2015 European Contact Center Outsourcing Entrepreneurial Company of the Year Award

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1 European Contact Center Outsourcing Entrepreneurial Company of the Year Award

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Entrepreneurial Innovation and Customer Impact... 5 Conclusion... 7 Significance of Entrepreneurial Leadership... 8 Understanding Entrepreneurial Leadership... 8 Key Benchmarking Criteria... 9 Best Practice Award Analysis for SNT Deutschland... 9 Decision Support Scorecard... 9 Entrepreneurial Innovation Customer Impact Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges The European economy is a stark drama that continues to unfold in real-time, as Germany and Greece in particular try to come to terms with how to best move forward on the European project. In fact, in February, 2015, Greek finance minister Yanis Varoufakis wrote in The Guardian newspaper that, In 2008, capitalism had its second global spasm. The financial crisis set off a chain reaction that pushed Europe into a downward spiral that continues to this day. Europe s present situation is not merely a threat for workers, for the dispossessed, for the bankers, for social classes or, indeed, nations. No, Europe s current posture poses a threat to civilization as we know it. Regardless of one s views on the best medicine for Europe s ills, these are strong words that illustrate just how vexing the current European dilemma is. It is therefore not surprising that the contact center outsourcing market in Europe faces a host of challenges, and is highly-competitive. Even while enterprise decision-makers deal with a troubled economy, and seek to cut costs and improve service, it is often difficult for them to differentiate between the services offered by competing providers and to determine what partnerships best suit their organizations. In a speech in Berlin in September, 2015, Frost & Sullivan analyst Stephen Loynd described A world of Customer Engagement that is spinning with change. Loynd placed Customer Engagement in the context of what Frost & Sullivan terms Mega Trends, important dynamics influencing not only the world of outsourcing, but the world in general. These include phenomena such as the European Economy, Generation Y, Big Data, and Technology. To some extent, these Mega Trends all blend into each other, creating an onrush of momentum and change. Note that the European market for Customer Engagement inhabits a landscape across which today s tech savvy consumer flits at a particularly high rate of speed, utilizing a variety of communication channels with which to express his or her opinions (i.e., Twitter, Facebook, Instant Messaging, chat, , phone, etc.). According to a recent Frost & Sullivan survey work in Europe, when it comes to the rise of new channels, the biggest two-year growth opportunity is expected within mobile apps, with an expected growth rate of 49%, followed by the social media customer interaction channel, with an expected two year growth rate of 27%. Other channels expecting future growth over that time span are chat at 18%, web self-service portal at 11%, and video at 6%. Meanwhile, consider that oftentimes the challenge for businesses is to find effective ways to tap into increasingly massive social streams and leverage data for tactical and strategic decision making. Early enterprise efforts around social media have been focused on the impact of having a business presence in the social stream, leveraging a company s or brand's Twitter and Facebook accounts to increase Customer Engagement. Social media Frost & Sullivan We Accelerate Growth

4 analytics tools can, for example, identify a business s most active and ardent followers or provide customer service and suggest opportunities for cross-selling and up-selling. Social media interactions are now being mined for actionable customer insight and trend patterns. This unstructured data, known as Big Data in all its variety of sources, volumes, and velocity at which it arrives and must be acted on can augment the transaction history of a customer journey. But that is no easy task for any enterprise. In addition, in 2015, a high proportion of global consumers believe recommendations from friends and family are among the most trustworthy sources of information regarding brands, up considerably from just a few years before. All the while, customers dialing into a contact center embark on a Customer Experience journey, which they expect to end with a solution to their query. They feel more valued when organizations understand and manage this journey smoothly, by keeping track of all their inquiries irrespective of the medium chosen for communication. Organizations are aware that modern consumers can shift brands if they feel that they are not receiving excellent support. And when it comes to mobile devices and the end user technology experience, smartphones are everywhere, allowing apps to be self-contained social worlds, existing almost entirely on mobile devices. As one commentator has put it, People are living in the moment and they want to share in the moment. Mobile gives you that immediacy and convenience. Moreover, Technology is now more intimate and pervasive. We have it with us all the time and we have to reimagine innovative new interfaces and experiences around that fact. In other words, we re witnessing a restructuring toward a Digital World, which is being led by Generation Y, the most educated, affluent, assertive, and IT literate generation in history. Generation Y is comprised of digital natives between years old with distinct values, beliefs, attitudes, lifestyle, and behavioral patterns influencing product, technology development, and marketing strategies. By 2020, it s estimated this group will constitute 34% of the global population, be the most adaptive to change, will continue to experiment with new technologies while having high purchasing power. What are providers of customer care services to do, particularly within a region as vast and differentiated as that of Europe? After all, agents often find it challenging to collate inquiries from different channels and provide good customer service due to issues such as delays in juggling between various interfaces and uncertainty regarding how to use highly complicated CRM tools. To address this array of challenges, improve customer service, and ensure customer loyalty, forward-looking brands in particular are investing in the field of human resources as a means to find, train, and retain great talent. Frost & Sullivan We Accelerate Growth

