Egenera Customer Loyalty Program - Omega … Case Study Al Lanzetta.pdf · Egenera Customer Loyalty...

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Egenera Customer Loyalty Program

Key Account Approach


Egenera Customer Loyalty ProgramThe Company and its Clients

Egenera, Inc.– A global leader in a computing solution that simplifies data

center operations• Founded by former Goldman Sachs CTO - Vern Brownell

– Designed to reduce complexity• Egenera software virtualizes network switches, NIC, fibre

channel switches, storage• Achieve higher resources utilization• Faster application time to market• Increases flexibility• Decrease total cost of ownership

Clients manage large mission-critical data centers– Real-time access for thousand of users– 24x7 Operations– Large complex environments with technology from 50 plus

companies

Utility computing delivered today


Egenera Customer Loyalty ProgramWho purchases Egenera technology and Why?

Initial Customers– Early adopters of disruptive technology– Risk takers with a vision– Acquired the product for the business benefit of

competitive advantage

– Purchased Egenera products without well established references

Second Wave– Driven by need to meet increased IT demands with flat

budgets– Required well established references

Initial Customers and Second Wave – Only a third of total addressable market– Egenera’s long term success depends on capturing

market share in the other two thirds of the addressable market


Egenera Customer Loyalty ProgramEgenera motive for the program

Why a Key Account Customer Loyalty Program?– The obvious reasons:

• Costs less to sell to existing accounts than to acquire new accounts

• Bragging rights on the positive of the “Egenera Experience”• Identify the weakness of the “Egenera Experience” as a

catalyst to drive continuous improvement

– The other important benefits:• Collect market intelligence from real users• The participants are thought leaders in their industry, i.e.

their opinions are valued by their peers


Egenera Customer Loyalty ProgramWho should participate and Why?

Within the accounts selection of individuals to participate was critical– CIO for business value

– CTO for technology advantage

– IT procurement for competitiveness and ease of doing business

– Engineering for features and function verification

– Developer for application fit

– Operational Management for quality and reliability

– System Administrators for ease of use


Egenera Customer Loyalty ProgramThe questions!

Determining survey questions– A cross functional team that wants to capture the total “Egenera Experience”

• Marketing– Is the value proposition heard and understood?– Are customers realizing the Egenera value?– What future features and functions are most critical?– Competitive positioning vis-à-vis our contemporaries

• Sales and System Engineering– Do I understand my customers business needs?– Am I able to present solutions to meet their needs?– Am I a trusted advise to the IT personnel?

• Administration– Is the contract, sales order and collection processes customer friendly?

• Engineering– How does the architecture fit into the customers infrastructure environment?

• Quality– Does installation quality meet customers expectation?– Is the on-going reliability meeting the customers systems availability goals?

• Technical Support and Service– Does response time meet expectations?– Is service engineering an aggressive listener?– Do you believe the service engineer is technically competent?


Egenera Customer Loyalty ProgramMaking it a corporate program

Egenera executive team sponsorship– Do they buy in on the overall program?

– What do they want from the program?

– Agreement that the participants are the right ones– Agreement that the survey questions are the right

ones

– Define their role in the program• Do they buy into their role in the program?

• Are they committed to personally participate in post survey follow up?


Egenera Customer Loyalty ProgramThe Launch

Pre-launch meeting with Omega– Solicit Omega feedback on the survey– Review the list of targeted participants

Egenera President and CEO letter to the participants– The letter is critical to getting customer’s executives to

participate– Letter commits to follow up based on the results

• Participants invest time taking the survey so they are entitled to follow up

• Follow up means a review of the results and action plans by Egenera in response to the results


Egenera Customer Loyalty ProgramThe follow up

Post survey process– Letter from the President & CEO to participants thanking them

for participating– Omega presentation to the entire Egenera senior

management team– Egenera senior management team determined area to focus

on as part of the continuous improvement program– Internal letter to Egenera cross functional team Customer

Loyalty Program member• Share results with the team

• Communicate the selected areas for improvement• Assign action item owners



Two of the areas for focus– Communication to customer on technical issues– Improve speed of resolution of technical issues

What did we learn from results in the two areas?– No such thing as too much communication– Frequent communication builds customer confidence in

Egenera commitment to customer support– Quality of communication builds customer trust in

Egenera’s ability to solve their problems– You need both confidence in your commitment and trust in

your ability to have loyal customers



Time to resolve can never be quick enough

Customers equate length of time to resolve with effort

Customers hold a young small company in a different light than a large corporation, i.e. IBM, HP, EMC etc. on time to resolve

A single incident can shape the entire perception a client has of Egenera

Customer expectations rise as you meet current expectations, it is a never ending quest for perfection


Egenera Customer Loyalty ProgramThe Action Plan

The deliverable:

Improve Communication and Time to Resolve

– Implemented a Technical Account Management Program– Created a quantitative dashboard that measures customer

experience– Deployed a collaborative case management system– Acquire and implement a robust remote monitoring system


Technical Account Management

A consistent approach to the management and support of Egenera customers:

– The process requires discipline, attention to details, coordination, communication and relationship building.

– Customer environments are complex, mission critical data centers that require best practice processes to meet their business objectives.

– The Technical Account Management Process is a differentiator that drives us to exceed our customer’s business objectives.


