April 2014 Nuance & Corporate Executive Board webinar

© 2002-2013 Nuance Communications, Inc. All rights reserved.

Make it easy and immediate! Exploring the value of innovative experiences in customer self-service.


Agenda 1.  How your customers see your current

self-service solution …who they're really comparing you to

2.  The key behaviours which ensure you better align to your customer needs

…using that knowledge to drive change

3.  How the results of that behaviour link to measurable returns

…in terms of satisfaction, costs, revenue and also ensuring loyal behaviour

4.  Real-world examples of low-effort self-service experiences

…delivering results with innovative experiences

Sebastian Reeve Director Product Strategy EMEA, Nuance

Rick DeLisi Senior Director and Executive Advisor, CEB

Presented By: 1

2

3

4


The First Screen

Mobile

The Second Screen

The Third Screen The Fourth Screen

The nth Screen


n Screens & a Cloud

Who’s setting consumer expectations?


disrupt /dɪsˈrʌpt/ verb 1. To throw into confusion or disorder 2. interrupt (an event, activity, or process) by causing a disturbance or problem 3. drastically alter or destroy the structure of.


Since sometime in the 1970’s…


More recently…


“Flick my Bic!”

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BIC® Concert Lighter


“Consumer behaviour is the killer app when it comes to

business disruption” Brett King Author “Banking 2.0”


Key traits of disruptive UX innovation

Innovative

UX

User-focussed

Agile

Engaging

On-device

Omni-channel

1

2

3

4

5


User-focussed

–  Putting design at the heart of your organisation.

–  Design talent within silos making way for cross-functional User Experience (UX) teams.

–  Examples: §  Johnny Ive at the heart of Apple, driving

product and experience direction. § Walt Disney, arguably the worlds first

great UX designer!

1 Easy User-focussed

Agile

Personal

On device

Omnichannel


Agile

–  Not just a delivery methodology! –  Agility is really about building user

feedback into the process. –  i.e. using Data, not emotion to inform.

–  Customer attitudes and behaviours are changing continuously.

–  Organisations need a constant process of measurement and change.

–  E.g. Tuning of Speech/NLU using audio data.

Easy User-focussed

Agile

Personal

On device

Omnichannel

2


Engaging

Garanti Bank Geico Lily

Nespresso Ines

Jetstar Jess

Kaspersky Lena

Numericable Emilie

Windstream Wendy

Coke Chip

Custom TTS Voices

Visual persona Multimodal persona Voice persona >> <<

Easy User-focussed

Agile

Engaging

On device

Omnichannel

3

© 2002-2013 Nuance Communications, Inc. All rights reserved. © 2002-2013 Nuance Communications, Inc. All rights reserved. Page

Nina Mobile: Navigate, Answer, Transact

On-device 4


Planning travel Shopping online Managing finances

Started on a PC 58% 59% 63%

Continued on a smartphone 41% 42% 45%

Continued on a tablet 44% 33% 33%

Continued on another device 21% 11% 15%

Omni-channel Consumers switch across devices to accomplish the same task

Base: US Online Adults (18+) who have 3 or more devices and started the specified activity on one device then continued it on another; †US Online Adults (18+) who have 3+ devices and started the specified activity on a PC then continued it on another

*Devices include PC (desktop or laptop), tablet, HDTV, or smartphone; Respondents can select using the same type of device they started with Source: North American Technographics Devices and Telecom Online Benchmark Recontact Survey, 2013

5 Easy User-focussed

Agile

Personal

On device

Omnichannel


Omni-channel Seamless experiences require a continuity of memory and experience across touchpoints. Easy User-focussed

Agile

Personal

On device

Omnichannel

Source: See Forrester’s September 19, 2013 report “Build Seamless Experiences Now”

Capture customer activities with content and content state

Start with the customer’s identity, profile, and preferences

Preserve session and history to resume the experience

5


Maintaining focus… but on what?