5 Entrepreneurial Innovation and Customer Impact Criterion 1: Competitive Differentiation Frost & Sullivan is very impressed with the leadership at SNT Deutschland. The first and second level management team have kept and will keep SNT Deutschland operationally independent from the parent company. SNT Deutschland has been a 100% subsidiary of KPN Telecommerce B.V. in the Netherlands and has recently been acquired by LIVIA Group, Munich, Germany. In this sense, the management team is very much acting like an entrepreneur, exhibiting so many of the traits of an entrepreneur, but in this case within the structure of a larger organization. The management team also leads a company with flat hierarchies that allow clients direct access to the C-level when necessary. This helps SNT Deutschland function and act more like an internal customer care unit for its clients, taking on the perspectives of clients to serve their customers with best-in-class customer service. Frost & Sullivan will continue to watch this unique brand of leadership and organization within Europe, and within the German market specifically, with great interest. Criterion 2: Brand Equity Founded in 1994 and headquartered in Frankfurt am Main, Germany, SNT Deutschland was formerly known as Diatel Direkt Assekuranz-Marketing GmbH, but changed its name to SNT Deutschland AG in the year It has built a sterling reputation in the market throughout those two decades. Along with the entrepreneurial leadership, another specific aspect of the company that is widely respected, and that reflects well on the brand, is its particular German approach to social responsibility. Both the company and clients point out that a sense of responsibility to the wider community is deeply integrated into SNT Deutschland s DNA: programs for employees with handicaps, support for a local children s day-care center in Germany, support for an orphanage in Tanzania, and social days as part of continuing education programs, are all part of the SNT Deutschland agenda. There also are employee programs to strengthen employee retention and loyalty (non-financial benefits, continuing education, programs for employees who are 50-plus years in age, an employee survey every other year). At a time when the European economy is under so much stress, this type of philosophy and approach not only fosters a positive atmosphere at the company, it also contributes to SNT Deutschland s brand equity as well. After all, SNT Deutschland clients see the positive impacts when it comes to the excellent customer service enjoyed by their customers. Criterion 3: Passionate Persistence As an outsourcing provider, customer care is SNT Deutschland s core business. As SNT Deutschland aims to function as an internal customer care unit for clients, its vision is to become the most respected customer care service provider in the vast German market in Frost & Sullivan We Accelerate Growth

6 the heart of Europe, a quality partner for any corporation doing business in Germany or wanting to understand and enter the unique German market. That is no easy task. What is particularly noteworthy is that despite challenging market conditions in Europe these past years, including the consolidation process that continues in the call center industry in Germany, as SNT Deutschland points out it has been one of the few call center provides to remain economically stable and one of the few already prepared for minimum wages, which were introduced in Germany in January, Criterion 4: Customer Purchase Experience Frost & Sullivan's research shows SNT Deutschland to be a company that is very disciplined. And SNT Deutschland itself notes that it has been focusing more and more on its core business, having divested itself of non-core activities (e.g., Multiconnect, Inkasso). This means its core customer care buyers are getting the level of quality they seek. At the same time, SNT Deutschland provides supplementary service through koviko (elearning, Knowledge Database, etc.) when appropriate for clients looking to adopt an optimal solution for their specific needs and constraints. When going through the purchasing process, clients also take note of the fact that compliance is important for SNT Deutschland. The company adheres to high standards in training and quality (quality management is audited as to ISO DIN EN ISO 9002:2008). Criterion 5: Customer Ownership Experience SNT Deutschland is focused on organic growth with existing clients as well as new clients of customer care and dialogue marketing services (the company offers contact center; monitoring, dunning; knowledge management; sales and business support; media; and telecommunication services). Its success in organic growth is due largely to the ownership experience of current clients. Meanwhile, an experienced IT department is able to handle systems integration issues for clients even for tight time schedules. In fact, the company s ability to manage volatile volumes, and to scale to high capacity, its ability to take on ad hoc projects in case of emergencies (storms, floods, labor strikes, etc.), as well as its ability to increase sales for clients, means that its clients are consistently positive about the experience of working with SNT Deutschland. Criterion 6: Customer Service Experience SNT Deutschland is the sixth largest player in the German market. It has approximately 3,500 employees and six locations in Germany, offering customer service to consumers in Germany, France, Italy, Denmark, Switzerland, and the UK. Frost & Sullivan's research confirms that the quality of customer service provided by SNT Deutschland is superior. Frost & Sullivan We Accelerate Growth

