the total economic impact of servicenow customer service management
TRANSCRIPT
Anish Shah Ian AshbyPrincipal Consultant Senior Vice President, Global Support Forrester Research Epicor Software Corp.
The Total Economic Impact Of ServiceNow Customer Service Management
How Epicor Software Achieves 104% ROI by Transforming Global Customer Support
Agenda• Forrester Perspective: Drivers for Change
• What is TEI?
• Epicor’s Global Support Transformation using ServiceNow
• Forrester Total Economic Impact (TEI) Analysis
• Q & A
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
Companies have to invest in improving customer experience – proof is in the pudding
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
Customers want to self-serve for routine tasks; and when customers seek out low-friction channels
Help or FAQs
on a company
website or
mobile website
Voice self-
service
Virtual agents
Communities
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
Most business are a mess of silos
5%
3%
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
“Next-level” business case justifications are increasingly important for technology investments
Very important,
60%
Somewhat important,
33%
Somewhat unimportant, 4%
Not at all important, 3%
Over 90% of IT decision-makers find value in a business case
TCO ROI TEI
IT impact
IT costs
IT cost savings
Business
impact
User efficiency
Business effectiveness
Risk/
uncertainty
Risk mitigation
Risk versus reward
Strategic
impact
Scalability
Flexibility
What is an effective business case?
Base: 825 IT decision-makers at North American enterprises
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
The objective of the TEI framework is to identify all of the factors that affect an investment decision
Benefits
Costs
Flexibility
Risks
Total
Economic
Impact
Agenda• Epicor’s Global Support Transformation using
ServiceNow
• Forrester Perspective: Drivers for Change
• Forrester Total Economic Impact (TEI) Analysis
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
11© 2016 Epicor Software Corporation
Epicor At a Glance
~20,000customers
3,800employees
150countries
~$1 billionrevenue
70+products
Complete Value Chain Solutions – B2B & B2CThe 6th Largest ERP Software Provider Globally
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
12© 2016 Epicor Software Corporation
Epicor Support Overview
Support for Epicor SW, technology, and third-party SW products
• Support & maintenance fees are approximately 50% of company revenues
16 main support centers
• From New Zealand to Europe to the Americas….
• Newest support center in Bangalore, India (the ITC)
Providing support in 21 languages
Handling c. 500,000 support contacts p.a.
Phone, portal and e-mail
Supporting Customers and Partners
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
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The Challenge !
… and 50+ Customer Portals!
15+ Support Systems …
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
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Epicor’s Decisions
Drivers to Undertake Transformation
Critical Decision: CRM vs. CSM
Vendor Selection
Implementer Selection
CSM: Customer Service Management
Improve Customer Satisfaction
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
15© 2016 Epicor Software Corporation
The EpicCare Project Transformational project focused on improving the overall customer
experience
Major investment, driven from customer feedback
Combination of systems and processes
• A single support system across all products, for all customers & partners, all geographies, based upon the ServiceNOW CSM platform
• Consistent support processes, leveraging best-in-class ITIL/ITSM practices, driven by Command Center team
Move to Knowledge-Centric Support (KCS)
Continuous improvement focus
A ‘proper’ Change Management program – internal and external
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
16© 2016 Epicor Software Corporation
EpicCare Rollout – What We Achieved
EpicCare Rollout
now complete:
Seven Waves replacing
15+ existing support
systems
All products,
all customers & partners,
globally,
now live
Wave Primary Products Go-Live Date
Wave 1 Eclipse April 2016
Wave 2 Distribution June 2016
Wave 3 Prophet 21, Eagle August 2016
Wave 4 Auto, iSolutions, Enterprise November 2016
Wave 5 Epicor ERP December 2016
Wave 6 iScala, BisTrack US January 2017
Wave 7 Tropos, BisTrack UK, CMS March 2017
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
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EpicCare Major ChangesCustomer
ManagementBusiness Data Case Handling Workflows Other Capabilities
► Entitlement: Faster, Embedded Customer Attributes (Icons), Caller ID
► Dashboards: Account Summary, Queues, Metrics
► Designed to Measure: SLAs, SLTs, KPIs
► Survey Mgmt
► Enhanced Portal, Self-Help
► Customer Data Integrated with Epicor Business Systems
► Support Managed Data maintained in EpicCare: Contacts, Entitlements, Asset Details, …
► Customer Configuration Management
► Customer Need: Case, Problem (Defect), Service Request
► Knowledgeusage embedded in Case, breadcrumbs
► Process Integrated with Non-support Stakeholders
► Positive Call Closure
► Service Catalog for commonly requested services
► Email Hub Receiving, Sending, Notifications
► Appointmentscheduling
► Time Management: Tracking, Billing, Normalization
► Common Reporting and Metrics to drive CSIP
► Single, Global System driving Service consistency
► Single Sign-on for Agents
► Collaboration capabilities including chat, concurrent updates
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
18© 2016 Epicor Software Corporation
EpicCare – The Results
51,000 users from Customers
and Partners registered for
EpicCare
Run-rate of 500,000+ support
cases annually going through
the single EpicCare platform
33% of all support cases being
logged through the new
EpicCare customer portal
• Increasing 1-2pp per month
EpicCare Customer Feedback“…HUGE improvement over the old system …
What am I going to do with all of my free time?”
