the role of cloud computing in customer-centric success
DESCRIPTION
Bob Thompson of CustomerThink speaks about delivering total customer value that drives genuinely loyal customer attitudes.Laef Olson, RightNow's CIO, talks about the 10 things to ask your SaaS vendor before entering the cloudTRANSCRIPT
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© 2009 RightNow Technologies, Inc.
The Cure For The Common Call Center
With AMR Research & drugstore.com
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© 2009 RightNow Technologies, Inc.
Keynote Presentation:
Janet SherlockRetail Research DirectorAMR Research
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© 2009 AMR Research, Inc. | Page 3
Retail Contact Center Management & CRM: Trends & Opportunities in a Challenging Economic Environment
Janet Sherlock
AMR Research
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© 2009 AMR Research, Inc. | Page 4
AGENDA
• Introductions
• The Classic “Cost versus Customer Service Challenge” in Retail
• AMR Investment Studies
• It’s a Multi-Channel World
• Trends in Contact Center Management and CRM in Retail
• Conclusions
• Q & A– After final presentation
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© 2009 AMR Research, Inc. | Page 5
The Retailer’s Challenge:Cost vs. Customer Service –Achieving the Balance
COST SERVICE
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© 2009 AMR Research, Inc. | Page 6
Strategically important investments, 2008-2010
27%
21%
19%
17%
10%
6%
24%
21%
19%
15%
11%
10%
Customer Mgmt
BI/Perf. Mgmt
ERP
Mfg Operations
SCM
HCM
2008
2010
Source: AMR Research 2008U.S. Enterprise Spending Study
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© 2009 AMR Research, Inc. | Page 7
2009 Plans for Customer Relationship Marketing Technology Investment in Retail Environment by Segment
Retail Segment Annual Sales Store Locations
FMCG
Mass Merch/ Dept Store
Specialty Soft
Goods
Specialty Hard
Goods <$2.5B $2.5B+ 1-499 500+
First time 33% 0% 10% 14% 8% 17% 14% 10%
Add to or improve 33% 75% 20% 43% 33% 42% 43% 30%
Replace 0% 0% 10% 0% 8% 0% 7% 0%
Maintain 0% 0% 20% 29% 8% 25% 14% 20%
2010 Roadmap 0% 25% 30% 14% 33% 8% 21% 20%
Not using 33% 0% 10% 0% 8% 8% 0% 20%
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© 2009 AMR Research, Inc. | Page 8
It’s a Multi-Channel World
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© 2009 AMR Research, Inc. | Page 9
Multi-Channel Path to Contact Center
Customer
Shops On-Line
Visits Store
Cro
ss-C
hann
el S
hop
Search forProduct orInformation
or
Sale Tendered
SOLUTION NOT FOUND
CONTACTCENTER
Call
Chat
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© 2009 AMR Research, Inc. | Page 10
Trends in Contact Center Management and CRM in Retail
• Diminishing use of Contact Center for Order Entry and more for
Customer Service
• Pure plays have set bar for customer service—brick and mortar
retailers are trying to catch up
• Web Self Service—Creating efficiencies and cost savings
• Cross-Channel activity is increasing. Functions, service, and
information needs to be available in contact center.
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© 2009 AMR Research, Inc. | Page 11
Trends in Contact Center Management and CRM in Retail (con’t)
• Contact Center apps growing from being simply “Call Center Support” to Enterprise Information Accessibility and Action Support Hub:
• 360 View of Customer
• All purchases, not just direct
• All interactions
• Demographic & Psycho demographic data
• Customer Preferences—KEY
• Comprehensive View of Product Data and Statuses
• Order Statuses
• Inventory Statuses
• Comprehensive view and knowledge base of product information
• Extensible to all Associates, including Store Personnel
• Cross-Channel Transactions and Interactions
• Knowledge Management
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© 2009 AMR Research, Inc. | Page 12
Single Knowledge Base
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© 2009 AMR Research, Inc. | Page 13
Call Center Evolution
Simple transactions 360 View of all customer transactions
Customer Centric
Company Centric
Industry leaders
Call Center Evolution to Multi-Channel Customer-Centricity
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© 2009 AMR Research, Inc. | Page 14
Other Trends
• Social Networking and Word of Mouth have made Customer Service
requisite
• Use of Call Center for Clienteling or Co-Clienteling
• Requisite use of Contact Center for Proactive treatment of recalls
• Support for Loyalty Programs, Electronic Wallet, Electronic Receipts
• Call Center Consolidation
• Leveraging technology, telephony
• Leveraging people
• Metrics and Reporting are key—More important than ever
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© 2009 AMR Research, Inc. | Page 15
Conclusions
• The Multi-Channel retailing environment is changing the functional
requirements and informational/knowledge management
requirements for the traditional Contact Center environment
• Social Networking and the Channel Agnostic nature of today’s
consuming public necessitates superior customer service, supported
by effective tools and processes
• While IT investment has decreased since the economic downturn,
AMR Research asserts that projects focusing on the following will
remain part of their 2009/2010 slate:
• Customer Investment
• Process Improvement
• Cost Containment
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© 2009 AMR Research, Inc. | Page 16
Thank You!
