Experian Telco Forum 2012 / Sharing unique perspectives in a connected world Experian Limited. All rights reserved. Experian Public.

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1 Experian Telco Forum 2012 / Sharing unique perspectives in a connected world 120

2 Customer Satisfaction - Getting It Right Mafalda Alves Dias, Head of Credit Management, Vodafone Portugal Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.

3 Biography: Mafalda Alves Dias Credit & Collections Director Vodafone Portugal After gaining a management degree from the Universidade Catolica Portuguesa, Mafalda Alves Dias started her career in the marketing division of Telecel. In Vodafone she covered diverse areas of responsibility from marketing to operations, consolidating its skills with a Logistics Master Degree. This brought her in charge of coordinating, from 2007 until 2009, some of the most innovative projects for the Vodafone Group at European level. Such as the design of the Iberian logistic hub. Back to Portugal, Mafalda Alves Dias joined the Operations Excellence Team to oversee a broad re-engineering of the company s processes. Since 2010 she has been the Head of Credit and Collections for Vodafone Portugal. Mafalda Alves Dias Head of Credit & Collections Vodafone Portugal 122

4 Biography: Mafalda Alves Dias Credit & Collections Director Vodafone Portugal After gaining a management degree from the Universidade Catolica Portuguesa, Mafalda Alves Dias started her career in the marketing division of Telecel. In Vodafone she covered diverse areas of responsibility from marketing to operations, consolidating its skills with a Logistics Master Degree. This brought her in charge of coordinating, from 2007 until 2009, some of the most innovative projects for the Vodafone Group at European level. Such as the design of the Iberian logistic hub. Back to Portugal, Mafalda Alves Dias joined the Operations Excellence Team to oversee a broad re-engineering of the company s processes. Since 2010 she has been the Head of Credit and Collections for Vodafone Portugal. Mafalda Alves Dias Head of Credit & Collections Vodafone Portugal 123

5 Portugal Europe s West Coast 124

6 Portugal has a mobile market of 11M customers in a country with 10M people 80% of our customers are pre-paid Customers Market Share Vodafone Optimus TMN 125

7 Vodafone Portugal The best Net Promoter Score 126

8 Net Promoter Score In a scale from 1 to 10, how would you grade (Question)? Results 1-6 are negative Results 7 and 8 are neutral Results 9 and 10 are positive Nº of positive answers - Nº of negative answers Net Promoter Score 127

9 Customer satisfaction evolution Evidence shows consistent differentiation Vodafone Optimus TMN

10 There isn t a specific reason for differentiation, the same result is achieved across the board Best tariffs Best handsets Most innovative Best Customer service Source: Barómetro de Telecomunicações, Marktest 129

11 There isn t a specific reason for differentiation, the same result is achieved across the board Most trustworthy Best technical support Most close to business Most innovative corporate solutions Source: Barómetro de Telecomunicações, Marktest 130

12 How to achieve differentiation Differentiation is achieved across the board and for a long period of time We believe that two aspects must be considered, in order to achieve this differentiation: First Get the basics right Second (and only after the first) Delight the customer

13 Get the basics right

14 133

15 How to achieve differentiation - Get the basics right Since the beginning, Vodafone has created a culture of a company built to assist customers Customers are really in the heart of the company, and decisions have to be made according to that reality. Decisions are made everyday, in every area of the company with very different objectives like cost saving, revenue increment, network efficiency, legal obligations In the end, they all have impact on customers. To ensure the decisions are made or implemented in the best and most appropriate way for the customers, a discussion body was created:

16 How to achieve differentiation - Get the basics right Vodafone Portugal discussion Forums Decision Management Information CRM Forum: Monthly meeting. Attendees: Board members + Directors for the main areas of the company. Discussion of any aspect impacting on customer relations (non commercial perspective)

17 Get the basics right - CRM Forum Forum CRM - Agenda Typically, the agenda follows this structure: 1. Customer Service Levels (CSL) Comparing internal systems and Customer opinion 2. Specific item Typically the hot issue at the moment or one with big impact on Customers 3. Customer Complaint Presenting a real complaint (as if we were the Customer) 4. Review of logged actions 136

