturity? • High • Medium • Low
• Applies the standard processes and procedures to all activities related to customers
• Allows for a uniform customer experience with an organization
Benefits Challenges • Reliance on technology can improve
productivity and effectiveness, however, can be expensive and possess a training need
Definition
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Customer Transformation offerings can be delivered as holistic transformational efforts or as individual projects that target specific areas or capabilities a client wants to improve.
Customer Experience
Customer Insights & Analytics
Marketing Transformation
Sales Transformation
Customer Service Transformation
Proj
ect T
ypes
Customer Experience (CE) Transformation
Channel Specific CE Transformation
– Contact Center CE Transformation
– Online CE Transformation
– In-store CE Transformation
Voice of the Customer Audit
Loyalty Program Development
Customer Segmentation Strategy
Customer Data Management and Mining
Performance Analytics
Advanced Analytics and Predictive Modeling
Customer Insights & Analytics Roadmap Development
Marketing Strategy/ Vision Transformation
Brand Effectiveness/ Valuation
Campaign Management
Marketing ROI Optimization
Marketing Organizational Design
Enabling Marketing Technology
Sales Transformation
Go-to-Market Strategy
Partner & Channel Strategy
Sales Process Design
Sales Force Effectiveness
Enabling Sales Technology
Customer Service Transformation
Channel Specific CS Transformation
– Mobile Service – Contact Center
Strategy – Online Self-Service
Strategy
Service Organization restructuring
Customer Service Metrics and Performance Management
Enabling Service Technology
The foundational and functional capabilities through a variety of project types
Customer Experience
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ketin
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es
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Cus tomer Insights & Analytics
Customer Experience
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Customer Insights & Analytics
Customer Experience
Mar
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Cus tomer Insights & Analytics
Customer Experience
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Cus tomer Insights & Analytics
Customer Experience
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Customer Transformation Project Types
Foundational Functional
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Technology Tools and Infrastructure
This includes automated tools, applications and infrastructure frameworks for use by staff, customers and managers. This infrastructure includes automated tools (laptops, notebooks, hand held devices) as well as mobile software, data centers, and networks.
• Can increase and streamline the flow of information to and within an organization
• Can increase sales opportunities, personalized, customer advertising
• Add efficiency and creates opportunities for productivity management
Benefits Challenges
• Initial investment • Adoption by customers • Adoption by staff • Proper governance
Definition
Polling Question: On a scale of 1-5 is your technology strategy aligned to your vision? Do the practices support how you go to market? • Very aligned: completed assessment of the management structure and tools • Aligned: no assessment but achieving most performance targets • Unknown: no assessment and no established performance indicators • Misaligned: performance targets are inconsistently met • Discordant: performance targets routinely not met , morale is a challenge, retention
is a challenge
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There are steps you can take today to begin improving your customer profitability
Ways to get more value now
Put the customer at the center of everything
you do
Reward behaviors
Bring your customer segments to life
Recognize that all customers are not
created equal
Create your vision
Start with your customers in mind
Experience what it’s like to be a customer by shopping your company’s channels and contacting your office/call centers/website. Do the same with your competitors. Talk to customer-facing employees to gain their insights. Validate your experiences with research, surveys, and focus groups.
Set your transformation trajectory by developing a customer experience vision for the organization and the strategy for executing it. Begin by defining your brand promise and how it will differ from your competitors’ in the eyes of customers and employees.
Capture data that provides insight into your customers and their interaction preferences, and measure your organization’s progress toward fulfilling its vision. Use this information to drive strategic and operational decisions and empower customer interactions at the front line.
Calculate the potential lifetime value for each customer segment, including the cost to serve them. Develop strategies that build loyalty and referrals from the most valuable customers. Likewise develop strategies to increase the value of less-profitable segments.
Make customer capability improvement an integral part of the day-to-day planning processes, corporate behaviors, and performance metrics.
Drive a customer focus from top to bottom as an executive priority coordinated across the whole organization. Align cross-functional goals, reward performance with incentives, and enforce accountability for results.
Embed a customer focus in technology management
Collaborate directly with IT as a business partner and customer advocate. Establish customer-centric principles as guidelines for technology investments and IT development roadmaps.