7 The company has pointed out that it sees high customer care phone volumes despite the social media customer care hype, especially as products and services become more and more complex. Still, SNT Deutschland also is able to handle chat and social media in a structured and integrated customer care workflow. From live agent voice to other rising channels, SNT Deutschland is providing an unrivaled customer service experience for client customers. Conclusion SNT Deutschland is one of the most highly regarded provider of customer care services. This is due largely to the entrepreneurial spirit that Frost & Sullivan sees in its leadership combined with how well it trains and takes care of its employees. The company has shown truly impressive performance throughout the current European crisis and its superior service quality and unmatched customer experience make SNT Deutschland the ideal provider in this market. Because of its strong overall performance, SNT Deutschland is recognized with Frost & Sullivan s 2015 Entrepreneurial Company of the Year Award. Frost & Sullivan We Accelerate Growth

8 Significance of Entrepreneurial Leadership Ultimately, growth in any organization depends upon customers purchasing from your company, and then making the decision to return time and again. In a sense, then, everything is truly about the customer and making those customers happy is the cornerstone of any long-term successful innovation or growth strategy. To achieve these dual goals (customer engagement and growth), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, differentiating from the competition. This three-fold approach to successful entrepreneurship is explored further below. Understanding Entrepreneurial Leadership Demand forecasting, branding, and differentiation are part of an entrepreneurial company s larger journey toward forming deep relationships with customers and permanently altering the market with their actions. These two concepts entrepreneurial innovation and customer impact are therefore the cornerstones of this award, as discussed further in the next section. Frost & Sullivan We Accelerate Growth

9 Key Benchmarking Criteria For the Entrepreneurial Company of the Year Award, we evaluated two key factors Entrepreneurial Innovation and Customer Impact according to the criteria identified below. Entrepreneurial Innovation Criterion 1: Market Disruption Criterion 2: Competitive Differentiation Criterion 3: Market Gaps Criterion 4: Blue Ocean Strategy Criterion 5: Passionate Persistence Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Best Practice Award Analysis for SNT Deutschland Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Entrepreneurial Innovation and Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Frost & Sullivan We Accelerate Growth

10 The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players in as Competitor 2 and Competitor 3. Measurement of 1 10 (1 = poor; 10 = excellent) Entrepreneurial Company of the Year Entrepreneurial Innovation Customer Impact Average Rating SNT Deutschland Competitor Competitor Entrepreneurial Innovation Criterion 1: Market Disruption Requirement: Innovative new solutions that have a genuine potential to disrupt the market, obsoleting current solutions and shaking up competition Criterion 2: Competitive Differentiation Requirement: Deep understanding of both current and emerging competition to create and communicate strong competitive differentiators in the market Criterion 3: Market Gaps Requirement: A clear understanding of customers desired outcomes, the products that currently help them achieve those outcomes, and where key gaps may exist Criterion 4: Blue Ocean Strategy Requirement: Strategic focus in creating a leadership position in a potentially uncontested market space, manifested by stiff barriers to entry for competitors Criterion 5: Passionate Persistence Requirement: A deep belief in the rightness of an idea, and a commitment to pursuing it despite seemingly insurmountable obstacles Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 2: Customer Purchase Experience Requirement: Customers feel like they are buying the most optimal solution that addresses both their unique needs and their unique constraints Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service, and have a positive experience throughout the life of the product or service Frost & Sullivan We Accelerate Growth

11 Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. High SNT Deutschland Competitor 2 Customer Impact Competitor 3 Low Low Entrepreneurial Innovation High Frost & Sullivan We Accelerate Growth

12 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at bestin-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS Competitive Benchmarking Availability of Capital Demographics Buying Behavior Growth Strategies Economic Trends Industry Expansion Industry Evolution New Vertical Markets GeoPolitical Stability Growth Implementation Technology Obsolescence Emerging Technologies CEO Sustainability Disruptive Technologies New Business Cultures Smart Cities Career Development New Applications Segmentation Industry Convergence Country Risk Branding and Positioning Crowd Sourcing Competitive Strategy Needs and Perceptions Capital Investments Emerging Competition Frost & Sullivan We Accelerate Growth

13 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess their fit to best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized award candidates 6 Conduct global industry review Build consensus on award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible award candidates, representing success stories worldwide 7 Perform quality check Develop official award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform award recipient of award recognition Present award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of award and plan for how recipient can use the award to enhance the brand Frost & Sullivan We Accelerate Growth

14 STEP OBJECTIVE KEY ACTIVITIES OUTPUT 10 Take strategic action The award recipient may license the award for use in external communication and outreach to stakeholders and customers Coordinate media outreach Design a marketing plan Assess award s role in future strategic planning Widespread awareness of recipient s award status among investors, media personnel, and employees About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth