Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable...

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Welcome to Today’s Web Seminar

February 13, 2014

Elliot Kass has been a leading force in high-tech journalism and marketing

for more than twenty-five years. In the 1980s, he was a founding editor of

InformationWeek and served as the publication’s first chief of correspondents.

In the early 1990s, as the Editor of Communications Week and later Internet

Week, Elliot helped usher in the online era, winning numerous awards for the

publications’ coverage of networking technologies and eBusiness.

As UBM Technology’s Vice President for Content Marketing from 2004 to 2013,

Elliot pioneered the field of marketing and content services. He worked with

hundreds of clients across the high-tech spectrum, developing content with

strong appeal for their audience of technology and business professionals.

A frequent public speaker on technology-related topics, in 1998, Elliot

organized the first educational seminar on the Internet for the U.S. Congress.

He has also spoken at the UN on the Internet’s economic potential and

appears on numerous industry panels. His articles have been published by

leading industry analysts, such as the Gartner Group, and have appeared in

publications as divergent as Folio, Computerworld Computing and The

Washington Post.

Martha Rogers, co-founder, Peppers and Rogers Group - Recognized for more than

20 years as one of the leading authorities on customer-focused relationship

management strategies, Dr. Martha Rogers, Ph.D. is an acclaimed author, business

strategist and a founding partner of Peppers & Rogers Group, the world's premier

customer-centric consultancy.

Business 2.0 magazine named Martha Rogers one of the 19 "most important business

gurus" of the past century. The World Technology Network cited her as "an innovator

most likely to create visionary 'ripple effects.'" Martha's counsel and insight are regularly

sought by Fortune 500 and Blue Chip executives. Her experience in documenting

customer value, and her expertise in applying "out-of-the-box" thinking makes her

equally popular among the global media, engagement planners, event organizers, as

well as corporate and association leaders who are eager to learn more about customer-

centric concepts and methodologies.

An adjunct professor at the Fuqua School of Business at Duke University, Dr. Rogers is

the co-director of the Duke Center for Customer Relationship Management. She is

widely published in academic and trade journals, including Harvard Business Review,

Journal of Advertising Research, Journal of Public Policy and Marketing, and Journal of Applied Psychology. She has been named International Sales and Marketing Executives'

Educator of the Year. Dr. Rogers earned her Ph.D. at the University of Tennessee as a

Bickel fellow. At Peppers & Rogers Group, Dr. Rogers has led several large subscription-

based research studies focusing on particular aspects of CRM.

Eric Deitert is Director of Insurance Industry Marketing, at

Pegasystems Inc. For the greater part of Eric's career, he has

worked for prominent software development companies that

provide technology for process improvement. He has held a

variety of roles in which he has been responsible for technology

product marketing, product management, and strategic market

analysis within the BPM and business rule engine (BRE) sectors.

Prior to joining Pegasystems, Eric was a Research Director at

Gartner, covering BPM and business rule technology.

2/28/2014 © 2014 Pegasystems Inc. - Confidential

Martha Rogers, Ph.D., co-founder of Peppers & Rogers Group

Eric Deitert, Dir. of Insurance Industry Marketing, Pegasystems

Leveraging Customer Centricity to Drive Profitable Growth

Every Customer Conversation is a Moment of Truth

© 2013 Pegasystems Inc. - Confidential 6

What is Customer Centricity and why

does it matter?

Customer Centricity places

our customer at the center

of all our company’s efforts,

delivering a consistent,

superior experience


Yesterday businesses were built on a foundation

of personalized service and loyalty


Today’s New Paradigm


Moore’s Law

Every 20 years,

computers get a

thousand times faster

and cheaper

2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group. 10


Zuckerberg’s Law

Every 20 years,

we share a

thousand times

as much

information

as others



Suppose you were a food source for bees

But a bee will only do his dance to tell

the other bees about you if he was

satisfied with the nectar

Moral: In the absence of

communication among your

customers, advertising rules

Once your customers communicate

with each other, it’s the customer

experience that counts

Bright colors and a sweet fragrance can get any

exploring bee to take a look


“I Want It ALL and I Want It NOW!”

1 Day

.5 Day

1 Hour

10 Minutes

1 Minute

1 Second

1975 1985 1995 2000 2005 2010 2015

Retail Store/Branch

Fax

E-Mail

Call Center — Voice

Call Center — IVR

Website

SMS/Mobile Data

Interactive TV

Comparison Engines

Web Chat

Consumer Web Services

Social Mobile



Nearly half of Americans have no life insurance at all and 80% fail to meet the 7X multiplier

Only 1/3 have shopped for life insurance in the past year

22-68% of customers I different age groups use social media when shopping for life insurance

55-86% of customers in different age groups visited insurance carrier websites to search for information

The majority of potential customers prefer email as a way for the company to share information, but there are significant numbers who prefer other channels

-- Acxiom survey, reported in 1to1 Media


“You can't take

something bad off

the Internet. That's

like trying to take

pee out of a

swimming pool.”

