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At The Corner of Insights and Transformation ©2013 Walgreen Co. All rights reserved. Chris Helzerman Director of Outbound Programs Walgreens Customer Care Operations October 23, 2013
At The Corner of Insights and Transformation
©2013 Walgreen Co. All rights reserved.
Chris Helzerman
Director of Outbound Programs
Walgreens Customer Care Operations
October 23, 2013
Topics / Key Takeaways
• How partnership with IT and other stakeholders is critical
• What type of data is valuable
• How insights drive transformation and operational efficiency
• How insights can drive engagement and accelerate revenue
• How to gain financial support of new initiatives and innovation
©2013 Walgreen Co. All rights reserved.
Walgreens Footprint
• 8000+ retail pharmacies and more
• 70% of the US population lives within 5 miles of a Walgreens Store
• 5.9M customer visits per week
• 700M+ prescriptions per year
• 80M+ balance rewards members
©2013 Walgreen Co. All rights reserved.
Increasing complexity of the business
©2013 Walgreen Co. All rights reserved. Confidential and proprietary information. For internal use only. 4
Well Experience Format
Balance Rewards
ACO Model
Alliance Boots Acquisition
Amerisource Bergen
Partnership
Health Care Services
The Walgreens Journey
5
Evolving Role of Pharmacy
Differentiated Experience
Market Dynamics and Core Strategies
•Free associates up for clinical engagement
•Improve the customer experience
•Support expanded services and new revenue models
•Seamless omni-channel engagement
Analytics and Operational Insights
Continuous Improvement
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Customer Care Operations Overview
Customer Care Operations
• Retail, Mail and Specialty Pharmacy Support
• Retail Clinic Support
• Consumer Relations and Loyalty Program
• Digital Support
• Social Monitoring
6
• 1,000+ centralized pharmacies
• 1,500 care associates
• 600M inbound self service calls per year
• 500M outbound calls per year
> 1 Billion interactions annually
Agent
Inbound IVR
Outbound IVR
Social
Web
Mobile
Text
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Analytics Focus:
Contact drivers and predict behavior
Holistic customer experience
Patient needs and segmentation
Cross-channel engagement
7
Transformation
Increase use of self service
Reduce patient/customer effort
Personalized and relevant content based on needs
Maximize the value of each interaction
©2013 Walgreen Co. All rights reserved.
Transforming the Customer Experience
Analytics versus Reporting
8 ©2013 Walgreen Co. All rights reserved.
“Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.”
― Sun Tzu, The Art of War
Strategic planning requires analytics
Tactical efforts require reporting
Analytics and reporting are very different activities which require different talent and capabilities.
The Practice of Analytics and Transformation
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Problem Definition
Data Compilation
Exploration
Quantification Validation
Refinement
Transformation
Hypotheses
Measurements
Predictive Insights
“In God We Trust, all others must bring data”
W. Edwards Deming
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Data is Less Than Half the Equation…
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Domain experts are essential.
• Operations
• IVR developers / IT
• Workflow / process experts
• Digital channels
• Customer experience
• Market research
• Finance
Experts augment data and help with critical decisions about what data gets used and how.
Analytics Team
Business Stakeholders
Domain Experts
Program Management
IT Systems
Data Analysts & Scientists
Database Administration
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Analytics Program
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Demand Management
Analytics Processes
Technology
Analytics Program
Insights aligned to strategic goals
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Analytics Ecosystem
Caller Recognition
Medical Condition
Plan information
Response
Demographic
Geography
Leveraging Channel & Customer Data
Phone numbers
Loyalty
Disease state
Rx Type
Copay %
Plan type
Outbound
Marketing
Age
Gender
Census
Region
State
Store ©2013 Walgreen Co. All rights reserved.
Links to Enterprise Data Provides Richer Insights
Call Center
Data Mart
10 TB
NICE
Agent
IVR
Out-bound
Survey
Loyalty
Photo
E-com
Clinic
AARP
Epsilon
Social Media
1800-WAG
Enterprise Data Warehouse
100 TB+
SAS Teradata
Other
Pharmacy
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Questions Answered using Big Data Analytics
Who is likely to engage and when? What is the best channel?
Who uses self service and who does not?
How do we improve IVR containment / completion?
Visualization What is the optimal outreach design (script, timing etc.)?
How do we maximize the value of each interaction? What content is relevant to whom?
Why do customers call?
Why do some stores get more calls than
others?
Predictive Analysis
Descriptive Analysis
Analytics Engine
Prescriptive Analysis
What is the customer effort? How does effort relate to CSAT and retention?
Who will take action on their own and who needs a nudge? Who won’t respond at all?
©2013 Walgreen Co. All rights reserved.
