Date post: | 28-Jan-2015 |
Category: |
Business |
Upload: | thefocusgroup |
View: | 103 times |
Download: | 0 times |
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
0
0 Telefónica Servicios Audiovisuales S.A. / Telefónica España S.A. Título de la ponencia / Otros datos de interés / 26-01-2010 ICEW March 2013
Telefónica Europe
Making Customer Experience come alive to
transform your organization: Some tips
Graham Webster,
Director Customer Experience, Telefónica Europe.
Johannesburg, March 2013
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
1
Agenda Telefonica
The commercial rationale for turning Customers into Fans
An integrated approach across functions to improve alignment
Loyalty through an Integrated approach to improving the Customer
Experience
Some Innovative Differentiated Customer Experience Activities
Engaging people to create and deliver improved customer
experiences
Learning
02
03
04
05
01
06
07
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
2
Telefónica
01
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
3
Telefónica …some numbers
Accesses by Region Revenues by Region OIBDA by Region (*)
FY 2011 (Mill. €)
Revenues
OIBDA
Operating CF (**)
T-Europe 34%
T-Latam 66%
T-Europe 52%
T-Latam 47%
T-Europe 52%
T-Latam 48%
(*) Underlying Figures: reported excluding exceptional items and spectrum acquisitions. Contribution to consolidated figures before intercompany eliminations
(**) Operating CF = OIBDA - CapEx (excluding spectrum)
62,837
20,210
11,282
01
Telefonica Europe. ICEW March 2013
4
Telefonica Purpose … “Improving people’s lives
around the world by transforming possibilities into
reality...”
Happy Employees
& Partners
Happy Customers
Happy Shareholders
Contribution to Society
01
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
5
Customer Experience is physical & emotional!
A Customer Experience is an interaction between an organisation and a customer.
It is a blend of an organisation‟s physical performance, the senses stimulated and emotions evoked, each measured against customer expectations across all moments of contact
It is
• About a physical experience, such as price, product, location, opening times, channel e.g. stores, online, telephone etc , the features of the product etc
and critically
• About Emotions – how a customer feels
› Using senses of Smell, See, Hear, Touch, Taste
“People buy with emotions and then justify with logic”
(Buck Rogers, IBM)
Source: Colin Shaw, The DNA of Customer Experience
01
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
6
The commercial rationale for turning Customers into Fans
02
Telefonica Europe. ICEW March 2013
Churn
%
1.5
3.1
ARPU
€
420
381
-9% x2.1
Claims
%
3.2
17.9
x5.6
Enthusiasts
Detractors
• Even in an economic downturn… 50% of consumers will pay more for a
better Customer Experience 1
• 86% of your customers will pay more for a great customer experience 2
• 89% of consumers are doing business with competitors following a poor
experience 2
• Bad experiences travel fast and far - 26% of consumers follow a bad
experience by posting a negative comment on a social networking site for
global eyes to see 2
Source: 1 Customer Experience Impact Report. RightNow Technologies / Harris Interactive 2008
Source: 2 Oracle Research 2012
In Telecoms businesses creating Fans to reduce churn is essential
02
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
8
02 Creating emotional relationships with our customers
is at the core of our strategy
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
The Goal
Random
Experience
Inconsistent
Unintentional
Predictable
Experience
Consistent
Intentional
Not differentiated
Not valuable
Branded Customer
Experience
Consistent
Intentional
Differentiated
Valuable
Emotional
Relationships
Customer loyalty
& profitable growth
Source: Managing the Customer Experience. Shaun Smith and Joe Wheeler; O2
WOW
Customers are not
buying just a product or
service from a company;
they are buying the total
experience around its
consideration, purchase,
use and service.
Companies that master this
Experience, that can understand it and
deliver it better than their competitors,
have an edge in the marketplace.
Our strategy includes delivering “Branded Customer
Experiences”
9
02
FANS
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
10
Understanding the loyalty drivers
03
Telefonica Europe. ICEW March 2013
A twin approach to Loyalty
Logical
• Delivering the “basics” as the foundation to loyalty
Emotional
• Positives built on delivering the “basics”
• Driving an emotional connection with our brand
11
03
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
First – Understand the drivers of Loyalty
Customer Satisfaction
has a high impact on
both intended Loyalty
and intentions to
Recommend
Connecting Calls
70
Sound Quality 70
Network 70
Price 74
Complaint
Handling
75
Handset 77
Added Value
Services
48
Customer Service 68
Billing 74
Advertising 50
Communications 69
Loyalty 70
Recommend 61
Customer
Satisfaction
Index
73
Components
Account Manager
60
Salesperson
Text Messaging 77
Internet Use 72
56
Illustrative
CO
MP
ON
EN
T R
AT
ING
IMPACT ON SATISFACTION
KEY ACTION
AREA
MAINTAIN &
IMPROVE EVALUATE
MONITOR
Prioritisation
12
03
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
60
43
37
27
0
10
20
30
40
50
60
70
1 to 7 8 9 10
% of customers
who defected to
another brand
within 1 year of
these results
Level of overall satisfaction
27% of satisfied
consumers still
defected to another
brand
40% of dissatisfied
consumers did NOT
defect
DIS
SA
TIS
FIE
D
V S
AT
ISF
IED
13
But we know from other industries that satisfaction is not enough
03
© 2013 Telefonica. Not to be used or reproduced without permission.
Source: TNS
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
14
Emotional Engagement is required to create Fans
Forgiveness
Trust
Surprise & Delight
Advocacy – Promoters Recommend friend or family
Loyalty
Very Satisfied High
Satisfaction
Functional
Loyalty
Emotional
Engagement
FANS
03
Telefonica Europe. ICEW March 2013
Satisfaction & Loyalty : Telefonica Slovakia
Creating Loyalty needs good Customer Experiences
as the foundation
Months with O2
57%
43%
57%
46%
54%
46%
54%
49%
51%
40 50 10 20 30
43%
>90 CSI <90 CSI
The ratio of delighted customer grows over time with O2. We believe it is driven by our
Fair behavior and trust we build in our relationship with the customer
03
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
16
Loyalty through an integrated approach to improving the Customer Experience
04
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
Un
derp
in
To
p-d
ow
n
Our plans to
ensure delivery
What makes
us different
People & Culture
Proving it to
customers &
galvanising
employees
Brand
Vision
Customer Experience Customer Promise,
Programmes & Touchpoint Blueprints
Business Strategy &
Functional Plans
Systems &
processes Organization
Set up
Building Customer Loyalty
An Integrated approach - it only works when it all works ...
17
04
Telefonica Europe. ICEW March 2013
Designing the Customer Experience throughout the
Customer Lifecycle
Meaningful customer experiences are THE success factor, but most organisations still think inside out, mainly in terms of initiatives, products, markets
Need to be thinking about customer insight,
needs, journeys and touchpoints BEFORE
solutions
Want Help & Support
Return
Deepen
Relationship Aware Buy Use
Invoicing,
Top Up
& Payment
Interest
&
Decide
Technical
Service
Repair
in situ
Commercial
Service &
Claims
Set Up /
Provisión Recommit Leave
04
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Designing the Experience & Moments of Truth
19
Web
CustomerService
Retail
Device
Other
Aware &Learn
Interest &Decide
Buy Setup Use Billing Help &Support
DeepenRelationship
Re-commit or Leave
Hear / find out about, attract attention, need
Enquire, compare and decide
Commit Ready to use, delivery, install, want to get started
Receive service, explore service, access account
Receive my bill,Top up or Pay
Get help, complain,feedback
Receive information, benefits, surprises
Amend, extend contract, stay
John goes online to the O2 site, and reads about the handset deals O2 offer
John sees new O2 print advert announcing they’re offering the latest HTChandset
Legend !Poor moment Differentiation opportunityKey risk Moment of truth
John arrives in store, and ask a staff member if he can have a look at the handset
Adviser gives him a charged phone, and lets him play with it while explaining its features
John decides that he want to see who else is offering the phone. He looks online, but decide to buy from O2
Once he receives the handset, he struggles to get started, and goes to the O2 store for a free Guru appointment
John gets used to using the handset’s features, and uses the phone regularly
To find out how to download video from their phone, he goes online and uses a Guru
John sets up a direct debit to pay his bill every month
About to go on holiday, he phones customer services to make sure his phone will work in the USA
He then receives a text, telling him how to check his voicemail abroad, and how much calls/texts cost
Arriving home from the trip, he checks his account, and find he has risen up the O2 loyalty scheme to Silver
Approaching the end of his contract, he contacts customer services to find out what deals he can get
Example 1 (macro, made up) Cross channel: Handset buying experience
Fair moment Good moment
!
!
04
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
20
Some Innovative Differentiated Actions
05
Telefonica Europe. ICEW March 2013
Using Web chat to reduce calls to Customer Service
21
05
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
O2 Gurus – In store, On Line, In Call Centres
22
Inspire customer with „showcase
demonstrations‟, creating a desire to buy
and a great overall experience
Explain complex products and
services in an easy to understand
language.
Give expert advice on all O2 propositions
Share his/her passion and enthusiasm for
new technology
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
UK Example – “Fair Deal”
Fair Deal introduced in 2007 is
not a tariff or a deal - its an
ethos.
One of the fundamental wrongs
of the UK mobile industry was
that new Customers were treated
better than existing Customers.
We’ve changed our retention
offers, policies and tariffs to
ensure that existing Customers
get just as good a deal with O2
as new Customers - plus, their
loyalty is rewarded.
It demonstrates trust and
transparency to our Customers.
05
Telefonica Europe. ICEW March 2013
The O2 in the UK is a unique partnership between Telefonica
UK and AEG to deliver Europe's premier music venue.
This is so much more than a partnership deal- it’s a unique
“money cant buy” Customer Experience for our Customers.
They get exclusive tickets before anyone else, access to a VIP
area, competitions and a whole lot more. A place to see, feel
and experience O2.
The O2
Selling the benefit, not the product
Telefonica Europe. ICEW March 2013
Reward Programme linked to Customer Location
25
05
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
To Affinity and Beyond
We’re fortunate to have Ireland’s most relevant
sponsorship and some of its most iconic figures
Our Rugby Sponsorship strategy in Ireland was focused on
driving loyalty through real insight to create differentiated
emotional experiences
05
© 2013 Telefonica. Not to be used or reproduced without permission.
Insight: “People need to believe that their support makes a difference”
Telefonica Europe. ICEW March 2013
Rewards & Sponsorship used to create differentiated emotional
experiences 05
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Activities have a direct impact on our churn
10%
19%*
15%
18% 20%
26%
28%
Churn differential for prepay customer
participating vs prepay base Those participating with multiple
properties have churn 28% less than the
prepay base
400,000 Customers
144,000 Customers 307,000 Customers
05
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
29
Engaging people to create and deliver improved customer experiences
06
© 2010 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Strong Leadership demonstrating their commitment by actions
Cross functional working the norm in delivering the Customer Experience
Turning Employees into Fans
• If Employees are fans they will….
› be advocates for the business, its products and services and as an
employer
› “go the extra mile” for customers
› stay longer
• Employees will be fans if….
› they are engaged in the business
› they have a great employee experience
› all people based activity is focused on engaging employees and
delivering a great employee experience
A Corporate Strategy that encompasses our people
30
06
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Slide 31
Engaging people internally is key 06
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Telefonica Germany – “Get into the customers shoes”
Start: Telco is not the centre of our customers life Introduction of customer roles TP “Attract”: Experience of the information overload TP “Information”: Address different information channels TP “Buy”: Address importance of customer need based consultations TP “Bill”: Experience bill as important tool to reassure buying decision TP “Use”: Address how important user-friendly services are TP “Help”: Experience the customers frustration over unsolved problems TP “Lifetime:” Address the importance of using customers language and a customer dialogue TP “Cancellation”: Experience the cancellation process
CEX Trail Live 06
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013 © 2013 Telefonica. Not to be used or reproduced without permission.
33
Learning
07
© 2010 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Learnings
34
Devote time and attention of top-level team and do not rush – take your
time to realize where your starting point is and to align
Do not underestimate the need of culture change and coherence between brand values
and customer propositions to enable attitude transformation towards customers
Pay attention to communication: cascade the message down through the whole organization and demonstrate “walk the talk” early in the process
Treat Customer Experience as a continuous process with a number of key steps/milestones/indicators, not as one-step/turnaround change
When implementing make sure the budgeting process enables proper allocation of funds and realization of priorities and considers a long term vision
Prioritizing is key to success in Customer Experience
07
Telefonica S.A. Forrester November 2011 © 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013
Some more learnings
1. Put the customer at the heart of everything you do
2. Start with customer insight – emotional not just rational
3. Challenge yourself to invest in what customers really value
4. Dramatise the difference through clear and compelling
Marketing and propositions
5. Bold top-down leadership
6. Believe that numbers are the output of doing the right things
7. Keep on innovating
8. You must engage people internally to succeed
© 2013 Telefonica. Not to be used or reproduced without permission.
Telefonica Europe. ICEW March 2013