Telkom s Journey in finding a Customer Experience measuring system. Ella Engelbrecht, Executive: Group Customer Experience 4 August 2016

Transcription

1 Telkom s Journey in finding a Customer Experience measuring system Ella Engelbrecht, Executive: Group Customer Experience 4 August 2016

2 Agenda 1. Start with the end in mind 2. The Telkom CEX Operating Model 3. Implementing a model that works 4. Lessons learnt 2

3 An ideal measurement system should manifest driving culture change, highlighting customer pain points and ultimately improve the financial results Simplistic to understand and implement Responsive to changes in CEX Enable closing the loop with customers Indicate impact on bottom line Drive accountability and culture change Allow for reliable target setting Measure whether needle is moving Ability to roll results up and drill down Robust (high frequency) Be fair and highly visible Implementing a measurement system that meets these requirements will lead to: 3 Reduced churn Increased promoters Increase in consumer spend Reduced cost to serve

4 High correlation exists between various metrics, all of which predict customer loyalty behaviour (reduced churn, more likely to promote, increased spend & lower cost to serve) Purpose of measuring CEX Predict customer behaviour Increased revenue, reduced cost to serve LOYALTY Churn Promote Spend Cost to serve Over time NPS has become the dominant CEX measurement metric NPS QoS Customer Effort Score CSAT 4 Most commonly used CEX metrics and methodologies

5 NPS is a comprehensive measuring system that effectively predicts economics of loyalty ECONOMICS OF LOYALTY Promoters The Net Promoter System to measure CEX Customer life time value: Cost-to-serve: Churn rate: # of referrals: +1.2x 1/2 x 1/10 x +4x 5

6 It is important to differentiate between B2B and B2C - in B2C loyalty is driven by transactional factors while B2B is driven by relational factors METRIC TRUST SATISFACTION COMMITMENT LOYALTY RETENTION & AVOCACY B2C TRANSACTIONAL Product driven Maximize the value of the transaction Emotional buying decision based on status, desire, or price NPS CES Customer Effort Score mainly relevant to transactional interactions and to be used to enhance insight RELATIONAL B2B Relationship driven Maximize the value of the relationship Rational buying decision based on business value NPS LOYALTY 6

7 Variety of CEX metrics & methodologies used in B2C and B2B environments B2C B2B (Telco and IT) 1 NPS Edgars, Vodacom, Telstra, Hollard, Virgin Mobile, PPS, Goodyear 2 Overall Satisfaction (QoS) Kulula.com, Truworths, PPS, Virgin Mobile, BT 3 Trust (Would you trust the brand to deliver?) Virgin Mobile 4 Competitive analysis Coronation, Virgin Mobile 5 Ease of use (CES) Kulula.com, BT 1 NPS Telkom, Telstra, Vodacom, Deutsche Telekom, AT&T, T-Systems, Samsung, IBM, Rackspace, Amazon Cloud, Microsoft, Symantec, Logitech, Norton 2 Overall Satisfaction (QoS) Kulula.com, Truworths, Coronation, BT 3 Loyalty model Internet Solutions, Coronation Purchasing Retention Recommendation 4 Trust Internet Solutions 6 Communication (pain point measurement) 5 Competitive analysis Kulula.com, Goodyear, PPS Internet Solutions CEX models 7 Supporting questions NB: Companies in blue font in IT space

8 Agenda 1. Start with the end in mind 2. The Telkom CEX Operating Model 3. Implementing a model that works 4. Lessons learnt 8

9 Integration between Top-down and Bottom-up results in an effective holistic view of the customer s experience across the entire value chain Who? Top-down measurement Telkom Customer base Sample controlled and weighted for market relevant segments Official score Annual performance benchmarking Strategic direction Integrate into holistic view Holistic diagnostic Identification of drivers across entire experience Tactical improvement initiatives Bottom-up measurement Who? Current customers interacting with Telkom Frequency/importance Transactional tracking (channels) Episode tracking Dashboard & diagnostic Relationship tracking Continuous operational improvement [Add presentation title in slide master mode] 9

10 The ability to roll NPS up and down across the value chain enhances accountability Top-down NPS Telkom Text Business Text units Market segment Bottom-up NPS Store Region Agent [Add presentation title in slide master mode] 10 Promoter Factory

