using rapid process improvement to transform the customer experience

This Is Where The Title Will Go

Using Rapid Process Improvement to Transform the Digital Customer ExperienceAndrea Peyracchia Digital PartnerMcKinsey & Company

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Bringing it to life: Journey redesignThe recording and slides for todays presentation will be made available on cxweek.com along with other content and webinars from throughout the week

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MCKINSEY DIGITALMcKinsey Digital Labs | EDGE | Customer Experience

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Andrea PeyracchiaDigital Partner, McKinsey & CompanyAndrea Peyracchia has a long standing experience in digital experience design and marketing from Procter & Gamble and Hewlett-Packard. He is now a partner of McKinsey & Company and leads McKinsey Digital Labs in EMEA driving large scale digital transformations across multiple industries.

32015 QUALTRICS LLC.

Andrea Peyracchia has a long standing experience in digital experience design and marketing from Procter & Gamble and Hewlett-Packard. He is now a partner of McKinsey & Company and leads McKinsey Digital Labs in EMEA driving large scale digital transformations across multiple industries.

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Bringing it to life: Journey redesignWhy digital experienceDifferent ways to get startedOur agenda


TRACKERUnit of measure1 FootnoteSOURCE: SourceChart titleUnit of measure#4Total time is 2 hours. Total participants 13 from Chubb

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Why digital experience1. CUSTOMERS2. TECHNOLOGY3. JOURNEYS

Customer behaviors are changing Technology and analytics proliferation Enterprises taking action to improve journeys


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1. Customer behaviors and expectations are changing75% of online customers expect help within 5minutesNow70% of app users prefer added functionality over look & feel of app Can I61% of customers are more likely to buy from companies delivering custom contentFor me75% of consumers have used comparison apps for consumer goodsSimple79% of consumers trust online reviews asmuch as personal recommendationsSocial60% of US consumers are concerned about privacy when transacting onlinePrivate


TRACKERUnit of measure1 FootnoteSOURCE: SourceChart titleUnit of measure#Amazon: One-click check outNike+: Combines your running intensity, music you listen to and maps to offer and integrated picture of a "run" that you can compare with othersNetflix: Accurate curation of video recommendationsApple: Always get your products in less than 3 clicksYelp: Yelps rating of thousands of restaurants, retail stores, etcFacebook: Facebook enables targeted marketing through private customers data

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3. Best-in-class companies optimize journeys vs touchpoints

Sales and onboarding

Change to account

Moving

Resolvinga problem

AgentCallcenterWebSupport

End-to-end journey satisfactionTouchpoint satisfaction90%85%85%90%60%

Customers experience companies by end-to-end experiences, not touchpoints Individual touchpoints may perform well when the overall experience is poor

I want to improve . . . journey



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Digital experience drives significant value

20%-2x

Churn, upsell, acquisition10-15%

20-60%

20%-4x

Improve customer loyaltyFuel revenue growthSimplify how you do businessCustomer-centric cultureEmployee engagement, satisfactionCost to serveCustomer satisfaction






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Who we are

PhaseThe idea

Arrival in-storeSalesperson contactID & payment capturePhone and SIM handoverActiva-tionPost-sale

Phone and plan selectionMobile incumbent15M+ subscribers, mostly post-paid6000 retail storesDigitize the in-store sales journeyLeverage a consultative sales approach via tabletCapture cross-selling and upselling opportunitiesThe context



Zero-based e2e redesign of the customer journeysProcess transformation"Minimal viable product" build IT solution front-to-back starting from the customer experienceDigitization principles (and IT impact)Weekly agile sprints incl. customer testing; working solution available in ~ 16 weeksTime to impactThe Rapid Process Digitization (RPD) is a holistic approach to align people, processes and systems ...People and governanceEnd-2-end work cell with cross-functional involvement sustain change by adapting management infrastructure and to completely digitize a customer journey in 3 - 4 months

2 weeks4 weeks8 - 10 weeksTeam setupDiagnostic and zero-based design

Manual work-cell and tech buildAgile sprints on tech-powered work-cell

Scalework-cellDisband legacy operation

How to digitally transform a journey in 16 weeks




Scale work-cellDisband legacy operation

Week 1Establish an end-to-end team from business (work cell), change, and technology that works in a "start-up" like environmentRapid digitization SWAT team

Business team

Designs and runs new processChange team

Supports implement-tation androlls out across business

Technology teamBuilds the technology

Week 1: Form start-up team environmentAgile sprints on tech-powered work-cellManual work-cell and tech build





Weeks 2 - 3Map current processes, systems, and understand the performance and improvement potential

CashierOther (web channel)Call centerTechnicianSales representativeGeneral servicesCustomerMarketing platformDispatcher

AutomaticDispatching

Sales

Validation and order entry

Provisioning

First days experience

Billing

Provisioning

"When I am about to complete my registration they tell me they dont have the phone"