Who Calls? When? and Why?
“A point of view can be a dangerous luxury when substituted for insight and understanding.”
Marshall McLuhan, Canadian Communications Professor in The Gutenberg Galaxy: The Making of Typographic Man
Disease states
Third party plan
Patients
Location
Disease states
Third party plan
Patients
Location
Certain psychotherapeutic
medications
Female patients
Heavily burdened
Patients over 64
Stores open for 24 hours
Certain ethnic minorities
Certain topical medications
Certain health plans
Blue collar workers
Certain ethnic minorities
Male patients
Patient under 64
Higher Call Frequency Lower Call Frequency
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Call Frequency Analysis
Cash
Certain health plans
A Comparison of Call Frequency for Stores
Store17
Store24
Store16
Store1
Store15
Store4
Store13
Store22
Store30
Store11 Store25
Store12
Store19
Store18 Store10
Store20
Store9
Store7
Store6
Store5 Store8
Store2
Store3
Store14
Store23
Store29
Store21 Store27
Store28
Store26
av
g. c
all
du
rati
on
→
calls/fills→
©2013 Walgreen Co. All rights reserved.
Medication Type 20
Medication Type 10
Medication Type 9
Medication Type 11
Medication Type 12 Medication Type 13
Medication Type 6
Medication Type 7
Medication Type 1
Medication Type 14
Medication Type 8
Medication Type 5 Medication Type 4
Medication Type 17
Medication Type 3
Medication Type 19
Medication Type 15
Medication Type 18
Medication Type 16
Medication Type 2
% calls
A Comparison of Call Volume for Medications
Pro
pe
nsit
y t
o c
all
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Plan11
Plan10
Plan3
Plan2
Plan12
Plan8
Plan13
Plan9
Plan1
Plan5
Plan14
Plan15
Plan19
Plan15
Plan7
Plan4
Plan17 Plan18
Plan6
Plan16
A Comparison of Call Volume for Health Plans
% calls Pro
pe
nsit
y t
o c
all
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Impact of Outbound Notifications
Outbound notifications drive a portion of inbound calls.
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Opportunities
• Personalized and relevant content • Access to additional information • Recognition and handling of return calls • Interaction history available across the enterprise
Impact Analysis
• 8-20% call back rate – varies by notification type • Majority of calls are returned within an hour • SMS appears to drive slightly more calls • Email appears to be comparable to voice
1M+ Outbound Calls Per Day
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Most Patients Call Back within an Hour
49%
24%
12% 8% 6%
0 1 2 3 4
Call
Back R
ate
Days since Outbound Notification
Return Call Distribution - By Day
50%
14% 10% 7% 6% 4% 3% 2% 1% 1% 1% 0% 0% 0% 0%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Ca
ll B
ack R
ate
Return Call Distribution – First Day By Hour
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Adherence Solution - Store Comparison #1
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A B C D E F G H I J
Connect Rate
A B C D E F G H I J
Non-Productive Phone Numbers
A B C D E F G H I J
Live Connect Rate
A B C D E F G H I J
Opt Out Rate
National AverageNational Average
National Average
National Average
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Non Productive Phone Numbers v/s % Unsold Rx
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% U
nso
ld R
x
% Non Productive phone numbers
% Non Productive Phone Numbers v/s % Unsold Rx
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Transformation
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Analytics in Action
Reducing Calls and Increasing Delight
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Average Call Volume
55 calls per day eliminated
Transfers to Pharmacy
37.5 transfers per day eliminated
Delight Score
15.4 Point increase
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Differentiate the Experience Need-Based Service Model
Low
Medium
Segments
Cu
sto
me
r C
on
tac
t P
refe
ren
ce
Interaction Level
High
Service Model Strategy
High-Touch Model
“Concierge”
Clinical Resources
Direct Agent Access
Omni-Channel
Proactive Recognition
Private / Discreet
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Personalization, Segmentation and Needs Drive Channel Shift
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Reminders
Patient Calls Back
Call Recognized
Intelligent Routing
Refill Due
“Thank you for calling Walgreens. Are you calling to refill your prescription? …”
Integration of outbound and inbound communication, across channels
Mobile SMS Fax Email Voice Web Chat Social
Vision: Seamless Cross-Channel Engagement
©2013 Walgreen Co. All rights reserved.
Best Practices from The Journey
• Roadmap and demand management
• Hypotheses or problem statements
• Analytical methodology / approach
• Data quality over quantity
• Consider business processes
• Document business rules
• Engagement SMEs
• Validate through field observations
It’s a journey so plan for an iterative approach!
30 ©2013 Walgreen Co. All rights reserved.
Q & A
Thank You
