From Issue Evaluating the experience in the foundation of a CX program for a global player within the webhosting industry CX Forum, Bern, 15.11.2012 Michael Galla 1&1 Internet AG 2010 Page1
1&1 Hosting at a glance 7 countries 12 Product streams 3 Mio Customers 4 Mio Contracts 300 Mill Revenue Classic Webhosting Domains email Server (Dedicated, VPS, Cloud) Do-it-Yourself Website eshops Online Marketing Services + Mexico (2013) + 2
Where we started 18 months ago Incomprehensive understanding Inconsistend tracking Purposes of voice collection and reports unclear Insights not actionable or meaningful enough Unsystematical action Owners unclear not held accountable for resolution The good news: All involved units across the entire organization acknowledge the problem and support the required changes! No solid case for action Progress not tracked 3
Our key question So how can we collect and analyse customer insight and transform it into actionable business solutions? 4
Our project goal Build high-quality customer relationships as basis for increased organic growth! 1. 2. Getting Getting commitment of our stakeholders to Actions 3. 4. Identifying the loyalty drivers Multi-Channel insights collection Increase Engagement Ownership & Accountability Breaking the RoI barrier! X-organisational governance Implementing the right KPIs Tracking and Reporting 5
Two many reports too many questions What we had Inconsistent categorization Silo'ed approaches / isolated reports Surveys without clear focus and purpose What we now have Unique categorization across all sources Aggregation of all company wide VoC into one Master issue list One voice into the organization to build a solid ground for action! 6
What are our real loyalty drivers! What we had 1 Survey for all, only closed questions Focus on aspects only Customer Satisfaction Index the best CX metric? What we now have. Top Down: Global Promoter Survey Bottom Up: Surveys per Touchpoint NPS as lead metric Open questions to find out what s top of mind CSI and Repurchase Rate as back up for plausibility checks GPS: Top Level View Area 1 Area 2 Area 3 Area 4 Touchpoint and Product specific surveys for deeper insight Customer Care Quality Feedback Server Bottom Up DIY Bottom Classic Up Hosting Bottom Up 7
1st Governance level: VoC Council The Voice of Customer Council aggregates VoC across all channels discusses and creates new issue entries priorizes new issues according to # channels, # customers, severity CX C.Care (int) Social Media Product Mgmnt Aggregated VoC into central Issue List ---- --- --- VoC Team assigns issues to defined business owners Survey Social Media Foren Report Service Contacts 8
Introduction of the new Master Issue List keeping track of progress reference to further documents and systems clear documentation for assignment and approval Issue Description Countries affected # Customers affected Customer Severity CX Score Owner Business Case from customer perspective DE (******) US (****) UK (****) ES (***) small medium large all Annoying Disturbing Churn Risk 0-1000 9
On the way to increase comittment we established more options for our organisation to get in touch with our customers in order to better understand their needs Meet the Agent regular Hotline visits Fixed On Boarding Element Forum Support Direct answers from Michael from 1&1 reading also outside 1&1 Forum Customer Perspective in business procedures Requirement Docs Incident reports Qualitative Surveys Closed Loop Callls Closed Loop Visit Customer Journey and Focus Groups provide unfiltered feedback Business Owner directly speaks with customer Business Owner visits customer... 10
2nd Governance level: CX Core Team The CX Core Team consists of the accountable Business Owners reviews and evaluates new issues coordinates assignments for unclear or cross-organisational issues agrees required actions and shares progress Respect their Ownership: every business owner keeps being responsible for his own business! Bi-weekly (1h) Bi-weekly (2h) Surveys CX CoreTeam (Business Owners) Master Issue List ---- --- --- VoC Team (Lead: CX Program Manager) Social Media Foren Service Contacts 11
Showing the monetary impact of making customers happy Loyal customers are more valuable to the organisation than unsatisfied customers. They Retention Effect stay longer then unsatisfied customers cancel less contracts in the same time Up/X-Sell Effect purchase more and more often WoM Effect recommend you to others, whereas Detractors disadvise your business Suppport Effect call less often and their issues get resolved faster 12
Breaking the RoI barrier Mapping these effects with the business data of our surveyed customers enabled us to identify the different average values for Detractors and Promoters Detractor Passiv Promoter WoM avg. LTV avg. LTV Retention Care avg. LTV NPS increase can now be expressed in EUR WoM Retention Care -28% + 40% CX projects can now compete with marketing cases 13
3rd Governance Level: CX Board The CX Board consists of the relevant GMs or Board members reviews top issues presented by their owners Adjusts resource allocation and funding for top issues In a nutshell you need: -clear ownership -aligned KPIs - agreed RoI standards - commitment from your Top Issues CX Board ---- --- --- CX CoreTeam (Business Owners) Master Issue List Top Mgmnt Surveys Social Media ---- --- --- VoC Team (Lead: CX Program Manager) Foren Service Contacts 14
Closing the loop Internal Feedback-Loop assure regular feedback from all management levels back into the organisation communicate progress and successes back to your hotline be visible at the front line staff Implem entation Survey Results Closed Loop Feed back External Feedback-Loop communicate back to your customers ( you said - we did ) communicate image issues answer to your survey responses Concept Root Cause Analysis 15
Tracking and Reporting What we had KPIs that were irrelevant to customers as well as to business owners Survey questions that easily could run into a KPI, but were not clear to customers Tracking and Reporting cycles identically What we now have. KPIs according to neuralgic Touchpoint defects reduced survey questions, but delivering valid insights reporting cycle different to tracking rythm (at work ) Business Perspective Business KPI s CX Results Perform.- Tracking Inside- Out Outside- In Customer Perspective 16
Our successes After all you need patience, lot s of patience sometimes the help of bad public press, or this one complaint to the CEO that gives the final push However, with the energy of a passionate CX Team and the support of our business partners we already could place important, but massive IT issues on our central roadmaps (Domain Handling, Control Panel Usability changes, ) improve the communication to our customers (increased transparency of product infos and T&C ) even change churn-relevant business policies (simplified cancel process) more to come 17
Thank you! 18