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Waiting time

Email notalways updated at PoS

Bill not clear

?Customer perception Examples

Issues Examples

"I have to wait long times and at 3 queues sometimes"

?Weeks 1-2: Map the existing journeyAgile sprints on tech-powered work-cellManual work-cell and tech build





Week 4: Diagnose pain and signature experiencesWeeks 2 - 3Diagnostic should highlight the customer experience improvement opportunities in different customer journeysZero-based design with customer experience focus should lead to significant improvements in journeyAt homeAt the storeAfter salesPlan and phone selectionDiscoveryForm filling confirmationActivationFirst days of usageEngagementBill reception and paymentLong waiting timeMany queuesConfusing product offersNo full e-billing serviceMany hurdles along the registration processDoubts about package and services remainAggressive sales approach via calls, SMSApparently unsolvable problemsObscure expenses without explanationPhone availability is known upfrontPlans are simple and easyE-billing can be selected upfrontPreferred language is being capturedPhone activation in < 5 minutesSingle point of contact in the shopNo annoying sales approach during the first daysSimulated bills on advance eliminate surprisesThe problems experiencedThe pain-point fixesAgile sprints on tech-powered work-cellManual work-cell and tech build





Weeks 4 - 9The team will develop a full zero-based and "minimal viable product" leveraging industry best-practices and templates client example of minimal viable process design and iPad customer journey

Weeks 5-9: Identify radical transformation leversAgile sprints on tech-powered work-cellManual work-cell and tech build





Weeks 4 - 9"Minimum viable product" requires prioritizing the digitization levers focusing in the ones that can deliver more value with the lower effort

ImpactFeasibilityMain levers34266195232102715181417257820111211628242122139619264353426619599Intuitive tablet based catalogue to simplify product selectionAutomatically populate information from MyKad1-click payment with payment details saved at storeDigitize signature and have fully digital contractSend default MOA user name/password in the welcome emailAllow selection of eBilling during sales processProvide with real time inventory status at the start of the processWeeks 4-9: MVP to focus on priority levers firstAgile sprints on tech-powered work-cellManual work-cell and tech build




Manual work-cell and tech buildAgile sprints on tech-powered work-cellScale work-cellDisband legacy operationWeeks 4 - 9The team develops a prototype of the front-end and customer experience in an iterative way with customer input

Interface designs should be defined for key journey elements






Weeks 4 - 9Customers preferences are scouted leveraging A/B testingJourney implementation proceeds incrementally



Weeks 10 - 16 minimizing integration effort with careful city planning

BSSApplication logic layerDatabase layer

New system

InterfacePresentation layerNew tablet solutioneCommerceInventorymanagementCRMPostpaid billingPrepaid billingBusiness logic serverEnterpriseserviceBusCredit check

MS SQL serverKnowledge portal

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Rating agency456231SIM activationOffers and productsOffer catalogueProduct catalogueUpsell and cross-sell campaignsCartin parallel with back-end integration




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After the first success story, the journeys' transformation can be scaled via a

Digitization factoryCover 20 - 30 journeys in 1 - 2 yearsReduce 50% of costs per processImprove customer experience significantly Increase in revenues and market shareCreate leading operational processesBuild the UI capability to de-risk processEnd to end teams and accountable executive aligned by processTeams comprised ofRapid digitization full time resources (digital/UI, IT, change management)Operations and business teams seconded resources

Team (Digital factory)

Total number of journeys transformed1361015202530WavePilot2345678Year 1Year 2New journey goes live its time to scale up






Real digital output and impact

FromToImpactCost reductionIndexedCustomer satisfactionIndexedTime to on-board in storeMinutes50+ pricing plans4 agents to interface with2 forms to manually fill-up and 35% of the process steps automatedPhoto static copy of the ID9 plans+ 12 add-onsSingle agent handles entire process80% of the process steps automatedPersonal data loaded from electronic ID and digital signature

100-30%70

100120+20%

15-63%40


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6 hallmarks of CX leaders: where to start from?Clear view of what matters to which customers to inform journey redesignDigitally design end-to-end journeys, customer back to operationsUse journeys to empower front-line culture with a common purposeDefine journey metrics and the governance system to continuously improveClear CX aspiration and customer promise to guide the organizationLeverage communications and behavioral psychology to manage or reset expectations

CustomerJourneys

Product

Marketing

Online

Retail

CareOnboarding journey

Problem resolution journey

Renewal and repurchase journey

1Get bad experienceover earlyFinish strong2Segment pleasure, combine pain3Give customers a choice4Stick to habits5SequenceControl and choiceDuration/segments

CEmetricJourneys experience assessment Operational KPI IndicatorsOrganizational and cultural foundation

Employee feedback

CE measurement pyramid

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Q&A

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