Evolving Technical Support for the Connected Home INDUSTRY WEBCAST James Morehead VP, Product Management Support.com, Inc. Patrice Samuels Research Analyst Parks Associates SPONSORED BY NOVEMBER 19, 2013
Webcast Replay To replay the webcast, click here: https://attendee.gotowebinar.com/recording/5785283094215192578 972.490.1113 PARKS ASSOCIATES 2
Digital Landscape of U.S. Broadband Households Computer Home network Smartphone Game console Tablet/iPad e-reader SmartTV Networked audio system Wireless speakers Connected Blu-ray player Connected DVR Automatic lighting controls Streaming media player IP security cameras Electronic door locks Smart thermostat Adoption of Emerging Devices (Q1/13) (Among all BB HHs, n=2,500, ± 1.96%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Owning Specified Device 972.490.1113 PARKS ASSOCIATES 3
Medical Devices: Adoption and Use Healthcare Product Ownership Digital weight scale Blood Pressure Meter Large fitness equipment Digital pedometer Glucometer Heart rate watch Digital hearing aid Digital pill box with reminder function Medical alert button/pendant None of above 0% 20% 40% 60% % Reporting Ownership Percent of Owned Medical Devices Used to Transfer Health Data Heart rate watch Digital pill box with reminder Glucometer Digital pedometer Medical alert button/pendant Blood Pressure Meter Digital hearing aid Digital weight scale Large fitness equipment None of above 0% 20% 40% 60% 80% % Reporting Digital Transfers of Health Data 972.490.1113 PARKS ASSOCIATES 4
High Frequency of Problems for Home Automation Devices Frequency of Device Problems "How often do you experience problems with the following devices?" (Among BB HHs Owning Specified Devices) 3 Times a Month 3 Times a Week Daily/Almost Daily Networked audio system Electronic door locks IP security cameras Streaming media player Smart thermostat 0% 5% 10% 15% 20% 25% 30% 35% 40% % Experiencing Problems at Specified Frequency 972.490.1113 PARKS ASSOCIATES 5
Device Owners Experience Problems Monthly Frequency of Device Problems "How often do you experience problems with the following devices?" (Among BB HHs Owning Specified Devices) 3 Times a Month 3 Times a Week Daily/Almost Daily Wireless speakers DVR Home network Computer Automatic lighting controls Smartphone Blu-ray player Smart TV Tablet/iPad e-reader Game console 0% 5% 10% 15% 20% 25% 30% 35% 40% % Experience Problems at Specified Frequency 972.490.1113 PARKS ASSOCIATES 6
Common Problems with Devices Home Control Computing Entertainment Automatic Lighting Controls Time errors Lights / sensor malfunction Smart Thermostat Temperature control Accurate operation Electronic Door Lock Not always reliable Door doesn t lock / gets stuck IP Security Camera Image / video quality Device wears out quickly Computers Virus/Spyware Slow Speeds Problems Connecting to Wireless Smartphone Short battery life Problems connecting to 3G/4G Internet Difficulty with apps Tablets Short battery life Problems connecting to wireless Internet Difficulty with apps Smart TV Poor picture & sound quality Device freezes up / high lag time Loss of signal/ problems when connecting to Internet Wireless Speaker Poor sound quality Connection defects / problems Streaming Media Players Poor sound quality Connection defects / problems 972.490.1113 PARKS ASSOCIATES 7
Poll Question How important is technology support in creating a positive customer experience? (Rank from 1 to 5) 1 not at all important 2 3 4 5 very important 972.490.1113 PARKS ASSOCIATES 8
Tech Support Creates Brand Loyalty and Generates Revenue Create comprehensive services Address the support environment Move beyond break / fix to device lifecycle Provide multiple touch-points Offer premium support Provide efficient services Automate support» Scanning» Guided diagnostic workflow» Predictive analytics» Asset intelligence 72% of consumers desire comprehensive services» Proactive support 75% of consumers want quick problem resolution Achieve service accuracy Attain high First Call Resolution (FCR) Reduce churn Reduce cost of support Create more opportunities for revenue generation Consumers are twice as likely to switch from broadband or mobile provider if dissatisfied with their support service 972.490.1113 PARKS ASSOCIATES 9
Tech Support Generates Revenue Perceived Value of Professional Technical Support "How valuable would it be to have professional technical support for the following devices?" (Among BB HHs Owning Specified Devices) Not valuable (Rating 1-3 on 7-pt. scale) Highly valuable (Rating 5-7 on 7-pt. scale) Networked audio system (n=148, ±8.06%) Electronic door locks (n=143, ±8.2%) Smart thermostat (n=109, ±9.39%) IP security cameras (n=185, ±7.21%) DVR (n=551, ±4.17%) 50% 30% 10% 10% 30% 50% 70% % Selecting Rating on a 7-pt. Scale 972.490.1113 PARKS ASSOCIATES 10
James Morehead, VP Product Management 20+ years of product management and marketing experience for high-tech companies Leads Support.com s product strategy, user experience design and roadmap Support.com is a leading provider of cloud-based technology services and software for communications providers, retailers and technology companies 972.490.1113 PARKS ASSOCIATES 11
