Customer Effort Analysis as a Tool for Continuous Service Improvement. Mark Groveunder Vice President, Customer Service Acer America

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1 Customer Effort Analysis as a Tool for Continuous Service Improvement Mark Groveunder Vice President, Customer Service Acer America

2 Customer Effort Analysis as a Tool for Continuous Service Improvement Agenda BI and Analytics Pros and Cons Acer s Voice of the Customer Journey Discovering Customer Effort The Bottom Line 2

3 About Acer A Global Provider of Personal Computer Products, Peripherals, and Accessories Founded ,000+ employees #2 in global notebook sales #4 in global PC sales Operations in Taiwan, EMEA, Asia Pacific, China, Pan America The Acer Group of Companies 3

4 Acer Customer Service Infrastructure Western Hemisphere Vancouver, CA Mississauga, CA CA (French) NSC, US Temple, US Temple, US Mexico City, MX Sao Paulo, BR India Repair Center Contact Center PMO & Customer Insights Uruguay 4

5 Pros and Cons of BI and Analytics Potential competitive advantage if done right Business intelligence and analytics Access and reporting Analytics Standard reports Ad hoc reports Query/ drill down Alerts Statistics analysis Foreclosing/ extrapolation Predictive modeling Optimization What happened? How many, how often, where? Where exactly is the problem? What actions are needed? Why is this happening? What if these trends continue? What will happen next? What s the best that can? Competitive advantage & Degree of intelligence Source: Davenport, T. H., & Harris, J. G. (2007). Competing on analytics: the new science of winning. Harvard Business Press. 5

6 Pros and Cons of BI and Analytics The narrow window for creating an analytics-based competitive advantage Hard to duplicate Unique Adaptable to many situations Better than the competition Renewable Source: Davenport, T. H., & Harris, J. G. (2007). Competing on analytics: the new science of winning. Harvard Business Press. 6

7 Traditional BI and Analytics at Acer Executive Data Warehouse Dashboards 7

8 Traditional BI and Analytics at Acer Useful Insights Overall Contact WIB Rates Mass Market Retailer Overall Contact WIB Rates Electronics Retailer 1.2 % 1% 0.8 % 0.6 % 0.4% 0.2% 0.4 % 0.3% 0.2% 0.1% 0% % Call rate Chat rate rate Calls are only USA and Canada while WIB is all Pan-America. 8

9 But Tell Me Something I Don t Already Know Why Acer Undertook its Voice of the Customer initiative Unexplainable discrepancy between Defect and Contact Rates What was going on between, outside the lines? 6 Contact Rate What about this? 4 What s this all about? 2 Identified Defect Rate

10 Acer s Voice of the Customer Journey A steady evolution Speech Analytics Text Analytics Organizational Commitment 100% Migration to Text Analytics Expansion 2009 Inbound phone call pilot Immediate actionable insights for PA Service and chat pilot Added social media and other sentiment analysis 2011 Voice of Customer Team Customer Experience Team 2012 Agent Case Notes Acer Community Conversations 2013 Global pilot Clarabridge Active collaboration with global marketing 10

11 Acer s Voice of the Customer Journey From novice to transformer Assessment of Voice of the Customer (VoC) Prorgams Companies with VoC programs at each stage of VoC maturity 11% 38% Collaborators 5% Transformers Good or very good ratings for each of the six D s of a Voc program 38% Collectors Analyzers Detect Disseminate Diagnose Discuss 9% 19% 16% 23% Design 17% 8% Deploy 11% Novices Started initiative with listening efforts as data Collectors Advanced to active Analyzers Reaching Transformer status due to extensive internal and external customer interactions Base: Organization with $500 million or more in annual revenues. Source: Temkin Group Q CX Management Surveys. Copyright 2012 Temkin Group. All rights reserved. 11

12 Acer s Voice of the Customer Journey Acer VoC Architecture, driving continuous improvement Transform Deliver Capturing customer conversations at key points of the product lifecycle Clarabridge platform analyzes the data acquired from customers VoC gained business intelligence Key stakeholders/ Business units Implement 12

13 Acer s Voice of the Customer Journey Leveraging social sentiment to anticipate emerging trends L AP T OP How would you change the A700? et.com/2013/02/10/ hwyc-iconia-taba700 Acer Iconia B1 Review com/watch?v=hi3w OfQkIJI 13

14 Acer s Voice of the Customer Journey What VoC success looks like Effective customer feedback collection from multiple sources Effectively share with key internal groups and business segments Continuously improve products and processes 14

15 Acer s Voice of the Customer Journey What is the right question? CSAT question? Net Promoter Score (NPS)? Customer Effort Score (CES) 15

16 Discovering Customer Effort Customer Effort defined Measures the total effort required for customer to resolve service issue Strongest driver of customer loyalty in any service experience Customer Effort Ease of handling issue Worth effort to contact Perceived effort Relative time required 2013 The Corporate Executive Board Company. All Rights Reserved. 16

17 Discovering Customer Effort Measuring Customer Effort performance Overall customer effort normalized average (0-100) Lower performance Customer Effort Score 2.0 percent of customers 100% 80% 60% 40% 20% Acer 42% Acer 57 Higher performance CES 2.0 Question The company made it easy for me to handle my issue. (1) Strongly Disagree (2) Disagree (3) Somewhat Disagree (4) Neither Agree nor Disagree (5) Somewhat Agree (6) Agree (7) Strongly Agree CES 2.0 = % Answering at least Somewhat Agree 0% Lower performance Higher performance 2013 The Corporate Executive Board Company. All Rights Reserved. 17

