Net Promoter Score - Why Customers referral behaviour matters -

Net Promoter Score - Why Customers referral behaviour matters - Helmut Kremer, Director Avaya WW Sales Quality June, 24th 2014 Version_1

Introduction Helmut Kremer, Director Avaya WW Sales Quality A multi-lingual executive with a unique background in domestic and international business leadership, and significant depth of operational experience including extensive quality, process improvement, IT and change management Comprehensive knowledge of business modelling, process measurement techniques, management standards and improvement methodologies, including Six Sigma and Lean Numerous successes in driving improvement and major reengineering programs Drives currently best-in-class Sales performance, Customer experience and referral behavior increase in Avaya's High Touch Sales Model through Sales Quality, Process Improvement and Customer Advocacy Best Practices https://www.linkedin.com/profile/view?id=10352600&trk=nav_responsive_tab_profile_pic Avaya Global provider of business collaboration and communications solutions, providing unified communications, contact centers, networking and related services to companies of all sizes around the world. Solutions simplify the proliferation of technologies that businesses of all sizes, across the world, deal with every day. We help eliminate inefficiencies and reduce complexities in communications so organizations can be more productive and responsive, and accelerate operational and development processes. Solutions address common key challenges like supporting customers through a scattered and mobile workforce, managing personal devices in the workplace, securing network access, or driving consistent customer experiences. We have creative business solutions for improving communications despite low budgets, overloaded staff, multi-vendor equipment, and outdated architecture. We integrate the right applications, infrastructure, and services to meet your specific business needs. http://www.avaya.com 2011 Avaya Inc. All rights reserved. Ralf Wrana V 1.4 2

Agenda Part 1 Net Promoter Score - Why Customers referral behaviour matters - Break Part 2 Outlook - Customers 2020 and The Value of making it easy 2011 Avaya Inc. All rights reserved. Ralf Wrana V 1.4 3

Satisfaction, Loyalty and Advocacy Advocacy Loyalty Satisfaction Satisfaction is an important indicator of past performance Loyalty is a forward-looking indicator, highly predictive of future business Advocacy represents the highest level of client involvement and emotional connection with a brand and/or supplier Net Promoter Score (NPS) is a measurement developed by Fred Reichheld and Satmetrix to help organizations track and measure client loyalty and advocacy based on likelihood to recommend Avaya Proprietary. Use pursuant to your signed agreement or Avaya policy. 6

Customer Experience Survey and Improvement Process Customer Experience (CE) improvement is one of Avaya's key priorities Avaya is using different types of Client surveys to gain feedbacks using an external Service Provider Walker Information tool platform Sales Account Team relevant feedbacks are gained through Operational Surveys initiated through Sales Account Teams or through Partners quarterly survey targets per Area / Top Account are deployed and tracked Avaya s primary CE Metric is the Net Promoter Score (NPS) One single question Likelihood to recommend Avaya 11-point scale (0-10), 3 categories Detractor, Passive and Promoter Surveys covers many Attitude and Experience Areas 5-point scale: 1 (Poor) to 5 (Excellent) Extensive set of metrics, dashboards, reports and analysis tools/ methods in use Red Alert Process in place to ensure a structured follow-up process and agreed corrective actions with dissatisfied Customers Cross-functional Client Experience Council is driving improvements 2011 Avaya Inc. All rights reserved. 7

Net Promoter Score (NPS) How likely is it that you would recommend Avaya? Promoter Detractor Professional Services Cares About Customers Ease of Doing Business with Sales & Sales Engineering Business Partners Order & Delivery Maintenance/ Support Billing. Customer Experience Areas 2011 Avaya Inc. All rights reserved. 8

Why is NPS so important to Avaya? Relationship between experiences and financial outcomes 1 2 3 4 5 Recurring positive client experiences and high loyalty generate Promoters Promoters spend more on average and generate new business via positive WOM Continued negative client experiences and low loyalty generate Detractors Detractors have a lower potential purchasing value even defection and potential loss of new business through negative WOM 2011 Avaya Inc. All rights reserved. 9