Keys to Success - Technical Account Management

Clear, accessible, accurate documentation of Customer Profile

Clear, consistent communication through a single reliable channel

Proactive approach for all activities (Execute against Plan)

Clear, responsive and rapid escalation path for problem handling with consistent feedback channel

Knowledge Management System to maximize resources and minimize repeatable issues

Metrics in place to allow continuous improvement


Customers are requesting measurement of overall Quality experience via objective data (“Take the emotions out”)

Create and implement the ‘right’ metrics that drive quality and cost improvements

Create and implement the “right” process to capture customer experience

Customer Feedback On Metrics


Total Quality Experience (TQE) Dashboard

Egenera created a TQE Dashboard that captured:– Calls per System– Hardware Quality– Software Quality– Business – Time to close a ticket (median days)

TQE dashboard was created with the rating of:– 1 is Red: Unsatisfactory– 2 is Yellow: Approaching Expectations– 3 is Green: Meets expectations

Each element has an established goal and weighting, based on– Egenera Baseline– Best in class


TQE Dashboard Example

Tier-1 Metric Goal May Jun Jul Aug Sep Oct 3 Month Rolling

Installed Systems 32 36 36 39 43 43 40.25

Normalized Call Rate 0.80 0.438 0.889 0.889 0.667 0.512 0.442 0.555

Number of Normalized Calls 14 32 32 26 22 19 22.33333333

Normalized Call Rating 3.00 2.00 2.00 3.00 3.00 3.00 3.00

Hardware Calls per System 0.40 0.219 0.389 0.333 0.385 0.372 0.349 0.381

Number of Hardware Calls 7 14 12 15 16 15 15.33333333

Dead on Arrival (rate) 93.750% 100.000% 100.000% 100.000% 100.000% 97.674% 99.200%

Number FRUs Shipped 32 36 36 39 43 43 41.66666667

Number of Receipt Defects 2 0 0 0 0 1 0.333333333

Hardware Quality Rating 2.50 3.00 3.00 3.00 3.00 2.50 2.50

Software Customer Calls per System 0.40 0.156 0.278 0.444 0.231 0.116 0.070 0.141

Number of Software Calls 5 10 16 9 5 3 5.666666667

SW Code Fix Required Against Customer Calls 4.00% 0.00% 0.00% 0.00% 11.11% 0.00% 0.00% 5.88%

Number of Code Fixes 0 0 0 1 0 0 0.333333333

Software Quality Rating 3.00 3.00 2.50 2.00 3.00 3.00 2.00

Severity 1 Ticket (in days) 0.000 0.950 14.500 0.000 6.780 3.950 3.577

Total Sev 1 Tickets

Total Hours


Total Sev 2 Tickets

Total Hours


Total Sev 3 Tickets

Total Hours

Days to Close (median) Rating 2.00 2.75 1.50 2.25 2.25 2.50 2.50

Total Quality Experience Score 2.65 2.75 2.35 2.55 2.85 2.75 2.45

Days to Close (median)

99.50%

Normalized Call

Hardware Quality

Software Quality

< 5 days

< 10 days

< 15 days

ExampleExample


TQE Dashboard Results

Customer Total Quality Experience is captured, managed and improved via an objective quality dashboard while driving root cause and corrective actions.

The overall TQE score has improved by 24% over the past 7 months

Total Quality Experience Score

0

1

2

3

Aug'04

Sep'04

Oct'04

Nov'04

Dec'04

Jan'05

Feb'05

Month

TQ

E S

co

re

TQE 3-month RollingScore

Goal: Score of 3


Collaborative System with Remote MonitoringService Communication Center

CIO - Proactive System MonitoringAlert, Analyze, Correct,

Call Center

Egenera UtilityCompute Centers

eS agent

Point of View

Customer

800 Calls

L3 Support

On-site Support

Notifications

Internet


Loyalty: Collaboration with Remote Monitoring

Customer collaborates with Service Teams – Real-time communication on service requests– Customer status on request in common workspace– Customer connect to Customer Engineers Teams – Quick feedback to questions which drives resolution– Customer approval on all resolution that are provided

Customer remote monitoring system– Ecosystem that delivers customer asset management for Egenera products– World wide measurement and reports on all equipment– Customer service teams ready to resolve request in real-time– Delivering what customers “Real Ask for Today”


Remote Monitoring driving Call Resolution

Monitoring health of product – not just errorsReducing data gathering from hours to minutes

Notification to Customer and Service on trigger points

Schedule Software updatesRequest Resolution

– Identify• Rule driven device status • Personal watch list to focus on critical customers

– Diagnose• View of data items, snapshots, files, alarms and

events • Live data views synchronized with CIO in real-time

– Repair • Agents on devices saving customer down time • Execute actions to modify local settings remotely

– Report• View summary information across device

population

CIO.egenera.com


The Results of the Action Program

Solicited feedback very positive Unsolicited feedback received directly and indirectly

very positive– “You guys have really got it together” – “Response times have been excellent”

All our quantitative metrics improved A foundation has been built

– A survey– A Continuous Improvement Plan with executive sponsorship– A quantitative dashboard


Our Mantra

Communication

+Execution

=Customer Loyalty

Date post:	25-Apr-2018
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