ClickFox, Inc.

Driving Digital Migration

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Program summary: Driving digital migration at a Telco client

▪ First year impact of $10M and 2.7M calls deflected with over $200M impact in 5 years

▪ Shifted trajectory of calls to digital– Continuous improvement of

online processes driving calls– Created new IVR self service

functionality– Uncovered high digital leakage

pages and improved page design

– Developed new retail insights and reporting to reduce follow-up calls

– Created a single CSAT “voice of the customer” measure for cross channel journeys

▪ Enabled client analysts as power users embedding capabilities throughout the organization

Value createdWhat we did to be successful

▪ Built capability and analytics platform over time– Initially focused on

digital call deflection– Incrementally added

retail, customer lifecycle events, and additional data sources to expand analytical targets

▪ Developed a portfolio of dozens of continuous pro-jects with a high cadence to accelerate insights and ROI

▪ Created a SWAT team and governance model to drive from insights to action

▪ Aligned executives across functions (IT, marketing, etc.)

▪ US telco with $130B annual revenue

▪ Strong need to migrate customers from high-touch to digital channels

▪ Limited visibility into cross channel call drivers

▪ 20% calling rate per month across customer base

▪ 600K calls per month (Over 15% of calls) were customers that were on the website in prior 24 hrs

▪ Nearly 10% of customers call within 3 days of a store visit

Client situation

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Program evolved from a targeted pilot in multiple phases

1 2 3 4 5

Pilot: Password reset▪ Targeted a known pain

point where 41% of web customers were unable to reset their password online

▪ Customer confusion drove incremental calls to agents, increasing costs and reducing customer satisfaction

▪ Small team conducted analytics in short timeframe– Quantify opportunity– Redesign webpages

and processes– Instrument process to

ensure value tracking– Implement fixes

Implementation &Value Capture

▪ Full-scale digital migration program with a dedicated team

▪ Focused on reducing customer care calls from web and IVR

▪ Developed quick operating cadence with a portfolio of opportunities and the ability to drive implementation

▪ Built governance model with executive buy in and clear ROI alignment

▪ Integrated partnership with IT, Care, Web and Finance teams to support cross-channel implementation and validate, track and capture value

Channel Expansion▪ Added new data sources,

including: retail, customer lifecycle, mobile apps, and CSAT

▪ Leveraged existing expertise to create a fully cross-channel program

▪ Created new journey data sources that were incorporated into core enterprise data for reporting and operational use

▪ Substantially improved cross channel visibility to the business

Client Enablement▪ As demand stabilized,

shifted the analytic team from a mixed client/outsourced model to fully dedicated internal team

▪ ClickFox mentored and enabled client team to meet program demands

▪ Client team became power users responsible for analytical deliveries

▪ ClickFox analytical team shifted to platform management, analytics strategy, and ad-hoc needs

1 2 3 4

10

40

90

140

190

Year

Cumulative value capture $ million

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Progressive adoption of ClickFox— now 92 million sessions per monthCurrently ingested

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30

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50

60

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SessionsMillions

201120102009 20132012

Cross channel evaluation: CTO performs internal/external evaluation of cross channel analytics platforms. Client picks CF as the platform

Broadband repair: 5M sessions

Retail: 20M sessions

Additional products

Wireless: 34M sessions gradually added (software, hosting, maintenance and managed services)

HOA: wireless business creates a “high output analytics” team to increase velocity of findings and change

Contact center

Agent

Chat

IVR

Web and mobileWebMobile appsVideo billPush Prompt MobileEmail

Field and networkRetailRetail Store HierarchyKioskField serviceNetwork data

Marketing and billingBillingCust lifecycle eventsCampaign

Lifecycle: Added key customer lifecycle events (adjustments, upgrades, plan changes)

CTI

Retail Roundtrip: Created a new data source, merged retail to agent call

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Drill into root causes of password reset confusion▪ Customers did not remember their password reset

secret answer▪ No alternative methods to reset a password online▪ 37% of customers then called in to Care