18 Get the basics right CRM Forum 1 Customer Service Levels More than 100 hundred indicators, comparing customer opinion with internal performance indicators Examples: NPS Score; ; call center service Level; Customer satisfaction with call center; ; ADSL activation time; ; average time to answer e- mails; ; % of complaints; ; complaint resolution time ; ; average waiting time on shops; Mystery shop results; ; handset complaint repair; ; % top-ups within SLA; ; Business leads response time; ; satisfaction with business account; ; Network indicators SLA ; HSDPA average throughput; Credit area Average & worst time of reimbursement SLA for reaching a payment agreement Nº of days an account stays without service impact on payment 137

19 Get the basics right CRM Forum 1 Customer Service Levels Web tool, allowing an efficient method to identify, out of all indicators, the most important ones, and focus discussion on those: Critical KPI A short number of permanent CSL s to be presented in every Forum Worst KPI The CSL s that had the worst performance during that month This tool is available to all forum members, so everyone can keep track on their CSL s 138

20 Get the basics right CRM Forum Example of a value bellow SLA 139

21 Get the basics right CRM Forum More detail for discussion on any indicator (Example from previous page for Call termination rate ) This year The year before 140

22 Get the basics right CRM Forum 2 Specific item Specific items that are already known as an issue to be solved, and are prepared in anticipation of the Forum. Objective: to present the problem and a solution to be approved Examples of specific items that have been discussed: Warning customers when they are reaching the limit of their data bundle How to migrate customers to electronic invoicing without impacting on satisfaction. Call Center IVR Changing the IVR tree for better customer experience Impacts of CRM system migration (Siebel) 141

23 Get the basics right CRM Forum 3- Customer complaint Presenting a real Customer complaint, using the Customer language and point of view Example: I have a bought a Internet Bundle of 10 hours I have used 5 minutes and then disconnected the PC later I found out that you have stolen 305 minutes of my Bundle its unacceptable I will complain to the Consumer association I will talk to all my friends Although the problem was already identified and under analysis before the Forum, this discussion helped on prioritization Complaint doesn t necessary have to represent a large number of cases. It can be a single case, but representing a situation that is unacceptable for Vodafone standards. 142

24 Get the basics right CRM Forum 4 Review of logged actions The CRM Forum needs to be effective and action driven. For most of the presentations/discussions a solution is proposed and a decision is made The decision is logged and in conclusion is monitored by the CRM responsible For each decision, the decision log has the following mandatory data: Description of the action decided Due date Person responsible In each Forum, status of the on-going actions that are on due date is presented 143

25 Get the basics right CRM Forum 144

26 Get the basics right Full visibility and committment After the CRM Forum all board members have a customer experience Visit a shop Listen to calls Buy something on the online shop Repair a phone The customer experience activity is extended to all employees once a year. 145

27 Get the basics right Complaints resolution As the majority of companies, we do have a complaint management area Nevertheless all directors and managers have to solve a complaint by themselves once every 6 months Usually this complaint is related to the area you work in 146

28 Get the basics right Also for internal customers All activities referred exist to remind us everyday that we are indeed Customer Obsessed. A customer is also all the areas with whom we do work with internally All areas define in their strategic plan for the year the customer delight initiatives they are going to bring to the organization that year If an area does not deal with customers directly, they will define initiatives focusing on the internal customer Also in the strategic plan the SLA s and dependencies towards other areas are defined and marked as an objective. 147

29 Get the basics right In summary You have to provide the basics right to your customer The service/product has to answer customer needs So, this means the activity has to be constantly monitored And finally the quest for operational excellence will be a continuous journey with no forseeable end But this is only the first half 148

30 Delight the customer

31 Delight the Customer After getting the basics right, we have the opportunity to delight the customer. Delight is the extra mile Surprising the customer with something beyond their expectations. Creating an emotional bond with the customer, to make them never forget your Brand

