Mastering the Customer Experience: The Key Drivers for Success

1 2004 IBF Management, the Customer Experience: The Key Drivers for Successby IBF Management LLCIn today s environment a successful enterprise requires a clear and sustainable competitive advantage in themarketplace. A strategic differentiation can be gained by focusing on the single most important element of Success the Customer . A business can ensure Success by managing the Customer relationship and providing world-classcustomer care, field support and billing services as efficiently as to exploring the factors that influence Customer service and the impact to the business, it is helpful to firstappreciate the breadth of the design elements. The illustration below details the facets of developing and executinga comprehensive strategy that is oriented around a common, clearly communicated vision and migration ArchitectureBusiness ArchitectureVision & Vision & StrategyStrategyOrganization & Organization & TrainingTrainingOperating & Operating & Process ModelsProcess ModelsEnabling Enabling TechnologiesTechnologiesBusiness ArchitectureThe target operating elements required to design and implement the.

2 Unique perspectives with each requiring definition within the architectural Organizational EngineeringEngineeringOperationsOperatio nsManagementManagementProduct ManagementProduct ManagementDisciplinesRequired functional subject matter expertiseCustomerCustomerEmployeeEmploye eManagementManagementCommunications & Communications & Change ManagementChange ManagementTrainingTrainingPhysicalPhysic alInfrastructureInfrastructureProcessPro cessEngineeringEngineeringProgram ManagementProgram ManagementFunctional AnalysisFunctional AnalysisSuccess is achieved through operational integration based on a structured alignment of disciplines across theenterprise. The following describes the key Drivers and approach for Mastering the Customer SERVICE DRIVERSS everal evolutionary Drivers regardless of industry are having a profound impact on Customer service: strategicvalue of Customer care, an enterprise approach to Customer relationship management, operational innovation,technological advancements and Customer Value.

3 The Customer service delivery model has a long, progressive history: administrative customersupport reactive Customer service proactive Customer care and, ultimately, Internet-based collaborative services business continues to strategically evolve: from a cost of doing business that is vertically organizedby narrowly defined segments of work/activities; to a multi-channel, cross-organizational approach that ishorizontally aligned around Customer -focused processes. This strategic paradigm shift represents the recognition ofcustomer service management as a mission critical asset to the corporation for revenue-protection and revenue-generation opportunities. Increase Customer responsiveness and satisfaction Create Customer loyalty and increase retention Lower marketing and account acquisition costs Enhance corporate image and competitive advantage 2004 IBF Management, Relationship Management.

4 Enterprise-wide Customer relationship management has broadened theconcept of Customer care no longer is it satisfactory to develop strategies and operations within organizationalsilos . Personalized Customer contacts the basis for a business relationship require common Customer knowledgeacross internal functional areas. In addition, Customer segmentation rules based on contact triggers are necessary toreduce flight risk of high-valued customers. An overall approach is required to synchronously manage across thetraditional Customer -interfacing organizational boundaries, , marketing, sales, field service, technical andaftermarket support. Understand Customer expectations and relationship management trends Create company-wide Customer management Establish learning relationships with customersOperational Innovation. As corporations strategically leverage the Customer contact, innovation inherentlyfollows.

5 Leading-edge service organizations will look beyond the four walls of a particular operation and delivercustomer contacts to the most appropriate associate regardless of reporting structure applying the principles of thecontact center across the enterprise. Thus, as benchmarks in providing exceptional service evolve, the continuousimprovement paradigm becomes more of a necessity. It is imperative, in the global competitive landscape, to notonly benchmark within and across industries but strive to stay on the leading edge of providing world-class customercare based on Customer needs and exceeding expectations. Provide service outside the traditional channels for 24x7x365 Set Customer service objectives that drive personalization adoption Create data- and knowledge-sharing infrastructure Learn from Customer data Realign compensation with Customer satisfaction and retentionTechnological Advancements.

