2015 North American Contact Center Outsourcing for Automotive Customer Service Leadership Award

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1 North American Contact Center Outsourcing for Automotive Customer Service Leadership Award Frost & Sullivan We Accelerate Growth

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Quality of Customer Service and Customer Impact... 4 Conclusion... 7 Key Benchmarking Criteria... 8 Best Practice Award Analysis for Minacs... 9 Decision Support Scorecard... 9 Quality of Customer Service Customer Impact The Intersection between 360-Degree Research and Best Practices Awards Research Methodology About Frost & Sullivan Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges The demand for outsourced services focuses primarily on inbound customer care, acquisitions, sales, marketing and technical support. Turmoil in the financial markets and a recovering U.S. economy pose another significant challenge: How can BPO companies grow top-line revenues, via sales and acquisitions for clients, while achieving high levels of customer satisfaction? Outsourcing clients report to Frost & Sullivan how they are challenged to sell products and services in markets that are fiercely competitive. There is an increasing demand for creative solutions in order to penetrate new markets and grow existing ones. Frost & Sullivan independent analysis confirms that clients seek out true partnerships with outsourcing providers that help accelerate growth by way of: Improving net promoter scores (NPS) and customer satisfaction rates Increasing the number of sales conversions Generating Up-sell and cross-sell activity Enhancing customer engagement with an omni-channel communication strategy Enterprises also struggle to find customer care applications that can meet the demands of a new breed of customer; one that is digitally connected on multiple devices, and social media-savvy. One of the biggest opportunities lies in the utilization of high-quality, sophisticated, and meaningful customer analytics. The general lack of understanding about analytics capabilities hampers revenue generation and diminishes opportunities to enhance customer loyalty. Large organizations find it extremely challenging to build and maintain highly motivated contact center teams for effective business-to-business (B2B) and business-to-consumer (B2C) marketing and sales. The principal competitive challenge in the customer care outsourcing market revolves around the need for flexibility and speed in implementing customized client solutions. To successfully meet clients needs, providers must balance global agent capacity, the strategic use of company resources, technology expenditures, employee training and smart contract pricing strategies. Quality of Customer Service and Customer Impact Minacs Company Overview The Minacs Group is an outsourcing and business solutions provider that partners with Frost & Sullivan We Accelerate Growth

4 global corporations to deliver customer experience, marketing, technology, and back-office solutions. History. North American CRM services company Minacs was founded in 1981 in Oshawa, Canada, by Elaine Minacs. BPO firm TransWorks was founded in 1999 in Mumbai, India, by entrepreneurs Rizwan Koita and Jagdish Moorjani and acquired by the Aditya Birla Group in The unified Aditya Birla Minacs entity was a result of the Aditya Birla Group acquiring a controlling stake in Minacs Worldwide Inc., Canada. Today the company is owned by CX Partners and Capital Square Partners, after Aditya Birla disinvested in early Key Stats. Minacs employs 21,000 associates, serving over 100 clients in 41 languages from 35 delivery centers in locations such as Canada, Germany, Hungary, India, Jamaica, the Philippines, Mexico, the UK, and the US. Minacs has developed its home agent business in North America (the US and Canada). Industry Coverage. The company works with global corporations in manufacturing, telecom media & entertainment, banking financial services & insurance, high tech, retail, energy, the public sector, and healthcare. However it is important to note that over 40% of the company s revenues are derived from the automotive sector. Minacs excels in the delivery of marketing solutions, analytics and customer care to this important vertical. Criterion 1: Technological Investment Minacs is investing in positioning itself for the future of customer experience management with the ALT CRM Intelligent Business Operations model founded on Big Data (A)nalytics, Algorithmic (L)ogic and Omni-Channel (T)echnology. ALT CRM will realize Minacs vision to create an alternative CRM model centered around the new age customer, predict buying patterns and behavior, apply algorithmic logic to deliver personalized messages at the right time, and ensure seamless interaction across multiple channels and devices. The company, through its enhanced Minacs Command Center (MCC) and acquisition of an analytics platform, has launched an upgraded analytics capability in support of its operations. The intent is to make operational metrics completely visible, giving teams the ability to identify variables and self-correct without management assistance. Its AuroraSuite platform drives revenues and customer retention with cloud-based modules from campaign creation to delivery and analytics. Minacs announced that it has integrated Ananto within its analytics business. An advanced analytics solutions and services company, Ananto supports its clients with data insight, predictive intelligence, technology integration, and advisory services. Frost & Sullivan appreciates the fact that Minacs truly prides itself in delivering customer service excellence, with operations founded on the highest quality standards. This includes Frost & Sullivan We Accelerate Growth

