why old school self service is hurting your customers

Welcome to the WebinarStart time: 1:00PM EST, Feb. 10, 2010.

Why “Old School” Self-Service is Hurting Your Customers… And What you can do about it

Hosted by: IntelliResponse Systems Inc.

Featuring:

Today’s Agenda

• Introductions• Presentation from Dr. Natalie Petouhoff, Forrester Research• CIBC Case Study with Fraser Mackay• Q&A

Housekeeping

Copyright © 2009, IntelliResponse Systems Inc. All rights reserved. The trademarks identified herein are the trademarks or registered trademarks of IntelliResponse Systems Inc. or other third party.

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Today’s Guests

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Natalie L. Petouhoff, Ph.D.Senior Analyst

Fraser MackaySenior Director Internet & Mobile Channel

Mike HennessyVice President

Why “Old School” Self-Service is Hurting Your Customers… And What you can do about it

Natalie L. Petouhoff, Ph. D.Senior AnalystForrester Research

February 10, 2010

8Entire contents © 2010 Forrester Research, Inc. All rights reserved.

Agenda

1. Customer experience data shows companies must change

2. “Old School” KM and Self-Service are not working

3. The explosion of Social media and use of Mobile Devices has tipped the scales for change

4. Knowledge management is key to providing better customer experiences


The state of customer experiences are in flux and companies must

adapt new strategies.


Customer experience has a direct impact on

the bottom line.


Customers with good experiences buy more

Source: April 24, 2009, “The State Of Customer Experience” report.


Customers with good experiences are more loyal

Source: April 24, 2009, “The State Of Customer Experience” report.


Customer Experience Directly Affects Revenue

March 2008 “The Business Impact Of Customer Experience”

Buy more = $43MAre more loyal = $51M $94.2M


Customer Experience Directly Affects Revenue

March 2008 “The Business Impact Of Customer Experience”

Buy more = $29.7MAre more loyal = $41.8 M $71.5M


Executives say customer experience is important to

their business.


89% say customer experience is a critical initiative


80% of Companies Want To Lead Their Peers In Customer Experience


However, there is a gap between the importance companies put on

customer experience and

Actual customer satisfaction


And this often occurs at the First Point of Contact


Customers are disappointed in their experiences •Knowledge management and the self-service channels it supports are often the first touch-point

•Poorly implemented knowledge management is the “under pinnings” of poor customer experiences

•Companies often get knowledge management & self-service wrong

– They confuse content management with knowledge management

– Not understanding the differences causes mistakes, wasted money and poor customer experiences


Dissatisfaction: Self-Service

•Can’t get what you need, so you pick up the phone…

•ROI for self-service is gone…– Website search returns poor

results

– IVR is confusing…

Source: August 29, 2008, “Why Talking to Your Customers Is Ruining Your Business” report.


13%

2%

10%

11%

12%

16%

19%

20%

27%

28%

28%

0% 20% 40% 60% 80% 100%

I have never left a site without first finding the information I wasseeking

Other

I wanted to visit the website of another company

The number of site search results I found were too overwhelming

I couldn’t reach a customer service representative over email/textchat to answer my question

I was interrupted by someone/something unrelated to the website

There was just too much content for me to review, just to find whatI was looking for

I couldn’t find contact info for the appropriate person(s) at thecompany

I had difficulty navigating the website

I just didn't care to look on the site anymore

I was convinced the info I sought was not available on the site

Percentage of customers

Poor site design & service flaws drive customers from websites


4%

16%

18%

18%

21%

24%

24%

40%

45%

45%

0% 20% 40% 60% 80% 100%

I have never been dissatisfied

Tell others about my negative experience

Be less likely to buy from them offline

Contact customer service via phone regarding my experience

Have a more negative overall perception of the company

Contact customer service via e-mail

Leave the website and give up

Be less likely to buy from them online

Be less likely to visit the site again

Leave the website and go to a competitive website


Customer frustration leads to website abandonment

Site visitors are more likely to opt for an alternative site than bother

to contact customer service


17%

9%

12%

21%

23%

28%

33%

35%

44%

0% 20% 40% 60% 80% 100%

There are no disadvantages

Results cannot be saved

Unsure how many keywords to use

Unsure what keyword to use

Results are confusing

Provided too many results

Requires registration in order to use it

Provided unrelated results

Cannot understand my real question


Customers are frustrated by company’s website search capabilities

Insufficient outputs

Input obstacles


Key obstacle to online sales success: lackluster online customer service service is lacklustre

Pass = 70/100 Points

Average scores:Retail: 69Travel:60

Financial Services: 52


Social Media & Mobile have shifted the customer service paradigm...