Easy User-focussed

Agile

Engaging

On-device

Omni-channel

1

2

3

4

5


The Effortless Experience Rick DeLisi Co-Author & Senior Director, CEB

© 2013 The Corporate Executive Board Company. All Rights Reserved. SEC7385113SYN

@CEB_effortless


@CEB_effortless

WHAT IS LOYALTY?

■  Repurchase

Q: What % of your customers are loyal TODAY?

■  Increased Spend / Share of Wallet ■  PWoM / NWoM


@CEB_effortless

LOYALTY IS “A Child With Many Fathers”

■  Price ■  Value ■  Quality ■  Brand Identification

The TRUEST TEST of loyalty is when something goes WRONG.


@CEB_effortless

THREE QUESTIONS THAT GUIDED OUR RESEARCH

What impact do customer service interactions have on a customer’s future loyalty?

1

What are the things customer service

can do to drive loyalty?

2

How can service improve loyalty

while still reducing

operating costs?

3

Q: What do most companies believe they need to do in order to “make customers more loyal” when something goes wrong?


@CEB_effortless

FINDING 1: DELIGHT DOESN’T PAY

Less Loyal

More Loyal

Below Customer

Expectations

Meets Customer

Expectations

Exceeds Customer

Expectations

The Perception

The Reality

•  “Delight” only happens 16% of the time •  “Delight” increases operating costs 10-20%


@CEB_effortless

1. 00x

3. 97x

More Loyal

More Disloyal

Drivers of Disloyalty ■  Repeat contacts ■  Channel switching ■  Transfers ■  Repeating information ■  Robotic service ■  Policies and processes

customers have to endure ■  “Hassle factor”

Customer Effort

FINDING 3: MITIGATE DISLOYALTY BY REDUCING EFFORT

Customer Service Impact on Loyalty

Source: CEB analysis.


@CEB_effortless

THE BUSINESS CASE FOR THE EFFORTLESS EXPERIENCE

Low Effort High Effort 1%

81% Low Effort High Effort

88%

4%

Low Effort High Effort

Repurchase

94%

4%

Low-Effort Experience

High-Effort Experience

Overall Disloyalty

9%

96%


Increased Spend/ Share of Wallet

Negative WOM


@CEB_effortless

THE FOUR PILLARS OF LOW-EFFORT SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness


@CEB_effortless

WHICH WOULD YOU RATHER USE?


@CEB_effortless

IT’S ABOUT GETTING THEM TO STAY

First Contact Channel Concurrent Channel Usage

Phone

Web

Just Phone

Web and Phone

35.5% of phone callers were on the company’s Website while talking to a representative

57.7% of phone callers first went to the company’s Website



@CEB_effortless

CUSTOMER CHOICE IS NOT THE ANSWER Conventional Wisdom:

∞ × ∞ We’ve got to come up with a way to allow: every customer to solve every issue in every channel.


@CEB_effortless

CUSTOMER CHOICE IS NOT THE ANSWER

84% Value EASE Over Choice ■ Want fast resolution without

bouncing around channels

■  Prioritize low effort over channel choice

16% Value CHOICE Over Ease ■ Want issue resolved in

their preferred channel

■  Prioritize channel choice above all else


The vast majority of customers don’t CARE what channel they have to use, they just want

the problem to go away. Now.

GUIDE them to the channel that is fastest and easiest.


@CEB_effortless

GUIDANCE IN ACTION: The Virtual Concierge

Source: Amazon.com.


@CEB_effortless

THE FOUR PILLARS OF LOW-EFFORT SERVICE

Frontline Control Experience Engineering

Next Issue Avoidance Channel Stickiness


@CEB_effortless

4%

67%

THE CUSTOMER EFFORT SCORE 2.0

…and a way for service functions to positively impact Net Promoter Score®

A great way for service functions to detect potential disloyalty…

Strongly Disagree

Disagree Somewhat Disagree

Neither Agree Nor Disagree

Somewhat Agree

Agree Strongly Agree

Overall Disloyalty Percent of Detractors

High Effort Low Effort High Effort Low Effort Source: CEB analysis.