5 Customer Operations Performance Center (COPC) and ISO. Minacs offers its clients and their customers the highest possible levels of customer service and professionalism. Finally, Minacs has met Google s new criteria for partnership and is officially a designated Google Partner. Criterion 2: Customer Ownership Experience Minacs has a decades-long history of delivering service and support to Automotive Original Equipment Manufacturers (OEM s). A partial list includes Ford, Honda, Hyundai, Kia, and Mazda. Technical Assistance Center (TAC) Use Case A global automotive client sought to outsource its Technical Assistance Center (TAC) that supports 450 Canadian and 25 Caribbean dealers, with the focus on supporting service technicians. Minacs deployed a solution driven by Computer Telephony Integration (CTI) and Interactive Voice Recognition (IVR) technologies, which enabled the client s dealers to easily and correctly enter Vehicle Identification Numbers (VINs) and special dealer codes. The implementation of the program resulted in significant cost savings and improved service levels. The solutions achieved a top 2 box satisfaction score of 92.2%, a 12% reduction in unprepared calls and a service level of 99.4% - surpassing the client s goal. Criterion 3: Speed/Timeliness Driving Increased Revenues for a Major Automaker Dealership Network Automakers are largely dependent on the success of a distributed network of profitable dealerships. Lifetime owner loyalty and retention are critically important in determining an auto dealer s profitability. Historically, parts and service departments contributed ~ 50% of operating profits; today it s about 81%. Automotive service and maintenance is an extremely competitive business due to the availability of other lower-cost and independent repair facilities. OEMs need to constantly remind customers about the services, certified factory-trained technicians, and special offers that only their dealers can provide. Minacs OEM client wanted its dealerships to intensify their service marketing programs to strengthen the dealer base, improve profitability, increase the number of loyal customers, and hence, parts and accessory sales. Minacs automotive marketing team created targeted campaigns with OEM branding and standards, and customizable dealer-specific information. The company implemented a Service Reminder System (SRS); providing dealers with a direct connection to active owners through targeted reminders using their preferred communication channel. Minacs was also Frost & Sullivan We Accelerate Growth

6 able to integrate the SRS with complementary tools like online appointment scheduling, customer mapping, and electronic multipoint inspection. Frost & Sullivan points out that Minacs cleverly used its strategic and consulting expertise to significantly integrate multiple marketing initiatives and drive additional revenues for this automaker s dealer network. Criterion 4: Customer Purchase Experience Re-acquired Vehicle (RAV) Process Case Study In another case, a large automotive manufacturer partnered with Minacs to ensure compliance with all of the legal requirements to resolve "Lemon Law" complaints. The client needed to minimize total time and costs to repurchase, repair and resell vehicles. Minacs created a high quality RAV processing program with a custom-built technology platform; delivering speed and accuracy for the client. The company saved millions in carrying costs and cycle time for this client. Minacs high performance meant that the client was able to meet stringent legal, compliance and financial audit requirements. Valued Client Focus and Partnership For more than 15 years with this client, Minacs has continually added a number process and technology innovations to streamline the buyback process. This kind of innovation saved more than $5 million, as Minacs also implemented an online vehicle value determination system, in partnership with the client. Minacs goal is to completely mitigate RAV cases. Out of more than 1,500 RAV cases every year, the company has delivered an impressive zero error accuracy over the last five years. Criterion 5: Leverage of Customer Feedback The Use of Big Data and Auto Sales Frost & Sullivan notes that Minacs is able to properly produce reports to better help its automotive clients better understand customer retention, defection, migration, and tracking of contract maturities of automotive customers. By using an array of data filters within the reports, dealerships and OEMs, Minacs can analyze and identify which customer traits are affecting their behavior, such as when they defect, purchase and buy - up to the next model in the manufacturer s lineup. In addition, in-car telematics is demanding new marketing, service and support platforms that are able to support multiple languages, local regulations, and cultural mores. Frost & Sullivan We Accelerate Growth

