transforming the customer experience with second ... sweeney.pdf · transforming the customer...

Transforming the Customer Experience

with Second Generation CRM

Determining the drivers for and benefits of Severn Trent Water’s investment in second generation CRM technol ogy

September 2005

Lisa Sweeney – Contact Manager, Severn Trent Water

Adam Hughes – Partner, PA Consulting Group

© PA Knowledge Limited 2004. All rights reserved.-RC- 27/09/2004- 2

STW is one of the UK’s leading providers of water and

sewerage services

STW supplies high-quality drinking water and sewerage services to over eight million people living in the heart of theBritain.

• Top-performing water and sewerage company in UK

• Supply 2 billion litres of drinking water a day to three millionhouseholds and businesses

• Handle over 2 million contacts a year through our call centres

• Turnover of £957 million

• Over 5000 employees.

How do you stay ahead in a constantly evolving market?


STW had to adapt to remain a leader in a changing

market

Change

Continuous Market and Competitive Pressures

• Delivering regulatory contract• Market deregulation• Competition from new entrants

Increasing Customer Demands

• Improved quality• Faster response times• First time resolution• Proactive contact• Flexible policies

Changing Business Initiatives

• Initiative to gain customer loyalty

Changing Operating Models

• Legacy IT at end-of-life• Unwieldy manual process to

compensate lack of technology• Disparate customer contact IT

systems• Migration to new billing platform

Recognising the real drivers for change ...


However, many enterprise systems are inflexible and

inhibit the agility and innovation required for

differentiation

Existing Environment

� Complex portfolio of bespoke and package-based applications

� Disparate technology architectures and data sources

� Inadequate user experiences

� Inconsistent deployments across delivery channels

� Manual hand-offs to get the systems to “work properly”

� Long lead times for new systems development and existing systems change

Differentiation is stifled

� Enterprise package implementations are difficult to modify

� Complex systems are difficult to change causing slow responsiveness to business change requests

� Systems that are not at or near 100% fit for purpose create work arounds, frustrated users, inhibit adoption, and result in lost productivity

Impact


Second Generation CRM delivers the greatest value

when deployed in dynamic processes

Highly dynamic business

environment

Rapid deployment time frames

Require extensive integration

Clear, stable business

requirements

Multi-client/ channel end

points

�Custom Development

Best of Breed Software Package

Enterprise Application

Process Framework

�

� �

�

�

� � � �

Dev

elop

men

t Str

ateg

y

Business Criteria

� Key Strength “STW required a complete solution including the rig ht technology, the right approach and the right people ”


Using the right approach that meet Severn Trent

Water’s objectives

STW Strategic Objective:

Drive quality into everything we do to improve customer service and the way we work

� To drive quality into everything that we do to impr ove customer service and realise operational efficiencies

Our Approach:

� Use a second generation CRM technology that enables a 100% fit to existing business processes

� Implement a flexible IT solution that can deal with complex processes and multiple data sources

� Create a customer-centric system that provides staff with fast and easy access to a single view of customer interactions

� Encourage incremental and rapid systems releases over the development lifecycle

� Use PA’s Rapid System Development (RSD) methodology , which works well by enabling small and highly focused development teams to produce prototypes rapidly

This approach secured high levels of user involveme nt and delivered “quick wins”early in the projects.


The right people deliver success: STW and PA working

jointly to deliver 2G CRM innovation

STW and PA worked jointly to deliver the ICE project in 24 weeks and to budget.

Weeks 1-4

Process design

Requirements management

Training deliveryTraining design

Staged rolloutRollout planning

UATSystem test

Project management

User communications

Weeks 5-8 Weeks 9-12 Weeks 13-16 Weeks 17-20 Weeks 21-24

Rapid Systems Development (RSD)


A second generation CRM platform to deliver a flexible

and agile business solution

Workflow &Process

Automation

Step 1 Step 2

Step 3 Step 4

Step 5

EnterpriseBackbone

Multi channel & User Integration

DCA’s Call Center Dialler Printing Billing

Customer Specialists Agents Process Administration

Connectivity

A robust and flexible second generation platform wa s developed using GT-X, a Process Framework tool from Graham Technology.


Delivering a single view of the customer with Enterprise

Integration

Second generation CRM is about understanding your customer through data accessibility and analysis.

“Greater integration has enabled a 36% increase in the resolution of customer

queries at the first point of contact”

Workflow &Process

Automation

Step 1 Step 2

Step 3 Step 4

Step 5

EnterpriseBackbone




Connectivity


Delivering customer contact across multiple touch

points

Second generation CRM is about maintaining high levels of customer service across all customer contact channels.

“Severn Trent Water customers can now utilise a wider range of communication channels and still get a quality service”

Workflow &Process

Automation

Step 1 Step 2

Step 3 Step 4

Step 5

EnterpriseBackbone




Connectivity


Delivering dynamic business process change with a

Process Framework technology

Second generation CRM is about providing a proactive and business-driven approach to customer service.

“Lead times for taking new business processes from conception to realisation have been reduced

allowing STW to be more proactive to a customer’s needs”

Workflow &Process

Automation

EnterpriseBackbone




Connectivity

Step 1 Step 2

Step 3 Step 4

Step 5Step 1 Step 2

Step 3 Step 4

Step 5


Business users can easily represent and model business

processes and validate the user experience and functionality

Map processes

into system

Automatically generate

interfaces and workflow

Refine user interfaces &

channel deployment

roll out

Integrate with

existing systems

Real-time process management

� User involvement ensures accuracy and drives 100% fit-for purpose

� Rapid business change

Rapid Development

� Automatic code generation and interface rendering

Integration

� Open integration with existing systems and package applications including DJOM, Billing1, Billing2, etc.

Multi-channel

� Optimise reuse across channels

BENEFITS


Contact Prospect

Obtain client/expense tracking

code

Identify Prospect- VCs, cold calls,research, referral

Prepare Initial Pitch/Presentation

Structure Outline

Set up Meeting?

No

Organize teamresources for

initial pitch

Communicatepreparation

requirements toteam

Reuse old presentations

Research prospect'scompetition/comparables

Find valuation spreadsheet

Get current news onprospect and industry

Obtain internal andexternal research

Develop new contentbased on analysis

Need more info?

Follow up calls toprospect

(sign NDA, getfinancials)

Presentation dryrun

Conduct InitialMeeting

Prospectinterested?

Follow-up onInitial Meeting

No Yes

Yes

Yes

Flag as potentialfuture opportunity

Flag as potentialfuture opportunity

No


2nd Generation CRM ensured that STW met the business

drivers and technical requirements

The benefits of 2nd generation CRM are:

� Excellent functional fit to requirements

� Rapid implementation of a system tailored to the businesses needs

� Flexibility to easily develop and improve processes without being constrained by software

� Ease of integration to legacy systems and protection of the investment made in these

� Measurable processes to understand business performance leading to continuous improvement of these processes

� Integrated Workflow capability that can be access via multiple channels


STW is already getting a return on the investment in

second generation CRM technology

STW is realising these benefits as a direct result of implementing the ICE solution with second generation technology:

� 36% more customer calls are resolved at the point o f contact

� 30% reduction in customer complaints

� A customer services representative can now be train ed to use the system in 2 days, compared to 2 weeks

� STW now fully understands the performance metrics o f the call centre and can improve the quality of its reporting to the industry regula tor

� The implementation of a simple click-through proces s has led to reduced call duration and fewer unnecessary customer visits

� By implementing customer contact systems process-by -process rather than in a 'big bang' Severn Trent benefited from reduced implement ation risk and a smooth rollout

� STW now has a platform for future value-added activ ity, including field force enablement, Internet channels, Voice XML, Interactive TV and si mplifies the introduction of future data media


Thank you

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