9%

96%

The company made it easy for me to handle my issue


Real-world Examples Seb Reeve Director Product Strategy & Marketing, Nuance


Capabilities driving change. Areas of focus for easy and consistent omni-channel service

Simplified yet granular

navigation gets users where they want to go in as

few steps possible.

Navigate

Using Biometrics to improve

convenience and security of

authentication

Authenticate

Conversational dialog helps

users complete transactions

by guiding them naturally

Transact

High-accuracy knowledge mining

that delivers Answers, not just search results

Answer Natural

Conversational

Precise

Secure

Using context to seamlessly escalate

to an appropriate resource

Escalate

Contextual


Low effort: On-device Providing assistance in digital channels



few steps possible.

Navigate



Answer



Escalate

1

FAQ Search Community Chat


Low effort: On-device Nina: Virtual assistants delivering business value

6.8% increase in e-store conversions

25% increase in basket size

44% YOY reduction in web chat volume

41% YOY reduction in calls to contact centre



few steps possible.

Navigate



Answer



Escalate

1


Low effort: On-device Nina: Delivering low-effort experiences

90.8 System Usability Scale

for Nina Web (Average website score is 67)



few steps possible.

Navigate



Answer



Escalate

"It’s like oh good, someone’s there to help me, you’re not alone. Makes it more personal, I like the face."

"Because it makes you feel like you’re not alone in troubleshooting this. Maybe that’s just me, but I like that, to know there’s somebody there. Even though I know it’s a computer. I know it’s crazy."

"You have a human connection. you feel like your concerns are important.”

1


Low effort: Telephony Natural language Call Steering reduces effort

•  Touchtone IVR was difficult to navigate •  Phone keys were being pressed haphazardly to

reach CSRs •  Customers were being transferred to the wrong skill

groups, increasing transfer rates between CSRs •  Service operations costs were high

Challenge Solution

5 point improvement in customer effort score and return on investment delivered through efficiency gains.

ID# SCS059

Results



few steps possible.

Navigate




Transact



Escalate

2


•  Natural language Call Steering solution for 31 million subscribers

•  First in Turkish language •  Over 150 destinations

•  Promotional campaign including: •  Television commercial •  Comprehensive PR campaign •  Active promotion by the CSRs

Challenge Solution Results



ID# SCS059



few steps possible.

Navigate




Transact



Escalate

2


•  Loyalty: •  IVR CSAT Scores are 2 points higher •  IVR Customer Effort Score is 5 points higher

•  Efficiency: •  IVR automation rate increased 5% •  CSR transfer rate decreased 5%

Challenge Solution Results



ID# SCS059

“One of the largest wins that the Call Steering system provides Turkcell Global Bilgi is an increase in efficiency. Enabling a transaction in just 20 seconds is undoubtedly an added value.” Fahri Arkan, Assistant General Manager of Information Technologies, Turkcell Global Bilgi



few steps possible.

Navigate




Transact



Escalate

2


Low effort: Authentication Using Biometrics

to improve convenience and

security of authentication

Authenticate



Escalate

3

“Our people love it, our clients love it, and it is delivering improved cost to serve.”

Matt Smallman, Client Experience Strategy and Change Barclays Wealth and Investment Management

Barclays improves service and reduces call duration by 15%


Takeaways

–  Expectations for great UX are changing quickly. –  Understanding user behaviour is key to disruption. –  Innovators develop services that are more:

user-focussed, agile, engaging, on-device and omni-channel.

–  Customers reward low-effort experiences with loyalty. –  It’s not getting them to use self-service, it’s getting them to stay. –  Customers favour guidance and assistance over choice.

–  Innovative self-service options exist and deliver results. –  Focus on usability: navigate, authenticate, transact, answer & escalate. –  Conversational assistants offer a consistent experience across channels.

What did we just hear?

3

2

1


Thank you! Sebastian Reeve – Director Product Strategy EMEA, Nuance Email: [email protected] Twitter: @rrreevo

Rick DeLisi – Senior Director and Executive Advisor, CEB Email: [email protected] Twitter: @rickdelisi

April 2014 Nuance & Corporate Executive Board webinar

Business

Transcript of April 2014 Nuance & Corporate Executive Board webinar