Redefining the Customer Experience
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1 Redefining the Customer Experience Rasesh Patel, SVP of Customer Experience Frank Palase, SVP of IT Strategy and InnovaBon November 20, 2014
2 DIRECTV at- a- glance! World s leading provider of digital television entertainment services! More than 39M customers! Nearly $30B in revenue worldwide! 20M U.S. customers nabonwide; $23B in revenue! Exclusive, unparalleled programming! Award- winning technology! Higher customer safsfacfon than cable 13 years running! 16M LaBn America customers; $6B in revenue! Fortune 100 company 2
3 CompeBBve landscape! CompeFFve pressure tougher than ever! Programmers demanding increasing piece of the pie! Technology changing rapidly and unpredictably! Customers more discriminafng, empowered! DIRECTV is pure- play provider, no integrated bundle DIRECTV must deliver a bever experience 3
4 Our Vision for Customer Experience Company- wide strategic objecbve to improve the customer experience Winning customer loyalty for life! Start customers out right! Be simple, easy and efficient to do business with! Empower and enable our frontline! Recognize and reward loyalty! Increase in NPS! Reduce costs! Improve loyalty 4
5 Industry First Transparent Upgrade Program Before! New guy gets the deal customer pain point! No defined upgrade policy in wribng for customers! 5.2M customers call each year asking for an experience upgrade. Those who don t upgrade exhibit a 15% spike in churn Upgrade Every 2 years Benefit Added Aaer! Transparent upgrade program! Funded and sustainable way to upgrade customer experience in future! 30pt increase in NPS for customers who experience upgrade benefit Key Metric Enrolled Subscribers Change vs % DPP Monthly Price Take Rate (new subs) Program Revenue + $2 + 22% + 61% 5
6 Simplified and Transparent Bill Before Before! Lack of trust with Pay TV billing pracbces! Customers say their bill is somewhat or very confusing! 20% say the amount of the bill changes month to month without explanabon Aaer! Simplified and transparent bill designed around consumer needs Aaer! Clearly idenbfies changes from previous month! Opportunity to reduce one of the largest call drivers 6
7 Digital Care Answer Center! Step- by- step help, how to videos, and online chat assistance! Curate top quesbons and answers for a faster help experience My DIRECTV Appt.! Preference based proacbve communicabon! Personalized interacbons (e.g., technician name, fun facts) Chat Support! Context- specific help! One- on- one interacbon w/ live agent! Ability to support mulbple customers simultaneously Clear access to Answer Center Personalized Offers and alerts Space for Enterprise Messaging Links to tutorial videos Flexible modules for messaging and offers Context- specific online chat support is one click away 7
8 CX InnovaBon Lab What is it? Mini DIRECTV serving One Customer Geography Key Wins! A rapid test- and- learn environment with cross- funcbonal closed loops and ownership for shared metrics! Designed to idenbfy, test and refine experiences with customer and frontline feedback DIRECTV Customers Sales Field Care Enterprise Support! Training for customer- facing behaviors! Improved tacbcs! Lean- based conbnuous improvement system! 12+ pt increase in frontline NPS 8
9 Significant Momentum and Results Satmetrix NPS Calls Eliminated Service Truck Rolls 34 in pts Industry Rank #1 16,454,000 and counbng $77M cost avoidance 315,000 fewer service truck rolls $25M cost avoidance Customers Retained 53,000 customers saved through CX inibabves in 2013 E- bill Enrollment 6.1M in June, % increase in electronic bill enrollment Leadership Buy- In 22% in % state we have a clear set of inibabves to differenbate on CX 9
10 Strong Absolute and RelaBve Progress 2014 Pay TV Net Promoter Score NPS Change, 2014 vs (3) (1) (6) (3) (8) (5) (12) Source: SATMETRIX Net Promoter Industry Report 2014, TelecommunicaAons Cable & Satellite TV 10
11 InnovaBon Lab showcased IT InnovaBon CX Needs! Support rapid test- and- learn environment! Specific needs:! Gather root cause data from field techs! Create verbafm feedback loops between customers and techs IT Approach! TradiFonal IT development approach couldn t support needs Cloud and Big Data Plarorm Rapid IteraBons Results! Developed rapidly configurable plaaorm! Allowed for fast failures and learning! Enabled Closed Feedback Loops & Rapid IteraBons! Significantly reduced Time- to- Value 11
12 InnovaBon model shortens Bme- to- value OperaBonal IT Core ApplicaBons OperaBonalizing Reducing Bme- to- market for new ApplicaBons ExperimentaBon & Prototyping ExperimenBng & Prototyping using the Cloud Rapid iterafng Agility ElasBcity Flexibility Risk Test, fail fast, fail cheaply, learn and evolve 12
13 Close CollaboraBon and Alignment Customer Experience IT 13
14 Same Model applied to Enterprise Systems From To CRM CRM Knowledge- base + Order Management System Agent Desktop 14
15 The Old Agent Experience CRM Knowledge- base # of switches between CRM & Order Mgmt = 14x Order Management System 15
16 The New Agent Experience CRM # of switches between CRM & Agent Desktop = 2x Agent Desktop + - Increase NPS Reduce AHT Reduce cost of upgrades 16
17 Key Enablers for Greater Agility Org & Process Changes Cultural Mindshia Funding Models New skills 17
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