11 Telkom Customer First operating model based on infinity loop of listening, learning and acting 6c Measure Progress 5c 6b Implemen - tation Measure Progress 6a 5b Implemen - tation Measure Progress 5a Implemen - tation ACT 1c 1a 4a 4b Top Down NPS 1b LISTEN Episode NPS (Bottom Up) Interaction NPS (Bottom Up) Employee Employee Customer Customer Upstream Learning Loops Short & Medium Term CPP 3a 2a Promoter Factory Initiative Scope 2b 3b Root Cause Analysis Initiative Scope 3c 2c Root Cause Analysis LEARN Must Win Battle + Initiative Scope 4c Long-term CPP 11

12 The Telkom Customer Experience team developed an operating model with a measurement system comprehensive enough to improve customer pain points Top Down NPS Focus for today Measure Progress Episode NPS (Bottom Up) Root Cause Analysis Measure Progress Measure Progress Interaction NPS (Bottom Up) Employee Promoter Factory Root Cause Analysis Implemen - tation Implemen - tation Implemen - tation Customer Upstream Learning Loops Short & Medium Term CPP Initiative Scope Initiative Scope Must Win Battle + Initiative Scope Long Term (Annual) /Product or company level Medium Term (6 Weeks)/ Episode level Long-term CPP Short Term (Weekly)/ Interaction level Mobilisation Marketing Intelligence Customer Experience teams in Business Units Customer Experience team in Corporate Centre

13 Agenda 1. Start with the end in mind 2. The Telkom CEX Operating Model 3. Implementing a model that works 4. Lessons learnt 13

14 The measurement system operates across all Telkom Business Units to ensure the Customer Experience Team keeps their finger on the pulse leading up to the Annual NPS Results TELKOM NPS Annual Top Down NPS Openserve NPS Telkom Business/ BCX NPS Consumer (Mobile & Fixed) Bottom Up NPS Relationship NPS Relationship NPS Episode NPS Episode NPS Episode NPS Interaction NPS Interaction NPS Interaction NPS Drives accountability via visibility to C-level 14

15 Operational metrics within Customer Experience dashboard should not constitute more than 10% The NPS Dashboard has been created to: Give insight into a customer experience at that point in time Tiered according to Business Units to drive accountability Episode owners responsible for CEX across channel interactions Operational KPIs (Input Metric) CEX KPIs (Output Metric) 15 CEX measurement Real time Operational metric: Time Quality Inside out view Dilutes focus from the customer May be contentious Duplication of operational reports Behaviour: Customer = NPS Internal = inps Employees = enps Outside in view Puts focus where it should be (VOC insight) Undisputable Only dashboard with outside in view

16 CEX measurement tool used to drive behaviour by both incentivising the employees and rewarding employees for creating promoters MOBILISATION BULLS EYE OPERATIONAL MODEL Incentives used to drive accountability 1 2 Recognition provided to employees who put the Customer First 5 Head (Think) Hands (Act) CF Culture Heart (Feel) Voice (Speak) 3 4 Ability

17 Employee level Top-Down and Bottom-up NPS have been included in various employee performance contracts to ensure motivation towards improving Customer Experience Incentives Performance contracts Bonus Shares Term Quarter Bi-Annual Annual Three Years Management Bottom-Up NPS Top-Down NPS Top-Down NPS Quality of Service Bargaining Units Bottom-Up NPS Bottom-Up NPS 13 TH Cheque Top-Down NPS Quality of Service 17 Review once a year to align with changing company requirements and needs, also to do sanity check on metric being used to align on industry benchmarks

18 Employees are recognised for improving Customer Experience through the Customer First Team s reward and recognition program called Customer First Superheroes. Employees that live the Customer First Service Behaviours of being Friendly, Reliable and Competent are rewarded and recognised as Customer First Superheroes.

19 Agenda 1. Start with the end in mind 2. The Telkom CEX Operating Model 3. Implementing a model that works 4. Lessons learnt 19

20 Lessons that the Customer Experience team has learnt in the process of implementing a measurement system that works 1 Top leadership buy-in and visible support 2 Focus on the customer and apply KISS principle 3 Reward and recognise employees KPIs drive behaviour 4 Make the results visible to all and visually appealing 5 Drive accountability across the value chain 20

21 Thank you Any questions?

22 Digital CEX is measured using both NPS as well as quality questions CEX NPS User Experience quality questions SALES How easy was it for you to navigate through the website? How easy was it for you to find the product/ information you were looking for? Is there anything you would have liked to have seen on our website which you feel is missing? Triggered by order now or call me back functionality SERVICE Triggered by web faults logged How easy was it for you to navigate through the website? Where you able to sufficiently resolve your issue? If you can't get help online, where'd you go next?