18 Discovering Customer Effort Pre-Contact Effort Attempts to resolve issue before contacting service Approach to resolving the issue 60% 50% 40% 30% 20% 26% 29% 22% 25% 57% Company was last resort 28% 42% Tried a few things, then contacted 10% 0% None of the above Referred to information I had in print (product manuals, account statements, etc.) I asked a friend, acquaintance, or colleague for help I asked a question in an online community or forum I used an online search engine to try to find an answer Contacted immediately 30% 2013 The Corporate Executive Board Company. All Rights Reserved. 18

19 Discovering Customer Effort First Contact Channel Choice Where customers first go to resolve an issue Community Don t remember Website: What did you use? Media/videos Other Interactive tools Contact us Search bar 12% 12% 31% 59% 60% Number: Where did you find it? Phone book Within company Have it saved Search Engine Other Bill/product packaging 0% 2% 5% 16% 17% 29% Where did you find it? Within company Have it saved Bill/product packaging Other Search engine 3% 3% 5% 5% 14% Web chat 14% 6% 4% 3% 40% Website FAQ page 77% Company website 32% Company website 70% 33% Phone 2013 The Corporate Executive Board Company. All Rights Reserved. 19

20 Discovering Customer Effort First Channel Choice by Brand and Issue By Brand By Issue Type Acer emachines Gateway Phone 30% 46% 46% Resolve an issue with a product Request a new service repair Check status of order or repair Make a purchase File a complaint General inquiry None of the above Phone 30% 39% 44% 19% 38% 18% 25% Website 42% 32% 29% Web chat 14% 12% 16% 6% 5% 4% Community 5% 0% 1% Don t remember 3% 5% 4% Website 42% 36% 32% 52% 31% 48% 42% Web chat 15% 14% 11% 8% 17% 15% 14% 5% 6% 8% 16% 6% 4% 5% Community 5% 2% 4% 2% 5% 10% 9% Don t remember 3% 3% 2% 2% 3% 5% 6% 2013 The Corporate Executive Board Company. All Rights Reserved. 20

21 Discovering Customer Effort Improving alignment along the Customer Journey First Channel Choice Phone 33% Website 40% Web chat 14% 6% Community 4% First Channel Outcome 18% 13% 69% 30% 32% 38% 22% 21% 57% 23% 27% 50% 25% 30% 45% Second Channel Choice 47% 21% 13% 11% 9% 45% 13% 25% 12% 6% 52% 7% 25% 11% 5% 41% 12% 20% 25% 3% 10% 11% 10% 16% 54% 2013 The Corporate Executive Board Company. All Rights Reserved. 21

22 Discovering Customer Effort Prioritizing channel improvements First contact resolution rates By contact channel, percent of contacts Customer effort to achieve resolution By contact channel, customer averages 70% 57% 50% 54% 60% 53% 58% 66% 32% 24% Phone Website Web chat Community Phone Website Web chat Community First contact volume (as a % of total contacts) First contact resolution Customer effort to resolve issue (0=low, 100=high) Channel leverage* Phone 33% 70% Website 40% 32% Web chat 14% 57% % 50% Community 4% 24% *Channel Leverage = First Contact Volume x (1-FCR) x customer effort. This is not meant as a true ROI measure, but as a means of comparing the importance of improving the customer experience across your channels given current performance. 22

23 Discovering Customer Effort What we discovered Critical channel customer effort too high Acer Community was not easy to find or use was not cost- or CSATeffective channel Recently redesigned website still had high customer effort Internal strategic initiatives not aligned to customer channels of choice 23

24 Discovering Customer Effort Critical course corrections Redesigned website flow Dropped as support channel Used simpler language throughout Increased ease of access to chat, community, and knowledge base 24

25 Discovering Customer Effort Making progress Customer-centricity now central to corporate strategy Initiatives gaining traction across enterprise Business units taking actions based on customer findings and feedback Major stakeholders becoming interested and invested Standardized measurement and reporting initiatives Increase in cross-functional communication Adding data sources and languages 25

26 The Bottom Line Improving Products and Processes S7 Ultrabook Customer Service & Support 26

27 Acer Aspire S7 Ultrabook Building a better laptop Categorize analyze quantitative and qualitative data across sources Focus on volume and sentiment trends across top themes and comment categories Listen and capture feedback across internal and external channels at product launch Shared findings in time to leverage for next generation 27

28 Acer Aspire S7 Ultrabook Sample Reporting and Analysis Product topics Social media Product topics Ratings and reviews Product topics Direct contacts Product topics Community 28

29 Acer Aspire S7 Ultrabook Success! our new Editors Choice for high-end ultrabooks. Endgaget August 2013 Best of Innovation CES 2013 welcome updates... hasn t ditched [what] we loved a home run. Laptop Magazine August

30 Acer Technical Support ACER 2013 Overall Grade B+ (87) 2013 Phone Grade B Web Grade B Average Call Time 6:41 Acer s Tech Support Just Keeps Improving - Laptop Magazine, Tech Support Showdown Grade B Grade C+ 30

31 Predictive power for repurchasing Acer s Voice of the Customer Journey What is the right question? High CES CSAT question? Net Promoter Score (NPS)? NPS Customer Effort Score (CES) CSAT The customer effort score outperforms the NPS and CSAT measurements in predicting behavior Source: Clark, M., & Bryan, A. (2013). Customer Effort: Help or hype?. Low Predictive power for increased spending High 31

32 Key Takeaways Customers dictate the paths they want to take not the company Customer experience is linked to word-of-mouth extending the sphere of influence Customer experience is highly correlated to future business We need to find ways to lower the customer effort on the paths we want customers to take so that the customer wins (and, in turn, we win) Stop trying to delight customers Delight customers where they value it Source: Forrester Research, June 10, 2013; Clark, M., & Bryan, A. (2013). Customer Effort: Help or hype?. 32

33 Thank You 33

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