- Grant Robertson, blog post, May 1, 2007

Screw up, and the

“news” will be immediate,

ubiquitous, and permanent

You can’t un-Google yourself Linda Kaplan Thaler, CEO, Kaplan Thaler Group



Democratization of the Customer Experience



1

7

Customers assert their new social power easily

August last year – HSBC forced to reverse course

Over the summer it had dropped its policy of free

overdrafts for university students

By using Facebook, students connected with others to

organize a protest of this new policy

Soon HSBC reinstated the free overdraft policy


Research Study



Customers Would Rather

Switch than Fight

Would be likely to

switch to another

company if they offered

more options to

connect with them 50% Those under 45 were 20% more likely to do so

More than



Toyama no Kusuri-uri

House-to-house medical supplies

Consumers only charged for usage

Detailed records kept in a database,

called the “Daifuku cho”

Circa 1750


Challenges to a Customer Centric

Approach…

Consistent

multi-channel

experience 1

Personalized

customer

interactions 3

Single view of

the customer 2


Placeholder for poll

Consistent Multi-channel experience

Single view of the customer

Personalized customer interactions

Other

In your opinion what are the most pressing challenges your

enterprise faces when it comes to customer centricity?

(Select all that apply)

23 23 Pega Confidential, Internal Use Only

MILLIONS SAVED PER YEAR WHILE REVOLUTIONIZING THE CLIENT SERVICE EXPERIENCE

“Our market is changing. We need to ensure that our business is

ready to compete in the new environment. Improving our customer

service, creating compelling products and building an agile and

responsive business will be our priorities.”

CEO

BUSINESS GOALS

Reduce unit costs

Improve retention by enhancing

customer & distributor services

Instill process consistency & quality

Automate non-value add processes

Replace existing workflow systems

(AWD) with a true BPMS

RESULTS

REDUCTION IN EFFORT TO DESIGN & BUILD NEW CUSTOMER SERVICE PLATFORM

18% COST REDUCTION

6% COST AVOIDANCE due to front office CRM

IMPROVEMENT OF FIRST CONTACT RESOLUTION

due to back office automation 40% REDUCTION in manual steps

35%

28%

Challenge: Global Insurer Enable a Multi-Channel Experience


Survey: Customers Find Multi-Channel

Coordination Lacking

• Customer interact with insurance providers using 3.6 channels

For ex: 97% of all mobile users also use website

• 32% of mobile users are satisfied with that experience

• Those dissatisfied with one channel tend to be dissatisfied with

other channels too, and with the whole company

For ex: 71% of email users dislike mobile experience

--Forrester


2

5

Anticipating customers

Go to an ATM for ING Bank

Ask to withdraw cash

Suppose the ATM notifies you that you don’t have enough money in your account for this...

If you are a creditworthy customer, then –depending on your preferred channel -- ING will email, call, text, mail you a credit line offer

Response rate greater than 50%!

Source: SPSS Netherlands


Overview

Proposed changes in the U.S. Healthcare market made it more urgent for Cigna

to build relationships with end-user customers rather than the employers that

provide the coverage.

Activities

• Created the “Words We Use” document

• The Contact Center also overhauled its language and agents were

given “customer treatment” training

• Created the “Experience Room” at headquarters where 6,000

employees walked through 10 stations representing the customer

experience

Cigna Makes Healthcare Personal


Overview

Proposed changes in the U.S. Healthcare market made it more urgent for Cigna

to build relationships with end-user customers rather than the employers that

provide the coverage.

Activities

• Created the “Words We Use” document

• The Contact Center also overhauled its language and agents were

given “customer treatment” training

• Created the “Experience Room” at headquarters where 6,000

employees walked through 10 stations representing the customer

experience

• 5% increase in first call resolution

• 6% increase in customer satisfaction

• 156% increase in level of understanding by customers of

Cigna’s terms and business

Cigna Makes Healthcare Personal


CONSOLIDATED 5 CALL

CENTER INTO 1 Service any call for any product with CSR

Reduce service costs

Optimize customer experience

Stop transferring calls

Create one-and-done processing

“We’re very happy that Celent recognized our business and technology achievements

attained with our customer experience initiative by leveraging Pegasystems in a best

of breed, business-focused approach. Celent’s recognition provides an external

validation of our key project objective: making a significant, positive impact on our

many valued customers.”