Complexity in the Connected Home is Accelerating 972.490.1113 PARKS ASSOCIATES 12
As Products Become More Complex and Interconnected, Resolution Time is Increasing Product support is becoming more complex 65% of products are highly complex in 2013 (vs. 42% in 2003) Incidents involving 3 rd party products take 45% longer to resolve 24% of assisted support incidents involve 3 rd party products How complex are the products you support? 2003 16% 42% 42% 2006 11% 26% 63% 2013 6% 29% 65% 0% 20% 40% 60% 80% 100% Standard Complexity Moderate Complexity Highly Complex (source: TSIA Benchmark survey of customer service executives) 972.490.1113 PARKS ASSOCIATES 13
Technology Support Across the Customer Journey Buying Experience» Does the first 30 days begin a long-term relationship or result in no-fault returns / churn? Ownership Experience» Does tech support reinforce value or end customer relationships? Social Amplifier» Good / bad tech support experiences can go viral 972.490.1113 PARKS ASSOCIATES 14
Technology Support Spectrum DIY Support (web searches) Crowd-Sourced Social Support (unmanaged content) Company Self-Service Portal (managed content) BRAND VISIBILITY Interactive Live Support (chat / phone / in-person) CUSTOMER EXPERIENCE IMPACT 972.490.1113 PARKS ASSOCIATES 15
Why Consistency Matters Why Consistency Is the Key to Profitable Customer Service Gallup Business Journal, Aug 2006 972.490.1113 PARKS ASSOCIATES 16
Averages Hide Variances that Impact Customer Experience Distribution #1 Distribution #2 35,000 30,000 # Surveys 35,000 30,000 # Surveys 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 0 0 1 2 3 4 5 6 7 8 9 10 Customer Satisfaction (0-10 scale) 0 0 1 2 3 4 5 6 7 8 9 10 Customer Satisfaction (0-10 scale) Two 50,000 survey samples (hypothetical)» Each with an average score of 8.8 out of 10» Distribution #1 NPS = 69%, Distribution #2 NPS = 71% Distribution #2 averages mask a cluster of dissatisfied customers» Outstanding experience for 85% of customers, but 11% scored 2 or less Within a team, group of centers or community of outsourcers, average metrics can mask consistency-impacting variances 972.490.1113 PARKS ASSOCIATES 17
What Drives Tech Support Inconsistency? High dependency on agent experience and knowledge Inconsistent execution of best practices and inability to track compliance Little or no access to relevant diagnostics Limited automation, too much talk therapy Delays caused by swivel-chairing between systems Repeated requests for the same information 972.490.1113 PARKS ASSOCIATES 18
Poll Question In your opinion, which of the following challenges have the most impact on achieving tech support consistency? [Choose the top three] High dependency on agent experience and knowledge Repeated requests for the same information. Limited automation, too much talk therapy. Delays caused by swivel-chairing between systems. Little or no access to relevant diagnostics. 972.490.1113 PARKS ASSOCIATES 19
Achieving Consistency in Tech Support Great techs combine expertise and technology Tech agent experience and training Device diagnostics Automation technology Codified best practices Customers are confident the problem will be solved 972.490.1113 PARKS ASSOCIATES 20
Beyond Scripting Combining Diagnostics, Automation and Workflow Tech Agent View Supervisor / QA View Structured Workflow Automated Solutions Contextual Diagnostics Rich Analytics 972.490.1113 PARKS ASSOCIATES 21
Technology Support for the Connected Home: Key Considerations Defining the scope of free support Where is the line of demarcation drawn / what is in scope? Are out of scope support requests deflected or monetized? How is the line of demarcation communicated? To customers? To agents? Premium support models Attached sale Example: premium support as an upsell with a new tablet Bundled sale Example: premium support bundled with broadband service Point of need sale Example: out-of-scope calls (past the de-marc) transferred to premium support sales Both incident (one-time fix) and subscription models possible 972.490.1113 PARKS ASSOCIATES 22
Support.com Overview Support.com provides cloud-based services and software that power premium technology support programs and technical support organizations 972.490.1113 PARKS ASSOCIATES 23
Support.com Overview Support.com provides cloud-based services and software that power premium technology support programs and technical support organizations: Nexus Service Delivery Platform Scalable workforce of technology specialists Mobile and desktop apps Proven expertise in program design and execution Leading brands have achieved success with Support.com New premium support revenue streams Enhanced customer experience Reduced costs for technology support All with minimal up front investment and risk 972.490.1113 PARKS ASSOCIATES 24
Q & A Session 972.490.1113 PARKS ASSOCIATES 25
James Morehead VP, Product Management Thank you for attending! Patrice Samuels Research Analyst 408.394.6867 james.morehead@support.com 972.490.1113 patrice@parksassociates.com