customer interaction management
TRANSCRIPT
Customer Interaction Management
Alok Shende
Director, Technology Practice
29 October 2004, Goa
Agenda
• What is CRM ?
• CRM Technology Architecture
• Need for CIM
• Application of CIM
• Background of Indian Interaction CRM space
• Interaction CRM Case studies
-Indian Banks
-Telcos
-Travel & Hospitality
WHAT IS CRM ?
• Business approach that understands, anticipates and manages the need of current and potential customer of an organization.
• Integrating People, Processes and Technology of an organization
• Effective use of Information about customer to maximize customer satisfaction as well as well as cost reduction and increased profitability for an organization
TAKE AN EVOLUTIONARY APPROACH TO CUSTOMER STRATEGY
Human Resource
TechnologyProcess
Transition of perception from viewing customers as exploitable income sources to treating them as assets to be nurtured.
Treating CRM as a tool , rather than a strategic effort
CRM
READING THE FINE PRINT
• Customer satisfaction--performance/conformance: Doing what was agreed to and expected (explicitly and implicitly).
• Customer care and relationship/positioning: Anticipating and delivering the solutions and leverage that will make the customer more successful.
UNDERSTANDING THE GAP
Implement Processes
Implement Technologies
Foster Behaviours
Treating CRM as a tool implementation exercise rather than a strategic effort
Managing Relationships means…Study factors effecting customer behavior
Pro
cess to tran
scend
the feel
go
od
factor to
custo
mers
Customer Acquisitio
n
Customer Retention
Customer Delight
Benchmark & measure factors:
Motivation
Job satisfaction
Quality of work life
Work place communication
Leadership
Influence, power, politics
Organizational structure
INVENT NEW WAYS TO CREATE VALUE TO THE CUSTOMER
KEEP FOCUS ON WHAT IS IMPORTANT, RATHER THAN TECHNOLOGY
Customer DelightIncrease customer profitability – bundle offering:value proposition – strategize differently for high-value and low-cost customers
Customer RetentionListen – empathize – adapt– innovate – create value – transcend value – orient to customer loyalty program
Customer AcquisitionPersonalize – innovate – differentiate – show more value – profit the customer
CRM rapidly evolving from technology-centric to a business-value effort.
CRM TECHNOLOGY ARCHITECTURE
Component of CRM used for Customer interaction Management
NEED FOR CUSTOMER INERACTION MANAGEMENT
• Shifting of business focus from traditional CRM system to customer centric approach of CIM
CRM Focuses more on
departmental efficiency
CIM
Focuses on Managing Customer consistently
• CIM is a mix of traditional CRM solutions with suite of Web-based interaction solutions and wireless device transaction management.
• CIM optimizes every interaction with customers, regardless of channel or contact point
• CIM requires a centralized information center, applied analytics, and interaction software that can deploy centralized decisions throughout various business processes.
Application of Customer Interaction Management
APPLICATION OF CIM
Application
of CIMAssisted Automated
Transactions
Telephony M
anagement
Website
Managem
ent
Em
ail M
anag
emen
t
Real time Web CollaborationE-mail Management system
Dialers, IVR, ASR
EMAIL MANAGEMENT SYSTEM
• Automated transaction : Information about a new product offering or discount schemes
• Assisted transaction : Reply to the query of a customer about a specific problem faced in a product.
- Supplements the marketing and sales force-automation processes of an organization
- Effective and inexpensive system to test market one’s top customer segment.
- Application in Banking & Finance, Travel & Hospitality and BPOs
- Major Vendors : Talisma, eGain, Nortel Networks
WEBSITE MANAGEMENT SYSTEM
• Assisted transaction : Chat with a live agent, guided to choose suitable financial product
• Automated transaction : Browsing through an interactive web page accessing information about specific product
- Various real-time collaborations : instant messaging, live Web conferencing, interactive chat, semi-automated responses and screen or document sharing
- Multiple sessions handling at a time in asynchronous mode .