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Q&A
Two Ways: 1. Raise Your Hand 2. Use the Polling Process
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Contact Information
China L. Widener Principal Strategy and Operations | Public Sector Deloitte Consulting LLP 250 E. 5Th Street, Suite 1900 Cincinnati, OH 45202 Tel/Direct: +1 513 723-4174 | Mobile: +1 614 288-7135 Fax:+1 614-222-1179 or +1 866-259-3146 [email protected] | www.deloitte.com
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Customer Transformation efforts can provide sustainable improvement
Customer Transformation Strategies
Customer Transformation Strategies...
Customer Experience – Create consistent, positive customer interactions that improve profitability and loyalty across channels and touch-points.
Customer Insights & Analytics – Recognize patterns in customer behavior, across marketing, sales, and service interactions; and make insights quickly actionable at the front line.
Customer Service Transformation – Improve end-to-end enterprise service processes, create differentiation, and find ways to turn cost centers into profit centers.
Marketing Transformation – Develop, track, and analyze marketing metrics and brand perception to optimize return on marketing investments and enhance brand strength.
Sales Transformation – Improve ability to target specific customer segments and align incentives of sales force to increase success and efficiency of lead generation and conversion.
Increasing market share by differentiating your brand, establishing market leadership, and creating entry barriers for new competitors
Lowering the cost of acquiring new customers and increasing referrals and recommendations
Reducing customer support costs through more efficient operations that reduce customer frustration
Enhancing cross-channel capabilities to increase share of wallet across multiple customer touch points
Improving customer loyalty and satisfaction, resulting in customers who stay with the company longer, purchase more frequently, and demonstrate less price sensitivity.
Gaining higher returns on marketing and advertising investments
…can bring tangible benefits to organizations seeking sustainable improvement
Customer Transformation Benefits
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There are typically four key categories of leading practices associated with consumer websites
Navigation Content
Functionality Personalization
Position the home page as a directory and one-stop navigation page
Provide easier access to information
Design page layout to highlight key information
Provide descriptive hyperlinks
Compose prominent page titles
Enhance search capabilities and quality of results
Provide tools and calculators on key pages
Simplify online account registration
Support online self-service
Improve text legibility
Help consumers make decisions about your products
Provide comprehensive support content
Provide information on privacy and security policies
Sell the agency along with the product
Provide information to set online sales expectations
Market the benefits of purchasing online
Promote enrollment and registration
Recommend products to the consumers throughout the process
Segment site visitors to better focus content and tools
Best practices provide country specific websites
Keep a track of consumer’s pervious purchases
Request the consumer to provide product reviews
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Changing Customer Preferences
Research clearly shows a shift in customer preference for more mobile-based and individually-tailored experience
over
50% of mobile users in a
survey said they were
willing to share their location
in exchange for more relevant advertising
40% of mobile consumers
said they would be more likely to
interact with an ad if it was relevant to
their current location
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66% of consumers cross at least 1 channel for typical purchases (e.g. research online, purchase directly “in store”)
mobile phones have overtaken PCs as the most common Web access device worldwide
Only 13% of customers trust traditional advertising, while consumer reviews are trusted by 50%
Organizations that have chosen to make CE a top priority do so for a variety of reasons including to:
– increase sales from existing customers
– expand customer base
– raise customer satisfaction/ reduce attrition
49% of companies rate their capabilities of using real-time analytics to support personalization and offer optimization as poor/below average
There are significant disconnects between CEOs and CIOs on espoused priorities and understanding of how tactical value is derived from technology
The facts on how Customers and Organizations are changing
Customer Statistics Commercial Statistics
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Today, customers expect to be able to navigate the entire customer lifecycle using only their mobile devices
Discovery
Set Up Relationship
Maintain Relationship
Demonstrate benefits
Closure
Customer
More customers are expecting a seamless end-to-end consumer experience that is available anytime, anywhere. Mobile quoting, servicing, and claims transactions should be available in an app that is intuitive and provides the ability to send information to brokers in real-time.
Customers learn about the client services, options etc., .
Customers use the app to update information and data.
Customers can access benefits or information remotely.
Customers stop their relationships
Customers launch the app to connect.