– Only 15% of those reset their password– 50% of those customers did not return to the

web within 30 days

Impact/results

Example actions taken▪ Improved online password reset

webpage driving downstream calls

▪ Implemented SMS password reset option and improved password recovery process

Impact▪ Pilot actions deflected 62K calls

annually resulting in annual savings of $500K, subsequently scaled to save over $1MM annually

▪ 34% decline in secret answer errors online

▪ 42% reduction in calls after a secret answer error

▪ Improved web design and layout for customer authentication

Approach

▪ Identified customers that did not know their secret answer to reset their password, thus calling into Care

Situation

▪ 41% of web customers who were unable to reset their password online

▪ Website required customer to answer two secret answer questions in order to access the account

▪ No other self-service options for resetting password access

▪ Led to increased cost to serve and reduced customer satisfaction because customers were calling after their online attempt

Initial pilot focused on online password resets1Took a digestible, acute pain point and proved the value by fixing the issue

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Self-service failure – “password reset” failure and implications

41% of customer trying to reset password were unsuccessful …

… that only helped solve the actual problem for 16% …

… with significant LT effect on Web usage for the other 84%

Answer secret ques-tion and reset password

100%

Success

58%

Secret answer error

41%

Other error

1%

Other disposition

84%

Reset password

16%

▪ Education codes▪ General info▪ Features related

assistance▪ Payments

released assistance

Did return to Web <30 days

51%

Did not return to Web <30 days

49%

… of which 15% ended up calling an agent ..

Success

46%

“Cannot remember answer”

5%

Call agent <1 day

37%

Click to chat

~0%

IVR and hang-up <1 day

12%

Schematic overview of ClickFox enabled “drill down on root cause” for “password reset” issue

1

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Self-service failure – “password reset” was made much more visible and intuitive and gave customers the choice of a text instead

BEFORE

Before …

The message “Can’t remember your answers?” is a small font link at the bottom of Answer Secret Questions flow

After …

The new password reset flow offers 2 choices to the customer up-front with the possibility of yielding fewer calls into care since they don’t have to go through answering of secret questions/account lock and can still get their password reset

1

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Self-service failure improvement results in significant, direct impact as a resultClickFox KPI tracking “forgot password reset choice” Clicks on Send a Temp Password

Clicks on Answer Secret Questions

Improvements Deflection rate

Monthly Calls Saved

Yearly Calls Saved

Annual Op Ex Reduction

Improve 42% Reset Error 20% 3,120 37,440 $280K

Agent - Reset Password 50% 1,000 12,000 $90K Agent - Other Dispositions 10% 1,050 12,600 $95K

Total (15,600 Calls)  32% 5,040 62,040 $465K

1

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Structured program for value capture depended on a dedicated effort, with a tactical, results-oriented operating model

▪ Analyst team provided with artificial deadlines, quotas, and “fail quick” criteria

▪ Requirement of: 1 “high impact” or 2 “low impact” solutions per month for each analyst to drive rapid cycles, for example– “High impact” effort

has more than $0.5M annual cost benefit or 10K calls saved annually

– “Low impact” efforts could be web page improvements

▪ After idenitify opportunity, drill down into problems to identify root causes and specific improvements e.g., specific behaviours and fixes on web pages

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Opportunity identification Sizing and refinement Implementation

▪ Work with finance to size and validate opportunity across channels

▪ Test and refine ideas with channel owners

▪ For smaller opportunities, bundle several related efforts into a larger opportunity

▪ Dedicated implementation managers saw projects through to completion and were critical to success

▪ Pursued solutions across channels where they had experience and knowledge

▪ Built standardized benefits template with finance

▪ When need, augmented investment by leveraging a dedicated pool of funds to implement solutions

Overall program support▪ Creation of a full scale digital migration

program, with a full steering committee, including channel executives

▪ Integrated partnership with IT, Care, Web and Finance teams to support cross-channel implementation and validate, track and capture value

▪ Finance approved annual goals, tracked results, and funded program based on booked results

Dedicated team focused on opportunity identification and value capture▪ Director-led team of 12 analysts and managers

▪ 1-2 analysts dedicated to each channel, allowing them to quickly build expertise in channel data analytics, and processes