Janet Sherlock
Research Director
AMR Research
617-447-5158
For more information about AMR Research, please visit
www.amrresearch.com
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© 2009 RightNow Technologies, Inc.
The Experience/Cost Dilemma
Spend money to improve the customer experience
OR
cut costs and risk losing customers
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© 2009 RightNow Technologies, Inc.
RightNow’s Breakthrough Approach
Improve customer experience while reducing costs
Follow 8 proven steps to success
Software as a service reduces risk
Highly modular solution – focus on areas with highest impact first
Unique knowledge foundation infused across entire solution suite
Immediate results
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© 2009 RightNow Technologies, Inc.
1,900 Clients are Delivering Superior Customer Experiences… So Can You
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© 2009 RightNow Technologies, Inc.
Live Interview:
Ron KellyVP Customer & Pharmacy Servicesdrugstore.com
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About drugstore.com, inc.
• Founded in 1998; 700 Employees• NASDAQ: DSCM; $365mm in Annual Revenue• 4 Online Brands:
– drugstore.com– Beauty.com– VisionDirect.com– Online Pharmacy
• More than 40,000 product SKUs• Nearly 150 agents in 2 contact center
locations• 80,000 to 100,000 support inquiries per month
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Ron Kelly’s Bio
• VP Customer & Pharmacy Services– Oversee all customer care, logistics and
pharmacy business• Joined drugstore.com in 1999• Past roles include senior positions with:
– Finance– Procurement– Site Development– Merchandising
• Prior to drugstore.com:– Deloitte & Touche retail specialist
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The Bottom Line
Meeting Increasing Customer Expectations…
RightNow CRM Project Goals:
• Provide a competitive customer experience• Answer questions regarding thousands of products• Improve agent productivity, decrease call handle
times• Use the contact center to drive revenue
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Background
• High income/highly educated demographic wanted to solve issues on their own
• Contact Center was growing at same rate as Company
• Existing FAQ’s required IT involvement …and were outdated
• Customer experience implications … 3 in 10 customers needed to contact us
• “Industry Standard” …Cost Containment
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Why RightNow?
• Web self-service
• Voice for order tracking
• Live chat
• Email management
• Agent desktop
• Hosted solution
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More Inventory = More Questions
• Extreme competition
• Extreme customer expectations
• More than 4x the typical drugstore
inventory
• 80,000-100,000 inquiries / month
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Empowering Customers
Incoming e-mail reduced by 20%...
• Web self-service• Voice self-service• Email management
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Making Agents More Efficient
15% Drop in Agent Handle Times…Steady Increase in Customer
Satisfaction…
• 150+ Contact Center Agents– Halifax, Nova Scotia– Bellevue, WA– At Home Agents
• Before RightNow – 10 agent desktop apps
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Driving Revenue
25% Chat Sessions Convert to Sale…
• Beauty.com agents provide expert advice
• Live, online chat sessions
• Trained beauty advisors
• Cross-selling
• Up-selling
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The Philosophy
It’s all about Customer Experience…
“Our brand IS our customer experience, and RightNow ensures that we don’t miss a step.”
– Ron Kelly, vice president, customer and pharmacy services, drugstore.com
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What’s Next?
1. Continue to provide our Beauty Advisor with
specialized vendor training …Prestige beauty
brands love our chat capabilities
2. Roll chat out to other business segments and
explore “service chat” to further reduce
contact center costs
3. Analyze customer feedback on success of “help
topics” and use data to optimize customer
experience
4. Social Media ….it will impact the contact
center ….
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Top Advice
1. Listen to Your Customers
2. Power of Knowledge
3. Protect & Monitor “brand” image
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© 2009 RightNow Technologies, Inc.
Question/Answer Session
Janet Sherlock, AMR ResearchRon Kelly, drugstore.com
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© 2009 RightNow Technologies, Inc.
Learn More!
How Successful Companies Overcome the Experience/Cost Dilemma:
– 8 Steps Video: http://www.rightnow.com/resource-video-8-steps.php
– 8 Steps Strategy: http://www.rightnow.com/strategy-eight-steps.php