32 Delight the customer - Example 151

33 Delight the Customer - How to achieve differentiation We have created two kinds of initiatives: - Invisible initiatives Actions with differentiation on service level. - Visible initiatives Targeting the customer base, with no differentiation

34 Delight the Customer Invisible initiatives A financial algorithm has been created, calculating the Net Present Value for each Customer. It customer history and also the potential NPV The algorithm runs every two months, allowing prioritization and attribution of a scoring to the entire customer base, according to the value of the customer. Based on the value scoring, we provide different service levels to different customers. Customers are not aware of the scoring system or the differentiation on service level

35 Delight the Customer Invisible initiatives Typical examples of invisible differentiation: When calling a call centre, higher scored customers get senior agents When repairing a handset, in certain conditions, higher scored customers can receive a new handset in substitution of the old one High value customers receive a collections outbound call and low value customer receive an SMS

36 Delight the Customer - Visible initiatives APPLE Wife Says YES! NO 155

37 Delight the Customer Visible initiatives In order to surprise the customers, we identify moments when it makes sense to give small offers that will generate good will towards the Brand. The value of the offers must never be related to its financial value but to the occasion. Vodafone can not be seen as a nice company that offers nice things, but as a company that anticipates customers needs

38 Delight the Customer Visible initiatives As a small example, we provided umbrellas to street Vodafone shops (shopping centres excluded). The agents will receive instructions to offer those umbrellas, ONLY: when it was raining outside and if the customer didn t already have an umbrella

39 Título Parágrafo 1 Parágrafo 2 Parágrafo Originador Data 158

40 Delight the Customer Visible initiatives These initiatives create an emotional bond with the customer They also create brand awareness As these initiatives directly address the customers needs at the point that they happen, these help to create an emotional connection between customer and brand. 159

41 The Credit Examples

42 Credit Example - First Hotliners Mario has been a Vodafone customer for more than 10 years Never had an HL This month he has a planned HL for the first time in VF history If you were a regular customer you would receive just an SMS as a warning notice We called Mario and found out why he was going to have his first HL: Credit not registered 161

43 Credit Example - First hotliners We ve implemented the First Hotliners outbound call Reasons: New customer Complaints Unemployment Traveling abroad Illness Deceased So we decided to implement follow up programms to all the situations. 162

44 Credit example - Unemployment Mª Luisa was on HL and going to be disconnected. During the outbound call Maria told us: The value of debt The date when it was due The reason for non payment u Unemployment The critical situation in which she was living 163

45 Credit example - Unemployment Mª Luisa was a customer with more than 3 years good history. No HL s ever before What we did: Changed her account to pre paid Forgot the 6 months contract penalty she had to fullfill Made an arrangement for the payment of the debt of 10 month *24 months And created a special arrangement for customers who are currently unemployed 164

46 Credit example - Deceased Dear Mrs. Dias, I received your collections letter, about my wife s account. I m not sure what this debt is about and I cannot ask my wife as she passed away last month. I have enclosed the death certificate for your records and would appreciate your help in identifying this situation. 165

47 Credit example - Deceased We closed Antonio s wife account We did credit the debt I personally wrote a letter to Mr. Antonio paying my respects. And offered him the same amount of the credit in calls to help him sort out whatever he needed to do. And created a special process for customers under the same circumstances. 166

48 Credit example - Internal customer Carlos my team He is always complaining that he has a lot to do and not enough time Based on his example we did implement a new process for Direct Debit activation Only available for employees click accept and that s it! 167

49 In conclusion

50 Delight the customer Delighting the customer is a cherry picking activity: You have to find the right moment Pay attention to the customers voice Feel the customer experience It is a culture not an activity 169

51 Delight the customer Delighting the customer is a cherry picking activity: You have to have the correct initiative Cost analysis Cultural impact of the offering Economic evaluation 170

52 Delight the customer Delighting the customer is a cherry picking activity: And you have to target it to the right customer Find the good customer Classify their potential Segmentation is key 171

53 The virtuous circle Customer Delight Get the basics right Brand awareness 172

54 Customer Differentiation Vodafone Portugal Any questions? 173