▪ 1 dedicated implementation manager per 2 analysts – responsible for working across channels to drive recommendations through to completion

…combined with a structured operational approachWell-defined program setup and governance …

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Composition of the dedicated team2

8 Analysts 4 Implementation Mangers

Full-time Director

Responsibilities:▪ Build expertise in data and analysis in

designated area and independently seek out and identify opportunities for improvement

▪ Support projects from initial hypothesis, business case, post-deployment dashboarding, and benefits capture

Profile:▪ Prior analytics experience (distinct from

producing standard reports)

▪ Knowledge of mathematic and statistical methods of analysis

▪ Knowledge of database and data organization concepts

Responsibilities:▪ Complete “last mile” research on root cause of

problem working hand-in-hand with analyst

▪ Partner cross-functionally to develop solution and acquire funding if necessary

▪ Own development of solution/opportunity from detailed analysis thru to deployment

Profile:▪ Project management or similar background

▪ Well tenured employee with experience in channel being analyzed (e.g. retail, ecommerce, IT)

– Familiar with financial and project management processes

– Experience working with leadership

– Working relationships with across channels

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30+ initiatives across Web changes, Retail optimization, Mobile changes and agent coaching

InsightProject Action

Early termination fee

▪ Corrected existing online articles, provided more accurate and detailed information online, provided more prominent links to the new information

▪ Web visitors were required to call Customer Service to understand the full cost of terminating their contract early

Self-service mobile app

▪ Allowed customers to complete appropriate self-service functions via a client mobile application

▪ Customers attempting to complete self-service functions online via their device’s web browser abandon at a higher rate

IVR self-service availability

▪ Allowed all customers, not just a small number of high-value customers, to access the Self-Service IVR options

▪ Only 3% of all calls into the Enterprise Customer Service billing IVR reached the IVR Self-Service menu

Online education & FAQ content

▪ Targeted and improved 1,200+ of the worst performing online articles and created new online FAQ content

▪ 40% of all calls to Customer Service resulted in customer “education”; 17% of customers who read education articles online called within 7-days

Online device tutorial content

▪ Implemented a faster and more efficient online content publishing mechanism and improved all online device tutorials

▪ 11% of all web visitors who accessed the online device tutorial pages would call Customer Service within 7-days

Mid-cycle feature & plan changes

▪ Allowed online customers to pro-rate feature and rate plan changes mid-cycle

▪ Web visitors were required to call Customer Service to make mid-cycle feature or rate plan changes

Self-service failure/leading to calls – continuous flow oftactical changes

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5

6

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▪ 2.68m calls deflected first full year in production

▪ Calling Rate decreased by 6%

▪ Almost $100M impact in 3 years

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Expanding into other call reduction opportunities – using the platform to reduce calls immediately following a retail store visit

Impact/results

Example actions taken▪ Created a feedback loop with

new reports between retail employees, store visitors, detailing downstream call reasons within 3 days

▪ Deployed national coaching program to over 27K employees in 2,200 stores

Impact▪ Retail insights improved from 30-

60 days after the store visit to 3 days after with customer call reasons

▪ Ability to evaluate store employee effectiveness based on net-new downstream FCR rate

▪ Constant data trending to quickly spot issues from any level of the business

▪ Deflected 70K calls per month from the business – worth approximately $7-8MM annually

Context

▪ High percentage of customers calling agents within 3 days of a retail store visit, with increased cost to serve and reduced customer satisfaction in the retail locations

▪ Poor visibility into root causes - best metrics were 30 days post visit with limited visibility into specifics

▪ Created new data feeds and reports to highlight specific issues– Analysis created a new set of data elements,

which were fed back into the enterprise– Provided actionable data and detailed reporting

for insights, coaching, trending, or customer focused monitoring of store visits

Example insights from platform

▪ Incorporated new retail store data sets into the platform

▪ Analytics highlighted employee interactions at retail stores with calls to customer care within 3 days– Identify major markets with issues, with store-

level detail– Identify top reasons for customer calls

3

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Approach to drive greater insight into retail drivers of agent call volumes

Retail Performance Improvement approachStep

Identify store profile spikes in downstream contacts

B Measure markets, regions, store managers, specific store locations, and individual store representatives driving additional touches

District Manager Stores

Measure extension of journey

A Understand the downstream contact rate following a retail store visit

Agent CallsRetail

within 3 Days

Targeted coaching

E Leverage daily views of region, store, and employee performance to enlist targeted coaching opportunities tuned to specific needs

Examine types of downstream contacts being driven

C At a store and representative level, what are the types of issues they are struggling with?