- E-commerce websites, outsourced call centers
- Major Vendors : Talisma, eGain, Nortel Networks
TELEPHONY MANAGEMENT SYSTEM
• Assisted transaction : Predictive dialers for outbound campaigning
• Automated transaction : Query handling via IVR and ASR like bank account balance enquiry, flight/rail reservation status
- Hindi and local language processing in ASRs, Speech to text and text to speech conversion
- Service lines or toll free numbers for presales
- Convergence of voice, Web and e-mail response
- Telecom and Banking & Financial institutions
- Major Vendors : Concerto, Nortel Networks, Nuance, Scansoft
Background on Indian Interaction CRM Space
Key Market Findings
• The Indian BPO market continues to invest in technology. The Indian ICRM revenues in 2003 stood at $77.0 million
• The Indian ICRM market accounted for 12.4 percent of total Asia Pacific revenues in 2003 which is a growth of 38.2 percent over 2002 . The market is expected to grow at a CAGR of 19.5 percent
• Outsourcing non-core and IT services has become the business strategy for growth in the new millennium as such the Outsourced Call Center market in India will continue to dominate the ICRM revenues
• The Banking & Financial Services Industry and the Telecom vertical will be the next big wave of domestic ICRM uptake in India
Key Market Findings
• Pricing became very competitive in the Indian ICRM market in 2003. Another trend that is emerging is to offer more features while maintaining the same price.
• The coming years are likely to see the small and medium enterprises (SME) market opening up with enormous business potential for vendors that are able to provide competitive applications at lower price points
INDIA ICRM TRENDS-RESHAPING THE MARKET
IP Contact Centers Hosted ICRM Apps BPO Outsourcing Self Service
• The market is no longerat the ICRM hype stage
• Adoption will soarin tandem with enterpriseIP Telephony growth
• Viable option for remoteagents and back up callcenters
• Security and reliabilityissues are evidentlyreducing
• Gaining ground with ICRMvendors working alongsideservice providers
• Pay per minute or pay peragent basis
• Effective capacity management for peakand off peak periods
• Allows for new technologyto be purchased immediately
• Transfer of seats from the US and UK increasing
• India, Philippines and China remain hotbeds.
• Agent efficiency to copewith demand will drivestrong uptake for ICRMapplications
• Analytics, CTI, QualityMonitoring, Outbound, IVRand Workforce Management will realizestrong opportunities
• IVR, Speech ( AutomaticSpeech Recognition and Text to Speech )
• Cost reducing initiative
• Hosted IVR and speechwill appeal to cost conscious customers andprice sensitive markets
• Deployments large so far in Australia, New ZealandSouth Korea, Hong KongSingapore
Early stages of adoption Early stages of adoption Growth stages of adoption Early stages of adoption
Blocks that are Re-Shaping the Interaction CRM Market
Source: Frost & Sullivan
WHAT ARE END USERS BIGGEST CONCERNS?
• ROI Assessment is Highly Critical
• Agent attrition is increasing and staffing concerns are a major headache!
• Consolidation had led to multiple vendor systems/technologies
• How MUCH of technology is enough and how to achieve judicious blend between technology and business benefits
ICRM TECHNOLOGY ADOPTION- ASIA PACIFIC Chart on Technology Adoption and Uptake by Country ( Asia Pacific ), 2003
* ACD * Outbound * WFM Software *IP Contact Centers
Evolution * IVR * Advanced CTI * Multimedia * Analytics
of ICRM * Basic Recording * Universal Queueing Integration ( e-mail * Self Service Apps
Technologies * Basic Screen Pop * Call Recording and web ) * Speech ( ASR )
& Logging * Quality Monitoring
Phases of Uptake in the Asia Pacific Interaction CRM Market
Level
of Country
Progression
Phase 1 Phase 3 Phase 4 Phase 2
* Indonesia
* Malaysia
* China
* Thailand
* Philippines
* India
* Taiwan
* Singapore
* Japan
* Hong Kong
* Australia
* New Zealand
* South Korea
Countries in Phase 3 and Phase 4 are now demanding for more value based applications for lesser value
Countries in Phase 1 and Phase 2 have only begun to deploy basic applications and this includes India and China.
Source :Frost & Sullivan
Interaction CRM: Case for Indian Banks
BANKING & FINANCE
• Continued critical role played by Banking & Finance industry in the growth of the call center market in India
• Typically set up for the back-office processing (trade, loans, cards, cash management, customer care - both inbound and outbound)
• Increased usage of call centers for complex functions (financial analysis, HR and marketing and publication) - a definite shift from traditional activities such as data entry and call register
• Perceived as strategic investment for customer service rather than for generating immediate ROI.
