Engineering a Customer

Centric Culture

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About Vodafone Australia

2

Vodafone Hutchison Australia (VHA)

Formed in June 2009 following merger of 3 and Vodafone

3rd largest Telco in Australia

5.56 million customers

in Australia at February 2016

>400 Full retail points of presence

March 2016

Approx 3000 employees

March 2016

4G coverage

More than 22 million Australians

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BackgroundWhere we came from….

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2012: The need for a brand turnaround

4

Network outages late 2010

-40 points

June 2010 – June 2012

Net Promoter Score impact

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2013/2014: The most disliked Telco

5

We lost 1.5 million customers ….

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Why invest in creating a culture

of customer centricity?

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How well

you do

your “not

my job”

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We decided to flip our

organisation upside down!

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We realised….

Our customers know where we can improve…

“All the answers to our problems are inside the front

line staff, if we would only bother to ask them!”

-Tom Peters

….and so does our front line.

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Our core belief

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What’s the approach? What is it achieving?What’s the approach? What is it achieving?

At the heart of Careflight is

the core belief in the upside

down organisation, where

our frontline co-create our

approach using design tools

and expert support.

Empowering the frontline

1. Clearer standards, fewer repeat episodes, and

more consistent experiences

2. Careflight initiatives like 4th call service

recovery have reduced 5th calls by 85%

3. “Like for like” tests show a 30% reduction in

average handle time (AHT)

Why are we doing it?Why are we doing it?

The Careflight

structure has three

core principles- a new

operating model… brought

to life with new practises

and disciplines...

continuously improved by

customer facing people

New Practises and Disciplines

A New

Operating

Model

Continuous

Improvement

Management

Frontline

Customers

Leaders

CareflightA new model to transform customer service

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VMBs Huddles ‘Even Better If’

• A simple, practical problem

solving approach

• Basic tools to solve

operational problems &

issues (root cause?)

• A visual way to highlight

departmental, team &

agent level performance

• Part of our operating

discipline

• A focused conversation with

the team, around a structured

VMB, led by the Team Leader

• Opportunity to unlock

performance by sharing our

‘collective intelligence’

Key Customer Services metrics such as NPS and First Call Resolution see

>10% improvement within 4 weeks of these huddles being implemented

Empowering our Frontline through Continuous Improvement

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Vodafone FIXWe’re moving forward, let’s watch something moving!

Insert Confidentiality Level in slide footer 14

Hearing from customers – Contextual interviewCreate a better customer experience by understanding customers’ needs

5 Themes derived from the interviews

Decision Making When Buying

Network Coverage & Communication

Look out for Me

Make it Meaningful for Me

Service Revolution

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VHA Customer-centric project - NavigatorsWe created a customer-centric culture, cross-functional collaboration to deliver improvements for our customers

Our purposeWe are here to give Australians more choice and freedom

to connect the way they want

2020 Goals Priorities

End to End Segment based journey mapsQualitative &

quantitative insightsVHA Growth Strategy

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What we achieved thus far!

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TIO Complaints

Brand NPS

+20

All the improvement is measured using the previous 18 months’ results

Achievements along the way…

Customer Calls

into Call centre

-28%

Sales+75%

Touch point NPS

+70%

-65%Employee Survey

+15%

After launching in Q3-2016

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Lessons learnt

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• Visible, active sponsorship from the top – Executives to ‘serve’ the frontline. Get the frontline physically

connected to senior stakeholders, regularly.

• Empower the frontline – never underestimate how much knowledge and passion they have.

• The ‘dual operating system’ – create a network of champions. However, you need to engage everyone, don’t

just focus on those directly involved.

• Test and learn, test and learn…..this creates innovation and creativity. Allow risks to be taken, but fail fast.

• Start small and build momentum. Confidence is everything in a customer operations environment. The

phased approach works well and then becomes an ongoing cycle.

• Embed the customer into everybody’s objectives.

– In our vision

– One of our business principles

– Empathy embedded within one of our values

• Accept this is NOT a quick fix – it’s a never ending journey of improvement.

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Thank You!

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