Customer Experience in a Relationship Economy. Frank Sherlock Senior Vice President and Managing Director Convergys

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1 Customer Experience in a Relationship Economy Frank Sherlock Senior Vice President and Managing Director Convergys

2 Convergys Corporation A Global Leader in Relationship Management Worldwide Capabilities A Leading Public Company Key Facts About Convergys 75,000 employees 84 customer and employee contact, service and data centers worldwide; focused on optimizing employee and customer experience Clients in 70+ countries speaking nearly 35 languages $2.8 billion in revenues Listed on NYSE, S&P 500, Fortune 1000 A Fortune Most Admired Company for nine consecutive years Serve more than half of the Fortune 50 as clients Host more than 1 billion customer interactions annually Support more than 3 million employees and retirees worldwide Billing for 350+ million communications subscribers worldwide Named to the Top 10 for Innovative Use of Technology by InformationWeek (2007)

3 Customer Care Starts with an Integrated Approach Outside-In Approach Customer analytics and insight Leverage Automation Self-service automation TECHNOLOGY 300+ professional services experts to design and implement solutions Process review and optimization SERVICES Assisted service optimization License or host OPERATIONS Back to Basics Operational excellence and contact center domain expertise Hiring, training, and management of agents Global technology infrastructure 3

4 Delivering Seamless Customer Experience A complete solution from self-service to agent-assisted care. Integrated Approach End-to-End Delivery Improved outcomes SERVICES Cost Reduction TECHNOLOGY OPERATIONS Adoption Acceleration Revenue Capture Experience Enrichment Complete Delivery Continuum: Consult Build Operate 4

5 Economic Environment: Forces of Change Interactions / Effectiveness Relationship Economy Transactions / Efficiency First Eighty Years 5 + Last Twenty = Years Next Ten Years

6 Customer Experience Has Become as Important as the Product Being Sold, and More Important Than Brand or Price Quality of Customer Service it Provides 27% Quality of the Product it Sells 27% Price of its Products and Services 24% Brand Name 9% Reputation as a Responsible Corporate Citizen 9% Customer Service is the new Differentiator Source: Convergys Customer Experience Scorecard

7 Channel Preferences are Changing 2007 Superior relationship management will continue to rely on a solid voice channel foundation. 13% 2% 4% 4% Web Chat Web Self-Service IVR 7% 8% 10% 15% 2010 However, leaders will also recognize growing importance of broad channel support across both self and assisted service. 77% 173 Billion Voice Interactions* *196 Billion Voice Interactions 60% Phone/Agent Sources: Yankee Group, Gartner * Convergys Estimates

8 Why Should Companies Care? Attrition Is Now the Primary Form of Feedback 40 % 17 % of the time the customers stop doing business with a company after a bad experience they didn t report of all interactions result in customers leaving 40% Bank Investment company Credit card company Healthcare insurance company Retail store Internet service provider Satellite/cable TV provider Cell phone provider Telephone company Technology company Attrition is highest in industries with low switching costs and higher in those requiring contracts. On average, 12% of customers with contracts indicate that they want to leave as soon as they can 0% 10% 20% 30% 40% 50% 60% 70% Source: 2008 Convergys Convergys Corporation. All rights reserved. Customer Experience Scorecard

9 Why Companies Are Failing Channel Development Policies Defined Web Outbound Mobile Device Policy Mail IVR Ap Policy Customer Inbound Call Center Agent CC Ap Web Ap IVR Retail/Ki osk/atm Customer Information TV/STB Billing Information Legacy No consistent message No consistent implementation of policies Internal structure is dictating the customer experience

10 Solutions that Drive Business Results Dynamic Decisioning Solution Intelligent Notification Convergys Interaction Portal Next Generation Customer Care Hosted On-Demand Solutions Increase revenue through up-sell and crosssell Strengthen customer relationships. Intelligent Self-Service to deliver a personalized experience Intelligent Self-Service Multi-Tenant to reduce TCO Increase loyalty with intelligent retention strategies Turn an outbound notification into an inbound transaction. Intelligent notifications based on business rules Intelligent Notification Distributed architecture for redundancy, security, and instant capacity Reduce cost-to-serve through automation and proactive alerts. Decrease operational costs. Intelligent Call Routing to appropriate agent, regardless of location Intelligent Notification Speech Recognition and Text-to-Speech to expedite transition to speech Key Benefits: Key Benefits: Key Benefits: Key Benefits: Key Benefits: Centralizes company and departmental business policies Provides consistent customer experience regardless of channel Delivers personalization through assisted, self and proactive channels Increases revenue and loyalty while reducing overall cost to serve Differentiates customer care Provides a costeffective, alternative communication method Decreases inbound contact center calls Optimizes productivity and increase morale of contact center agents Reduces costs by decreasing call times, using outbound notifications and driving more interactions in an automated environment Balances live agent and self-service interactions Enhances the overall customer experience Personalizes the customer experience based on individual preferences Multi-channel options increase customer experience Increases up-take rates Improves customers access to information with fewer numbers Intelligently respond to customer needs both proactively and reactively Conserves capital dollars by reducing up-front Reduces risk by providing guarantees and SLAs based on call completion Improves overall customer satisfaction and retention by enabling multimodal capabilities, natural language support, and outbound multichannel solutions

11 Rodale: Self-Service + Agent-Assisted Solutions Case Study Client Description Rodale is a global media company that reaches more than 70 million people worldwide through multiple distribution channels including magazines, books, online, e- commerce, direct-to-consumer, and video Client Objective Required solution to: Enhance customer experience and allow customers to chose their channel of communication with the company. Create an end-to-end customer care solution. Convergys Solution Intelligent contact center solutions and live agent customer care operations. Intervoice Voice Portal 6.0 for voice self service options and intelligent call routing integrated to deliver a seamless transfer to knowledgeable live agents. Best practices and expertise of the Convergys Professional Services organization to create a strategy that drives a customer centric design and deployment model for the end-to-end solution, including ongoing tuning and optimization services to ensure optimal performance and efficiencies.

12 Summary Convergys Value Proposition Success depends on an integrated approach Delivering a complete solution from self-service to live agent The Relationship Economy Companies are using economic downturn to drive broad changes Relationship Management is key to differentiate Solutions that Drive Business Results Dynamic Decisioning Solution Next Generation Customer Care Intelligent Notification Hosted On-Demand Solutions Convergys Interaction Portal 12

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