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1 Autonomous Customer Leading on interaction and insight. Graham Fagan BSc, MSc, CMC, CITP, FICS. Head of Customer Experience and Multi-Channel BT Global Strategy 1

2 Presentation objectives Customer Experience (CX) in Action. The Autonomous Customer 2015 Global Research. Laying the foundation for the customer of

3 Customer Experience (CX) in Action. 3

4 A company's primary responsibility is to serve its customers... Profit is not the primary goal, but rather an essential condition for the company's continued existence. Peter Drucker 4

5 Customer Experience Transformation. A commitment in time, resources and organisational alignment. Low CX Short term transaction focused. Off the shelf products and services. Limited autonomy at the front line. Measurement by issue resolution. Silo mentality with unique agendas. High CX Customer life cycle focused. Customer value propositions. Empowerment were it impacts the customer most. Measurement by profit margins, productivity, csat. Leadership commitment to alignment and change. 5

6 Cumulative total return The upside of getting it right. Better experiences drive better returns. Customer experience leaders outperform the market. 6-Year stock performance of customer experience leaders vs. laggards vs. S&P 500 ( ). 50% 40% 30% 20% 43% 10% 0% -10% -20% Customer Experience Leaders 14.50% S&P 500 Index Customer Experience Laggards % -30% -40% 2013 Watermark Consulting Watermark defines Customer Experience Leaders and Laggards as the top ten and bottom ten rated public companies in Forrester Research s Customer Experience Index studies. Comparison is based on performance of equally-weighted, annually readjusted stock portfolios of Customer Experience Leaders and Laggards relative to the S&P 500 Index. 6

7 But who owns the customer? Single customer but myriad of fragmented channels. Sales App team Retail Location Sales Specialist Kiosk Terminal Messaging Interaction Mobile Platform Direct Mail Marketing Live Agent Self Service Contact center Corporate Website Marketing Social Media Physical Digital 7

8 Growth of the Chief Customer Officer role. Taking end-to-end ownership of the customer experience. Start of year Net change Source: The CCO Council 2014 Chief Customer Officer Study. 8

9 Autonomous Customer 2015 Global Research. 9

10 The Autonomous Customer. Defining an ever evolving and demanding customer. They have much better access to information They use self-service to gain control They help other customers They are supercharged by smartphones and social media They are less loyal to organisations which don t deliver Consumers are shopper swots, protecting their rights Self-service has given consumers choice and control Customers are turning to each other rather than organisations for advice Smartphone users have more consumer power Consumers are less reliant on brands and switch easily 79% shop around to get the best prices 57% say self-service is good as it puts you in control 46% contribute to online forums e.g. Trip Advisor 45% comment on social media using smartphone about the customer service just received 43% say loyalty is a thing of the past 10

11 Autonomous Customer methodology. A truly global customer perspective. Belgium China (trend data 2012) Germany India (trend data 2012) Indonesia Singapore (trend data 2012) Spain UAE UK USA 11

12 Autonomous Customer methodology. A strong gender balance. Gender Global. 52% 48% Female. Male. 12

13 Autonomous Customer methodology. No age limitations. Age Global. 16% 14% 12% 21% 17% 19%

14 1. Making it easy is a growing priority. Busy Autonomous customers put a lot of effort into dealing with organisations and prefer easy interactions. 62% Find dealing with customer service issues exhausting 55% Put a lot of effort into safeguarding their consumer rights 3 in 4 Constantly research products to buy online Only 1 in 5 Regularly experience first contact resolution for customer service Building customer engagement. 30% 85% 71% 88% Increase in consumers saying convenience is more important than price (UK and US). It should be easier to contact orgs. by phone, web chat and . Like it when orgs. notice I have a problem with customer service and try to help. Consumers would be more loyal to orgs. if they are easy to deal with. Buy more from organisations that make it easier. 90% China 84% India 83% UAE 82% USA 81% Singapore 79% Indonesia 73% UK 72% Belgium 68% Germany 50% Spain 14

15 2. Supported self service is a necessity. Consumers like self-service, but when it goes wrong they want live help there and then. When you most recently had a problem with self-service what type of support did you want? Video-chat 9% Want advisor available on phone/web-chat when internet shopping. 79% UK 84% USA Customer service via apps would add value. Social media Web-chat 10% 15% Co-browsing would add value. Phone 23% 29% 0% 10% 20% 30% 40% 90% Want to the same agent as they speak to on the phone. 55% UK 65% USA Prefer using the phone than FAQs (UK). 54% % % UK 62% USA 15

16 3. Security concerns over the phone emerge. Publicity around ID&V and card payment security means new solutions are needed to drive engagement. Buy more over the phone if payment is secure. Germany 21% 55% It takes too long to identify me when I phone the call centre Use smartphone to USA % Belgium 21% UK 28% USA 33% Singapore 43% Spain 54% UAE 57% India 68% China 69% Indonesia 70% 0% 20% 40% 60% 80% 73% Would like voice biometrics for ID&V 47% Want technology to secure card payments over the phone (the agent can not see/hear the account or card details) USA % UK % UK % Singapore % Singapore % India % India % China % China % 0% 20% 40% 60% 80% 100% 16

17 4. Omni-channel: still omni-present. Channel switching is accelerating. 50% Regularly phone call centre and look at web on smartphone 51% Would like to switch from web-chat to video-chat (62% - switch from web-chat to phone) 67% Would like visual IVR on their smartphone 81% Organisations should always offer different channels to meet my needs 3 in 4 Any agent should be instantly familiar with my contact history Less than 1 in 3 Agree organisations make it easy to switch between different channels Would like organisations to offer the following same call centre agent 90% Voice biometrics for ID&V 73% Apps with web-chat 71% Visual IVR on smartphone 67% Social media to phone call 63% Share my screen with an agent 62% Switch from web chat to phone 62% Skype calls to call centres 55% Service through Facebook 53% Switch from web-chat to video 51% Secure tech. for phone payments 50% 0% 20% 40% 60% 80% 100% 17

18 5. Social customers demand social customer service. Consumers want more customer service by social media and less marketing - but there are sector differences. 70% Expect response to social media comment in 15 mins 25% Have had customer service by social media (15% made complaint) 35% would post a complaint on social media 2 in 3 Want responses to comments by same platform Have used smartphone to comment on social media about customer service just received. Belgium Germany UK USA Spain Singapore UAE Indonesia India China 23% 24% 30% 33% 37% 57% 61% 63% 67% 70% Would post a Facebook customer service message to an organisation 1 in 3 for an urgent issue or emergency Twitter/Facebook is the best way to get customer service 88% India 57% USA 87% UEA 53% UK 80% Indonesia 48% Belgium 74% Singapore 40% Germany 63% Spain N/A China 18

19 Laying the foundation for

20 It starts with a single interaction and lasts the whole customer journey. Each customer interaction contributes to which drives customer experience, Higher customer engagement, and increased customer lifetime value! 20

21 Making each interaction count. Omni-channel experience. Enterprise-wide team engagement. Actionable insight. 21

22 Imagine Creating a whole new customer experience for each customer, every time. For your customer. Valued Experience that Creates Loyalty and Brand For your employees. Productive, Efficient, Retained Staff For your business. Improved Customer Lifetime Value for Higher Revenue and Margins 22

23 Thank you! Graham Fagan. Head of Customer Experience and Multi-Channel, BT Global Strategy BT Let s Talk Blog:

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