6 Technology applications are unique in both supporting and driving operationalrequirements consistently raising the bar in how Customer and operations support are defined. Advancements inboth operation support systems and Customer -facing technolog ies promise flexibility and innovation. It is necessaryto address human factors, business rules and workflow for a business to capitalize on these innovations. In addition,the Internet and other electronic communications raise unique challenges. For example, how to provide proactive,personalized service in an inherently impersonal environment where certain Customer touch points, such as email,are not real-time. Set the pace with personalized, proactive service Break down service silos to show one face to the Customer Coordinate across all Customer contact channelsCustomer Expectations. Customers, too, are evolving: the expectations of Customer service transcend have evolved to the point where exceptional Customer service is considered the minimal requirementand personalized, proactive Customer care is gaining momentum.

7 Exceeding Customer expectations and providingsolutions to both explicit Customer requests and implicit Customer needs are the primary objectives. Master Customer interactions on- and off-line for 24x7x365 availability Blending of sales and service paradigmsAn organization faces many challenges in achievingoperational excellence and service delivery service must be synchronized across thebusiness in order to master the Customer logical, phased approach that is Customer -focused,adapts to the changing environment, encouragescontinuous improvement and leverages the customercontact personnel is advantageous to both theoperation and Customer . 2004 IBF Management, STRATEGY, PEOPLE, PROCESS & TECHNOLOGYS uccess is based on viewing the Customer experience horizontally across the entire organization identifying at thefunctional level how each activity across the enterprise impacts the Success of the organization and ultimately successful organization must understand its customers, anticipate their needs and expectations, and ensure that allservices, processes and organizational structures support the ability to deliver the quality services that The management team and business sponsors must articulate the strategic importance of customerservice.

8 In developing the enterprise portrait of Customer care, the strategic driverswill influence the resulting vision and scope. Key business strategies include: Increase Customer responsiveness and satisfaction Create Customer loyalty and increase retention Lower marketing and account acquisition costs Enhance corporate image and competitive advantageThe Customer perspective should be integrated into the vision. For example: Speed of Service ensuring that when a Customer contacts the organization,the inquiry or problem is handled timely, efficient and during the firstcontact. Examples include:o Responsiveness to all contact methods utilizing an efficient workflow with minimal hand-offso Providing an intuitive Customer self-help interface with immediate access to information andpeopleo Minimal wait time for calls and quick response to e-mail, faxes and other contact methodso Providing priority and special handling to high-valued customerso Providing warm transfers when a hand-off is necessary.

9 Quality & Accuracy of Service personalized service based on the Customer profile and customersegmentation rules. Examples include:o Knowledgeable personnel performing value-added activities in support of the customero Accurate transaction processing and validation via knowledge-based infrastructure (whetherperformed by company personnel or directly by the Customer )o Knowing the Customer , activity history and preferenceso Tailoring service based on market/service segmentationo Qualifying Customer contacts and anticipating needs with an innovative contact experienceo Service based on the needs of the Customer Ease of Service allow customers to choose the media option for doing business and creating cross-channel Customer service. Examples include:o Providing integrated, alternate access points (channels) for Customer service (phone, fax, e-mail,postal mail and Internet)o Allowing anytime Customer serviceo Consistent information and service across all communications channelso Flow-through of service as customers cross communications channels for a given inquiry orrequest Range of Service flexible business processes that respond to Customer demands and the range of include:o Service based on Customer segmentationo Providing the perception of dedicated supporto 24 hours a day, 7 days a week, Customer service availability.

10 2004 IBF Management, Successful organizations view Customer service as a corporate responsibility. Ownership belongs to allemployees and is realized within a team-based and empowered organizational structure that supports associates inmeeting Customer needs. Broad empowered teams focused on external customers Teams measured and accountable for business results Performance incentives and rewards Menu of training and education opportunities Information, resources and power in hands of associates in direct contactwith Customer Horizontal team structure where management supports associate in satisfyingthe Customer Team involvement in continuous improvement processThe underlying people principles are based on developing and retaining Customer -contact associates who are valued, knowledgeable professionals that provide bottom-line benefit in both productivityand Customer interactions.