There is no turning back…Change must happen…


It’s Truly a Multi-Channel World


4 OUT OF 5 AMERICANS USE SOCIAL MEDIA.

Forrester, The Growth Of Social Technology Adoption, 2009


Twitter Facts• Twitter age demographic

25-34 - 20%35-49 - 42%55+ - 17%

• 72.5% of the 44 million users joined in first 5 months of 2009

• There are more women on Twitter53% Women47% Men

• >100 companies using Twitter to interact/ Customer Service Issues

Source: Mashable.com and Time Magazine


Facebook Facts• > 250 million active users

• > 120 million users log on to Facebook at least 1/ day

• > 2/3 of Facebook users are outside of college

• Fastest growing demographic: 35 yrs old & older

• ~70% of Facebook users are outside U.S.

Source: Mashable.com


9/10 Americans already own a mobile

phone

They get a new one

every 18 months

Source: New York Times and GSM World

Going Mobile


FACT: Consumers are going mobile – and bringing their customer service questions along with them


We must evolve…


Knowledge Management & Self-Service enhance customer experiences


WhatAre

UDesigning?

Part of getting the basics right is deciding what kind of experiences you want to create…


Companies often get knowledge management wrong

– They confuse content management with knowledge management

– Not understanding the differences causes mistakes, wasted money and poor customer experiences


What is knowledge management?

•Knowledge management systems– Focus on getting an “answer.”

– It uses a range of search technology to:

• Search/index and

• Find content relevant to a user’s specific question.

– Help users navigate through large bodies of content (in the closet).


What is Enterprise Content Management?

•ECM systems:– Are about documents and

document control.

– They are “closets” or online storage areas for all of a company’s documents.


Differences of ECM and KM

•Knowledge management focuses on relevance – Using the most effectively use that content: How

users interact with content

– Capabilities that help users locate specific information residing in many locations

– Managing content at the “answer” level

– Using technology to enable the content to be mapped to user issues and queries

– Using business rules to increase the relevancy of answers and help the user recognize the answer as relevant.


Where’s the confusion?

• It’s all in the “use” of the technology… – Take web and database management systems for

content generation…

•Would customer or agent use them as a source of information about a customer’s transaction history or profile?

•No, because the information they need is not there….


Where’s the confusion?

• Knowledge management and content management are frequently confused

•Organizations expect content management to serve the knowledge management & self-service functions.


Sites have content, but hard to find “the” answer

Source: May, 2009 “The ROI of Online Customer Service Communities” Forrester report


Piles and piles and piles of content

•Leads to poor productivity of:

– Agents

– Customers

•Poor productivity leads to frustration

•Frustration leads to agent and customer attrition


Use of content / technology• Using it for a purpose its not suited for will cause:

– Rapid decline in effectiveness

•Self-service customers who cannot easily find answers to questions on the company’s site

• Agents who spend a long time to find answers…


Wrong use of content / technology

•Leads to:– Rising costs

– Lower customer dissatisfaction

– Lower agent satisfaction

– Agents attrition

– Customer defection

– Loss in revenue and profits


Recommendation: Take the Multichannel Customer Service Best Practices Assessment

Contains more than 150 best practices

Source: January 13, 2009, “Forrester Customer Service Innovation Framework and Self-Assessment ” Forrester report


Benchmark knowledge management best practices

Source: January 13, 2009, “Forrester Customer Service Innovation Framework and Self-Assessment ” Forrester report

Where would your company score?


Join the knowledge management revolution!

Source: April 6, 2009, “How to Win Funding for Your Customer Service Project ” Forrester report


Thank you

Natalie L. Petouhoff, Ph.D.

+1 310.919.8467

[email protected]

www.forrester.com

Follow me on twitter:

www.twitter.com/drnatalie

http://www.forrester.com/

http://www.twitter.com/drnatalie

Case Study: CIBC Bank

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•Canadian-based global financial institution

• 38,000 employees worldwide

• 11 million clients•One of the 10 largest banks in North America

Online Customer Experience

51

“Committed to creating an unparalleled online banking experience for our clients”

Deploying “Next Generation” Self Service

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Key Business Drivers:

•Improve Self-Service across multiple channels

•Enhance the Customer Experience Online

•Reduce Burden on the Contact Center (deflection of calls/e-mails)

1. Multi-Channel Multi-lingual Knowledgebase

2. Ask Questions in Natural Language

3. One Right Answer Result

4. Dynamic Ranking of Top 10 and Related Questions

5. Real-time Answer Rating System

Vendor: IntelliResponse

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Results

Tangible Benefits: 29% reduction in e-mail volume during launch day 49 % average reduction in public e-mails 25% reduction in calls Outstanding Real-time “Voice of the Customer” feedback

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Next Step: CIBC Mobile & Agent Desktop

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Q&A Session


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