— Retail Customer“The new portal is amazing…Especially like the
formatting in the Knowledge Base”
— Distribution Customer
“You can actually drop screen shots right into the website [and] reply
to a case notification email with a screen shot…Just those two things
and the ability to simply reply by email to the cases are HUGE…”
— Distribution Customer“EpicCare is working well and support has been
great…certainly a well-functioning support system”
— Manufacturing Customer
“Congratulations…. EpicCare helps us !”
— Channel Partner
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
20© 2016 Epicor Software Corporation
And most importantly…Early Indication of NPS Improvement….
R² = 0.7917
-20
-10
0
10
20
30
40
June2016
Jul Aug Sep Oct Nov Dec Jan2017
Feb Mar Apr May JuneMTD
NP
S in
%Support Survey NPS Scores from EpicCare System
© 2015 Epicor Software Corporation© 2015 Epicor Software Corporation
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An Award for EpicCare
May 2017: The EpicCare project announced
as the winner of a ‘Stevie’ for Customer
Service Department of the Year in the 2017
American Business Awards
Comments from the judges:
“A transformative year for Epicor. Not many can replace
all their systems and still show improving metrics”
“The new electronic case management system is impressive”
“You have been able to navigate the complexity of mergers and
acquisitions nicely. Congratulations”
“All I can say is ‘well done’.”
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Epicor Business Case: ServiceNow Customer
Service Management
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Source: The Total Economic Impact Of ServiceNow April 2017
Forrester concludedthat Epicor expects the following three-year financial impact from investing in ServiceNow
ROI Benefits PV PAYBACK
104% $11.4 million 15.5 months
Epicor Software invested in ServiceNow Customer Service
Management to transform their global support system.
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Source: The Total Economic Impact Of ServiceNow April 2017
$6.6M
$3.5M
$1.3M
IMPROVED CUSTOMER RETENTION
INCREMENTAL REVENUE GROW TH
IMPROVED ORGANIZATIONAL
EFFICIENCIES ( INCREASED
PRODUCTIVITY & FASTER DECISION
MAKING)
Epicor quantified key benefits from its investment in ServiceNow Customer Service Management
Three-year total PV benefit breakdown
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Source: The Total Economic Impact Of ServiceNow April 2017
Epicor expects to improve customer retention by 1% in 3 yearsBy delivering a better overall customer experience
3-Year Benefit
$6.6MImproved Customer NPS
scores by 10-plus
percentage points within
first 10 months
Automatic routing to
right team members
Meeting SLAs and SLTs Proactively solve issues
before they occur
Customer portal with extensive knowledge base
Epicor Software: Value Drivers
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Source: The Total Economic Impact Of ServiceNow April 2017
Epicor expects 3% incremental license revenue in 3 years
3-Year Benefit
$3.5MMore engaged and improved
quality of customer
interactions
By uncovering new upsell and cross-sell opportunities
Automated workflows and
improved agent productivity to
focus on strategic issues
Increased visibility of customer data across teams
Epicor Software: Value Drivers
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Source: The Total Economic Impact Of ServiceNow April 2017
Epicor has realized 3X efficiencies in reporting and tracking
3-Year Benefit
$1.3MAutomated reporting and
increased analytics
By improving productivity and faster business decision making
Management can gain faster
insights and make better
decisions
Improved agent productivity and satisfaction
Epicor Software: Value Drivers
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Epicor expects to realize the following additional benefits that were not quantified in the study
Improved self-service usage through creating 24/7 customer
portal with an extensive knowledge base
Faster resolution time increasing agent productivity
Improved service levels with the ability to deliver consistent
service
Capex and opex savings by consolidating over 15 disparate
support systems and 50-plus customer portals into a single
global support platform
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Source: The Total Economic Impact Of ServiceNow Customer Service Management June 2017
104%
ROI
Three-year model summary results
($4,000,000)
($2,000,000)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Initial Year 1 Year 2 Year 3
Cas
h f
low
sFinancial Analysis (risk-adjusted)
Total costs Total benefits Cumulative net benefits
© 2017 Forrester Research, Inc. Reproduction Prohibited 31
Prospective Customer ServiceNow Customer Service Management Calculator
The calculator provides an interactive
version of the results presented in the
case study and other customer data
points, enabling prospects to interact
with the data as they explore what an
investment in ServiceNow CSM would
mean for their organization.
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Service Management for your organization.