Description

Distribute journeys with key attributes

D Provide a daily data set to incorporate with existing store and employee reporting tools to show spikes in customer needs, geographies, and employees

3

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Connect cross-channel data to understand customer behavior following retail store visits

Retail Visit IVR Agent Transfer Call Resolution

Agent CallsRetailwithin 3 Days

▪ ClickFox platform connects customer interactions in the store with the agent calls that occur within 3 days of the retail visit

▪ Details of the retail interaction and call reason are captured and processed to understand drivers and connect relevant journeys

▪ Journey insights are fed directly back to the enterprise reporting tools so that the enterprise gains regular insights and monitors multiple performance metrics

Examples of Journey Attributes captured

▪ Retail-Store location, Employee, Customer, Device, Tenure, Price Plan, Visit Reason

▪ IVR-Customer, IVR Prompts, Device, Tenure, Price Plan, Session duration, Agent route out

▪ Agent Transfer- Agent ID, Call Reason, Device, Tenure, Price Plan

3A

Top General Codes %account 9.1%services troubleshooting 8.0%bill 6.8%plans and features 5.5%escalation 5.3%

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Feeding data back into corporate data stores for reporting and improvements

3D

▪ Retail employees and their managers leverage ClickFox exports with their existing systems to monitor and track performance improvements and reduced calls

▪ Journey data used to support enhanced training and coaching for employees on the front lines

▪ Continual tracking and coaching resulted in a significant drop in Retail to Customer Service calls

▪ Exports available daily and on an ad hoc basis in a single, consistent tabular format

Heat map illustrating call volume following a retail store visit with specific call detail trends and comparisons

Great Plains MKT New York City MKTLos Angeles MKTTop Detailed Codes %data plans 14.0%order equipment 7.0%upgrade options 6.2%review bill information 5.9%escalation 5.8%

Top Detailed Codes %payment information 9.1%made a payment 8.0%review bill information 6.8%technical support 5.5%data plans 5.3%

Top Detailed Codes %order equipment 16.2%data plans 14.3%upgrade options 9.9%made a payment 8.7%review bill information 8.5%

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Structured program for value capture3

▪ Stand-alone single channel retail data on in-store transactions

▪ Limited downstream activity 30-60 days in arrears

▪ No coachable customer-centric measurement of retail employee effectiveness

▪ No trending ability to spot and resolve issues quickly

▪ Difficulty deflecting post-visit calls to agents

▪ 70K calls deflected per month, worth approximately $7-8MM annually

▪ Implemented program in 2,200 stores and 27K employees around the nation

▪ Ongoing reporting to monitor and track performance improvements and reduced calls

▪ Journey data used to support enhanced training and coaching for employees on the front lines

▪ Comprehensive view of all the customer’s calling reasons

From: disconnected data sets To: Integrated insights, driving cost savings and increasing CSAT

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Program staffing evolved to accommodate ramp-up andbuild capabilities

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Initial deployment Expand channels Bring skillsin-house Ongoing

~18 months 12-18 months 6 monthsTiming▪ Initial platform

deployment▪ Supplement small

client analytic team with ClickFox experts to drive value and build capabilities

▪ Expand program in existing channels and additional channels

▪ Industrialize and accelerate pace of analysis for existing channels

▪ Build expertise in new channels and manage demand

▪ As demand normalizes, build capabilities and staff to expected levels increase reporting automation

▪ Dedicated training programs

Situation

▪ Client ▪ ClickFox analysts

▪ Client▪ ClickFox analysts▪ Offshore analysts:

“High Output Analytics” team for structured analysis and reporting

▪ Client▪ Periodic ClickFox

support

Staffing