Client Experience Steering Committee (CESC) - Collaborative Teaming - Avaya The Power of We At Avaya, we re making collaboration more natural, enabling our customers, partners, and employees to better share ideas, understand the context of discussions, and ultimately make decisions faster We ve focused on developing technologies that enable teams to work together easily in a synchronized and collaborative way delivering an outcome greater than the sum of the parts. And we have organized ourselves to be the best at technology that delivers smarter decisions faster Avaya s CESC is a cross-functional team managing Client Experience improvements holistically, systematically and with passion Data analysis Corrective actions with strong focus on systemic issue Close the loop communication 2011 Avaya Inc. All rights reserved. 10

Delight your Customer - Take it Personally - - Best Practice Recommendations following Avaya's Advocacy Cycle Principles - Customer Experience Mindset Customer will feel the difference, and their Avaya experience will improve 1. 1 Advanced Survey Process - Gain Customer feedback from active customer contacts regularly, and ensure high participation rate through phone based pre-notification 2. 2 Be Smart - Follow up on a survey feedback adequately to improve relationships and future business opportunities 3. 3 Improvement Focus - Close the loop, drive improvements and communicate Avaya s overall improvement efforts driven by survey results 4. 4 Management Focus - Review Customer Experience in Sales reviews and All Hands Calls; Sales Management Best Practice Coaching applied WW Advocacy Cycle 2011 Avaya Inc. All rights reserved. 11

Summary Part 1 Customer Experience improvement is one of Avaya's key priorities, loyal customers buy more/more frequently and advocate for us Avaya is using different types of Client surveys to gain feedbacks using an external Service Provider Walker Information tool platform Avaya s Client Experience Steering Committee is a cross-functional team which manages Client Experience improvements holistically, systematically and with passion Extensive set of metrics, dashboards, reports and analysis tools/ methods in use Red Alert Process in place to ensure a structured follow-up process and agreed corrective actions with dissatisfied Customers Sales Account Teams act as the primary advocate or voice of a company to their Customers, they are an important part of the process Advocacy Cycle Principles and Best Practice Coaching to Sales organization deployed ww World class companies focus on differentiating the Sales experience as a source of sustainable competitive advantage 2011 Avaya Inc. All rights reserved. 12

Outlook - Customers 2020 - Customers will dictate the experience Companies must adapt or fail Capitalization on the Customer Revelation Source: Walker Information 2011 Avaya Inc. All rights reserved. 14

Outlook - Customer 2020 - COMPANIES MUST ADAPT OR FAIL: - SINGLE SOURCE OF TRUTH - HUNGER FOR CUSTOMER INTELLIGENCE - SENTIMENT MORE THAN A SURVEY Source: Walker Information 2011 Avaya Inc. All rights reserved. 16

Ease of Doing Business - The Time for making it easier is now - COMPANIES SAY: 80% of B-to-B organizations are focused on improving ease of doing business ONLY 57% say they are effective at making it easier for customers to do business CUSTOMERS SAY: LESS THAN 40% of customers describe common interactions with companies as Easy 2011 Avaya Inc. All rights reserved. 17

Ease of Doing Business - The Time for making it easier is now - To mitigate the natural disloyalty-creating effect of customer service, companies must stronger focus on reducing customer effort by doing things like fast proposal lead time easier ways of interaction simplified interaction experience resolving customer issues the first time etc. Making business easy, as opposed to delightful, is the surest path to mitigating disloyalty and supporting company growth and loyalty-building objective 2011 Avaya Inc. All rights reserved. 18 Source: CEB

Summary Part 2 Customers 2020 Customers will dictate the experience Companies must adapt or fail Capitalization on the Customer Revelation Ease of Doing Business Will be a source of sustainable competitive advantage The time for making it easier is now In a nutshell making business easy, as opposed to delightful, is the surest path to mitigating disloyalty and supporting company growth and loyalty-building objective Sources: Walker Information and CEB 2011 Avaya Inc. All rights reserved. 19