• Mostly captive units due to high sensitivity of information
• Expected to increase investment in contact center technology
• Focus steady on customer service and high technology applications.
• Applications such as computer telephony integration (CTI), call monitoring, Email and Web solutions likely to gain importance
• ICRM revenues to increase with large opportunities for cross selling and up selling
• Some of the Major Deals that materialized across 2003 include: ICICI, SBI, HSBC, ABN AMRO, Birla Global Finance, AVIVA Life Insurance, National Insurance, New India Assurance, Citibank, ANZ Grindlays, HDFC, Birla Sunlife, PNB, Principal AMC Mutual Funds and Kotak Mahindra.
BANKING & FINANCE
MAPPING CHANNELS WITH CUSTOMER NEEDS
CommunicationEntertainment
Information Transactions
MailInternet Mobile
Phone
Mobile Phone (SMS)
Branch
ATM Call Center
Web call centerTV
Broadband PC
Narrow Band PC
Control by Customer
Variety
Low
Low
High
High• Recent trend on proliferation
of channels driven by the need for greater variety and the need for greater the control by customers
• Banks who align themselves with this relationship have a greater chance of building enduring relationships
• In the future, dominant leverage of bank branch will be for advisory services. Transactions based services will be in the wane.
CHANGING LANDSCAPE OF INDIAN BANKING INDUSTRY
• Fee based income posing an increasing component of bank’s income as compared to Interest income as in the past
• ‘It is becoming a customer driven market’. Key drivers:
• Mass customization of services
• Increased competition
• Shifts in demographics & income groups
• Proliferation of financial products
• Life cycle management needs of customer
• Brands
• Proliferation of Channels leading way for increased focus on Channel Management
• Productivity growth driven by judicious investments in IT
Interaction CRM: Case of Telcos
TELECOMMUNICATION• Telecommunications industry offers attractive opportunity to call centers, with
almost all carriers, cellular operators and Internet Service Providers - setting up call centers.
• Intense competition and low customer loyalty force service providers to invest heavily in call center and customer care operations.
• Large carriers like BSNL and MTNL have set up their own captive call centers catering to vast population across diverse geographies.
• Multi-modal applications get popular amongst the mobile operators as a source of high revenue generation.
TELECOMMUNICATION• In-house or captive call centers more popular among service providers as
they can set up the centers in their existing premises, tapping into their available network resources and expertise.
• However,with phenomenal increase in the number of subscribers for basic and cellular services - opportunities to arise for outsourcing the services to third party contact centers.
• Call center applications gain increasing level of complexity as most large carriers have installed integrated customer support and help-desk solutions that enable customer self-help, and multi-channel support.
• Industry more inclined to a multi-channel contact center scenario thereby opening all channels of communication for its customers. As such these service providers are likely to invest in unified solutions for their contact center applications.
• Major deals that took place across 2003 are: BSNL, MTNL, Hutchison Max, Airtel, BPL, Bharti Televentures and Reliance
Interaction CRM: Case of Travel & Hospitality
TRAVEL & HOSPITALITY
• An increasingly attractive vertical for call center operators as an industry potential to bank heavily on outsourced services.
• Apart from traditional activities such as request logging, hotel and travel booking and billing, would also look to call centers for assisting in their marketing and customer reach efforts.
• Level of complexity of applications could be restricted to ACD, predictive dialing, IVR and e-mail.
• Companies that have a large consumer base and contact volumes are high investing in third party contact centers for providing services or setting up 15-30 seat call center.
• Major wins across 2003 include Asian Paints, Procter & Gamble, Hyundai, Maruti udyog, Volvo, Eureka Forbes, Whirlpool, Emirates, Jet Airways, Air India, Lufthansa, Cathay Pacific, Thai Airways, Scandinavian Airlines, Sita Travels, Hyatt Shared Services, etc
YOUR STRATEGIC PARTNER IN SUCCESS
Alok Shende
Technology Practice, Frost & Sullivan India
: + 91 22 28324705