Vice President of Architecture

BUSINESS GOALS

20% INCREASE CRS utilization

Optimized Customer Experience, while handling 16% rise in Service Volumes

Challenge: Life Insurer Enable a Single View of the Customer

RESULTS

16%INCREASE IN SERVICE VOLUME without increasing staff

14% REDUCTION OF FTEs

AWARD-WINNING CUSTOMER SERVICE PLATFORM


Acting in the customer’s interest

How Amazon helps you avoid making mistakes


How much value is lost every

time this agent recruits a new

auto insurance customer?

Customer centricity changes our focus

Company X sells auto, property, health and life insurance

Agents recruit customers, then are protected from

poaching by other Company X agents

But this agent specializes only in auto insurance


50% REDUCTION

In cases suspended

“Become the best bank & insurer for customers”

Achieve a step-change improvement in customer outcomes, complaint reduction and Net Promoter Scores

Simplify end-to-end processes

“Pega has been that critical partner & friend to

complete that simplification transformation across

our business.”

Group Change Programme Director

Leading European Banking & Insurer

BUSINESS GOALS

10% IMPROVEMENT

in productivity for phase 1

700 Activities Simplified to 23 Core Processes: £1 billion COST REDUCTION

Challenge: UK Insurer Enables Personalized Interactions

RESULTS

30% REDUCTION

in customer touch points & handoffs

80% REDUCTION

in re-indexing of cases


3

2

Mass-customizes customer reports

Prior to client meeting, company’s CRM system

produces a customized recommendation

Customers 4X as likely to buy


Maximize Customer Value

End-to-End Customer Centricity Delivered

Omni-Channel Customer Centricity Engagement

Expand Retain Service Acquire

Insurance Industry Specialization

Marketing

Next-Best-Action

Marketing Application

Service

Customer Process

Manager Application

Sales

Sales Force

Automation Application

Pega BPM Rules • Process • Decisions • Case • Predictive Analytics

Pega Cloud®


Customer

Profile

Contact

Channel Persona

Satisfaction

Level/NPS

Current

Product

Sale & Service

objectives

Gold Call

Center

Tom

MyWorld

Detractor Auto

Home

• Retain

• Promos

• Srvc Work

Silver Web Joe

Bargain Promoter Life Remediate

Guides users to intuitively follow processes

Automatically tailors the user experience

Automates service requests increase quality,

satisfaction and experience

…and then dynamically assembles the best

communication, process, and decision

components to deliver the best-fit products,

services and sales approach

2

At point of interaction the system

automatically analyzes the customer

situation and retrieves the most

appropriate data to process the work …

1

Interaction 2

1

The Power to Engage™

Personalized and Adaptive Customer Interactions Everytime


Customer Interaction Optimized with Pega

Leverage in your current service desktop

Users guided by marketing best practices

Predictive and adaptive analytics highlight relevance for each customer

Recommends Next-Best-Action


Thanks for being our customer

Personalized Service Interactions

with

Production Line Efficiency

Personalized Interactions

through Context

One Company

to the Customer

Seamless

Multichannel Experience

http://www.wired.com/images_blogs/photos/uncategorized/2009/03/12/iphone_0412.jpg


Customer Centricity’s Objective

Customer

Needs

Satisfied

Customers Reached

Maximizing the value

created by each product


created by each customer


Product Centricity Market share

Share of

customer

Custo

me

r C

entr

icity


Customers create all value for your company

It’s long-term as well as short-term value

Customers and prospects are finite in number






What business are you in?

The company that does not use the

information it has about customers

has no advantage over the company

that does not have information about

customers



In 1996, Barnes & Noble offered to buy amazon.com

amazon.com has a market

cap of $102 billion

Today, Barnes & Noble has a

market cap of $719 million



How good is your customer experience?

2013 1to1 Media. All Right Reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group.

80% of corporate executives

say their company delivers a

superior customer experience

Just 8% of consumers

report they received one

42

Source: Bain and Company


If customers trust you…

… they believe

You will understand their point of view

What’s it like to be your customer?

What should it be like?



It’s basic:

Customers create the most

value for you when you

create the most value

for them



Customer Centricity is building

the value of the company by

building the value of the

customer base



What is our purpose?

If our goal is to sell more stuff to our

customers, we will compete on price

We’ll end up selling more stuff!

If our goal is to add value to our

customers’ lives, then…



Customers can be tough…

… the two things they respond to:

Figure out

what’s best for

each of them,

and do it -well



Placeholder for poll and Q&A

Would you like Pega to send you their new whitepaper titled,

“Every Customer Conversation is a Moment of Truth, Are You

Ready?”

Yes, I am a Life Carrier

Yes, I am a P&C Carrier

Yes, I am a Life and P&C Carrier

No thanks


Thank you Build for Change

®

Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable...

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