7 Automotive Dealer Marketing Solutions Minacs has designed and developed a suite of tools and solutions aimed at automotive dealerships, including: Minacs Service Reminder Solution (SRS). These are targeted reminder solutions, with expert consultancy for communication methods, channels, personalization and timing. Minacs SmartLine. A direct marketing platform with a proven track record of increasing traffic, retention and revenue for dealership parts and service departments. Minacs Dealer Services Group/Program HQ. This program educates OEM channel partners on new marketing programs, benefits, budgets and plans to maximize results. Minacs Service Prospecting Solution (SPS). Offers targeted marketing solutions to activate and recapture customers and generate loyalty with the assurance of high quality. Criterion 6: Brand Equity As an example of its dominance in the automotive industry, Minacs announced in 2014 that it will support Hyundai s newly launched next-generation Blue Link. Blue Link is Hyundai s in-vehicle telematics system that provides owners a variety of conveniences, including automatic collision notification, remote engine start/stop with climate control and destination searches powered by Google. To support the new integrated marketing program for Blue Link, Minacs will provide targeted omni-channel marketing via direct (white) mail, , Web remarketing, search and display ads, text and in-vehicle messaging. This service is supported by Minacs AuroraSuite, which provides a holistic view of customer profiles for sharper segmentation, targeting, and analytics. Minacs AuroraSuite is built around the Oracle Connected Vehicle solution, which with its carrier grade applications delivers the scalability, rapid time-tomarket and flexibility needed to support next generation telematics services. Minacs will also manage customer enrollments, payment capture and processing, sales tax computation, program packaging and pricing, subscription renewal, marketing offers, reporting, and technical support for Hyundai s Blue Link. Conclusion In the automotive space, Minacs continually challenges the status quo. OEMs and dealerships are looking to Minacs to continually and proactively add value and help grow their business. This goes beyond contracted service delivery arrangements and clearly Frost & Sullivan We Accelerate Growth

8 differentiates Minacs among its rivals. Through its 20,000+ workforce, large IT services arm, Innovation Council, Six Sigma focus and dedicated business excellence and solutions teams, Minacs offers clients a unique partnership; guiding and advising on technology and strategy to help meet the changing needs of a competitive global business, while maintaining daily operational excellence. Based on the aforementioned criteria, Minacs has earned the 2015 Frost & Sullivan Customer Service Leadership Award in the Automotive Sector for Contact Center Outsourcing. Key Benchmarking Criteria For the Customer Service Leadership Award, Frost & Sullivan analysts independently evaluated two key factors Quality of Customer Service and Customer Impact according to the criteria identified below. Quality of Customer Service Criterion 1: Empowerment Criterion 2: Leverage of Customer Feedback Criterion 3: Speed/Timeliness Criterion 4: Frictionless Interaction Criterion 5: Technological Investment Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Frost & Sullivan We Accelerate Growth

9 Best Practice Award Analysis for Minacs Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Quality of Customer Service and Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players in as Company 2 and Company 3. DECISION SUPPORT SCORECARD FOR CUSTOMER SERVICE LEADERSHIP AWARD Measurement of 1 10 (1 = poor; 10 = excellent) Customer Service Leadership Quality of Customer Service Customer Impact Average Rating Minacs Competitor Competitor Frost & Sullivan We Accelerate Growth

10 Quality of Customer Service Criterion 1: Empowerment Requirement: Service providers are encouraged to take independent, informed, and creative approaches to issue resolution Criterion 2: Leverage of Customer Feedback Requirement: Customer opinions are continually solicited and monitored, leading to direct changes to product features or the service model Criterion 3: Speed/Timeliness Requirement: Issues are resolved within a timeframe satisfactory to the customer and the provider Criterion 4: Frictionless Interaction Requirement: Service providers deftly avoid customer conflict by maintaining a friendly, professional demeanor at all times Criterion 5: Technological Investment Requirement: Investment in best-in-class technologies that enhance customer knowledge, accelerate issue resolution, and/or improve the customer experience Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 2: Customer Purchase Experience Requirement: Customers feel like they are buying the most optimal solution that addresses both their unique needs and their unique constraints Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service, and have a positive experience throughout the life of the product or service Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty Frost & Sullivan We Accelerate Growth

11 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at best-in-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth